Favorable Lodging Cycle Setup Supports Multi-Year Recovery
Supported by improving hotel demand, minimal new supply growth, recovering group and business travel, increasing pricing power, and a strong major event calendar through 2028.
1
Upside of ~$90M Hotel EBITDA | ~$0.71/Share Adj. FFO
Driven by urban recovery and normalization, LaPlaya's ramp-up, remaining redevelopment ROI, and savings from an expiring major legacy management agreement.
2
~$148.0M Retained Free Cash Flow(1)
Expected for 2026 after capital investments and common dividends, providing capacity to self-fund debt reduction and accretive preferred/common share repurchases.
3
~$5.00/Share NAV Gap | ~24% Upside to a Rising NAV
Assumes $20.50 share price vs. $25.50 estimated NAV, with recent asset sales and embedded EBITDA growth supporting a rising NAV.
4
Images (top to bottom): Hyatt Centric Delfina Santa Monica, Estancia La Jolla Hotel & Spa, Viceroy Washington DC, and Hotel Zeppelin San Francisco. 2
(1) As of October 29, 2026, the Company's 2026 Outlook for Free Cash Flow (AFFO less actual capital investments and actual common dividends) is $146.0M to $150.0M.
A Higher-Quality, Balanced Portfolio with Resort Cash Flow and Urban Recovery UpsideSince 2019, Pebblebrook has repositioned its portfolio to 100% luxury and upper-upscale hotels, shifted toward higher-quality leisure and group demand, increased resort and East Coast concentration, and reduced urban exposure - creating a more durable long-term earnings profile with enhanced upside potential as pandemic-and event-impacted urban markets recover.
Resorts were 48% of Hotel EBITDA in 2025 vs. 17% in 2019.
East Coast was 57% in 2025 vs. 38% in 2019.
2025 Hotel EBITDA Contribution | |
San Diego | 23% |
Boston | 22% |
Naples | 10% |
Key West | 8% |
San Francisco | 7% |
Top 5 Markets | 70% |
East Coast | 57% |
West Coast | 41% |
Resort | 48% |
Urban | 52% |
Balanced 50/50
business/leisure demand mix
25%
Business Transient
45%
Leisure Transient
25%
Business Group
5%
Leisure Group
Total RevPAR(1)
+$21 / +6.6%
higher than peer average of $319.(2)
$340
42 Hotels
34 Unencumbered Properties 14 Urban and Resort Markets
= Urban Location
= Resort Location
Fort Lauderdale/
Naples Hollywood
Key West
San Diego
Jekyll Island
Washington, DC
Santa Cruz
Los Angeles
Santa Monica
Chicago
San Francisco
Newport
Boston
Portland
Columbia River Gorge
Note: Any differences are due to rounding. 2025 information includes all hotels the Company owned as of October 29, 2026. 2019 information includes all hotels owned as of December 31, 2019. 3
Based on full-year 2025 same-property information as reported in company filings.
Peer set average includes nine comparable lodging REITs.
Industry demand improved steadily in 2026 (Q1 +1.9%, Q2 +1.7%, Q3 +3.1%), with September YTD demand
+2.2% and RevPAR +5.6% as hotel performance is reconnecting to broader economic growth.
Business transient and leisure demand remain strong, with group demand continuing to build.
Upper-Tier Hotels OutperformLuxury ADR increased 7.0% year-to-date through September, directly relevant to PEB's luxury and upper-upscale portfolio, which caters to premium customers.
Continued wealth creation among higher-end consumers supports growing higher-end travel demand.
Supply Remains Structurally ConstrainedPEB market supply growth forecast is <1.0% for 2026-2028, well below the historical average.
Very low new supply is expected for the rest of the decade, supporting recovering occupancies and growing pricing power across PEB's urban and resort markets.
Event Calendar Extends the Recovery RunwayBeyond 2026, Pebblebrook's markets benefit from another favorable holiday calendar in 2027, stronger convention calendars in its urban markets, and a robust lineup of major events expected to drive incremental demand across the portfolio.
Historical Precedent: Supply Discipline Extends Recovery Cycles From 2010-2016, U.S. hotel demand outpaced supply for seven consecutive years, driving average annual RevPAR growth of
6.0%, while Pebblebrook generated average annual RevPAR
growth of 6.6% and average annual EBITDA growth of 13.0%.(1)
2027-2028 Select Major Events in PEB Markets(2)
Super Bowl LXI Los Angeles Feb '27 NFL Draft & NCAA Frozen Four Washington, DC Apr '27 MLB All-Star Game Chicago Jul '27
PGA Championship San Francisco May '28
MLB All-Star Game San Francisco Jul '28 Olympics & Paralympics LA & San Diego Jul-Aug '28
4
For further details on historical recovery cycles, please refer to pages 13-14.
For further details on 2027-2028 major demand generators in PEB markets, please refer to page 8.
