PEB-PF — Pebblebrook Hotel Trust

Summary of Pebblebrook Hotel Trust Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Same Property Hotel EBITDA: Increased 27.6% to $82.2 million, exceeding expectations by $8.2 million.
• Adjusted EBITDA: Rose 29.5% to $73.3 million, $9.3 million above guidance.
• Adjusted FFO per diluted share: Doubled year-over-year to $0.32, surpassing forecasts by $0.09.
• Occupancy: Increased by 550 basis points.
• Average Daily Rate (ADR): Up 2.8%.
• Revenue Per Available Room (RevPAR): Increased 11.8%.
• Total Revenue: Grew by 10.1%.
• Total Expenses: Increased 5.6%, resulting in a hotel EBITDA margin expansion of 327 basis points.

2. Strategic Updates and Business Highlights

• Strong performance driven by broad portfolio strength, effective expense control, and strategic operating initiatives.
• 32 properties exceeded revenue forecasts, and 34 surpassed GLP forecasts.
• Notable performance in Los Angeles, with RevPAR up 44.5% due to events like the Super Bowl and conventions.
• Recovery in Los Angeles properties post-fire disruptions, with RevPAR climbing 31.5%.
• Successful rebranding of Mondrian Los Angeles to Valor Los Angeles, expected to enhance property value.
• Capital investments of $11.9 million in Q1, with a full-year target of $65-$75 million.

3. Forward Guidance and Outlook

• RevPAR Growth Outlook: Increased to 2.75% to 4.75%, up 75 basis points from previous guidance.
• Total RevPAR Growth: Adjusted to 3% to 5%.
• Same-Property EBITDA Growth: Forecasted between 5.2% to 8.6%.
• Room Revenue Pace: As of March, $33.5 million ahead of last year, indicating a stable demand environment.
• Caution maintained for the remainder of 2026 due to geopolitical risks and economic uncertainties.

4. Bad News, Challenges, or Points of Concern

• Washington D.C. Market: Experienced a 24.1% decline in RevPAR due to challenging comparisons and ongoing weakness in government-related travel.
• Potential Headwinds: Concerns about the impact of geopolitical tensions, particularly the conflict in the Middle East, on travel demand and airline capacity.
• April Performance: Expected to show a year-over-year decline in RevPAR due to strong prior year comparisons.
• Visibility: Booking trends have shortened, raising caution for future performance.

5. Notable Q&A Insights

• Impact of Oil Prices: Historical increases in oil prices could affect travel demand, particularly for middle-income travelers, but the upper-end consumer remains resilient.
• Expense Management: Full-year expense growth is projected at 2.4% to 3.8%, with labor costs expected to grow in the low single digits.
• World Cup Impact: While the World Cup is anticipated to generate demand, concerns about its potential to disrupt normal business travel were noted.
• San Francisco Recovery: Strong recovery expected, with RevPAR growth projected between 12% and 15% for the year, driven by a resurgence in business and leisure travel.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, and notable concerns discussed during the earnings call, providing a comprehensive overview of Pebblebrook Hotel Trust's performance and outlook for 2026.