Pebblebrook Hotel Trust (PEB) Investor presentation summary

Investment highlights and growth drivers

• Cash flow per share is growing through urban recovery, redevelopment ROI, and strategic capital allocation, with a favorable lodging cycle supporting multi-year recovery due to improving demand, minimal new supply, and strong event calendars through 2028.

• Estimated $90M in incremental Hotel EBITDA and $0.70/share AFFO upside are expected from urban normalization, redevelopment, and management agreement savings.

• Retained free cash flow for 2026 is projected at $123.5M (~$1.08/share), enabling self-funded debt reduction and share repurchases.

• NAV gap of ~$5.50/share implies 29% upside, with recent asset sales and EBITDA growth supporting a rising NAV.

Portfolio repositioning and performance

• Portfolio has shifted toward higher-quality leisure and group demand, with resorts now 48% of Hotel EBITDA (up from 17% in 2019) and East Coast properties at 57% (up from 38%).

• 99% of 2025 Hotel EBITDA came from luxury and upper-upscale properties, with a balanced 50/50 business/leisure demand mix.

• Total RevPAR in 2025 was $340, 6.6% higher than peer average.

Lodging cycle and urban recovery

• Multi-year EBITDA recovery is supported by demand normalization, low supply growth (~0.9% for 2026-2028), and strong event calendars.

• Urban occupancy remains 9 points below 2019, with $96M lower Hotel EBITDA, indicating significant upside as demand recovers.

• Urban recovery scenario projects ~$70M incremental Hotel EBITDA as occupancy improves to ~80%, still below 2019 levels.

• Major events in 2027-2028 (Super Bowl, Olympics, conventions) are expected to drive further demand.