In a recent transaction, Jon E. Bortz, Chairman and CEO of Pebblebrook Hotel Trust (NYSE:PEB), acquired 13,000 common shares of the company. The shares were purchased at a weighted average price of $12.68, with transaction prices ranging from $12.59 to $12.84. This acquisition increases Bortz's direct ownership to 1,395,284 common shares. In addition to his direct holdings, Bortz also indirectly holds 200,000 shares through his wife, although he disclaims beneficial ownership of those shares. Furthermore, Bortz maintains ownership of 18,000 5.70% Series H Preferred Shares and 403,963 LTIP Class B Units, which can potentially be converted to common shares.
In other recent news, PebbleBrook Hotel Trust has seen significant developments. The company reported a modest increase in revenue per available room (RevPAR) and exceeded financial expectations in its third-quarter earnings call. Despite facing challenges such as Hurricanes Debby and Helene, a brand conversion, and capital investments, PebbleBrook saw a rise in same-property RevPAR and out-of-room spending. The company's same-property hotel EBITDA reached $110.8 million, surpassing guidance by $8.7 million.
In addition, PebbleBrook shares received an upgrade in its stock rating from Compass Point. The firm shifted its stance on the hotel trust from Neutral to Buy, while maintaining a steady price target of $17.00. This upgrade comes amid the company's significant lag behind its sector peers year-to-date. The analyst at Compass Point noted that PebbleBrook is projected to achieve the second-highest Adjusted EBITDA growth in 2025 according to their estimates.
Furthermore, PebbleBrook issued $400 million in senior unsecured notes and extended bank term loans to 2029, with no significant debt maturities until December 2026. The company anticipates improved performance in 2025, driven by urban market recovery, redeveloped property growth, and favorable group booking pace. These are just a few of the recent developments that have been taking place at PebbleBrook Hotel Trust.
InvestingPro Insights
The recent insider buying by Pebblebrook Hotel Trust's CEO aligns with several key insights from InvestingPro. According to InvestingPro data, Pebblebrook's stock is currently trading at a low revenue valuation multiple, with a price-to-book ratio of just 0.57 as of the last twelve months ending Q3 2024. This could indicate that the stock is potentially undervalued, which may have influenced the CEO's decision to increase his stake.
An InvestingPro Tip highlights that management has been aggressively buying back shares, further demonstrating confidence in the company's value. This insider activity, combined with the company's share repurchase program, could be seen as a positive signal for investors.
Despite these encouraging signs, it's worth noting that Pebblebrook is not currently profitable, with a negative P/E ratio of -113.61 for the last twelve months. However, the company has maintained dividend payments for 15 consecutive years, as pointed out by another InvestingPro Tip, showcasing its commitment to shareholder returns even in challenging times.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Pebblebrook Hotel Trust, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.