Pebblebrook Hotel Trust authorizes new $150 million share repurchase program

Pebblebrook Hotel Trust (NYSE:PEB), a $1.27 billion market cap hotel REIT currently trading at $11.10 per share and identified as undervalued by InvestingPro analysis, announced Monday that its Board of Trustees has authorized a new share repurchase program permitting the company to buy back up to $150 million of its outstanding common shares. The company also terminated its previous common share repurchase program.

According to a statement included in a Securities and Exchange Commission filing, the new repurchase program allows Pebblebrook Hotel Trust to acquire shares from time to time either on the open market or through private transactions. The timing, manner, price, and amount of repurchases will be determined at the company’s discretion and will depend on various factors including legal requirements, share price, liquidity, economic considerations, and market conditions. The company maintains a healthy financial position with a current ratio of 1.78, indicating strong ability to meet short-term obligations.

The program does not obligate the company to repurchase any specific number of shares and does not have a set expiration date. Pebblebrook Hotel Trust stated that the program may be suspended, modified, or discontinued at any time.

This information is based on a press release statement included in the company’s filing with the SEC.

In other recent news, Pebblebrook Hotel Trust has completed a $400 million convertible notes offering, which includes $50 million from the initial purchasers’ over-allotment option. The notes carry a 1.625% interest rate and will mature on January 15, 2030. This capital raise is part of Pebblebrook’s strategy to partially retire its $750 million convertible notes due in 2026. Stifel has responded to this development by raising its price target for Pebblebrook Hotel Trust to $14, maintaining a Buy rating. Additionally, Truist Securities has reiterated its Hold rating with an $11 price target, aligning with the company’s recent financial activities. Meanwhile, Cantor Fitzgerald initiated coverage of the company with a Neutral rating and a $12 price target. These analyst actions reflect varying perspectives on Pebblebrook’s financial trajectory. These developments highlight significant financial maneuvers and analyst reactions surrounding Pebblebrook Hotel Trust.

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