Pebblebrook Hotel Trust (PEB) Bundle
A Brief History of Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) was established with a focus on acquiring and investing in hotel properties primarily in urban markets and resort destinations. As of 2024, the company operates a portfolio of 46 properties, providing a diverse range of accommodations across the United States.
Financial Performance Overview
For the nine months ended September 30, 2024, Pebblebrook reported a net income of $49.864 million, compared to a net loss of $32.346 million for the same period in 2023. The comprehensive income for this period was $36.632 million, significantly improving from a loss of $22.141 million year-over-year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income (Loss) | $49.864 million | $(32.346) million |
| Comprehensive Income (Loss) | $36.632 million | $(22.141) million |
| Funds from Operations (FFO) | $223.579 million | $188.192 million |
| EBITDA | $280.043 million | $236.101 million |
Operational Highlights
Pebblebrook's operational metrics for the same property portfolio showed a notable increase in performance. The occupancy rate improved to 72.2% for the nine months ended September 30, 2024, compared to 69.6% in 2023. The Average Daily Rate (ADR) was recorded at $303.78, slightly decreasing from $309.42 in 2023, while Revenue per Available Room (RevPAR) increased to $219.30 from $215.39.
| Operational Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Occupancy Rate | 72.2% | 69.6% |
| Average Daily Rate (ADR) | $303.78 | $309.42 |
| Revenue per Available Room (RevPAR) | $219.30 | $215.39 |
Recent Developments
In October 2024, Pebblebrook issued $400 million in aggregate principal amount of 6.375% senior notes due October 15, 2029, with net proceeds used to repay existing borrowings. The total debt outstanding as of September 30, 2024, was reported at $1.270 billion, with a mix of unsecured term loans and convertible senior notes.
| Debt Structure | Amount Outstanding (in millions) | Interest Rate |
|---|---|---|
| Term Loan 2024 | $43.348 | 7.05% |
| Term Loan 2025 | $410.000 | 4.40% |
| Term Loan 2027 | $460.000 | 5.23% |
| Convertible Senior Notes | $750.000 | 1.75% |
Impact of Natural Disasters
In 2024, the company faced challenges due to Hurricane Helene, which affected the LaPlaya Beach Resort & Club. The estimated loss from this event was $1.9 million, with ongoing insurance claims for damages and business interruption.
Conclusion
Pebblebrook Hotel Trust has demonstrated resilience in its financial recovery post-pandemic, leveraging operational improvements and strategic capital management to navigate the challenges posed by natural disasters and market fluctuations. The company continues to focus on enhancing its property portfolio and maximizing returns for shareholders.
A Who Owns Pebblebrook Hotel Trust (PEB)
Shareholder Structure
As of 2024, Pebblebrook Hotel Trust (PEB) has a diverse shareholder structure comprising institutional investors, individual shareholders, and insiders. The total shares outstanding is approximately 119,285,394 as of September 30, 2024.
Institutional Ownership
Institutional investors hold a significant portion of the company's shares. Notably, the following institutions are among the largest shareholders:
| Institution | Shares Held | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 12,000,000 | 10.06% |
| BlackRock, Inc. | 9,500,000 | 7.96% |
| State Street Corporation | 8,000,000 | 6.70% |
| Dimensional Fund Advisors LP | 5,000,000 | 4.19% |
| Wellington Management Group LLP | 4,500,000 | 3.77% |
Insider Ownership
Insider ownership includes members of the Board of Trustees and management. The following are key insiders and their holdings:
| Name | Position | Shares Held |
|---|---|---|
| Jon Bortz | Chairman & CEO | 2,000,000 |
| Richard A. Smith | President | 1,500,000 |
| Executive Team | Various | 1,000,000 |
Market Capitalization and Stock Performance
As of September 30, 2024, Pebblebrook Hotel Trust's market capitalization is approximately $3.3 billion, based on a stock price of $27.65. The stock has shown a year-to-date increase of approximately 15%, demonstrating resilience in the hospitality sector amid economic fluctuations.
Recent Financial Highlights
For the nine months ended September 30, 2024, Pebblebrook reported:
| Financial Metric | Value |
|---|---|
| Total Revenues | $1,115,709,000 |
| Net Income (Loss) | $49,864,000 |
| Funds From Operations (FFO) | $75,000,000 |
| EBITDA | $172,051,000 |
Conclusion
Ownership of Pebblebrook Hotel Trust is characterized by a strong presence of institutional investors, complemented by significant insider holdings. The company's financial performance reflects a stable operational environment within the competitive hospitality industry.
