Pebblebrook Hotel Trust (PEB): Evaluating Valuation After Q3 Loss and Guidance Cut on Softer Travel Demand

Pebblebrook Hotel Trust (PEB) shook up investor conversations this week after reporting a third-quarter net loss and trimming its full-year outlook. The results reflect softer travel demand during the recent federal government shutdown.

See our latest analysis for Pebblebrook Hotel Trust.

Pebblebrook Hotel Trust’s stock saw a burst of momentum after posting its third-quarter results and revising its outlook. Its 7-day share price return jumped 9.3%, building on a 17.7% gain over the past 90 days. Yet, the longer-term story remains more challenging, with a 1-year total shareholder return of -10.0% and the five-year total return falling nearly 35%, reminding investors that recent positive price moves come in the context of a tougher multi-year performance.

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With recent financial setbacks but signs of operational resilience, investors face a key question: is Pebblebrook Hotel Trust undervalued after its latest drop, or has the market already accounted for any future rebound?

Most Popular Narrative: 8.5% Undervalued

Pebblebrook Hotel Trust’s most popular narrative points to a fair value of $12.58, which is around 8.5% above the latest close. With the share price trailing this estimate, many are watching for key drivers that could spark upside.

The portfolio is set to benefit from a loaded pipeline of major citywide events, convention calendars, and sports and entertainment spectacles (World Cup, Super Bowl, Olympics) in 2026, 2027, and 2028. These events are expected to significantly boost occupancy, push ADR higher, and drive revenue growth in core urban markets.

Read the complete narrative.

Want to see what’s really powering this bold valuation? The answer hinges on a suite of optimistic growth assumptions and a future profit multiple that rivals sector leaders. Curious which financial moves and numbers are beneath this forecast? Dive deeper to discover the drivers that could make or break Pebblebrook’s value story.

Result: Fair Value of $12.58 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the company’s heavy focus on urban markets and rising labor costs could quickly challenge any bullish long-term outlook if conditions worsen.

Find out about the key risks to this Pebblebrook Hotel Trust narrative.

Build Your Own Pebblebrook Hotel Trust Narrative

If this view isn't your own, or you prefer to analyze the numbers personally, you can build an independent thesis in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Pebblebrook Hotel Trust.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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