Pebblebrook Hotel Trust (PEB) Q4 2025 earnings summary

Executive summary

• Fourth quarter and full-year 2025 results exceeded expectations, with strong growth despite government shutdown disruptions and macroeconomic headwinds.

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

• Largest owner of luxury and upper-upscale lifestyle hotels in the US, with 44 hotels across 13 urban and resort markets and a balanced business/leisure customer mix.

• Portfolio benefited from urban market recovery and resilient leisure demand, especially in San Francisco, despite policy and weather disruptions.

• Strategic focus on closing NAV discount through EBITDA ramp, targeted dispositions, deleveraging, and share repurchases.

Financial highlights

• Same-property total RevPAR increased 2.9% in Q4 2025, with hotel EBITDA up 3.9% to $64.6M, $2.2M above outlook midpoint.

• Adjusted EBITDAre was $342.5M for 2025, $6M above the outlook midpoint; Adjusted FFO per diluted share was $1.58, $0.05 above guidance.

• Adjusted EBITDA rose 11.1% year-over-year to $69.7M in Q4; Adjusted EPS per share increased to $0.27, up $0.07 and 35% from Q4 2024.

• Full-year resort EBITDA increased 1.3%; Newport Harbor Island Resort saw RevPAR up 38.5% and EBITDA up $9.3M post-redevelopment.

• San Francisco portfolio Q4 RevPAR up over 32%, full-year RevPAR up 15.1%-17.5%, and hotel EBITDA up 58.5%.

Outlook and guidance

• 2026 guidance: Net income/(loss) of ($10.4) to $3.6M; Adjusted EBITDAre of $325M-$339M; Adjusted FFO per diluted share of $1.50-$1.62.

• RevPAR growth forecasted at 2.25%-4.25% for 2026; Q1 2026 RevPAR outlook is 7.5%-9%.

• Same-property EBITDA expected to increase 2.1%-6% in 2026; per-share Adjusted EBITDAre expected to remain stable due to share repurchases.

• Over the next three years, $86M incremental Hotel EBITDA targeted from redevelopment ROI, La Playa ramp-up, and urban recovery.

• Guidance remains conservative due to policy and geopolitical risks, despite positive early 2026 trends.