Pebblebrook just posted $0.68 AFFO against a $0.62 consensus and raised full-year guidance. The spread between its best and worst markets tells a more interesting story than the beat itself.
Pebblebrook's stock is up 60% this year, the CEO was buying shares at $17 while analysts still had "Hold" ratings, and Q2 earnings land July 28. The gap between insider conviction and Street consensus tells you more than either number alone.
Pebblebrook's Series E preferred shares are paying 6.375% with a yield north of 8%, while the common stock sits a third below net asset value. That gap between what the preferred holders are getting and what the common holders are enduring tells you everything about where hotel REIT capital structures get uncomfortable.
Pebblebrook posted 3.9% same-property EBITDA growth in Q4 and guided 2-4% RevPAR growth for 2026. But $65-75 million in capital improvements means owners should be asking what that spend does to free cash flow before celebrating the top line.
