Oct 30, 2026 earnings call — Strong RevPAR and profitability rebound
Pebblebrook beat guidance; same-property hotel EBITDA rose to $115.2 million in Q3, driven by 8.3% RevPAR growth.
Revenue $0.4B (est $0.4B) · EPS $-0.56 (est $0.03)
Key quotes
"We're achieving higher rates while still growing occupancy and our business and leisure customers continue to spend while on property."
"RevPAR increased more than 14% in Q3, driven by an ADR increase of almost 20%."
"We repurchased approximately 1.2 million of common shares at an attractive price of $18.12 per share and deployed $7.2 million to retire preferred shares at an average 23% discount to liquidation preference."
Analyst Q&A 11
Reinvestment pace in portfolio
Q (Duane Pfennigwerth · Evercore): Would higher portfolio performance change how fast you reinvest in the portfolio? Could projects that previously failed returns now become feasible?
A: Management said they will look more at small to medium projects they previously deferred. They gave Skamania expansion and solar projects as examples that may be moved up on the calendar.
"And I think we'll increasingly look at those types of projects." — Jon Bortz (CEO·CHAIR)
Reason for Q4 RevPAR slowdown
Q (Wells Fargo): Why does guidance show RevPAR deceleration in 4Q despite reaccelerating demand in September and October? What factors determine hitting upper or lower guide?
A: Management said Dreamforce timing and seasonality reduce compression nights in October to December. They expect occupancies to fall and thus fewer opportunities for price increases, and they are being conservative about November and December.
"And then as we look at November and December, I think our view on that, and I hope we're being conservative." — Jon Bortz (CEO·CHAIR)
When to grow again with acquisitions
Q (Richard Hightower · Barclays): With improved outlook, when would you start growing the portfolio again via acquisitions? How will you allocate capital versus buybacks or pruning? Also any changes to dividend policy or NOL use?
A: Management said capital allocation stays opportunistic and focused on shareholder value and cash flow per share; they will buy assets if returns justify it. They said they have NOL flexibility and do not expect immediate need to change dividends in 2027, but Board decisions and asset sales could change that.
"It's not about growing the company. It's about increasing value for the shareholder, increasing cash flow per share." — Jon Bortz (CEO·CHAIR)
Labor, wages and AI impact on costs
Q (Bennett Rose · Citi): How are wages and benefits pacing and is labor availability a problem? How are you controlling property-level costs?
A: Management said labor is available, turnover is down, and wages run about 4% but productivity improvements keep cost per occupied room growing slower than inflation. They said AI and technology let them mine data to find efficiency opportunities and reduce costs, and FTEs stayed about constant despite higher occupancy.
"Wages, as they did pre-pandemic throughout my whole career, they do continue to pace above inflation." — Jon Bortz (CEO·CHAIR)
Pricing and impairment details
Q (Aryeh Klein · BMO): What changed the pricing strategy toward rate and less discounting? Any more detail on the impairment charge and which assets are involved?
A: Management said stronger corporate travel and compression nights improved pricing confidence, letting them price more aggressively and reduce discounting. On the impairment, they declined to name other properties, saying they historically avoid details to not hurt operations, but they are active looking to sell multiple properties.
"As the transaction market continues to improve and the economy improves and results, hopefully, that's a better environment going forward for more transactions." — Raymond Martz (CFO)
LA mayor race effect on investment
Q (Gregory Miller · Truist): If a left-leaning candidate wins LA mayor, would you change capital allocation in LA or other asset classes?
A: Management said the mayor outcome alone won't change their view of Los Angeles. They focus more on improving the city council, which they see as more important for legislation and their investment confidence has improved versus 12 months ago.
"I don't think whichever candidate gets elected for mayor is going to change our view on the city." — Jon Bortz (CEO·CHAIR)
Total room cost and where to push pricing
Q (Michael Bellisario · Baird): How do total travel costs compare to last cycle and what pricing levers remain? How do leisure and group demand react?
A: Management said focus should be on a 240 basis point premium over inflation rather than 4% and that nominal economy growth supports higher revenue growth. They noted lodging is a smaller part of travel cost and gave examples like expensive airport Ubers versus hotel rates.
"I mean if you take an Uber from an airport, it can cost $100 in New York." — Jon Bortz (CEO·CHAIR)
Occupancy vs pricing confidence
Q (Shaun Kelley · BofA): Where is industry occupancy relative to past cycles and how does that affect pricing? Any market-level occupancy context for Pebblebrook?
A: Management said pricing confidence builds on compression nights and demand outpacing supply, not just occupancy level. They noted urban markets are still below 2019 occupancy but compression and demand growth are creating pricing opportunities.
"I think pricing confidence doesn't just -- pricing confidence is on top of compression." — Jon Bortz (CEO·CHAIR)
Broad-based demand next year?
Q (Jay Kornreich · Cantor Fitzgerald): Will demand tailwinds next year favor resorts or urban hotels, or remain broad-based?
A: Management expects demand to be broad-based next year, with corporate travel and meetings driving growth and leisure supported by employment and wealth trends. They noted international inbound recovery is uncertain and convention calendars can shift year-to-year.
"I mean we do expect it to be broad-based next year." — Jon Bortz (CEO·CHAIR)
Policy or regulatory risks to watch
Q (Wells Fargo): Beyond midterms, any regulatory or policy changes that could affect hotel demand or costs?
A: Management said they are not focused on major policy changes and expect little change with split government. They are working with the FTC on online fraud by some third-party sites, which is a bipartisan concern to protect consumers.
"There isn't anything that we're really focused on from a policy perspective." — Jon Bortz (CEO·CHAIR)
Transaction market trends and buyer types
Q (Chris Darling · Green Street): How has buyer interest and pricing in the transaction market evolved with recent rate moves? Any changes by asset type or financing conditions?
A: Management said the transaction market is constructive as fundamentals improve and investors now underwrite growth; luxury, resorts and upper-upscale get strong bids. They said debt liquidity exists, lenders focus on sponsors and debt yield, financing costs are higher but growth prospects are outweighing that for many buyers, and investor types are broadening.
"Listen, I think as we've talked about all year, the transaction market continues to be constructive, certainly with the backdrop of the improving fundamentals." — Thomas C. Fisher (PRESIDENT)