PEB-PF — Pebblebrook Hotel Trust

Summary of Pebblebrook Hotel Trust Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Same Property Hotel EBITDA: Increased by 27.6% to $82.2 million, exceeding expectations by $8.2 million.
• Adjusted EBITDA: Rose 29.5% year-over-year to $73.3 million, $9.3 million above guidance.
• Adjusted FFO per Diluted Share: Doubled to $0.32, surpassing expectations by $0.09.
• Same Property Occupancy: Increased by 550 basis points.
• Average Daily Rate (ADR): Increased by 2.8%.
• Revenue per Available Room (RevPAR): Increased by 11.8%.
• Total Revenue: Grew by 10.1%.
• Same-Property Total Expenses: Increased by 5.6%, leading to a 327 basis point EBITDA margin expansion.

2. Strategic Updates and Business Highlights

• Strong performance attributed to broad portfolio strength, effective expense control, and strategic operating initiatives.
• 32 properties exceeded revenue forecasts; 34 exceeded gross operating profit (GOP) forecasts.
• Notable recovery in Los Angeles and San Francisco markets, with RevPAR growth of 44.5% and 5.6%, respectively.
• Successful rebranding of Mondrian Los Angeles to Valor Los Angeles, leveraging Hilton’s distribution platform.
• Continued investment in property renovations, with $11.9 million spent in Q1; full-year capital investments expected between $65 million and $75 million.

3. Forward Guidance and Outlook

• Q2 Outlook: RevPAR and total RevPAR growth expected to be in the range of 3% to 5%.
• Full-Year Guidance: RevPAR growth outlook increased to 2.75% to 4.75%, and total RevPAR growth to 3% to 5%.
• Same-Property EBITDA Growth: Forecasted to be between 5.2% to 8.6%.
• Cautious optimism due to geopolitical risks and economic uncertainties, particularly related to the Middle East conflict and its potential impact on travel demand.

4. Bad News, Challenges, or Points of Concern

• Washington D.C. and Boston markets showed weaker performance, with RevPAR declines of 24.1% and 3%, respectively.
• Increased geopolitical tensions and rising fuel prices could negatively impact travel demand and airline capacity, particularly for international travel.
• Visibility into future bookings has shortened, leading to cautious guidance for the remainder of the year.
• Potential headwinds from the World Cup, though management remains optimistic about overall demand.

5. Notable Q&A Insights

• Impact of Oil Prices: Historically, significant increases in gas prices can affect travel demand, especially for resorts in drive-to markets. However, the upper-end consumer may be less affected.
• Expense Management: Full-year expense growth projected at 2.4% to 3.8%, with labor costs expected to grow in the low single digits. Property insurance costs anticipated to decline due to favorable market conditions.
• World Cup Expectations: Management expects positive demand impact but remains cautious about potential disruptions from geopolitical issues.
• San Francisco Market Recovery: Strong recovery anticipated, with RevPAR growth expected to be between 12% and 15% for the year, driven by improved business and leisure travel.

This summary encapsulates the key points discussed during the earnings call, providing a balanced view of Pebblebrook Hotel Trust's performance and outlook.