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• Full Year Same Property Total RevPAR Increase: 2.1%

• Adjusted EBITDA: $359.2 million, a 0.8% increase, exceeding the midpoint of the outlook by $11.2 million

• Adjusted FFO per Diluted Share: $1.68, a 5% increase, surpassing the outlook midpoint by $0.09

• Fourth Quarter Same Property Total RevPAR Increase: 1.8%

• Fourth Quarter Adjusted EBITDA: $62.7 million

• Business Interruption Proceeds from Hurricane Ian: $5.4 million

• Same Property Resort Occupancy Increase: 3.7% to 65%

• California Resorts Occupancy Gain: 6.6 percentage points

• California Resorts RevPAR Increase: 8.8%

• Food and Beverage Revenue Growth in Q4: 7%

• Urban Properties Occupancy Increase in Q4: 2.9 percentage points to 68.1%

• Full Year Resort Occupancy Gain: 2.9 percentage points to 69.9%

• Full Year Urban Occupancy Increase: 2.6 points to 71.3%

• Same Property Resort Revenue Growth in Q4: 4.3%

• Same Property Urban RevPAR Growth Excluding Certain Markets: 6.9% in Q4

• Same Property Non-Room Revenues Increase in Q4: 3.4%

• Food and Beverage Revenues Growth for Full Year: 3.5%

• Redeveloped Properties Q4 Occupancy Increase: 4.7 percentage points

• Redeveloped Properties Full Year RevPAR Surge: 11.3%

• Group Room Nights Increase in Q4: 2.8%

• Transient Room Nights Growth in Q4: 5.6%

• Same Property Hotel Expense Increase Before Fixed Costs in Q4: 3.1%

• Same Property Hotel EBITDA for Full Year: Exceeded 2023 by $3 million

• Capital Investment in 2024: $91 million

• Projected Capital Investments for 2025: $65 million to $75 million

• Cash at End of 2024: $217.6 million

• Net Debt Reduction: Reduced to 5.8 times from 6.5 times in 2023

• Warning! GuruFocus has detected 2 Warning Sign with PEB.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pebblebrook Hotel Trust (NYSE:PEB) reported that their fourth-quarter and full-year 2024 results significantly outperformed their outlook, driven by strong performance from their resort portfolio and recently redeveloped properties.

• Same property total RevPAR increased by 2.1% for the full year, with gains across both urban and resort properties, and stronger out-of-room spending.

• Adjusted FFO per diluted share grew 5% to $1.68, surpassing the outlook midpoint by $0.09.

• The company's California resorts led with occupancy gaining 6.6 percentage points and RevPAR climbing 8.8%, showing strong momentum into 2025.

• Pebblebrook Hotel Trust (NYSE:PEB) made significant strides in strengthening their balance sheet, reducing leverage, and executing $1.6 billion in debt financing and extensions.

Negative Points

• The fourth quarter results included a 190 basis point negative impact from two named storms in Florida and the brand conversion and renovation at the Hyatt Centric in Santa Monica.

• Urban performance remained constrained by ongoing headwinds in San Francisco, Los Angeles, and Portland, affecting overall results.

• The LA wildfires have created a tough start to 2025, with significant group and transient cancellations impacting bookings.

• Challenges in key markets like San Francisco, Los Angeles, and Portland muted overall performance, with San Francisco suffering from a weak convention calendar.

• The absence of $10 million in real estate tax credits received in 2024 creates a roughly 100 basis point headwind to 2025 expense growth rate.