One-glance verdict
Overvalued
$3.83 our estimate vs market $21.54
Wall Street consensus: $19.63 (412.3% higher than our fair-value estimate)
462% above our estimate, beyond the bull case
Fundamentals snapshot
Pebblebrook Hotel Trust
PEB · NYQ · Real Estate · REIT - Hotel & Motel
Current price
$21.54
52-week range
$9.99 - $21.90
Market cap
$2.41B
Balance sheet
Distressed
0.74x Concerning
Net debt $2.19B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 2.0% last year.
- Reward Free cash flow was positive in 9/10 years.
- Reward Dividend yield is 0.2% with 17-year payout history.
- Risk Return on equity was -1.6% last year — the company lost money on shareholders' equity.
What this company does
Pebblebrook Hotel Trust
Pebblebrook Hotel Trust owns a bunch of nice hotels in popular city and vacation spots across the US. The money they make comes from people booking rooms and using hotel services, which is important because it shows how much people are willing to spend on travel and leisure. This business is all about providing places for people to stay, so when travel is strong, their income (or revenue) tends to be strong too.
How the company got here
Pebblebrook Hotel Trust was founded in 2009 by Jon Bortz, a seasoned executive in the hotel real estate industry. Bortz established the company during a challenging period for lodging properties following the 2008 financial crisis, aiming to acquire and improve hotel assets when values were low. The company went public in the same year and has since grown by strategically acquiring upper-upscale and luxury hotels in major U.S. markets. A significant turning point was the 2018 acquisition of LaSalle Hotel Properties, which substantially expanded Pebblebrook's portfolio and solidified its focus on urban and resort lifestyle hotels. The company has continued to refine its portfolio through selective sales and acquisitions, aiming to maximize returns for shareholders.
What it actually does
Pebblebrook Hotel Trust is a real estate investment trust (REIT) that owns and operates a portfolio of hotels and resorts across the United States. Think of it like owning a collection of hotels, but instead of renting out apartments or office spaces with long-term leases, Pebblebrook rents out hotel rooms and services on a daily basis. This means their income can change more quickly based on demand, like during holidays or major events. The company focuses on upper-upscale and luxury properties, often in desirable urban and resort locations. While Pebblebrook owns the real estate, the day-to-day operations of the hotels are typically managed by third-party companies, often under well-known hotel brands or as independent lifestyle hotels.
Urban Gateway Hotels
This segment represents Pebblebrook's hotels located in major U.S. cities, often referred to as 'gateway cities.' These hotels cater to a mix of travelers, including business professionals on corporate trips, individuals traveling for leisure, and groups attending conferences or events. The performance of these hotels can be influenced by business travel trends and the return of group bookings. Pebblebrook actively works to enhance the appeal and operational efficiency of these urban properties, recognizing their potential for recovery and growth as travel patterns normalize.
Destination Resort Properties
This part of Pebblebrook's business includes hotels situated in popular leisure destinations, often near major urban centers or in scenic resort areas. These properties primarily serve leisure travelers who are looking for vacation experiences. Demand for these hotels is often strong during peak vacation seasons and weekends, and they have shown resilience, benefiting from increased leisure travel in recent years. Pebblebrook focuses on maintaining the high quality and appeal of these resort properties to attract guests seeking relaxation and recreation.
What management is betting on now
Pebblebrook's management is focused on several key strategies to drive future returns. A primary goal is to continue the recovery and growth of their urban hotels, which have shown potential as business and group travel rebounds. They are also committed to maintaining strong pricing at their resort properties, capitalizing on sustained leisure demand. Investing in renovations and upgrades to their existing hotels is another priority, aimed at enhancing property value and guest experience. Additionally, Pebblebrook is actively managing its portfolio by selectively selling mature assets and reinvesting the proceeds into more promising opportunities, all while maintaining financial flexibility.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$41.36M
FY2025 Q1
$29.68M
FY2025 Q2
$61.69M
FY2025 Q3
$56.33M
FY2025 Q4
$4.63M
FY2026 Q1
$72.11M
FY2026 Q2
$73.84M
FY2026 Q3
$69.11M
Revenue
$402.75M
Net income
$-54.97M
Diluted EPS
-0.56
Operating cash flow
$84.91M
Free cash flow
$69.11M
Fetching…
Sources
Revenue
$407.14M
Net income
$23.58M
Diluted EPS
0.17
Operating cash flow
$86.32M
Free cash flow
$73.84M
Fetching…
Sources
Revenue
$345.66M
Net income
$-19.27M
Diluted EPS
-0.26
Operating cash flow
$84.05M
Free cash flow
$72.11M
Fetching…
Sources
Revenue
$349.02M
Net income
$-17.85M
Diluted EPS
-0.22
Operating cash flow
$31.28M
Free cash flow
$4.63M
Fetching…
Sources
Revenue
$398.72M
Net income
$-33.07M
Diluted EPS
-0.37
Operating cash flow
$77.57M
Free cash flow
$56.33M
Fetching…
Sources
Revenue
$407.54M
Net income
$18.06M
Diluted EPS
0.06
Operating cash flow
$90.54M
Free cash flow
$61.69M
Fetching…
Sources
Revenue
$320.27M
Net income
$-32.95M
Diluted EPS
-0.37
Operating cash flow
$50.34M
Free cash flow
$29.68M
Fetching…
Sources
Revenue
$337.60M
Net income
$-50.48M
Diluted EPS
-0.47
Operating cash flow
$69.25M
Free cash flow
$41.36M
Fetching…
Sources
Is it cheap or expensive?
Fair value $3.83 vs current price $21.54
Wall Street consensus is the average analyst price target: $19.63 (412.3% higher than our fair-value estimate).
Our most-likely fair value is $3.83 a share — about 82.2% below today's price of $21.54, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $2.2B. Interest coverage 0.7x.
Net debt
$2.19B
Interest coverage
0.74x
Pebblebrook Hotel Trust's profit covers its interest bill about 0.7 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
PEB
BASELINE
Pebblebrook Hotel Trust
Total debt $2.46B Interest coverage 0.74x This is the baseline the peer rows are being compared against.
Total debt $5.65B Interest coverage 3.54x +376% vs PEB Carries about 4.8x more debt cushion than PEB.
Total debt $4.10B Interest coverage 0.85x +14% vs PEB Has roughly the same debt cushion as PEB.
Total debt $975.03M Interest coverage 1.54x +107% vs PEB Carries about 2.1x more debt cushion than PEB.
Total debt $1.38B Interest coverage 1.24x +67% vs PEB Carries about 1.7x more debt cushion than PEB.
Total debt $2.81B Interest coverage 1.21x +63% vs PEB Carries about 1.6x more debt cushion than PEB.
What you should know
The case for and against PEB
3 Rewards
1 Risk
Rewards
-
Revenue grew 2.0% last year.
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 0.2% with 17-year payout history.
Risks
-
Return on equity was -1.6% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-79.78x
P/B
0.99x
P/S
1.60x
EV/EBITDA
14.44x
PEG ratio
3.21x
Profitability
How much profit each dollar creates
Gross margin
25.3%
Operating margin
14.3%
Net margin
-3.1%
ROE
-1.6%
ROA
1.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.98x
Current ratio
0.71x
Quick ratio
0.56x
Total debt
$2.46B
Total cash
$267.21M
Growth
How the business has been compounding
Revenue TTM
$1.50B
Revenue 5Y CAGR
19.1%
EPS TTM
-0.68
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$286.56M
Free CF TTM
$152.33M
FCF margin
10.1%
Dividend
Shareholder payout
Yield
0.2%
Payout ratio
126.4%
Last ex-div date
2026-09-30