Pebblebrook Hotel Trust Reports Q2 2025 Revenue Growth Despite Net Income Decline

Pebblebrook Hotel Trust reported its financial results for the second quarter of 2025, revealing total revenues of $407.5 million, a 2.6% increase from $397.1 million in the same period last year. For the first half of 2025, revenues reached $727.8 million, up from $711.2 million in the first half of 2024. The company experienced a net income of $19.3 million for the quarter, compared to $32.2 million in the prior year, while the net loss for the first half of 2025 was $12.9 million, a decline from a profit of $4.7 million in the same period of 2024. The decrease in profitability was attributed to increased operating expenses and lower revenues from certain properties.

In terms of operational performance, the company reported a total hotel operating expense of $355.1 million for the second quarter, up from $336.1 million a year earlier. This increase was primarily driven by higher operational costs at the Newport Harbor Island Resort and rising wage rates across various properties. The company also noted a significant rise in real estate taxes and insurance costs, which increased by $9 million due to higher assessments. Despite these challenges, the company’s same-property occupancy rate improved to 78.2% from 76.3% year-over-year, indicating a positive trend in customer engagement.

Strategically, Pebblebrook Hotel Trust did not acquire or dispose of any hotel properties during the first half of 2025. However, the company has focused on enhancing its existing portfolio, with significant renovations completed at properties like the Newport Harbor Island Resort, which has shown strong performance post-renovation. The company continues to manage 46 hotels across major U.S. cities, with a total of 11,937 guest rooms. As of June 30, 2025, the company had a total asset value of $5.7 billion, slightly down from $5.7 billion at the end of 2024.

The company’s financial position remains stable, with total liabilities of $2.9 billion and shareholders' equity of $2.6 billion as of June 30, 2025. Pebblebrook Hotel Trust has maintained a disciplined approach to capital management, repurchasing 1.3 million common shares for $14.3 million during the first half of the year. The company has also declared dividends on its common and preferred shares, reflecting its commitment to returning value to shareholders.

Looking ahead, Pebblebrook Hotel Trust remains cautious about the broader economic environment, including potential impacts from inflation and changing travel trends. The company plans to continue its focus on proactive revenue generation and expense management while investing in capital improvements to enhance its properties. The outlook for the remainder of 2025 includes expectations for continued revenue growth, driven by the recovery of key markets and the successful integration of renovated properties into the portfolio.