Pebblebrook Hotel Trust (PEB) Q4 2025 earnings summary

Executive summary

• Fourth quarter and full-year 2025 delivered stronger-than-expected growth, with urban recovery markets and redeveloped resorts, especially in San Francisco, driving tangible gains despite government shutdown disruptions and macroeconomic headwinds.

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

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

• Reported a net loss of $62.2 million for 2025, including $48.9 million in impairment charges from hotel dispositions.

Financial highlights

• Same-property total RevPAR increased 2.9% in Q4 2025, with same-property hotel EBITDA up 3.9% to $64.6M, $2.2M above outlook midpoint; Adjusted EBITDA rose 11.1% year-over-year to $69.7M, about $6M above midpoint.

• 2025 Adjusted EBITDAre was $342.5M, $6.0M above the outlook midpoint; Adjusted FFO per diluted share was $1.58, $0.05 above guidance.

• Adjusted EPS per share increased to $0.27, up $0.07 and 35% higher than Q4 2024.

• For the full year, resort EBITDA increased 1.3%; Newport Harbor Island Resort saw total RevPAR up 38.5% and EBITDA up $9.3M to $17.7M.

• San Francisco portfolio Q4 total RevPAR up 32%+; full-year RevPAR up 15.1%-17.5%, hotel EBITDA up 58.5%.

Outlook and guidance

• 2026 outlook is cautious but optimistic, with RevPAR growth forecasted at 2%-4% and total RevPAR at 2.25%-4.25%.

• Same-property EBITDA expected to increase 2.1%-6% in 2026; Adjusted EBITDAre guidance is $325.0M-$339.0M, and Adjusted FFO per diluted share of $1.50-$1.62.

• Q1 2026 RevPAR outlook is 7.5%-9%, with total RevPAR growth of 6%-7.5%; preliminary January 2026 same-property RevPAR growth estimated at 4.6%.

• Group and transient pace for 2026 ahead by $21M over last year.

• Guidance remains conservative due to macro and geopolitical risks.