Pebblebrook Hotel Trust (PEB) Q3 2025 earnings summary

Executive summary

• Third-quarter results were consistent with expectations, with San Francisco and Chicago outperforming due to strong convention and leisure demand, while some properties faced demand softness and timing impacts from holidays.

• Largest owner of urban and resort lifestyle hotels in the U.S., with a portfolio realigned toward leisure and group-focused properties over the past six years.

• Portfolio repositioning included $802M in resort acquisitions and $1.2B in urban property sales since 2019, increasing resort EBITDA contribution from 17% to 47%.

• Trading at an estimated 55% discount to private market NAV, presenting a significant investment opportunity.

• The company remains cautious amid economic uncertainty, policy risks, and expects temporary softness in travel demand due to the recent federal government shutdown.

Financial highlights

• Q3 2025 total revenues were $398.7M, down from $404.5M in Q3 2024; net loss attributable to common shareholders was $(43.4)M for Q3 2025, compared to net income of $33.0M in Q3 2024.

• Same-property hotel EBITDA was $105.4M, with adjusted EBITDAre at $99.2M, $2.2M above midpoint; adjusted FFO per share was $0.51, $0.03 above midpoint.

• Q3 same-property total RevPAR decreased 1.5% year-over-year, with occupancy up 190 bps to 79.9% and ADR down 5.4%.

• Impairment losses of $46.5M were recognized in Q3 2025 for three hotels.

• Business interruption insurance income and gain on insurance settlement totaled $11.4M for the nine months ended September 30, 2025.

Outlook and guidance

• 2025 full-year net loss expected between $67.5M and $58.5M; adjusted EBITDAre guidance narrowed to $332.5–$341.5M.

• Adjusted FFO per diluted share for 2025 forecasted at $1.50–$1.57; Q4 guidance for Adjusted FFO per diluted share is $0.18–$0.26.

• 2025 same-property total RevPAR growth rate expected between -0.1% and 1.1% year-over-year.

• Expects $71M in Hotel EBITDA upside and $0.48/share AFFO upside over the next 3–4 years, driven by urban demand recovery, ROI investments, and LaPlaya reopening.

• Guidance reflects modest reductions due to the federal government shutdown's impact on travel demand, especially in Washington, D.C. and San Diego.