PEB Stock Forecast & Price Target

Pebblebrook Hotel Trust has demonstrated a positive outlook, as evidenced by a 5% increase in net asset value (NAV) for their San Francisco properties from the first to the second quarter of 2025. Additionally, the company has indicated greater-than-expected EBITDA gains from capital expenditures related to its Legacy LaSalle Hotel Properties portfolio, suggesting effective operational management and investment strategies. Furthermore, management has highlighted market share gains in several earnings calls, indicating a strengthening competitive position within the hospitality sector.

Pebblebrook Hotel Trust faces a negative outlook due to depressed international inbound demand, significantly affecting urban markets on the West Coast and contributing to market concentration risks in cities like Boston, Los Angeles, and San Francisco. Additionally, an ongoing severe economic downturn has led to slower-than-expected incremental EBITDA growth from major capital expenditures, which has not fully materialized, resulting in multiple contraction. Compounding these challenges are struggling hotel-level profit fundamentals, weak margin trends, and relatively loose brand standards that may have led to mediocrity in performance, particularly among smaller ownership groups post-COVID.