Hotel EBITDA Growth Opportunity of ~$90M Underway
From 2026 through 2028, the Company expects to deliver approximately $90M of incremental Hotel EBITDA above 2025 levels, driven by the remaining ROI upside from recent major redevelopments, LaPlaya's post-hurricane ramp to stabilization, the ongoing recovery in urban markets following impacts from the pandemic, fires, and other events, and a renegotiated major legacy management agreement.
Hotel EBITDA Upside of ~$90M
~$0.71/Share AFFO Upside(1)
$70M
$4M
$439M
Established proof point:
~$42M ROI upside already realized from 2018-24 redevelopments
$349M
$6M
Early proof point: September YTD additional ROI of
~$2M realized
$10M
Early proof point: September YTD LaPlaya EBITDA improved ~$4M vs. prior year
Early proof point: September YTD Urban EBITDA improved
~$18M vs. prior year
2025A
(2)
ROI from
LaPlaya
Recovery in
Management
Stabilized
Hotel EBITDA
Redevelopments
2026-2027
Ramp-Up
2026-2027
Urban Markets
2026-2028
Agreement
2028
Hotel EBITDA
Opportunity
Note: Any differences are due to rounding.
While LaPlaya's ramp-up is expected to benefit Hotel EBITDA, it would not add incremental AFFO/share upside, as lost EBITDA was offset by BI proceeds in 2025 (which are included in AFFO but excluded from Hotel EBITDA).
5
Includes all hotels owned by the Company as of October 29, 2026.
Reflects the remaining $10.5 million of Hotel EBITDA upside from LaPlaya, based on an estimated stabilized Hotel EBITDA of $35.0 million, with $24.5 million achieved in 2025.
The major legacy management agreement at The Westin Copley Place Boston expires at the end of 2028; replacing the current above-market legacy contract is expected to substantially reduce base fees and effectively eliminate incentive fees.
For the twelve months trailing September 2026, Pebblebrook's urban occupancy remained 9 percentage points below 2019 levels, and Hotel EBITDA was still $86 million lower, highlighting meaningful upside as demand continues to recover and normalize while new supply remains very limited.
San Francisco and Los Angeles offer significant recovery runway from pandemic impacts, with Los Angeles also benefiting from major events through 2028. Washington, DC trails prior-year levels on lower government travel, but its citywide calendar builds into 2027. San Diego and Boston convention calendars improve in 2027.Pebblebrook's Top Urban Markets by EBITDA Contribution
Occupancy | FY 2019 | FY 2025 | TTM Q3 '26 | Nominal Variance '26 v '25 '26 v '19 | |
Boston | 88% | 80% | 80% | 0 pts | (9 pts) |
San Francisco | 87% | 72% | 76% | 4 pts | (11 pts) |
San Diego | 85% | 80% | 82% | 2 pts | (3 pts) |
Los Angeles | 83% | 71% | 76% | 5 pts | (7 pts) |
Washington, DC | 77% | 65% | 61% | (4 pts) | (16 pts) |
Total Urban(1) | 85% | 74% | 76% | 2 pts | (9 pts) |
Hotel EBITDA(2) | FY 2019 | FY 2025 | TTM Q3 '26 | % Variance '26 v '25 '26 v '19 | $ Var. '26 v '19 | |
Boston | $84.2 | $76.1 | $76.0 | (0%) | (10%) | ($8.3) |
San Francisco | $66.5 | $25.2 | $41.5 | 64% | (38%) | ($25.1) |
San Diego | $42.0 | $37.4 | $37.0 | (1%) | (12%) | ($5.0) |
Los Angeles(3) | $47.7 | $16.1 | $24.6 | 53% | (48%) | ($23.1) |
Washington, DC | $22.0 | $12.4 | $9.2 | (26%) | (58%) | ($12.8) |
Total Urban(1) | $284.7 | $181.4 | $199.0 | 10% | (30%) | ($85.7) |
the westin san diego gaslamp quarter
ADR | FY 2019 | FY 2025 | TTM Q3 '26 | % Variance '26 v '25 '26 v '19 | |
Boston | $287 | $326 | $341 | 4% | 19% |
San Francisco | $299 | $275 | $306 | 11% | 2% |
San Diego | $220 | $262 | $251 | (4%) | 14% |
Los Angeles | $282 | $269 | $282 | 5% | 0% |
Washington, DC | $235 | $265 | $260 | (2%) | 11% |
Total Urban(1) | $268 | $281 | $291 | 4% | 9% |
Includes information for all urban hotels the Company owned as of October 29, 2026. Any differences are due to rounding.
Hotel EBITDA shown in millions. 6
Los Angeles was impacted by the brand conversion disruption at Hyatt Centric Delfina Santa Monica and the LA wildfires in Q1-Q2 2025.
Urban Recovery Scenario: ~$70M of Hotel EBITDA Upside at Still-Below-2019 Occupancy
Urban Recovery Scenario Key Assumptions:
Demand Recovery:
Occupancy improves to ~80%, supported by continued recovery in business transient, group, leisure, and international inbound demand, particularly in San Francisco, Los Angeles, and Washington, DC.
