Q2 2026 Pebblebrook Hotel Trust Earnings Call Transcript
Key Points
- Pebblebrook Hotel Trust (PEB) exceeded the high end of its outlook across all key earnings metrics for the second consecutive quarter.
- Resort RevPAR increased 12%, with strong performance from redeveloped properties like Newport and Estancia, which continue to gain market share.
- San Francisco urban market showed strong recovery with RevPAR up 16% and hotel EBITDA up 24.6%, driven by major events and corporate travel.
- Disciplined capital allocation, including selling hotels at high multiples and repurchasing preferred shares at a 23% discount, generated significant value accretion.
- Property insurance premiums decreased by 27% year-over-year, providing a $6 million cost tailwind.
- Urban markets like downtown San Diego and Washington, DC, experienced RevPAR declines of 9.1% and 9.9%, respectively, due to weak convention calendars and government travel.
- World Cup events provided only a modest net benefit of $500,000 to $1 million in hotel EBITDA, as group and transient business was displaced.
- Group revenue declined approximately 2% portfolio-wide, with urban banquet and catering revenue down 20% due to convention rotation and event displacement.
- The company faces ongoing risks from geopolitical instability, policy changes, and potential government shutdowns that could impact travel demand.
- Booking windows remain short, limiting visibility into future performance and requiring a cautious outlook for the second half of 2026.
Greetings and welcome to the Pebble Brook Hotel Trust Second Quarter Earnings Conference Call.
At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.
If anyone should require operator assistance during the conference, please press *0 on your telephone keypad.
As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Raymond Martz, Co-President and Chief Financial Officer.
Thank you. You may begin.
Thank you, Kristine, and good morning, everyone. Welcome to our second quarter 2026 earnings call.
Joining me today is John Borst, our Chairman and Chief Executive Officer and Tom Fisher, our Co-President and Chief Investment Officer. But before we begin, I'd like to remind everyone that our comments today are as of July 30, 2026. Today's comments may include forward-looking statements that are
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