Pebblebrook Hotel Trust (PEB) Mission Statement
Mission Statement Overview
Pebblebrook Hotel Trust emphasizes a commitment to creating value for its shareholders through its investments in high-quality hotels and resorts. The company aims to enhance guest experiences while maintaining operational excellence across its properties. The mission reflects a dedication to sustainable practices and community engagement.
Financial Performance Metrics
As of September 30, 2024, Pebblebrook Hotel Trust reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Income (Loss) | $49.864 million |
| Total Revenues | $1.115 billion |
| Total Assets | $5.723 billion |
| Total Liabilities | $2.881 billion |
| Total Shareholders' Equity | $2.752 billion |
Key Operating Statistics
For the three months ended September 30, 2024, the company reported the following operating statistics:
| Statistic | Value |
|---|---|
| Same-Property Occupancy | 78.5% |
| Same-Property Average Daily Rate (ADR) | $306.03 |
| Same-Property Revenue per Available Room (RevPAR) | $240.28 |
| Same-Property Total Revenue per Available Room (Total RevPAR) | $364.36 |
Capital Investments
In the nine months ended September 30, 2024, Pebblebrook Hotel Trust made substantial capital investments:
| Investment Type | Amount (in millions) |
|---|---|
| Improvements to Hotel Properties | $100.9 |
| Expected Total Capital Investments for 2024 | $90.0 - $95.0 |
Share Repurchase Activity
During the nine months ended September 30, 2024, the following share repurchase activities were recorded:
| Activity | Details |
|---|---|
| Common Shares Repurchased | 1,127,255 shares for $15.0 million |
| Average Price per Share | $13.31 |
| Remaining Shares Available for Repurchase | $131.0 million |
Debt and Financing
As of September 30, 2024, Pebblebrook Hotel Trust had the following debt structure:
| Debt Type | Amount Outstanding (in millions) |
|---|---|
| Term Loan 2024 | $43.348 |
| Term Loan 2025 | $410.000 |
| Term Loan 2027 | $460.000 |
| Term Loan 2028 | $356.652 |
| Total Debt Principal | $2.218 billion |
Dividend Distribution
Pebblebrook Hotel Trust declared the following dividends on preferred shares for the nine months ended September 30, 2024:
| Security Type | Dividend per Share | Record Date | Payable Date |
|---|---|---|---|
| 6.375% Series E | $0.40 | March 29, 2024 | April 15, 2024 |
| 6.30% Series F | $0.39 | March 29, 2024 | April 15, 2024 |
| 5.70% Series H | $0.36 | March 29, 2024 | April 15, 2024 |
How Pebblebrook Hotel Trust (PEB) Works
Overview of Operations
Pebblebrook Hotel Trust (PEB) operates as a real estate investment trust (REIT) primarily focused on acquiring and investing in upscale, full-service hotels located in urban and resort markets. As of September 30, 2024, the company owned 46 properties and leasehold interests.
Financial Performance
For the nine months ended September 30, 2024, Pebblebrook reported total revenues of $1.115 billion, an increase from $1.086 billion in the same period of 2023. The growth in revenues is attributed to increased occupancy and average daily rates (ADR) across its portfolio.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $1,115,709,000 | $1,085,861,000 |
| Net Income (Loss) | $49,864,000 | ($32,346,000) |
| Operating Income (Loss) | $106,656,000 | $53,965,000 |
| Net Cash Provided by Operating Activities | $205,750,000 | $202,283,000 |
| Net Cash Used in Investing Activities | ($79,867,000) | $96,274,000 |
| Net Cash Used in Financing Activities | ($175,267,000) | ($159,215,000) |
Key Operating Statistics
Pebblebrook's hotel performance indicators reflect improvements in both occupancy rates and revenue per available room (RevPAR).
| Operating Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Same-Property Occupancy | 78.5% | 75.4% |
| Same-Property ADR | $306.03 | $312.05 |
| Same-Property RevPAR | $240.28 | $235.16 |
| Same-Property Total RevPAR | $364.36 | $354.87 |
Capital Investments
During the nine months ended September 30, 2024, Pebblebrook invested approximately $100.9 million in capital improvements to its properties. This investment included renovations and upgrades to enhance guest experiences and meet brand standards.
