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Jun 30, 2025
Pebblebrook Q2 2025 Earnings Report
Pebblebrook Hotel Trust reported its second quarter 2025 earnings, exceeding outlook driven by strong recoveries in San Francisco, Portland, San Diego, and Chicago, despite challenges in Los Angeles.
Key Takeaways
Pebblebrook Hotel Trust's Q2 2025 results surpassed expectations, primarily due to significant rebounds in key markets like San Francisco, Portland, San Diego, and Chicago. The company also highlighted the strong performance of its redeveloped properties and effective cost management, which helped offset increased labor costs and inflationary pressures. However, Los Angeles continued to underperform due to market-specific headwinds.
Second-quarter results exceeded the company's outlook, driven by strong recoveries in San Francisco, Portland, San Diego, and Chicago.
Same-Property Total RevPAR increased by 1.3% year-over-year, reaching $371 million, while Same-Property Hotel EBITDA saw a decrease of 6.7%.
The company completed its multi-year, $525 million strategic redevelopment program, with capital investments expected to be significantly lower going forward.
Los Angeles properties continued to underperform due to wildfires and immigration enforcement activities, impacting Same-Property Total RevPAR and Hotel EBITDA.
Revenue by Segment
Forward Guidance
Pebblebrook Hotel Trust is narrowing its full-year 2025 outlook, assuming stable travel conditions and no material adverse impacts from macroeconomic headwinds or weather-related events. The company anticipates lower capital investments going forward after completing its strategic redevelopment program.
Positive Outlook
- Expected significantly lower capital investments post-redevelopment program, freeing up discretionary cash flow.
- Full restoration of LaPlaya Beach Resort & Club completed, with additional targeted investments for enhanced resilience.
- Anticipated $11.5 million in business interruption insurance income for full-year 2025, exceeding previous forecasts.
- Curator Hotel & Resort Collection continues to expand, offering benefits to Pebblebrook's properties through preferred pricing and technology.
- Strong balance sheet with $267.1 million in cash and equivalents and $642.1 million undrawn credit capacity.
Challenges Ahead
- Continued underperformance of Los Angeles properties due to market-specific headwinds, with an anticipated negative impact on Same-Property Total RevPAR and Hotel EBITDA.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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