Pebblebrook Hotel Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of $54.6 million for Q3 2026, compared to a net loss of $32.4 million in Q3 2025.
• Same-Property Hotel EBITDA reached $115.2 million, a 15.1% increase year-over-year from $100.1 million in Q3 2025.
• Adjusted EBITDAre was $107.9 million, an 8.7% increase year-over-year from $99.2 million in Q3 2025.
• Adjusted FFO per diluted share was $0.63, a 23.5% increase year-over-year from $0.51 in Q3 2025.
• Same-Property Total Revenue grew 6.9% to $400.6 million, while Same-Property Total Expenses grew 4.0% to $285.3 million.
• Free Cash Flow for the quarter was $55.6 million, up 24.4% from $44.7 million in Q3 2025.
• Net debt to trailing 12-month corporate EBITDA declined to 5.1x as of September 30, 2026, down from 5.9x at December 31, 2025.
• Cash and restricted cash totaled $298 million at September 30, 2026.

Guidance and Future Outlook:

• Raised full-year 2026 Net loss outlook to a range of ($60.5) to ($56.5) million.
• Raised full-year 2026 Adjusted EBITDAre outlook to $363.3 to $367.3 million, with a midpoint $16.3 million higher than the prior outlook.
• Raised full-year 2026 Adjusted FFO per diluted share outlook to $1.88 to $1.92, a 20.3% increase versus 2025.
• Raised full-year 2026 Free Cash Flow outlook to $146.0 to $150.0 million, with a midpoint $24.5 million higher than the prior outlook.
• Raised full-year 2026 Same-Property RevPAR growth rate outlook to +7.6% to +8.0% (midpoint +280 basis points).
• Raised full-year 2026 Same-Property Total RevPAR growth rate outlook to +6.1% to +6.5% (midpoint +160 basis points).
• Q4 2026 Adjusted EBITDAre outlook is $66.0 to $70.0 million.
• Q4 2026 Adjusted FFO per diluted share outlook is $0.26 to $0.30.
• Outlook assumes no acquisitions and no additional dispositions beyond the sale of The Hotel Zags Portland.

Business Segments and Product Lines:

• Same-Property RevPAR increased 8.3% in Q3 2026, driven by a 7.0% increase in Average Daily Rate (ADR) and a 1.2% increase in Occupancy.
• Same-Property Total RevPAR increased 6.9% in Q3 2026.
• Resort RevPAR grew 8.4%, while Urban RevPAR grew 8.3%.
• Specific market performance included San Francisco (+14.5%), Chicago (+12.7%), Los Angeles (+10.7%), Boston (+10.6%), and Washington, DC (+9.1%).
• Food and beverage revenues jumped 11.2% in the quarter.
• Eight of the 13 resorts achieved Hotel EBITDA growth of 20% or more.
• Capital investments for the full year 2026 are reduced to $60 to $70 million, down from the prior outlook of $65 to $75 million.

Market and Competitive Landscape:

• Travel demand remains resilient despite ongoing geopolitical and economic uncertainty.
• New hotel supply is described as extremely limited, contributing to stronger pricing power.
• 2027 outlook includes stronger convention calendars in San Diego and Boston, and the Super Bowl in Los Angeles.
• The Company increased its estimated net asset value (NAV) per common share by $1.00 to a range of $23.50 to $27.50.
• Over the past year, the Company completed nearly $170 million of property dispositions at an aggregate 17.4x EBITDA multiple.

Risks and Challenges:

• Recorded $77.3 million of non-cash impairment charges in the third quarter, primarily related to the sale of The Hotel Zags Portland.
• The Hotel Zags Portland generated negative EBITDA of $0.6 million for the trailing-twelve-months ending August 31, 2026.
• Management notes shorter booking windows and macroeconomic, policy, and geopolitical uncertainties.
• Forward-looking statements are subject to risks including the state of the U.S. economy and the supply of hotel properties.

Management Commentary and Tone:

• CEO Jon E. Bortz stated results "far exceeded the high end of our outlook for the third consecutive quarter."
• Management highlighted "broad-based growth" and "significant pricing power" with Same-Property ADR increasing 7.0%.
• The tone is confident regarding "substantial upside ahead" driven by redeveloped resorts ramping up, urban market recovery, and strong free cash flow.
• Management emphasized disciplined cost control and operating efficiency initiatives driving margin expansion.

Other Key Points:

• Sold The Hotel Zags Portland for $10.0 million on October 8, 2026, eliminating the property's drag on Hotel EBITDA.
• Repurchased 1.2 million common shares for $20.9 million (average $18.12 per share) and 0.4 million preferred shares for $7.2 million (23% average discount to liquidation preference) in Q3 2026.
• Since October 2022, the Company has repurchased 20.6 million common shares (approx. 16% of outstanding shares) at an average price of $13.64.
• Total outstanding preferred equity securities reduced to $707.8 million following Q3 repurchases.
• Consolidated debt carries an estimated weighted-average interest rate of 4.2% and a weighted-average debt maturity of 2.5 years.
• 89% of debt is effectively fixed and 98% is unsecured.
• The $350 million convertible notes maturing in December 2026 are expected to be fully funded by existing cash, expected free cash flow, and available term loan capacity.
• Declared a quarterly cash dividend of $0.01 per share on common shares and regular quarterly dividends on preferred shares (Series E, F, G, and H).