Pebblebrook Hotel Trust (PEB) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong outperformance versus guidance, with net income up 29.2% year-over-year, driven by robust business and leisure demand, especially at resorts and in San Francisco.

• Cash flow per share is rising, supported by urban recovery, redevelopment ROI, and disciplined capital allocation, with portfolio repositioned toward higher-quality leisure and group demand.

• Key transactions included amending and extending credit facilities, repaying a $40M mortgage, repurchasing shares, and selling the Chamberlain West Hollywood Hotel for $43.5M.

• Multi-year recovery is underpinned by improving hotel demand, minimal new supply, and a robust event calendar through 2028.

Financial highlights

• Same-Property Hotel EBITDA reached $123.3 million, 7.1% higher than Q2 2025 and above the high end of outlook; Adjusted EBITDAre was $116.2 million, also exceeding guidance.

• Same-Property RevPAR increased 6.5% year-over-year to $259, driven by ADR growth of 4.7% and occupancy up 1.7%.

• Free Cash Flow per diluted share rose 24.4% to $0.56 for Q2 and 68.9% to $0.76 for the first half of 2026.

• For Q2 2026, total revenues were $407.1M, nearly flat year-over-year, with net income attributable to common shareholders of $20.7M ($0.18 per basic share), up from $7.4M ($0.06 per share) in Q2 2025.

• Resorts led with RevPAR up 12.0% and Hotel EBITDA up 18.5%; San Francisco RevPAR rose 16.0% and Hotel EBITDA 24.6%.

Outlook and guidance

• Full-year 2026 Adjusted EBITDAre guidance raised to $345–$353 million; Adjusted FFO per diluted share expected at $1.69–$1.76.

• Q3 2026 Adjusted FFO per diluted share outlook is $0.48–$0.52; Same-Property RevPAR growth expected at 1.0–3.0% year-over-year.

• Free Cash Flow for 2026 projected at $119.5–$127.5 million.

• Demand normalization and limited supply expected to drive $70M urban EBITDA upside as occupancy recovers to ~80%.

• Management remains cautious due to economic uncertainty, inflation, and interest rate risks.