Market-Specific Upside:
Assumptions reflect local recovery drivers, including San Francisco's AI- and technology-led corporate recovery and robust leisure traveler return, LA's favorable events calendar, improving government-related demand in DC, and compression from citywides and global events.
Limited Supply + Operating Leverage:
Muted new supply supports occupancy and pricing power, while higher urban occupancy should generate meaningful flow-through as fixed costs are absorbed across a larger revenue base.
Timing:
Recovery is expected to build over the next three years, with pace varying by market based on event calendars, convention demand, inbound travel recovery, and local market conditions.
TOTAL URBAN | |||||||
2019 | 2025 | Recovery Scenario | Var. vs. 2025 (#) (%) | Var. vs. 2019 (#) (%) | |||
Occupancy | 85% | 74% | 80% | 6 pts | 8% | (5 pts) | (6%) |
ADR | $268 | $281 | $309 | $28 | 10% | $41 | 15% |
RevPAR | $227 | $208 | $247 | $39 | 19% | $20 | 9% |
Total Revenue | $874 | $828 | $981 | $153 | 19% | $107 | 12% |
Total Expenses | $589 | $646 | $730 | $84 | 13% | $141 | 24% |
Hotel EBITDA | $285 | $181 | $251 | $70 | 38% | ($34) | (12%) |
Hotel EBITDA Margin | 33% | 22% | 26% | 4 pts | 17% | (7 pts) | (22%) |
Pebblebrook's urban recovery remains in progress. The recovery scenario assumes occupancy improves to approximately 80% - still below 2019's 85% - generating ~$70M of incremental Hotel EBITDA as demand normalizes, operating leverage drives growth, and new supply remains limited. Year to date, ~25% ($18M) of this upside opportunity has been realized.
PEB Urban Market | Occ % (Actual) | Recovery Scenario Occ % Range | Implied EBITDA Recovery (Above 2025) | Q3 YTD Hotel EBITDA Improvement (Actual) | |||
2019 | 2025 | 2026 | 2025 | Var. | |||
Los Angeles | 83% | 71% | 75-80% | $22 | $21 | $13 | $8 |
San Francisco | 87% | 72% | 80-85% | 18 | 35 | 19 | 16 |
Boston | 88% | 80% | 80-85% | 14 | 58 | 58 | (0) |
San Diego | 85% | 80% | 80-85% | 8 | 33 | 33 | (0) |
Washington, DC | 77% | 65% | 70-75% | 5 | 7 | 10 | (3) |
Other(1) | 3 | 7 | 11 | (3) | |||
TOTAL URBAN | 85% | 74% | ~80% | $70 | $162 | $144 | $18 |
Note: Dollars in millions, except for ADR and RevPAR. Figures include all urban hotels owned by the Company as of October 29, 2026. Any differences are due to rounding. 7
Other urban markets include Portland, OR and Chicago, IL.
Demand normalization and limited supply underpin the $70M urban EBITDA upside, with city-specific catalysts adding further upside through 2028 and helping offset 2026 events that will not recur.
Market | 2027 | 2028 |
|
| |
Los Angeles |
| |
| ||
San Francisco |
|
|
Washington, DC |
|
|
Chicago |
|
|
San Diego |
|
|
All markets |
| - |
Convention/Citywide Room Nights On-the-Books(1) | ||||
Market | Pre-Pandemic Average(2) | 2025 | 2026 | 2027 |
San Francisco | 840 | 645 | 640 | 625 |
San Diego | 770 | 800 | 710 | 780 |
Washington, DC | 520 | 455 | 495 | 515 |
Boston | 440 | 475 | 465 | 455 |
Total | 2,570 | 2,375 | 2,310 | 2,375 |
San Diego's 2027 book is already back to its pre-pandemic average.
San Francisco's recovery is driven by corporate transient and AI-economy demand, with growing 2027 citywide and group demand representing upside rather than a dependency.
Room Nights On-the-Books are shown in thousands. This is not pace. 8
Average from 2015-2019.
Pebblebrook's recent preferred and common share repurchases have driven approximately
$0.92/share of additional NAV value.
Action | Amount | |
Asset Sales(1) | ~$170M | 17.4x EBITDA Multiple | 3.9% Cap Rate |
Debt Reduction(2) | ~$160M | Lowers leverage; improves flexibility |
Debt/EBITDA(3) | 5.1x | Reduced from 5.9x at YE '25 |
Preferred Equity Retired(2) | ~$60M | Retired at a 23% discount, creating ~$14.0M of immediate value and eliminating ~$3.7M of annual distributions |
Common Repurchases(2) | ~$90M | 7.1M shares at $12.83/share |
the hotel zags (sold)
chamberlain west hollywood hotel (sold)
2026 Retained Free Cash Flow: $146.0M-$150.0M(4)
A substantial source of internally generated capital, with further upside as the ~$90M EBITDA opportunity is realized. With no near-term increase in required distributions expected, retained cash flow could build meaningfully over the next several years.(5)
Reflects asset sales from November 2025 through October 2026.
