Pebblebrook Hotel Trust Reports $320.3 Million Revenue in Q1 2025

Pebblebrook Hotel Trust reported its financial results for the first quarter of 2025, revealing total revenues of $320.3 million, a 2% increase from $314.1 million in the same period of 2024. The growth was primarily driven by a resurgence in revenue at LaPlaya Beach Resort & Club, which had been closed for repairs due to hurricane damage in 2024, and increased activity at Estancia La Jolla Hotel & Spa. However, the company experienced a decline in revenue from Hyatt Centric Delfina Santa Monica, which is undergoing renovations and brand conversion. The net loss attributable to common shareholders for the quarter was $43.6 million, compared to a loss of $39.0 million in the prior year, resulting in a net loss per share of $0.37, up from $0.32.

In terms of operational metrics, the company reported a same-property occupancy rate of 61.9%, slightly up from 61.1% in the previous year. Average daily rate (ADR) decreased to $301.48 from $305.47, while revenue per available room (RevPAR) remained relatively stable at $186.57 compared to $186.58 in 2024. The total hotel operating expenses increased by $11.2 million, attributed to higher operational costs at several properties, including increased wage rates and benefits. The company recognized $4.3 million in business interruption insurance income related to LaPlaya Beach Resort, which contributed to its overall financial performance.

Strategically, Pebblebrook did not acquire or dispose of any hotel properties during the quarter. The company continues to focus on enhancing its existing portfolio, with significant capital investments planned for 2025, estimated between $65 million and $75 million. These investments will target renovations and improvements at various properties, including Hyatt Centric Delfina Santa Monica and Paradise Point Resort & Spa. The company also repurchased 1.2 million common shares for $13.3 million under its existing share repurchase program, leaving $117.6 million available for future repurchases.

As of March 31, 2025, Pebblebrook's total assets were valued at $5.65 billion, with total liabilities of $2.92 billion, resulting in shareholders' equity of $2.73 billion. The company maintained a debt level of $2.25 billion, with a significant portion of its debt being unsecured term loans and convertible senior notes. The company reported compliance with all debt covenants and continues to manage its capital structure proactively.

Looking ahead, Pebblebrook Hotel Trust remains focused on revenue generation and expense management amid ongoing economic uncertainties. The company anticipates that its proactive strategies will enhance property efficiencies and maximize revenues, ultimately improving returns for shareholders. The management expressed cautious optimism regarding the recovery of urban properties, particularly in markets like San Francisco and Washington D.C., which have shown positive trends due to events and conventions.