Summary of PEB-PH Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Performance::

Same-property total RevPAR increased by 2.9%.

Same-property hotel EBITDA grew by 3.9% to $64.6 million, exceeding guidance by $2.2 million.

Adjusted EBITDA rose 11.1% year-over-year to $69.7 million, surpassing guidance by approximately $6 million.

Adjusted FFO per share increased to $0.27, up $0.05 from guidance and 35% higher than Q4 2024.

Same-property occupancy improved by 190 basis points, while ADR declined by 1.6%.

Non-room RevPAR increased by 5.5%, contributing to total RevPAR growth.

Full Year 2025::

Strong performance driven by redeveloped resorts and urban recovery markets, particularly in San Francisco.

Adjusted EBITDA for the year was robust, but overall performance was impacted by challenges in markets like Los Angeles and Washington, D.C.

2Strategic Updates and Business Highlights

Continued strength in leisure demand, particularly in San Francisco and recovering weekday business travel.

Successful execution of a revenue management strategy focusing on occupancy to enhance profitability.

Significant improvements in out-of-room spend, supported by strategic reinvestment programs.

Completed a multiyear redevelopment program, with ongoing capital investments of $65 million to $75 million anticipated for 2026.

Successfully sold two properties for over $116 million, using proceeds for debt reduction and share repurchases.

3Forward Guidance and Outlook

2026 Expectations::

Anticipated RevPAR growth of 2% to 4% and total RevPAR growth of 2.25% to 4.25%.

Same-property EBITDA expected to increase by 2.1% to 6%, with a midpoint of 4%.

Positive early trends observed in January and February 2026, with RevPAR growth of 4.6% in January and projected growth of 15% in February.

Continued focus on operating efficiencies and cost controls to maintain margin expansion.

4Bad News, Challenges, or Points of Concern

The government shutdown in late 2025 disrupted travel demand, impacting overall performance.

Mixed recovery in urban markets, particularly in Los Angeles and Washington, D.C., which faced unique disruptions.

Caution in guidance due to potential macroeconomic and geopolitical risks, including uncertainty in government-related travel.

Group demand remains soft, particularly in government-related segments, with group room nights down 0.6%.

5Notable Q&A Insights

Group Demand:: Current group room nights are down, but transient demand is strong, with significant growth in leisure and business transient segments.

Resort Portfolio Performance:: Recent renovations are yielding strong returns, with projected annual cash yields of 22% to 26% from recent investments.

Transaction Market:: The market is becoming more constructive, with expectations for continued asset sales to capitalize on favorable conditions and improve balance sheet flexibility.

CapEx Strategy:: The company emphasizes ongoing capital investments to maintain property quality and competitive positioning, avoiding deferred maintenance issues. Overall, Pebblebrook Hotel Trust's Q4 2025 results reflect a resilient recovery in leisure demand and strategic growth initiatives, despite facing challenges from government disruptions and mixed urban market performance. The outlook for 2026 remains cautiously optimistic, with a focus on operational efficiencies and capitalizing on favorable market conditions.