Reflects capital allocation activity from August 2025 through September 2026.
Reflects net debt to trailing 12-month corporate EBITDA as of September 30, 2026. 9
As of October 29, 2026, the Company's 2026 Outlook for Free Cash Flow (AFFO less actual capital investments and actual common dividends) is $146.0M to $150.0M.
Future retained free cash flow will vary based on earnings, capital investment, and required distributions. Required distributions are expected to increase once NOLs are exhausted.
Estimated 2026 retained free cash flow of $148.0M(1) supports debt reduction, opportunistic repurchases, and investments.
2026 convertible notes expected to be addressed with existing cash on hand and $90M delayed-draw term loan capacity. No other significant debt maturities until 2028.
- As of October 29, 2026, consolidated debt and convertible notes carry a 4.2% weighted-average interest rate and 2.5-year weighted-average maturity, with approximately 89% effectively fixed and 98% unsecured.(2)
Comparison of Debt vs. Peer Group
Company Stated Weighted Average Cost(6)
Interest Cost / Adj. EBITDA(7)
Pebblebrook
4.2%(2)
30.2%
Peer Set Avg.(8)
5.5%
33.4%
PEB vs. Peer Avg.
(130 bps)
(320 bps)
Debt Composition
Amount
Wtd. Avg. Interest Rate(2)
% of Total Debt
Unsecured Bank Group Term Loans
$902
5.2%
42.9%
Unsecured Convertible Notes
$750
1.7%
35.7%
Unsecured Senior Notes
$400
6.4%
19.0%
Secured Mortgage Loan
$51
5.1%
2.4%
Total / Wtd. Avg
$2,103
4.2%
100.0%
Pebblebrook has the lowest weighted-average cost of debt among lodging REIT peers.(6)(8)
A 130-bps cost advantage on approximately $2.1B of debt equates to roughly $27M+ of annual interest expense savings-representing over $125M in cumulative savings versus peers since the pandemic.
Lower cost of debt and no meaningful near-term maturities support more free cash flow for accretive share repurchases and debt reductions.
Debt Maturities as of October 29, 2026
$585
$408
$400(5)
$90M delayed-draw term loan capacity
$350(4)
$360
~$300M cash on hand(3)
2026
$0
2027
2028
2029
2030
2031
Bank Group Term Loans Mortgage Loan
Convertible Notes Senior Notes
Note: Dollars in millions. Any differences are due to rounding.
As of October 29, 2026, the Company's 2026 Outlook for Free Cash Flow (AFFO less actual capital investments and actual common dividends) is $146.0M to $150.0M.
Takes into account effect of swap agreements.
Reflects cash and cash equivalents as of September 30, 2026.
The 2026 Convertible Notes have an initial conversion rate of 39.2549 per $1,000 principal amount of the Notes (equivalent to a conversion price of approximately $25.47 per common share of Pebblebrook and a conversion premium of approximately 35.0% based on the closing price of $18.87 per common share on December 10, 2020).
10
The 2030 Convertible Notes have an initial conversion rate of 62.9129 per $1,000 principal amount of the Notes (equivalent to a conversion price of approximately $15.89 per common share of Pebblebrook and a conversion premium of approximately 37.5% based on the closing price of $11.56 per common share on September 16, 2025).
As reported in Q2 2026 company filings, except for Pebblebrook which is as of October 29, 2026.
Based on full-year 2025 information as reported in company filings.
Peer set average includes nine comparable lodging REITs.
($52K)
(10%)
Public Discount to Private Per-Key Value ($)
Public Discount to Private Per-Key Value (%)(7)
Total Implied Public Value $447K
Private-Market Valuation | |||
Low | High | Mid | |
Enterprise Value Net Debt(1) Convertible Notes(2) Preferred Equity | $5.1 (1.0) (0.75) (0.71) | $5.6 (1.0) (0.75) (0.71) | $5.4 (1.0) (0.75) (0.71) |
NAV | $2.6B | $3.1B | $2.9B $25.50 |
NAV Per Share(3) | $23.50 | $27.50 | |
Estimated Private-Market Values | ||||
Low | High | Mid | Mid/Key | |
Resorts(4) | $2.5 | $2.8 | $2.6 | $850 |
Boston | 1.0 | 1.0 | 1.0 | 503 |
San Diego | 0.5 | 0.5 | 0.5 | 368 |
Washington, DC | 0.2 | 0.2 | 0.2 | 266 |
Los Angeles | 0.4 | 0.5 | 0.4 | 275 |
San Francisco(5) | 0.5 | 0.6 | 0.5 | 362 |
Other Markets(6) | 0.1 | 0.1 | 0.1 | 172 |
Total Private Value | $5.1B | $5.6B | $5.4B | $499K |
Pebblebrook regularly evaluates its property values and NAV using transaction data, financing conditions, market fundamentals, forward-looking cash flows, and buyer sentiment. At a recent share price of ~$20.50, PEB trades at an estimated 20% discount to its private-market NAV midpoint of $25.50 per share (up from $24.50 in Q2 2026), implying approximately 24% upside.
