Revenue appears resilient at $407.1M in Q2 2026, but extreme NOI margin volatility—from -10.6% in Q4 2025 to 30.1% in the latest quarter—signals persistent structural pressure from the high fixed-cost nature of its full-service urban assets.
Pebblebrook Hotel Trust (PEB) annual income statement — 17-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Revenue | 1.5B | 1.48B | 1.45B | 1.42B | 1.39B | 733.04M | 442.89M | 1.61B | 828.68M | 769.32M | 816.42M | 770.86M | 598.78M | 489.22M | 380.69M | 287.99M | 57.76M | 0 |
| Revenue Growth % | 2.08% | 1.53% | 2.35% | 2.02% | 89.88% | 65.51% | -72.53% | 94.55% | 7.72% | -5.77% | 5.91% | 28.74% | 22.39% | 28.51% | 32.19% | 398.58% | - | - |
| Property Operating Expenses | 1.23B | 1.57B | 1.09B | 1.07B | 1.01B | 608.25M | 493.76M | 1.1B | 566.02M | 516.47M | 534.41M | 515.02M | 410.87M | 355.25M | 281.77M | 201.35M | 45.06M | 0 |
| Net Operating Income (NOI) | 270.43M | -98.73M | 366.12M | 354.27M | 382.28M | 124.79M | -50.87M | 513.03M | 262.65M | 252.84M | 282.01M | 255.84M | 187.91M | 133.97M | 98.92M | 86.63M | 12.7M | 0 |
| NOI Margin % | 18.02% | -6.69% | 25.19% | 24.95% | 27.46% | 17.02% | -11.49% | 31.82% | 31.7% | 32.87% | 34.54% | 33.19% | 31.38% | 27.38% | 25.98% | 30.08% | 21.98% | - |
| Operating Expenses | 201.32M | -173.98M | 282.1M | 316.46M | 367.56M | 214.58M | 241.84M | 283.69M | 130.99M | 126.34M | 130.54M | 123.52M | 94.67M | 72.74M | 59.57M | 57.11M | 14.22M | 262K |
| G&A Expenses | 47.68M | 49.47M | 48.08M | 44.79M | 39.19M | 38.17M | 45.16M | 34.05M | 22.51M | 24.05M | 28.11M | 27.65M | 26.35M | 17.17M | 16.78M | 13.27M | 8.44M | 262K |
| EBITDA | 285.66M | 302.91M | 313.56M | 278.45M | 254.31M | 134.46M | -68.15M | 464.22M | 765.44M | 769.32M | 816.42M | 223.51M | 159.59M | 113.42M | 80.13M | 60.46M | 4.25M | -147K |
| EBITDA Margin % | 19.04% | 20.53% | 21.58% | 19.61% | 18.27% | 18.34% | -15.39% | 28.79% | 92.37% | 100% | 100% | 28.99% | 26.65% | 23.19% | 21.05% | 21% | 7.37% | - |
| Depreciation & Amortization | 216.55M | 227.66M | 229.53M | 240.65M | 239.58M | 224.25M | 224.56M | 234.88M | 698.46M | 648.81M | 677.1M | 95.87M | 68.32M | 55.57M | 43.01M | 30.95M | 5.78M | 0 |
| D&A / Revenue % | 14.43% | 15.43% | 15.79% | 16.95% | 17.21% | 30.59% | 50.7% | 14.57% | 84.29% | 84.34% | 82.94% | 12.44% | 11.41% | 11.36% | 11.3% | 10.75% | 10% | - |
| Operating Income | 69.11M | 75.25M | 84.03M | 37.81M | 14.72M | -89.79M | -292.71M | 229.34M | 66.97M | 120.5M | 139.32M | 127.64M | 91.27M | 57.85M | 37.11M | 29.52M | -1.52M | -262K |
| Operating Margin % | 4.61% | 5.1% | 5.78% | 2.66% | 1.06% | -12.25% | -66.09% | 14.23% | 8.08% | 15.66% | 17.06% | 16.56% | 15.24% | 11.83% | 9.75% | 10.25% | -2.63% | - |
| Interest Expense | 3M | 103.33M | 102.48M | 107.56M | 83.52M | 86.89M | 0 | 108.47M | 53.92M | 37.3M | 43.62M | 38.77M | 27.07M | 23.68M | 14.93M | 13.65M | 1.64M | 0 |
| Interest Coverage | - | 0.46x | 0.75x | 0.32x | -0.01x | -1.14x | - | 2.05x | 1.23x | 3.63x | 2.63x | 3.52x | 3.84x | 2.88x | 2.90x | 2.15x | -3.10x | - |
