Pebblebrook Hotel Trust (PEB) Q4 2024 earnings summary

Executive summary

• 2024 results exceeded expectations, driven by strong resort and redeveloped property performance, with Adjusted EBITDA up 0.8% to $359.2M and Adjusted FFO per diluted share up 5% to $1.68.

• Same-Property Total RevPAR increased 2.1% for the year, with both urban and resort gains and robust out-of-room spending.

• Group and leisure demand rebounded, especially at California resorts, with occupancy and RevPAR gains.

• Operational efficiencies and cost controls mitigated inflationary pressures, supporting EBITDA growth.

• Pebblebrook Hotel Trust shifted its portfolio toward higher-quality, leisure-focused properties, increasing group and leisure demand and reducing reliance on business transient travel.

Financial highlights

• Q4 Same-Property Total RevPAR up 1.8%, with 4% growth at resorts and 0.7% at urban hotels, despite storm and renovation impacts.

• Adjusted EBITDA for Q4 reached $62.7M, aided by $5.4M in business interruption insurance proceeds.

• Resort occupancy for Q4 rose 3.7 points to 65%; urban occupancy up 2.9 points to 68.1%.

• Redeveloped properties saw Q4 occupancy up 4.7 points, RevPAR up 6.3%, and market share up 274 bps.

• 2024 net income was $0.0M, compared to a net loss of $74.3M in 2023.

Outlook and guidance

• 2025 outlook assumes normalization of resort rates, with no further meaningful declines expected.

• Group room night pace 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 $9M-$12M and total revenue by $12M-$16M, mainly in Q1.

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

• Capital investments projected at $65M-$75M in 2025, with similar levels in 2026 excluding major redevelopments.