PEB — Pebblebrook Hotel Trust

Summary of Pebblebrook Hotel Trust Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Same-property hotel EBITDA: Increased by 7.1% to $123.3 million, exceeding expectations by $6.6 million.
• Adjusted EBITDA: Rose to $116.2 million, surpassing guidance by $6.2 million.
• Adjusted FFO per diluted share: Reached $0.68, $0.06 above the high end of guidance.
• Occupancy: Increased by 130 basis points to 79.4%.
• Average Daily Rate (ADR): Grew by 4.7%.
• Revenue per Available Room (RevPAR): Increased by 6.5%, with 74% of growth driven by rate increases.
• Total revenue growth: Driven primarily by resorts, which saw RevPAR increase by 12% and hotel EBITDA rise by 18.5%.

2. Strategic Updates and Business Highlights

• Strong performance in San Francisco and Los Angeles, with San Francisco's RevPAR up 16% and hotel EBITDA up 24.6%.
• Significant growth in group and transient demand, particularly in resort properties, with group room nights up 18% and transient revenue up nearly 10%.
• Successful capital allocation strategy, including the sale of the Chamberlain West Hollywood Hotel for $43.5 million, which was used to retire preferred shares at a discount.
• Continued focus on operational efficiency, with total expenses rising only 3.8% against revenue growth of 4.8%.

3. Forward Guidance and Outlook

• Q3 Guidance: Same-property RevPAR growth expected between 1% to 3%, with adjusted EBITDA forecasted at $92.5 million to $96.5 million.
• Full Year Outlook: Increased same-property RevPAR growth forecast to 4.5% to 5.5% and EBITDA growth to 8.2% to 10.5%. Adjusted FFO per share outlook raised to $1.69 to $1.76.
• Positive long-term outlook for 2027, driven by strong demand fundamentals and limited supply growth, with expectations of continued recovery in urban markets.

4. Bad News, Challenges, or Points of Concern

• Weaker performance in certain urban markets, notably downtown San Diego and Washington, D.C., where RevPAR declined by 9.1% and 9.9%, respectively, due to weak convention calendars and government-related travel.
• Concerns about potential geopolitical instability and macroeconomic volatility, which could impact travel and demand.
• Group revenue softness attributed to convention calendar shifts rather than a pullback in demand, indicating potential volatility in future performance.

5. Notable Q&A Insights

• Management highlighted broad-based demand growth, primarily driven by transient segments (both corporate and leisure), and emphasized the importance of pricing strategy in driving revenue.
• Discussions around the transactions market indicated increasing investor confidence, with more activity in luxury and resort assets.
• Management noted that while the World Cup provided a modest revenue boost, it also led to declines in food and beverage revenues in some markets.
• The company is focused on reducing reliance on discounted channels, particularly OTAs, to improve profitability, with a current OTA mix of about 25% for transient business.

This summary encapsulates the key takeaways from Pebblebrook Hotel Trust's Q2 2026 earnings call, highlighting both the positive performance metrics and the challenges faced by the company.