| Non-Operating Income | 1.9M | 27.85M | 7.16M | 3.88M | 15.9M | 9.63M | 6.78M | 7.09M | 487K | -14.84M | 24.61M | -8.72M | -12.59M | -10.24M | -6.19M | 103K | -1.64M | -115K |
| Pretax Income | -33.52M | -55.94M | -25.61M | -73.62M | -84.7M | -186.31M | -396.29M | 120.9M | 15.13M | 100.44M | 73.83M | 97.58M | 76.79M | 44.42M | 28.37M | 15.76M | -6.72M | 0 |
| Pretax Margin % | -2.23% | -3.79% | -1.76% | -5.18% | -6.09% | -25.42% | -89.48% | 7.5% | 1.83% | 13.06% | 9.04% | 12.66% | 12.83% | 9.08% | 7.45% | 5.47% | -11.64% | - |
| Income Tax | 9.34M | 6.29M | -25.63M | 655K | 277K | 61K | -3.7M | 5.17M | 1.74M | 181K | -134K | 2.59M | 3.25M | 1.23M | 1.87M | 564K | -80K | 147K |
| Effective Tax Rate % | -27.87% | -11.25% | 100.06% | -0.89% | -0.33% | -0.03% | 0.93% | 4.28% | 11.52% | 0.18% | -0.18% | 2.65% | 4.23% | 2.76% | 6.58% | 3.58% | 1.19% | - |
| Net Income | -46.62M | -65.81M | -4.24M | -78.02M | -87.17M | -184.86M | -391.73M | 115.44M | 13.39M | 99.89M | 73.7M | 94.67M | 72.87M | 42.92M | 26.08M | 14.86M | -6.64M | -147K |
| Net Margin % | -3.11% | -4.46% | -0.29% | -5.49% | -6.26% | -25.22% | -88.45% | 7.16% | 1.62% | 12.98% | 9.03% | 12.28% | 12.17% | 8.77% | 6.85% | 5.16% | -11.5% | - |
| Net Income Growth % | -114.63% | -1451.41% | 94.56% | 10.5% | 52.84% | 52.81% | -439.33% | 761.96% | -86.59% | 35.53% | -22.14% | 29.92% | 69.78% | 64.57% | 75.55% | 323.67% | -4418.37% | - |
| Funds From Operations (FFO) | 169.93M | 161.85M | 225.29M | 162.63M | 152.41M | 39.39M | -167.17M | 350.32M | 711.86M | 748.7M | 750.81M | 190.54M | 141.19M | 98.49M | 69.09M | 45.8M | -866K | -147K |
| FFO Margin % | 11.32% | 10.97% | 15.5% | 11.45% | 10.95% | 5.37% | -37.75% | 21.73% | 85.9% | 97.32% | 91.96% | 24.72% | 23.58% | 20.13% | 18.15% | 15.9% | -1.5% | - |
| FFO Growth % | 386.36% | -28.16% | 38.53% | 6.7% | 286.9% | 123.56% | -147.72% | -50.79% | -4.92% | -0.28% | 294.04% | 34.95% | 43.36% | 42.55% | 50.85% | 5388.8% | - | - |
| FFO per Share | 1.34 | 1.38 | 1.88 | 1.34 | 1.17 | 0.30 | -1.28 | 2.68 | 9.58 | 10.70 | 10.37 | 2.63 | 2.13 | 1.59 | 1.23 | 0.95 | -0.03 | -0.04 |
| FFO Payout Ratio % | 2.73% | 2.94% | 2.16% | 3.06% | 3.47% | 13.4% | -32.28% | 52.76% | 14.85% | 14.34% | 14.03% | 44.1% | 39.46% | 37.54% | 39.08% | 48.57% | 0% | 0% |
| EPS (Diluted) | -0.37 | -0.90 | -0.39 | -0.93 | -0.95 | -1.80 | -3.25 | 0.63 | 0.18 | 1.19 | 0.64 | 0.94 | 0.71 | 0.32 | 0.14 | 0.08 | -0.23 | -0.04 |
| EPS Growth % | -17.71% | -130.77% | 58.06% | 2.11% | 47.22% | 44.62% | -615.87% | 250% | -84.87% | 85.94% | -31.91% | 32.39% | 121.88% | 128.57% | 75% | 134.78% | -528.42% | - |
| EPS (Basic) | - | -0.90 | -0.39 | -0.93 | -0.95 | -1.80 | -3.25 | 0.63 | 0.18 | 1.20 | 0.65 | 0.95 | 0.72 | 0.32 | 0.14 | 0.08 | -0.23 | -0.04 |
| Diluted Shares Outstanding | 127.11M | 117.03M | 119.78M | 121.81M | 130.45M | 130.8M | 130.61M | 130.72M | 74.29M | 69.98M | 72.37M | 72.38M | 66.26M | 61.84M | 55.96M | 47.97M | 28.67M | 4.01M |
Quick answers to the most common questions about buying PEB stock.
