Pebblebrook Hotel Trust (PEB) Q1 2026 earnings summary

Executive summary

• Q1 2026 results exceeded expectations, driven by strong demand in both urban and resort markets, especially San Francisco and Los Angeles, and disciplined expense management.

• Portfolio repositioned since 2019 toward higher-quality leisure and group demand, with increased resort and East Coast concentration and reduced West Coast urban exposure.

• Strategic operating initiatives, completed reinvestments, and major events contributed to robust revenue and margin growth.

• Largest owner of luxury and upper-upscale lifestyle hotels in the US, with 44 hotels across 13 urban and resort markets as of March 31, 2026.

• Cautious outlook for the remainder of the year due to macroeconomic and geopolitical uncertainty.

Financial highlights

• Same-Property Hotel EBITDA rose 27.6% to $82.2M, adjusted EBITDA up 29.5% to $73.3M, and adjusted FFO per diluted share doubled year-over-year to $0.32.

• Total revenues for Q1 2026 were $345.7M, up from $320.3M in Q1 2025.

• Same-property occupancy increased 550 bps to 68.5%, ADR up 2.8%, RevPAR up 11.8% to $216, and total revenue up 10.1% year-over-year.

• Total expenses rose only 5.6%, driving 327 bps of hotel EBITDA margin expansion.

• Net loss for Q1 2026 was $18.4M, improved from $32.2M loss in Q1 2025.

Outlook and guidance

• Raised full-year 2026 Adjusted EBITDAre guidance to $336–$348M and Adjusted FFO per diluted share to $1.60–$1.70.

• Same-Property Total RevPAR growth for 2026 forecast at 3.0–5.0% year-over-year.

• Forecasting same property EBITDA growth of 5.2%-8.6% for the year, with the midpoint at nearly 7%.

• Expense growth expected in the 2.4%-3.8% range, with labor costs up 3%-5% and property insurance costs expected to decline.

• Management remains cautious for the rest of 2026 due to economic and geopolitical uncertainty.