PEB Stock Forecast & Price Target

Pebblebrook Hotel Trust has demonstrated a positive trend in its net asset value (NAV), particularly in the San Francisco market, which saw a 5% increase from the first quarter to the second quarter of 2025. Additionally, the company has reported greater than expected gains in EBITDA linked to capital expenditures from its Legacy LaSalle Hotel Properties portfolio, indicating improved operational efficiency and profitability. Furthermore, management has highlighted market share gains during earnings calls, suggesting a favorable competitive position within the upper upscale and luxury hotel segments.

Pebblebrook Hotel Trust faces a negative outlook primarily due to depressed international inbound demand, particularly affecting urban markets on the West Coast, which contributes to vulnerabilities in target locations such as Boston, Los Angeles, San Francisco, San Diego, and South Florida. The company is experiencing delayed or incomplete incremental EBITDA growth following significant capital expenditures, leading to potential revenue contraction and weakened profitability. Furthermore, challenges in hotel-level profit fundamentals, loose brand standards, and staffing difficulties stemming from the aftermath of COVID-19 may result in increased competition and mediocrity within its portfolio, particularly among smaller, less capitalized ownership groups.