Key Highlights

  • Total revenues were $402.7 million in the third quarter, up from $398.7 million a year earlier.
  • Same-property RevPAR reached $256.66, compared with $236.96, as ADR rose to $318.52.
  • Adjusted EBITDAre was $107.9 million, against $99.2 million in the prior year quarter.
  • A $77.3 million Impairment on three hotels drove a net loss of $0.56 per common share.
  • Cash and cash equivalents stood at $287.5 million, with $939.1 million of Liquidity including the revolver.

Pricing power lifts RevPAR even as the portfolio shrinks

Pebblebrook Hotel Trust (NYSE:PEB) is a Maryland real estate Investment trust that owns hotels and resorts in urban and resort markets that are run by third-party managers. It filed its Quarterly Report for the period ended September 30, 2026, on October 29, 2026, and owned 43 hotels at quarter end, down from 46 a year earlier.

Total revenues rose by $4.0 million to $402.7 million from $398.7 million. On a calculated basis, that is growth of about 1.0%, achieved despite a $23.1 million decline in revenues from non-comparable properties that were sold.

Same-property RevPAR was $256.66, up from $236.96, which is about 8.3% on a calculated basis. Same-property ADR rose to $318.52 from $297.56, and occupancy improved to 80.6% from 79.6%.

Urban markets and resorts both contribute

Management said both Business and leisure Demand drove broad-based growth, with resort properties leading portfolio gains and strong out-of-room spend supporting profitability. Revenue was strong in Boston, Los Angeles and San Francisco, as well as at Paradise Point Resort & Spa, Estancia La Jolla Hotel & Spa and Newport Harbor Island Resort.

Same-property total RevPAR, which includes food, beverage and other revenue, was $398.11, up from $372.25.

A $77.3 million impairment turns profit growth into a net loss

Net loss attributable to common shareholders was $63.1 million, or $0.56 per share, compared with $43.4 million, or $0.37, a year earlier. The result includes an impairment loss of $77.3 million related to three hotels, versus $46.5 million on three hotels in the third quarter of 2025.

Operating loss was $27.6 million, against $10.2 million. Interest expense rose by $5.8 million to $25.9 million, largely because the prior year quarter included a gain on Debt extinguishment from repurchasing convertible debt at a discount.

Operating profit measures improve

Hotel EBITDA was $115.2 million, compared with $105.4 million, which is about 9.3% higher on a calculated basis. Adjusted EBITDAre rose to $107.9 million from $99.2 million, and Adjusted FFO available to common share and unit holders was $71.6 million versus $60.2 million. These are non-GAAP measures.

Total hotel operating expenses fell by $2.3 million to $256.7 million as sold properties dropped out, even as costs rose at comparable hotels with higher revenues.

For the nine months, revenues rose $29.0 million to $1.16 billion, and Adjusted EBITDAre increased to $297.3 million from $272.8 million.

Sales, Buybacks and a $2.1 billion debt stack frame what comes next

During the nine months the company sold the Chamberlain West Hollywood Hotel for $43.5 million, and closed the sale of The Hotel Zags for $10.0 million on October 8, 2026. It repurchased 2,095,747 common shares for $33.7 million and 1,863,102 Preferred Shares for $35.8 million.

Total debt had a Face Value of $2.1 billion, with nothing drawn on the revolving Credit facility. The company extended its $360.0 million term Loan to February 2031 and reported compliance with all covenants.

Readers will likely watch how RevPAR growth carries into the seasonally softer months, whether further impairments follow, and how asset sales and buybacks shape the balance sheet.