Pebblebrook Raises 2026 Outlook After Third Straight Beat

The Tip Desk · November 1, 2026 · 4 min read

Same-Property Hotel EBITDA reached $115.2 million, 15.1% above the year-earlier quarter, as the REIT lifted full-year Adjusted EBITDAre to a $363.3 million–$367.3 million range.

Pebblebrook Hotel Trust (PEB), the largest owner of urban and resort lifestyle hotels in the United States, reported Same-Property Hotel EBITDA of $115.2 million for the third quarter, 15.1% higher than a year earlier and $10.7 million above the high end of its outlook.

That was the third consecutive quarter in which results exceeded the high end of the company’s forecast. Adjusted EBITDAre was $107.9 million, $11.4 million above the high end of the outlook and 8.7% higher year over year. Adjusted FFO per diluted share was $0.63, $0.11 above the high end of the outlook and 23.5% above the year-earlier quarter. Free cash flow was $55.6 million.

GAAP results told a different story. Net loss widened to $54.6 million from $32.4 million a year earlier, including $77.3 million of non-cash impairment charges recorded in the third quarter in connection with the sale of The Hotel Zags and an ongoing evaluation of additional dispositions.

Same-Property RevPAR growth reaccelerated to 8.3% from 6.5% in the second quarter, with average daily rate up 7.0% and occupancy up 1.2%. Same-Property Total RevPAR rose 6.9%. The company said healthy business and leisure demand continued through September, with RevPAR growth reaccelerating after World Cup and America 250 events early in the quarter.

Resort RevPAR rose 8.4% and urban RevPAR 8.3%. San Francisco RevPAR increased 14.5%, Chicago 12.7%, Los Angeles 10.7%, Boston 10.6%, and Washington, DC 9.1%. Eight of 13 resorts achieved Hotel EBITDA growth of 20% or more, and food and beverage revenues rose 11.2%. In the second quarter, Washington, DC RevPAR had declined 9.9% and the four urban San Diego hotels had declined 9.1%.

Same-Property Total Revenues increased 6.9% while Same-Property Total Expenses rose 4.0%, producing 205 basis points of EBITDA margin expansion after 67 basis points in the second quarter. The company said the improvement reflected stronger pricing, better demand mix, less discounting, healthy on-property spending, and productivity gains.

On October 8, Pebblebrook sold The Hotel Zags, a 174-room Portland hotel, for $10.0 million after quarter-end. The property generated negative EBITDA of $0.6 million for the trailing twelve months ending August 31, 2026. The sale brought 2026 property sales to $53.5 million after the $43.5 million Chamberlain West Hollywood sale in the second quarter. Over the past year, the company completed nearly $170 million of dispositions at an aggregate 17.4x EBITDA multiple. It raised estimated NAV per common share by $1.00 to a range of $23.50 to $27.50.

Net debt to trailing 12-month corporate EBITDA declined to 5.1x at September 30, 2026, from 5.3x at the end of the second quarter and 5.9x at December 31, 2025. Cash and restricted cash totaled $298 million. The company repurchased 1.2 million common shares for $20.9 million at an average $18.12 and 0.4 million preferred shares for $7.2 million at a 23% average discount to liquidation preference. Repayment of $350 million of convertible notes maturing in December 2026 is expected to be fully funded by existing cash, expected free cash flow, and available term loan capacity, with no other debt maturities until 2028.

The company raised its 2026 outlook again. Same-Property RevPAR growth is now expected at 7.6% to 8.0%, with the midpoint 280 basis points above the prior outlook. Adjusted EBITDAre is now $363.3 million to $367.3 million, a $16.3 million increase at the midpoint, of which $13.4 million reflects third-quarter results above the prior third-quarter outlook midpoint and $2.9 million higher fourth-quarter expectations. Adjusted FFO per diluted share is now $1.88 to $1.92. Free cash flow is now $146.0 million to $150.0 million. The net loss outlook is ($60.5) million to ($56.5) million, primarily reflecting the third-quarter impairment charges, partially offset by the improved operating outlook. The updated outlook reflects the Hotel Zags sale and assumes no acquisitions and no additional dispositions.

Capital-investment guidance was reduced to $60 million to $70 million, a $5 million midpoint cut from the prior $65 million to $75 million range, primarily reflecting project timing, with a portion shifting into 2027. The company said the multi-year redevelopment program is largely completed and that it expects the lower capital-investment level to continue into 2027.

For the fourth quarter, Pebblebrook now expects Adjusted EBITDAre of $66.0 million to $70.0 million, Adjusted FFO per diluted share of $0.26 to $0.30, Same-Property RevPAR growth of 4.0% to 6.0%, and Same-Property Hotel EBITDA growth of 5.7% to 11.5%. Chairman and Chief Executive Officer Jon E. Bortz said the company is raising the full-year outlook to reflect third-quarter outperformance and increasing confidence in fourth-quarter demand trends, and that 2027 brings stronger convention calendars in San Diego and Boston along with the Super Bowl in Los Angeles.