Pebblebrook Hotel Trust (PEB) Q4 2024 earnings summary

Executive summary

• Fourth quarter and full year 2024 results exceeded expectations, driven by strong resort and redeveloped property performance, with Adjusted FFO per share up 5% to $1.68.

• Pebblebrook Hotel Trust is the largest owner of urban and resort lifestyle hotels in the U.S., with 46 hotels and a balanced urban/resort and business/leisure mix.

• Over six years, the portfolio shifted toward leisure-focused, higher-quality properties, increasing group and leisure demand and reducing reliance on business transient travel.

• Since 2019, acquired 5 luxury resorts for $802M and sold 15 lower-quality urban hotels for $1.2B, raising resort EBITDA contribution from 17% to 45%.

• Group and leisure demand rebounded, especially at resorts, with business group demand up nearly 15% and food and beverage revenue up 7% in Q4.

Financial highlights

• Adjusted EBITDAre for 2024 was $359.2 million, up 0.8% year-over-year; Adjusted FFO per diluted share rose to $1.68 from $1.60.

• Q4 2024 Same-Property Total RevPAR grew 1.8% year-over-year, with resorts up 4.0% and urban hotels up 0.7%.

• Redeveloped properties saw full-year occupancy up 10.7 points and RevPAR up 11.3%, with EBITDA growth over 20%.

• LaPlaya Beach Resort & Club generated $19M hotel EBITDA and received $23.8M in business interruption insurance, totaling $42.8M in Adjusted EBITDAre impact in 2024.

• Net debt to EBITDA improved to 5.8x at year-end 2024.

Outlook and guidance

• 2025 Same-Property Total RevPAR growth expected between 1.8% and 3.7%; Adjusted EBITDAre guidance is $341.5–$355.5 million.

• Group room night pace is up 3.8%, group ADR up 1.8%, and total combined pace up 6.9% in revenues on the books for 2025.

• LA wildfires expected to reduce 2025 rooms revenue by $9–$12 million and total revenue by $12–$16 million, with a $9 million hit to hotel EBITDA.

• Capital investments for 2025 are forecast at $65–$75 million, a significant reduction from prior years.

• Expects $71M in Hotel EBITDA upside over the next 3–4 years from urban recovery, ROI projects, and LaPlaya reopening.