Pebblebrook Hotel Trust Reports Mixed 2025 Results, Cautious 2026 Outlook

Event summary

  • Pebblebrook Hotel Trust reported a net loss of $62.2 million for 2025, including $48.9 million in impairment charges from hotel dispositions.
  • Same-Property Hotel EBITDA grew 3.9% in Q4 2025, with Adjusted EBITDAre up 11.1% and Adjusted FFO per diluted share up 35.0%.
  • The company completed two hotel sales in Q4 2025, generating $116.3 million in proceeds, which were used to reduce debt and repurchase shares.
  • 2026 outlook projects net income between ($10.4) million and $3.6 million, with Same-Property Total RevPAR growth rate of 2.25% to 4.25%.
  • Pebblebrook repurchased 6.3 million common shares in 2025 at an average price of $11.37 per share.

The big picture

Pebblebrook Hotel Trust's 2025 results reflect a mixed performance, with urban markets showing signs of recovery while others like Los Angeles and Washington, DC faced disruptions. The company's strategic focus on debt reduction, share repurchases, and operational efficiency initiatives aims to position it for improved profitability as hotel demand recovers. The 2026 outlook is cautiously optimistic, with forecasts of healthy economic growth and a favorable schedule of major leisure events across many of its markets.

What we're watching

Market Recovery
Whether urban markets like San Francisco, Chicago, and Portland can sustain their recovery momentum in 2026.
Debt Management
The pace at which Pebblebrook can reduce its leverage, given its sector-low 4.1% weighted-average interest rate.
Shareholder Returns
How the company's share repurchase program will impact its financial flexibility and shareholder value.

Related topics

EBITDA