Implied Upside to Estimated Private-Market NAV | |||
Low | High | Mid | |
NAV Per Share ($) NAV Per Share (%) | $3.00 15% | $7.00 34% | $5.00 24% |
Public-Market Valuation | |
Mid | |
Enterprise Value Net Debt, Converts, & Pfd Equity(1)(2) | $4.8 (2.5) |
Equity Market Cap | $2.3B $20.50 |
Recent Share Price | |
Note: Dollars in billions, except per key values (in thousands) and per-share data. Share-based metrics assume 112.6M estimated shares outstanding. Includes hotels owned as of October 29, 2026. Any differences are due to rounding.
Net Debt is net of cash, cash equivalents, and liquid securities as of September 30, 2026, adjusted for the estimated proceeds from the October 2026 sale of The Hotel Zags.
Assumes convertible notes are settled with cash.
NAV Per Share is calculated before transaction costs (approximately 3% on average, ranging from 1.0% to 7.25% depending on market and asset characteristics) and excludes the value of net operating losses (NOLs) that may be available to a potential buyer in a strategic transaction.
Includes the private club at LaPlaya Beach Resort & Club ("LaPlaya").
Includes the Zephyr Walk retail space at Hotel Zephyr Fisherman's Wharf.
Includes properties in Chicago, IL and Portland, OR.
Per-Key Value discount compares the public implied enterprise value per key to the estimated private-market enterprise value per key (gross asset value). The NAV Per Share discount compares 11
the recent common share price to estimated equity NAV per share, net of debt, convertible notes, and preferred equity. The difference between the two discounts reflects leverage and
preferred equity in the capital structure.
Why PEB Assets Command Premium Private-Market Valuations Pebblebrook's portfolio combines recently redeveloped and repositioned upper-upscale and luxury lifestyle assets, broad operating flexibility, and favorable ownership structures - all of which expand the buyer universe and support premium valuations.Favorable Ownership Structure - 90% Fee Simple or Preferred Ground Lease
Pebblebrook's property ownership structure supports value and liquidity, with 60% of assets owned fee simple and 31% held through government or non-profit ground leases, which generally carry lower renewal and consent risk than private-entity ground leases.
Largely Unencumbered Portfolio - 81% of Hotels(1)
Assets unencumbered by both brand and management provide greater buyer flexibility through fewer brand/operator restrictions, complete branding and management optionality, significant key money opportunities, and the ability to reset operating concepts and capital plans.
High-Quality, Well-Maintained Portfolio
Nearly all hotels have undergone major renovations or redevelopments, increasing asset quality, improving competitive positioning, and reducing near- to intermediate-term capital requirements.
inn on fifth
1 hotel san francisco
san diego mission bay resort
Note: Percentages are based on hotels owned by the Company as of October 29, 2026. For further details on portfolio unencumbrance and ownership/lease structure, please refer to the
Appendix on page 16. 12
(1) "Unencumbered" means the hotel is not subject to non-terminable management, brand, soft-brand, or franchise agreements that would restrict a sale. Soft-brand affiliations (e.g.,
Autograph, Luxury Collection) can similarly constrain a sale and may affect value comparable to traditional hard-brand encumbrances.
Prior Cycles Show Stronger RevPAR Growth When Demand Outpaces SupplyPrior cycles (2002-2007 and 2010-2016) demonstrate the correlation between GDP growth and U.S. hotel demand, and that periods of demand outpacing supply have historically supported stronger RevPAR growth.
From 2010-2016, U.S. industry demand outpaced supply in each of the seven consecutive years following the Great Financial Crisis, driving average annual RevPAR growth of 6.0%. During the same period, Pebblebrook outperformed the industry, generating average annual RevPAR growth of 6.6% and average annual Hotel EBITDA growth of 13.0%.
While the historical relationship between GDP growth and hotel demand was disrupted during and following the pandemic, recent trends suggest a normalization that, paired with very limited supply growth, supports stronger RevPAR and Hotel EBITDA growth over the next several years.
In cycles with similar average annual GDP growth, a wider gap between demand and supply growth drove stronger RevPAR growth and, in turn, higher Hotel EBITDA growth.