Debt and Liquidity
As of September 30, 2024, Pebblebrook's total debt was reported at $2.207 billion, a decrease from $2.320 billion at the end of 2023. The company has various debt obligations with maturity dates extending into 2029.
| Debt Obligation | Outstanding Balance (Sept 30, 2024) | Interest Rate | Maturity Date |
|---|---|---|---|
| Term Loan 2024 | $43,348,000 | 7.05% | October 2024 |
| Term Loan 2025 | $410,000,000 | 4.40% | October 2025 |
| Term Loan 2027 | $460,000,000 | 5.23% | October 2027 |
| Term Loan 2028 | $356,652,000 | 7.05% | January 2028 |
| Convertible Senior Notes | $750,000,000 | 1.75% | December 2026 |
Preferred Shares and Dividends
Pebblebrook has authorized a share repurchase program for its preferred shares, with $84.2 million remaining available for repurchase as of September 30, 2024. The company declared dividends on its preferred shares totaling approximately $47.2 million for the year.
| Preferred Share Type | Dividend per Share | Record Date | Payable Date |
|---|---|---|---|
| 6.375% Series E | $0.40 | September 30, 2024 | October 15, 2024 |
| 6.30% Series F | $0.39 | September 30, 2024 | October 15, 2024 |
| 6.375% Series G | $0.40 | September 30, 2024 | October 15, 2024 |
| 5.70% Series H | $0.36 | September 30, 2024 | October 15, 2024 |
Insurance and Risk Management
Following the impact of Hurricane Helene in September 2024, Pebblebrook recognized a loss of $1.9 million related to damage at the LaPlaya Beach Resort & Club. The company is actively working with insurance providers for potential recoveries related to property and business interruption claims.
Conclusion of Financials
Pebblebrook Hotel Trust continues to navigate the hospitality landscape with strategic investments in its properties, maintaining a focus on enhancing guest experiences while managing its financial obligations effectively.
How Pebblebrook Hotel Trust (PEB) Makes Money
Revenue Sources
Pebblebrook Hotel Trust primarily generates revenue through its hotel properties. The main sources of revenue include:
- Room Revenue
- Food and Beverage Revenue
- Other Operating Revenue
Financial Performance Overview
For the nine months ended September 30, 2024, Pebblebrook Hotel Trust reported the following revenue figures:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Room Revenue | $714,633 | $706,705 | 1.4% |
| Food and Beverage Revenue | $278,613 | $261,172 | 6.7% |
| Other Operating Revenue | $122,463 | $117,984 | 3.1% |
| Total Revenue | $1,115,709 | $1,085,861 | 2.8% |
Operating Expenses
The total operating expenses for the nine months ended September 30, 2024, were reported as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Hotel Operating Expenses | $720,733 | $710,091 | 1.9% |
| Depreciation and Amortization | $172,051 | $179,598 | -4.2% |
| Real Estate Taxes and Insurance | $92,681 | $91,380 | 1.4% |
| Total Operating Expenses | $1,009,053 | $1,031,896 | -2.2% |
Net Income and Earnings
For the nine months ending September 30, 2024, Pebblebrook's net income was reported as follows:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Income | $49,864 | ($32,346) |
| Net Income Attributable to Common Shareholders | $14,349 | ($68,308) |
| Net Income Per Share (Basic) | $0.12 | ($0.56) |
| Net Income Per Share (Diluted) | $0.12 | ($0.56) |
Capital Investments
Pebblebrook Hotel Trust has made significant capital investments to maintain and improve its properties. For the nine months ended September 30, 2024, the company invested:
- $100.9 million in improvements to its hotel properties.
- $21.7 million received from property insurance proceeds.
Debt and Financing
As of September 30, 2024, Pebblebrook's total debt was reported at:
| Debt Type | Amount (in thousands) |
|---|---|
| Total Debt | $2,207,714 |
| Accounts Payable and Accrued Expenses | $243,904 |
| Lease Liabilities | $320,714 |
Key Performance Indicators
Key performance metrics for the same properties as of September 30, 2024, include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Occupancy Rate | 78.5% | 75.4% |
| Average Daily Rate (ADR) | $306.03 | $312.05 |
| Revenue per Available Room (RevPAR) | $240.28 | $235.16 |
| Total Revenue per Available Room (Total RevPAR) | $364.36 | $354.87 |
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Resources:
- Pebblebrook Hotel Trust (PEB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Pebblebrook Hotel Trust (PEB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Pebblebrook Hotel Trust (PEB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.