Pebblebrook Hotel Trust (PEB) Q1 2025 earnings summary

Executive summary

• First quarter 2025 results exceeded expectations, driven by strong occupancy and ancillary revenue at resorts and redeveloped properties, while urban properties, especially Los Angeles, faced revenue declines due to wildfires and renovations.

• Pebblebrook Hotel Trust has shifted its portfolio toward leisure and group-focused properties, increasing resort EBITDA contribution from 17% to 45% over six years.

• Strategic redevelopments and repositionings totaling $278 million are expected to drive significant organic EBITDA growth.

• Proactive revenue generation and expense management contributed to outperformance despite economic uncertainty.

• 1,186,797 to 1.3 million common shares were repurchased in Q1 2025, totaling $13.3 million at an average price of $11.02–$11.23 per share.

Financial highlights

• Q1 2025 total revenues were $320.3 million, up from $314.1 million in Q1 2024, driven by recovery at LaPlaya Beach Resort & Club and other renovated properties.

• Same-property hotel EBITDA reached $62.3 million, $4.3 million above outlook midpoint, but down 8.6% year-over-year.

• Adjusted EBITDA/EBITDAre was $56.6 million, $4.1 million above outlook midpoint, but down 6.9% year-over-year; adjusted FFO per diluted share was $0.16, $0.05 above midpoint, but down 23.8% year-over-year.

• Net loss attributable to common shareholders was $32.2–$43.6 million, compared to $27.5–$39.0 million in Q1 2024.

• LaPlaya and Naples resorts saw total RevPAR surge 22% and hotel EBITDA climb nearly 30% year-over-year; $4.3 million in business interruption income recorded.

Outlook and guidance

• Full-year 2025 outlook was revised down, with net loss expected between $30.2 million and $9.7 million, and Adjusted EBITDAre guidance midpoint lowered by $10.5 million.

• Adjusted FFO per diluted share for 2025 is forecast at $1.42–$1.59, with Q2 expected at $0.57–$0.61.

• Guidance reflects increased macroeconomic uncertainty, potential softness in demand for H2 2025, and reduced government/international travel.

• Capital investment plan for 2025 remains at $65–$75 million, excluding LaPlaya remediation.

• Sufficient liquidity is anticipated to meet short-term obligations, with $860.8 million in cash, restricted cash, and available credit as of March 31, 2025.