Year | GDP Growth(1) | U.S. Hotel Industry(2) | PEB/LHO(3) | ||||
Demand Growth | Supply Growth | Demand vs. Supply | RevPAR Growth | RevPAR Growth | EBITDA Growth | ||
2002 | 1.7% | 0.5% | 1.6% | (115 bps) | (2.4%) | (4.8%) | (7.3%) |
2003 | 2.8% | 1.3% | 1.0% | 27 bps | 0.4% | (0.6%) | (9.0%) |
2004 | 3.8% | 7.2% | 4.2% | 306 bps | 7.0% | 9.1% | 10.4% |
2005 | 3.5% | 3.5% | 0.3% | 314 bps | 10.3% | 11.2% | 17.5% |
2006 | 2.8% | 0.8% | 0.4% | 45 bps | 8.2% | 10.1% | 14.6% |
2007 | 2.0% | 0.7% | 1.2% | (57 bps) | 5.9% | 5.4% | 8.3% |
2010 | 2.7% | 7.2% | 1.6% | 552 bps | 5.2% | ||
2011 | 1.6% | 4.6% | 0.4% | 421 bps | 8.4% | 10.3% | 24.0% |
2012 | 2.3% | 2.8% | 0.4% | 241 bps | 6.5% | 8.1% | 17.4% |
2013 | 2.1% | 1.7% | 0.5% | 117 bps | 4.9% | 6.4% | 8.9% |
2014 | 2.5% | 3.9% | 0.6% | 331 bps | 7.9% | 9.2% | 16.4% |
2015 | 2.9% | 2.4% | 0.8% | 152 bps | 6.0% | 3.3% | 8.3% |
2016 | 1.8% | 1.4% | 1.3% | 16 bps | 3.2% | 2.4% | 3.0% |
'02 - '07 Avg '10 - '16 Avg | 2.8% 2.3% | 2.3% 3.4% | 1.5% 0.8% | 87 bps 261 bps | 4.9% 6.0% | 5.1% 6.6% | 5.7% 13.0% |
GDP Growth Data Source: U.S. Bureau of Economic Analysis, "Table 1.1.1. Percent Change From Preceding Period in Real Gross Domestic Product"
U.S. Hotel Industry Data Source: CoStar Analytics 13
RevPAR and Hotel EBITDA Growth reflect same-property results from LaSalle Hotel Properties for 2002-2007 and Pebblebrook Hotel Trust for 2010-2016, as reported in each company's filings at the time. Pebblebrook completed its IPO in December 2009 and its first acquisition in spring 2010, so annual comparisons are not available for earlier periods.
During the 2011-2016 recovery, PEB traded at an average EBITDA multiple of 18.8x - 6.0x above the full-service lodging REIT average of 12.8x - and peaked at 23.7x.
EBITDA Multiple(1)
the valorian west hollywood, a curio collection
Year | PEB/LHO(2) | Hotel REITs(3) |
2002 | 8.7x | 13.1x |
2003 | 7.4x | 12.0x |
2004 | 17.0x | 11.5x |
2005 | 19.5x | 10.6x |
2006 | 13.6x | 14.1x |
2007 | 10.6x | 13.1x |
2011 | 22.5x | 12.7x |
2012 | 19.5x | 12.5x |
2013 | 20.3x | 13.8x |
2014 | 23.7x | 15.0x |
2015 | 14.3x | 10.5x |
2016 | 12.3x | 12.1x |
Today, PEB trades at 12.6x - approximately 6.2x below its prior recovery-cycle average - highlighting meaningful re-rating potential as a new cycle takes hold.
'02 - '07 Avg '11 - '16 Avg | 12.8x 18.8x | (4) | 12.4x 12.8x |
2026 | 12.6x | 11.6x | |
the liberty, a luxury collection hotel, boston
Calculated as Enterprise Value / Company-Reported Adjusted EBITDAre.
Reflects LaSalle Hotel Properties for 2002-2007 and Pebblebrook Hotel Trust for 2011-2016 and 2026. 2026 reflects capital structure as of September 30, 2026 and the midpoint of the
Company's 2026 Outlook. Pebblebrook completed its IPO in December 2009 and its first acquisition in spring 2010, so annual comparisons are not available for earlier periods. 14
Source: Robert W. Baird & Co. Research. Reflects average of full-service lodging REITs. 2026 reflects September 2026.
PEB's 2011-2016 valuation partly reflected its external-growth phase.
A. Portfolio & Supply | 16 - 17 |
B. Redevelopment Projects & Case Studies | 18 - 20 |
C. Convert Mechanics & Balance Sheet | 21 - 22 |
D. Historical Operating Data | 23 - 25 |
15
skamania lodge Management, Brand/Franchise, & Ground Lease FlexibilityStructural flexibility supports private value.
Of Pebblebrook's 42 properties:
81% of hotels are completely unencumbered by non-terminable management, brand, and franchise agreements.
95% of management agreements are terminable.
90% of assets are owned fee simple (60%) or on government/non-profit ground leases (31%).
