Pebblebrook Hotel (PD0) Q3 2026 Earnings Report
DE:PD0 Q3 2026 EPS Results
- Actual EPS
- -EUR 0.50
- Consensus EPS
- EUR 0.02
- Beat/Miss
- Missed by -EUR 0.52
- One Year Ago EPS
- -EUR 0.33
DE:PD0 Q3 2026 Revenue Results
- Actual Revenue
- EUR 359.41M
- Expected Revenue
- EUR 351.20M
- Beat/Miss
- Beat by +EUR 8.21M
- YoY Revenue Growth
- +1.01%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- After Close
- Conference Call
- Thursday, October 29, 2026
DE:PD0 Upcoming Earnings
Pebblebrook Hotel's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:PD0 Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Pebblebrook reported broad-based revenue, EBITDA, FFO and free cash flow growth, exceeded guidance for the third consecutive quarter, raised full-year outlook, strengthened its balance sheet and described favorable demand, pricing and supply fundamentals extending into 2027. The main negatives were weaker international inbound travel, downtown San Diego's decline, remaining urban earnings and occupancy gaps versus 2019, a $77.3 million noncash impairment charge, Q1 2027 revenue pacing challenges and ongoing macroeconomic, geopolitical and financing risks.
Company Guidance
For Q4, management’s outlook assumes same-property RevPAR growth of 4% to 6%, same-property hotel EBITDA of $73 million to $77 million, adjusted EBITDA of $66 million to $70 million and adjusted FFO per share of $0.26 to $0.30; October RevPAR growth is tracking towards 6% or more, while total group and transient revenue pace is ahead of last year by $7.3 million or 6%. For the full year, management is forecasting same-property RevPAR growth of 7.6% to 8%, same-property hotel EBITDA growth of 12.9% to 14.1% with the midpoint at 13.5%, and adjusted FFO of $1.88 to $1.92 per share, with this year's $1.90 midpoint representing more than a 20% increase over last year's $1.58; full year capital investment is expected to be in a range of $60 million to $70 million. Management increased its U.S. industry RevPAR growth outlook to a range of 5.5% to 6%, expects portfolio-wide total group and transient revenue pace in 2027 to be ahead by almost 5% versus this year, with Q1 revenue pace currently negative and up 8% or more in each of quarters 2, 3 and 4, and said it could build another 150 to 175 units at Skamania, though not all at once.
- Third Consecutive Quarter of Significant Earnings BeatsFor the third consecutive quarter, results exceeded the high end of outlook across every major earnings and operating measure. Same-property hotel EBITDA increased 15.1% to $115.2 million, $10.7 million above the high end; adjusted EBITDA was $107.9 million, $11.4 million above the high end; and adjusted FFO per diluted share was $0.63, $0.11 above the top end of outlook.
- Broad-Based Same-Property Revenue GrowthSame-property RevPAR grew 8.3%, driven by a 7% increase in ADR and slightly more than 1% growth in occupied room nights. Monthly RevPAR growth was 10.1% in July, 5.3% in August and 9.4% in September. One-time events accounted for only about 40 basis points of Q3 RevPAR growth.
- Improved Transient and Customer MixTransient ADR increased 8.5%, producing 9.1% growth in transient room revenues. Corporate transient ADR increased 9.4%, while room nights increased significantly in the higher-priced consortia channel and certain discount channels declined. Group room nights grew over 3% and group ADR increased 1.2%.
- Strong Resort Performance and Margin ExpansionResort RevPAR increased 8.4% and total resort RevPAR grew 9.2%. Food and beverage revenue climbed 11.2%, 8 of 13 resorts generated hotel EBITDA growth of 20% or more, and resort EBITDA margins expanded 250 basis points to 32.6%. Resorts contributed $8.2 million of the $15.2 million increase in same-property hotel EBITDA.
- Redevelopment Investments Driving Newport Harbor Island GrowthNewport Harbor Island RevPAR increased more than 14%, driven by an ADR increase of almost 20%. Total RevPAR grew faster, and hotel EBITDA increased by more than $2 million, or 19%. Management said L'Auberge Del Mar, Paradise Point Resort & Spa and Estancia La Jolla also delivered significant profitability improvements.
- Urban Portfolio EBITDA ImprovementUrban-market RevPAR grew 8.3%, generating almost $7 million of incremental hotel EBITDA versus last year. San Francisco, Boston and Los Angeles together added $8.5 million of hotel EBITDA compared with last year.
- San Francisco Recovery AcceleratedSan Francisco RevPAR increased 14.5% in Q3 and hotel EBITDA improved by $3 million. At 1 Hotel San Francisco, RevPAR rose 21% and EBITDA increased by more than $1 million. San Francisco hotel EBITDA is forecast to grow 65% in 2026 after increasing 59% in 2025.
- Boston and Los Angeles Delivered Material GainsBoston added $2.7 million of incremental hotel EBITDA, supported by 10.6% RevPAR growth, and all five Boston hotels improved RevPAR despite a softer convention calendar. Los Angeles RevPAR increased 10.7% and hotel EBITDA climbed $2.8 million, or 60%.
- Resort Strength in San DiegoPebblebrook's four San Diego resorts delivered a 14% increase in RevPAR and $4.5 million of hotel EBITDA growth.
- Strong Revenue Conversion and Margin ExpansionThe company converted 58% of the $26 million increase in same-property total revenues into $15.2 million of incremental hotel EBITDA. Total expenses increased only 4% compared with almost 7% revenue growth, and hotel EBITDA margins expanded 205 basis points to 28.8%.
