Jon E. Bortz, Chairman and CEO of Pebblebrook Hotel Trust (NYSE:PEB), recently sold a significant portion of his holdings in the company’s preferred shares. According to a recent SEC filing, Bortz sold a total of 11,000 shares of the 6.375% Series G Preferred Shares and 5.70% Series H Preferred Shares. The transactions, which took place on November 12, 2024, amounted to a total value of $235,099, with the shares sold at prices ranging from $20.00 to $22.16 each.
Following these transactions, Bortz no longer holds any 6.375% Series G Preferred Shares and retains 18,000 shares of the 5.70% Series H Preferred Shares. Despite these sales, Bortz maintains a substantial stake in the company with 1,349,284 common shares held directly and an additional 200,000 common shares held indirectly by his wife.
Pebblebrook Hotel Trust continues to operate as a prominent real estate investment trust specializing in upscale hotel properties.
In other recent news, Pebblebrook Hotel Trust has reported encouraging financial results amid challenging circumstances. Despite the impact of Hurricanes Debby and Helene, the company managed a 2.2% increase in same-property RevPAR and a 2.7% rise in total RevPAR. Out-of-room spending also experienced a growth of 3.8%, contributing to the revenue increase. The company's same-property hotel EBITDA reached $110.8 million, surpassing guidance by $8.7 million.
In addition, the company has issued $400 million in senior unsecured notes and extended bank term loans to 2029, with no significant debt maturities until December 2026. As part of their recent developments, Pebblebrook has rebranded the Delfina Santa Monica Hotel to Hyatt Centric, with a $16 million refresh completion expected by Q1 2025.
Looking forward, the company anticipates improved performance in 2025, driven by urban market recovery and redeveloped property growth. However, analysts predict that the hurricanes and the rebranding are projected to reduce Q4 same-property RevPAR by about 100 basis points. Despite these challenges, Pebblebrook remains optimistic about the future, with plans to continue capital recycling to enhance its portfolio.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Pebblebrook Hotel Trust's financial position and market performance. The company's market capitalization stands at $1.53 billion, reflecting its significant presence in the hospitality REIT sector. Despite the recent insider sales, InvestingPro Tips highlight that management has been aggressively buying back shares, potentially signaling confidence in the company's long-term prospects.
Pebblebrook's financial metrics present a mixed picture. The company is currently trading at a low revenue valuation multiple, which could suggest potential undervaluation. However, it's worth noting that Pebblebrook is not profitable over the last twelve months, with a negative P/E ratio of -49.53. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
On a positive note, Pebblebrook has maintained dividend payments for 15 consecutive years, demonstrating a commitment to shareholder returns despite challenging market conditions. The current dividend yield stands at 0.32%, based on the most recent data.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide valuable insights into Pebblebrook's financial health and market position. These tips, along with real-time metrics, can help investors make more informed decisions in the dynamic hospitality REIT sector.
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