BETHESDA, MD—Jon E. Bortz, the Chairman and CEO of Pebblebrook Hotel Trust (NYSE:PEB), recently acquired a significant number of common shares in the company, according to a recent SEC filing. On November 15, Bortz purchased a total of 7,000 shares, with prices ranging from $12.02 to $12.07 per share, amounting to a total transaction value of $84,390.
Following these transactions, Bortz now directly owns 1,382,284 common shares. Additionally, he holds 200,000 shares indirectly through his wife, although he disclaims beneficial ownership of those shares. Beyond common shares, Bortz also maintains ownership of 18,000 shares of the company's 5.70% Series H Preferred Shares and 403,963 LTIP Class B Units, which are convertible into common shares under certain conditions.
This latest acquisition reflects Bortz's continued confidence in the future of Pebblebrook Hotel Trust, a real estate investment trust headquartered in Bethesda, Maryland.
In other recent news, Pebblebrook Hotel Trust has reported notable growth in its third-quarter earnings call, despite facing significant challenges. The company saw a 2.2% increase in same-property RevPAR and a 2.7% rise in total RevPAR, along with a 3.8% growth in out-of-room spending. This growth led to a same-property hotel EBITDA of $110.8 million, surpassing expectations by $8.7 million.
The company also managed a successful brand conversion of the Delfina Santa Monica Hotel to Hyatt Centric, with a $16 million refresh completion expected by Q1 2025. However, the impact of recent hurricanes and the rebranding are projected to reduce Q4 same-property RevPAR by about 100 basis points.
Pebblebrook has issued $400 million in senior unsecured notes and extended bank term loans to 2029, with no significant debt maturities until December 2026. The company anticipates improved performance in 2025, driven by urban market recovery, redeveloped property growth, and favorable group booking pace. Despite the challenges, Pebblebrook has demonstrated resilience and strategic growth amidst a challenging environment.
InvestingPro Insights
Jon E. Bortz's recent purchase of Pebblebrook Hotel Trust (NYSE:PEB) shares aligns with broader trends observed in the company's financial data and market performance. According to InvestingPro data, PEB's market capitalization stands at $1.5 billion, with the stock trading at a price-to-book ratio of 0.54 as of the last twelve months ending Q3 2024. This relatively low valuation multiple suggests the stock may be undervalued compared to its book value, potentially supporting Bortz's decision to increase his stake.
InvestingPro Tips highlight that management has been aggressively buying back shares, which, coupled with Bortz's recent purchase, indicates a strong belief in the company's intrinsic value. Additionally, PEB has maintained dividend payments for 15 consecutive years, demonstrating a commitment to shareholder returns despite challenging market conditions.
While the company faces profitability challenges, with a negative P/E ratio and analysts not anticipating profitability this year, PEB's revenue for the last twelve months ending Q3 2024 reached $1.45 billion, showing a 3.15% growth. This revenue growth, albeit modest, suggests the company is navigating the post-pandemic recovery in the hospitality sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for Pebblebrook Hotel Trust, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.