Management & Brand/Franchise Type | Ownership/Lease Structure | ||||||
Property | Completely Unencumbered | Non-Terminable Management | Non-Terminable Brand/Franchise | Fee Simple | Gov't/Non-Profit Ground Lessor | Private-Party Ground Lessor | |
Resorts | Newport Harbor | ✓ | ✓ | ||||
Chaminade | ✓ | ✓ | |||||
Skamania | ✓ | ✓ | |||||
Marker KW | ✓ | ✓ | |||||
Southernmost | ✓ | ✓ | |||||
Inn on Fifth | ✓ | ✓ | |||||
LaPlaya | ✓ | ✓ | |||||
Margaritaville FL | ✓ | ✓ | |||||
Jekyll Island | ✓ | ✓ | |||||
L'Auberge | ✓ | ✓ | |||||
Estancia | ✓ | ✓ | |||||
Paradise Point | ✓ | ✓ | |||||
SD Mission Bay | ✓ | ✓ | |||||
Boston | Hyatt Boston | ✓ | ✓ | ||||
Liberty | ✓ | ✓ | |||||
Revere | ✓ | ✓ | |||||
W Boston | ✓ | ✓ | |||||
Westin Copley(1) | ✓ | ✓ | |||||
IL | Hotel Chicago | ✓ | ✓ | ||||
Los Angeles | Hotel Ziggy | ✓ | ✓ | ||||
Hyatt Delfina | ✓ | ✓ | |||||
Le Parc | ✓ | ✓ | |||||
Valorian WH | ✓ | ✓ | |||||
Palomar LA | ✓ | ✓ | |||||
Viceroy San. Mon. | ✓ | ✓ | |||||
W LA | ✓ | ✓ | ✓ | ||||
OR | The Nines | ✓ | ✓ | ||||
San Diego | Embassy Suites SD(2) | ✓ | ✓ | ||||
Hilton Gaslamp | ✓ | ✓ | |||||
Margaritaville SD | ✓ | ✓ | |||||
Westin Gaslamp | ✓ | ✓ | ✓ | ||||
San Francisco | 1 Hotel SF | ✓ | ✓ | ||||
Argonaut | ✓ | ✓ | |||||
Harbor Court | ✓ | ✓ | |||||
Zelos | ✓ | ✓ | |||||
Zephyr | ✓ | ✓ | |||||
Zeppelin(3) | ✓ | ✓ | |||||
Zetta | ✓ | ✓ | |||||
Wash DC | Hotel George | ✓ | ✓ | ||||
Monaco DC | ✓ | ✓ | |||||
Viceroy DC | ✓ | ✓ | |||||
Zena | ✓ | ✓ | |||||
# Hotels (% of total) | 34 (81%) | 2 (5%) | 8 (19%) | 25 (60%) | 13 (31%) | 4 (10%) | |
Note: Any differences are due to rounding.
The Westin Copley Place, Boston's management agreement expires in December 2028. 16
Embassy Suites San Diego Bay - Downtown's franchise agreement expires in January 2028.
Hotel Zeppelin San Francisco's ground lease applies to only 41% of its rooms, while the remaining 59% is owned fee simple.
//
0.5% 0.5% 0.5%
0.4%
0.9%
0.8%
1.2%
1.1%
1.4%
1.5%
1.7%
1.8%
2015-2019 PEB Avg: 2.3%
2.9% 2.9%
2.7% 2.8%
U.S. Urban Supply Growth 2010-2019, 2023-2028(4)
3-year PEB urban supply forecast 2026-2028 of 0.9%
vs. 2015-2019 average of 2.3%
PEB Urban Market Supply Growth | ||
Urban Market | Pre-Pandemic Average(1) | 3Y Supply Forecast(2) |
Boston | 3.4% | 0.7% |
Washington, DC | 3.0% | 1.0% |
Santa Monica | 2.0% | 0.1% |
Hollywood/Beverly Hills | 1.8% | 0.7% |
San Diego | 1.8% | 2.5% |
San Francisco | 0.4% | 0.1% |
Wtd. Average(3) | 2.3% | 0.9% |
w boston
Average from 2015-2019.
17
3-Year ("3Y") supply forecast is the average of management's supply forecast for 2026-2028.
Weighted average calculated by number of rooms for all urban hotels owned as of October 29, 2026.
2010-2025 data is based on U.S. Urban STR performance; 2026-2028 data is based on management's estimates.
$265M Invested | $42M Annualized ROI Realized | $4-8M Remaining EBITDA Upside
2018-24 Total Projects
(ROI Realized + Remaining)
$265M
$45-50M
17-19%
+$590-645M
ROI Capital | Estimated Annualized ROI Gains | Stabilized Annualized Cash ROI % | Implied Value Creation(2) | |
2018-22 Projects(1) | $157M | $22M | 14% | +$280M |
2018/19 | 7 | $8M |
2020 | 9 | $4M |
2021/22 | 4 | $9M |
2023/24 | 8 | $24-28M ($20M realized, $4-8M remaining) |
Skamania Lodge (Treehouse Phase IV + Master Plan) Solamar Margaritaville Hotel San Diego Gaslamp Hilton Gaslamp San Diego Jekyll Island Club Resort Estancia La Jolla Hotel & Spa Phases I & II Southernmost Key West Guesthouses Viceroy Santa Monica Guestrooms Newport Harbor Island Resort | ||
2023-24 Projects | $108M | $24-28M | 22-26% | +$310-365M |
ROI Realized(1) | $20M | |||
ROI Remaining | $4-8M |
# Hotels Annualized ROI
southernmost key west
Note: Includes information for all hotels the Company owned as of October 29, 2026. Any differences are due to rounding.