For fiscal year 2025, Pebblebrook Hotel Trust (PEB) reported total revenue of $1.48B.
Pebblebrook Hotel Trust (PEB) reported a net loss of $65.8M for the fiscal year ending 2025.
Pebblebrook Hotel Trust (PEB) reported an operating income of $75.2M, resulting in an operating profit margin of 5.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Pebblebrook Hotel Trust (PEB) generated $-98.7M in gross profit for the year, representing a gross profit margin of -6.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent negative margins amid leverage
Metrics are mathematically derived from official filings.
Revenue Resilience Masks Margin Erosion
According to recent SEC filings, Pebblebrook's Q2 2026 revenue of $407.1M was essentially flat year-over-year, yet the company has raised full-year guidance for two consecutive quarters, suggesting management sees sustainable demand in its lifestyle portfolio.
The near-flat revenue trend over the past four quarters, following a period of modest growth, indicates the portfolio has entered a stabilization phase rather than a high-growth trajectory. Management's upward guidance revisions imply they are confident in pricing power and demand resilience, but the top-line stagnation suggests growth is now primarily dependent on RevPAR improvement and ancillary revenue lift rather than portfolio expansion. This shift requires investors to focus on operational execution and cost control as the primary drivers of future earnings growth.
NOI Margin Volatility Signals Structural Pressure
As reported in financial statements, Pebblebrook's NOI margin swung wildly from -10.6% in Q4 2025 to 30.1% in Q2 2026, highlighting extreme sensitivity to seasonal demand and the high fixed-cost nature of its full-service urban assets.
The dramatic quarter-to-quarter margin swings are characteristic of hotel REITs with high operating leverage, but the negative Q4 2025 margin is an outlier that warrants investigation into specific property-level impairments or non-recurring charges. The recovery to a 30.1% margin in Q2 2026 aligns with typical seasonal peaks, yet this level still trails the 31.3% achieved in Q2 2024, suggesting persistent cost pressures—likely in labor and insurance—are compressing peak profitability. Investors should monitor whether these elevated expenses represent a permanent structural shift that limits future margin expansion.
FFO Per Share Recovery Outpaces Net Income
Based on PEB's reported figures, FFO per share reached $0.60 in Q2 2026, marking a significant improvement from the $0.21 trough in Q1 2025, yet the dividend yield remains negligible at 0.1%, indicating capital is being retained for balance sheet repair.
The recovery in FFO per share is a positive signal of operational stabilization, but the persistent gap between FFO and net income highlights the severe distortion caused by depreciation and other non-cash charges. The near-zero dividend yield confirms that management is prioritizing debt reduction or capital expenditure over shareholder returns, which is a prudent use of cash flow given the company's elevated leverage profile. This approach suggests a multi-year recovery timeline before dividend growth becomes a meaningful component of total return.
GAAP Losses Mask Underlying Cash Generation
According to the income statement data, Pebblebrook reported a net loss of $19.3M in Q1 2026 despite generating positive FFO of $32.7M, demonstrating how non-cash charges obscure the actual cash-earning power of the hotel assets.
The divergence between net income and FFO is particularly pronounced in hotel REITs due to the aggressive depreciation schedules on real estate and significant capital expenditure cycles for property renovations. The magnitude of this gap suggests that traditional P/E ratios are meaningless for valuation; investors must focus on FFO and NOI to assess true economic performance. This accounting reality also means that reported losses do not necessarily indicate an inability to service debt or fund operations, provided the underlying cash flow is positive and sustainable.
Negative Margins Challenge Earnings Sustainability
As reported in the peer context, PEB's portfolio-level gross margin of -6.7% is deeply negative compared to peers like DiamondRock's 55.2%, suggesting fundamental challenges in converting revenue into property-level profit that could undermine long-term earnings quality.
The negative gross margin is an alarming outlier among peers and implies that operating expenses, including significant non-cash charges, are consuming more than 100% of revenue at the portfolio level. While this is partially explained by the hotel REIT accounting structure and heavy depreciation, the magnitude suggests either severe cost inflation, underperforming assets, or aggressive capitalization policies. This persistent negative margin is the single biggest risk to the investment thesis, as it indicates that without significant operational improvement or asset sales, the company may struggle to generate the sustained free cash flow needed to deleverage and grow.