As conflict in the Middle East drives up the price of oil and subsequently the price of airline tickets, Bethesda, Maryland-based Pebblebrook Hotel Trust says it's carefully balancing a conservative outlook with its strong first-quarter performance.
During the hotel real estate investment trust's first-quarter earnings call, Pebblebrook Chairman and CEO Jon Bortz said the company is taking it one month at a time given a “volatile and uncertain environment,” even after what he called a “blowout” quarter.
“We haven’t seen (revenue per available room) and total RevPAR growth at these levels since the third quarter of 2014, excluding one unusually strong pandemic recovery quarter in 2023,” Bortz said.
San Francisco led the portfolio again with first-quarter RevPAR increasing 44.5%, followed by Los Angeles and San Diego.
The hospitality company, with a national portfolio spanning from California to Washington, D.C., was buoyed in part the last few months by business from the Super Bowl in Santa Clara, California, in February, as well as recovery from disruptions caused from fires that devastated the West Coast, Raymond Martz, Pebblebrook's co-president and chief financial officer, added.
All that being said, the team remains cautious for the year ahead. Earlier this year, Pebblebrook said it and the hotel industry at large were set up well for the year. Days later, regional conflict with Iran accelerated.
“We’re not assuming the balance of the year will be as visible as the first quarter,” Martz continued, citing how higher fuel prices and broad economic concern could put pressure on travel demand and booking patterns.
By the numbers
For the first quarter, Pebblebrook reported revenue of nearly $346 million, up from about $320 million in the first quarter of 2025, according to the company’s earnings release. It reported a net loss of nearly $18.5 million for the quarter as compared to a loss of $32.2 million in 2025.
Pebblebrook saw adjusted earnings before interest, taxes, depreciation, amortization and real estate costs for the fourth quarter reach $73.3 million, a 29.5% year-over-year increase.
As of March 31, 2026, Pebblebrook had 204.6 million in cash, cash equivalents and restricted cash. It also had $641 million of available capacity on its $650 million senior unsecured revolving credit facility.
Pebblebrook’s consolidated debt and convertible notes have an estimated 4.1% weighted-average interest rate and a weighted-average debt maturity of three years. Of its debt, 98% is effectively fixed and approximately 98% unsecured.
As of press time, Pebblebrook's stock was trading at $14.25, up 25.88% year to date. The NYSE Composite Index was up 3.51% for the same period.