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.
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.
Analyze how earnings announcements historically affect stock price performance