Reflects estimated annualized ROI gains realized since project completion, derived from property-specific financial data where available and, for other properties, estimated 18
based on actual RevPAR market-share gains and non-room revenue growth as of December 31, 2025.
Implied value creation assuming a 13x EBITDA multiple on the estimated annualized ROI gains.
1 Hotel San Francisco $28.0M Total Capital, $19.6M ROI-Focused
In 2022, Pebblebrook completed its transformational redevelopment converting Hotel Vitale into the eco-luxury 1 Hotel San Francisco. The relaunch delivered dramatically upscaled guestrooms, luxurious public and meeting spaces, and enhanced spa and F&B offerings anchored by a comprehensive wellness program.
ROI Capital | RevPAR Penetration vs. Sub-Market Before After % Chg (2019) (2025) | Annualized EBITDA Gain(1) | Annualized Cash ROI % | Implied Value Creation(2) | ||
$19.6 | 143 | 267 | 86% | $7.7 | 39% | +$100M |
Hilton San Diego Gaslamp Quarter $25.0M Total Capital, $10.0M ROI-Focused
The $19.6M invested is generating a stabilized 39% cash-on-cash return, positioning the hotel to sustain market-leading performance and capture upside from its expanded offerings.
In 2023, the Company completed its comprehensive redevelopment and renovation of the Hilton San Diego Gaslamp Quarter, with highlights including upgraded guestrooms, a reimagined restaurant, and expanded outdoor bar, dining, and event spaces.
ROI Capital | RevPAR Penetration vs. Sub-Market Before After % Chg (Jun '22 TTM) (2025) | Annualized EBITDA Gain(1) | Annualized Cash ROI % | Implied Value Creation(2) | ||
$10.0 | 86 | 115 | 34% | $3.6 | 36% | +$47M |
The $10.0M invested has delivered a 36% cash-on-cash return to date, with additional upside expected over the next 1-2 years.
Note: Dollars in millions.
Annualized EBITDA gain reflects average annual cash profit post-renovation, calculated using actual RevPAR market-share gains on pre-renovation room revenue, actual non-room 19
revenue growth, and management flow-through assumptions for each revenue category.
Estimated implied value creation assuming a 13x EBITDA multiple on the annualized EBITDA gains.
Estancia La Jolla Hotel & Spa $26.0M Total Capital, $18.2M ROI-Focused
In 2023-2024, Estancia La Jolla Hotel & Spa completed a two-phase comprehensive redevelopment and upscaling. The repositioning featured upgraded guestrooms, a reimagined lobby featuring a new bar, enhanced indoor and outdoor event spaces, a revamped spa and pool area, and expanded amenities and F&B offerings.
ROI Capital | RevPAR Penetration vs. Sub-Market Before After % Chg (Sep '22 TTM) (2025) | Annualized EBITDA Gain(1) | Annualized Cash ROI % | Implied Value Creation(2) | ||
$18.2 | 117 | 140 | 19% | $4.1 | 23% | +$53M |
The $18.2M of ROI capital invested has generated a 23% cash-on-cash return to date, with additional upside expected as the property ramps over the next 2-3 years. | ||||||
Newport Harbor Island Resort $50.0M Total Capital, $25.0M ROI-Focused
In 2024, the Company completed its comprehensive redevelopment and repositioning of the luxury Newport Harbor Island Resort, transforming the previously branded property into an independent lifestyle resort with upgraded guestrooms, elevated public areas and meeting spaces, enhanced guest amenities, and improved F&B venues.
ROI Capital | RevPAR Penetration vs. Sub-Market Before After % Chg (Sep '23 TTM) (2025) | Annualized EBITDA Gain(1) | Annualized Cash ROI % | Implied Value Creation(2) | ||
$25.0 | 127 | 141 | 11% | $4.7 | 19% | +$61M |
The $25.0M invested to reimagine the resort has delivered a 19% cash-on-cash return to date, with additional upside expected over the next 2-3 years. | ||||||
Note: Dollars in millions.
Annualized EBITDA gain reflects average annual cash profit post-renovation, calculated using actual RevPAR market-share gains on pre-renovation room revenue, actual non-room 20
revenue growth, and management flow-through assumptions for each revenue category.
Estimated implied value creation assuming a 13x EBITDA multiple on the annualized EBITDA gains.