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Pebblebrook Hotel Trust PEB Stock Quote

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NYSE:PEB

Morningstar‘s Stock Analysis PEB

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Pebblebrook Reports Stronger-Than-Anticipated Q3 Revenue Growth, but Expense Growth a Disappointment

Kevin Brown, CFA Senior Analyst

Analyst Note

| Kevin Brown, CFA |

No-moat Pebblebrook reported third-quarter results that were slightly ahead of our expectations. However, guidance for the fourth quarter came in below our estimates, leading us to believe we won’t make any material changes to our $29 fair value estimate. Occupancy was 72.7% in the third quarter, which is better than the 54.9% figure reported in 2021, but still below the 86.0% figure reported in 2019. Meanwhile, rate growth continues to be strong at 10.3% year over year and 19.9% higher than 2019’s average rate. As a result, revenue per available room, or revPAR, was up 45.9%, which beat our estimate of 35.1% growth and is now 1.3% higher than 2019’s third-quarter revPAR. However, expense growth was also higher than we anticipated at 40.0%, so while the same-store EBITDA margin improved 200 basis points to 32.4% it did slightly miss our 34.7% estimate. Still, the strong revenue growth was enough for Pebblebrook to report adjusted funds from operations, or FFO, of $0.66 per share in the third quarter, which was 6 cents better than our estimate and 47 cents better than third-quarter 2021.

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Key Statistics PEB

Company Profile PEB

Business Description

Pebblebrook Hotel Trust currently owns upper-upscale and luxury hotels with 13,366 rooms across 54 hotels in the United States. Pebblebrook acquired LaSalle Hotel Properties, which owned 10,451 rooms across 41 U.S. hotels, in December 2018, the company current Pebblebrook CEO founded in 1998, though management has sold many of those hotels over the past few years. Pebblebrook's portfolio consists mostly of independent hotels with no brand affiliations, though the combined company does own and operate some hotels under Marriott, Starwood, InterContinental, Hilton, and Hyatt brands.

Contact
4747 Bethesda Avenue, Suite 1100
Bethesda, MD, 20814
T +1 240 507-1300
Industry REIT - Hotel & Motel
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2022
Employees 56

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