Highlights

  • Second quarter net income rose to $24.9 million from $19.3 million, and diluted earnings per share were $0.17 versus $0.06.
  • Same-property RevPAR increased to $259.41 from $243.52, with occupancy at 79.4% and average daily rate at $326.60.
  • The trust sold Chamberlain West Hollywood Hotel for $43.5 million and extended a $360.0 million term loan to February 2031.
  • Cash reached $261.0 million, and $352.2 million of debt principal falls due by June 30, 2027, mostly convertible notes.

Pebblebrook Hotel Trust (NYSE:PEB) shares were trading near their 52-week high at USD 21.17 on October 21, 2026, up 2.20%. The hotel real estate investment trust extended a term loan in February, sold a West Hollywood hotel in May, and filed second quarter results on July 29 while noting caution about the rest of the year.

Based in Bethesda, Maryland, Pebblebrook is an internally managed hotel investment company formed as a Maryland real estate investment trust in October 2009. It owns interests in 43 hotels with 10,937 guest rooms, mostly in major U.S. gateway cities and resort markets, including Boston, Chicago, Los Angeles, San Diego, San Francisco and Key West. Operations run through an operating partnership, with hotels leased to a taxable REIT subsidiary and managed by independent third-party operators. Its fiscal year ends December 31.

Hotel Demand Improves, Revenue Holds Flat

Total revenues for the three months ended June 30, 2026 were $407.1 million, nearly unchanged from $407.5 million, because the sale of three hotels removed $19.7 million of revenue that gains at resorts and in Los Angeles and San Francisco offset. Same-property total RevPAR rose to $405.24 from $386.93. Management said business and leisure demand both grew, pricing power strengthened, and resort properties led the portfolio.

Net income was $24.9 million, compared with $19.3 million, and net income attributable to common shareholders was $20.7 million versus $7.4 million, helped in part by a discount on repurchased preferred shares. Diluted earnings per common share were $0.17 versus $0.06. Non-GAAP adjusted funds from operations available to common shareholders and unit holders were $77.5 million, level with $77.4 million, while non-GAAP Adjusted EBITDAre was $116.2 million versus $117.0 million. The quarter included a $1.1 million impairment on one hotel.

For six months, revenues rose $25.0 million to $752.8 million, aided by a Los Angeles recovery from 2025 wildfires, San Francisco travel and the Super Bowl. Net income was $6.5 million against a net loss of $12.9 million, though the trust still recorded a net loss to common shareholders of $9.0 million, or $0.08 per share, that included an $8.8 million impairment. Operating cash flow was $170.4 million versus $140.9 million.

Capital Moves and a Near-Term Maturity

The trust amended its credit agreement on February 11 to push the $360.0 million Term Loan 2027 to February 2031, with an option to draw another $90.0 million by December 15, 2026. It extended $48.0 million of its revolver to October 2028, repaid a $40.0 million mortgage on Margaritaville Hollywood Beach Resort, and sold the Chamberlain West Hollywood Hotel on May 27, taking $26.1 million of the price in the form of 1,347,614 of its own preferred shares.

It also repurchased 944,452 common shares for $12.9 million, an average of $13.63, leaving $137.1 million under a $150.0 million program, and 1,487,038 preferred shares for $28.6 million. Quarterly common dividends were $0.01 per share.

Total debt had a face value of $2.1 billion, made up of $901.9 million of term loans, $750.0 million of convertible notes, $400.0 million of senior notes and a $52.1 million mortgage. The $350.0 million of 1.75% convertible notes due December 2026 is the main near-term maturity. Cash, restricted cash and revolver availability totaled $911.6 million, and the trust reported covenant compliance.

Outlook and Planned Spending

The quarterly report offers no earnings or RevPAR guidance. Management said it remains cautious about the remainder of 2026 because of an uncertain macroeconomic environment. It expects capital investments of $65.0 million to $75.0 million in 2026, subject to market conditions, and annual preferred dividends and distributions of about $44.1 million. It intends to repay the $352.2 million of principal due by June 30, 2027 with cash, revolver borrowings or property sale proceeds, or to refinance. These are company expectations.