- Lower Fixed Costs and Improved Operating EfficiencyProperty taxes declined by approximately $1 million, reflecting a property tax credit and lower property taxes in San Diego. Property insurance costs were $1.6 million lower, and the lower insurance premium run rate is expected to benefit 2027. Through September, same-property revenues increased 7.1%, hotel EBITDA rose 14.7% and margins expanded almost 190 basis points.
- Higher Corporate Earnings and Free Cash FlowAdjusted EBITDA increased 8.7% in Q3, adjusted FFO grew 18.9%, and adjusted FFO per diluted share increased 23.5%, benefiting from stronger earnings and a reduced share count. Free cash flow increased more than 24% to $55.6 million in Q3 and reached $143 million through September, 45% above last year after capital investments and common dividends.
- Capital Investment Outlook ReducedPebblebrook invested $14.8 million during Q3 and lowered its full-year capital investment outlook by $5 million to a range of $60 million to $70 million, primarily reflecting timing.
- Portfolio Optimization and NAV IncreaseThe company completed the sale of Hotel Zags in Portland for $10 million after quarter end. Over the past year, Pebblebrook sold nearly $170 million of hotels at an aggregate 17.4x trailing EBITDA multiple and a 3.9% NOI cap rate. Estimated NAV increased by $1 per share from the prior quarter to a range of $23.50 to $27.50 per share.
- Share and Preferred Security RepurchasesDuring Q3, Pebblebrook repurchased approximately 1.2 million common shares at $18.12 per share and deployed $7.2 million to retire preferred shares at an average 23% discount to liquidation preference.
- Strengthened Balance Sheet and LiquidityNet debt to trailing 12-month corporate EBITDA fell to 5.1x from 5.9x at year-end. The company ended September with $298 million of cash and restricted cash, $641 million of revolver availability and another $90 million of undrawn term loan capacity. The remaining $350 million of convertible notes due in December are fully funded by existing resources and expected cash flow, with no other debt maturities until 2028.
- Favorable Industry Demand and Supply ConditionsIndustry demand growth improved sequentially as the economy accelerated, occupancies rose, compression days increased, price sensitivity declined among higher-end customers, and pricing confidence improved. Group, corporate transient and leisure travel all grew, while little new supply was added.
- Accelerating Pricing EnvironmentIndustry ADR growth averaged 4.3% during the summer, while Pebblebrook achieved 7% growth from July through September. Management cited less discounting, fewer promotions, stronger corporate travel and more compression nights, which were up about 12% year-to-date.
- Raised 2026 Industry and Company OutlookThe company increased its U.S. industry RevPAR growth outlook by 175 basis points at the midpoint to a range of 5.5% to 6%. For Q4, guidance calls for same-property RevPAR growth of 4% to 6%, same-property hotel EBITDA of $73 million to $77 million, adjusted EBITDA of $66 million to $70 million and adjusted FFO per share of $0.26 to $0.30.
- Raised Full-Year 2026 GuidanceFull-year same-property RevPAR growth is now forecast at 7.6% to 8%, with the midpoint up 280 basis points from the prior outlook. Same-property hotel EBITDA growth is forecast at 12.9% to 14.1%, with the midpoint up 420 basis points. Adjusted FFO guidance increased to $1.88 to $1.92 per share, and the $1.90 midpoint represents more than a 20% increase over last year's $1.58.
- Positive Early Trends for Q4 and 2027October RevPAR growth is tracking toward 6% or more, driven by occupancy increases and healthy ADR improvement. Fourth-quarter group and transient revenue pace is ahead of last year by $7.3 million, or 6%. Portfolio-wide total group and transient revenue pace for 2027 is currently ahead by almost 5% versus this year, with revenue pace up 8% or more in each of Q2, Q3 and Q4.
- Planned Portfolio Reinvestment and Alternative AccommodationsManagement expects to evaluate more small- to medium-sized projects as portfolio performance improves. At Skamania, the company may accelerate expansion beyond its current 9 tree houses, 5 glamping units, cabins and villas, with potential to build another 150 to 175 units. The company is also evaluating solar projects across the portfolio.
- Labor Availability and Technology-Enabled ProductivityManagement said labor is generally available, turnover is down and wages are running about 4%. Cost per occupied room is growing slower than inflation. Despite higher occupancy, full-time-equivalent staffing remained about constant year over year, with technology, AI, scheduling and overtime initiatives supporting productivity.
- Constructive Transaction MarketManagement described the transaction market as constructive, with strong bids for luxury, resort and upper-upscale properties. More investors are underwriting growth, lenders have become more competitive, spreads are compressing for the right deals, and the buyer pool includes high-net-worth investors, family offices, private equity groups, owner operators and offshore groups.
DE:PD0 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 23, 2027 | 2026 (Q4) | -0.19- | -0.21 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 0.02-0.50 | -0.33 | -51.35% (-0.17) | |
| Jul 29, 2026 | 2026 (Q2) | 0.110.15 | 0.05 | 183.33% (+0.10) | |
| Apr 28, 2026 | 2026 (Q1) | -0.28-0.23 | -0.33 | 29.73% (+0.10) | |
| Feb 25, 2026 | 2025 (Q4) | -0.28-0.21 | -0.46 | 54.90% (+0.25) | |
| Nov 05, 2025 | 2025 (Q3) | -0.01-0.33 | 0.21 | -254.17% (-0.54) | |
| Jul 29, 2025 | 2025 (Q2) | 0.050.05 | 0.14 | -62.50% (-0.09) | |
| May 01, 2025 | 2025 (Q1) | -0.34-0.33 | -0.29 | -15.63% (-0.04) | |
| Feb 26, 2025 | 2024 (Q4) | -0.35-0.46 | -0.33 | -37.84% (-0.12) | |
| Nov 07, 2024 | 2024 (Q3) | -0.000.21 | -0.51 | 142.11% (+0.72) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed