Summary of Pebblebrook Hotel Trust Q2 2026 Earnings Call

1Key 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%.

2Strategic 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%.

3Forward 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.

4Bad 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.

5Notable 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.