the westin copley place, boston
Reasons to Invest in Pebblebrook
Favorable Lodging Cycle Setup Supports Multi-Year Recovery
Supported by improving hotel demand, limited new supply growth, recovering group and business travel, and a strong major event calendar through 2028.
1
~$90M Hotel EBITDA Upside
Driven by urban recovery and normalization, LaPlaya's ramp-up, remaining redevelopment ROI, and substantial management agreement expense savings.
2
~$115M | ~$1.00/share Retained Free Cash Flow(1)
To be generated in 2026 after capital investments and common dividends, providing capacity to self-fund debt reduction and accretive preferred/common repurchases.
3
~$5.00/share NAV Gap | ~27% Upside to Estimated NAV
Assumes $18.50 share price vs. $23.50 estimated NAV, with recent asset sales reinforcing private-market value estimates.
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 May 28, 2026, the Company's 2026 Outlook for Free Cash Flow (AFFO less actual capital investments and actual common dividends) is $114.5M to $116.5M.
Favorable Lodging Cycle Supports Multi-Year EBITDA RecoveryPebblebrook's recovery is not dependent on a single event or one-time comparative benefit. The setup for 2027-2028 continues to support EBITDA growth through demand normalization, historically very low supply growth, recovering business and premium leisure travel demand, and market-specific catalysts across Pebblebrook's portfolio.
Hotel Demand Recovery is Building Upper-Tier Hotels Outperform
May YTD industry demand +1.8% and RevPAR +4.0%; recent demand trends suggest hotel performance is reconnecting to broader economic growth.
Business transient and leisure demand remain strong, with group demand continuing to build.
Supply Remains Structurally Constrained
Luxury ADR increased nearly 6% year-to-date through May, directly relevant to PEB's luxury and upper-upscale portfolio.
The "K-shaped" economy and huge wealth creation continues to support growing higher-end travel demand.
Event Calendar Extends the Recovery Runway
PEB market supply growth forecast at only ~0.5% in 2026, well below the historical average.
Very low new supply is expected over at least the next 4-5 years, supporting recovering occupancies and growing pricing power across PEB's urban and resort markets.
2027-2028 catalysts include Super Bowl LXI in Los Angeles, the NFL Draft in Washington, DC, MLB All-Star Game in Chicago, improved convention calendars in Boston and San Diego, and Olympics and pre-Olympics LA demand.
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% and Pebblebrook RevPAR growth of 6.6%.(1)
(1) For further details on historical recovery cycles, please refer to the Appendix on page 15. 3
Identified Hotel EBITDA Growth Opportunity of ~$90MFrom 2026 through 2028, the Company expects to deliver approximately $90M of incremental Hotel EBITDA, 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 management agreement.
Hotel EBITDA Upside of ~$90M
~$0.69/Share AFFO Upside(1)
$70M
$4M
$438M
$10M
$6M
Early proof point: SF & LA May YTD EBITDA
improved
~$17M versus prior year.
$348M
2025A
(2)
ROI from
LaPlaya
(3)
Recovery in
Management
(4)
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).
4
Includes all hotels owned by the Company as of May 27, 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 management agreement at The Westin Copley Place, Boston matures in 2028; replacing the current above-market legacy contract is expected to substantially reduce base and incentive fees.
Hotel EBITDA(3) 2019 2024 2025 '25 v '24 '25 v '19
Occupancy 2019 2024 2025 '25 v '24 '25 v '19
In 2025, Pebblebrook's urban occupancy was still 11 percentage points and hotel EBITDA was $107M below 2019, creating meaningful upside as demand recovers and normalizes and new supply remains very limited. San Francisco offers the largest recovery runway, Los Angeles benefits from easier comparisons after 2025 disruption with strong event-driven demand for 2026-2028, and Washington, DC should benefit from improving demand after 2025 governmental headwinds.
Pebblebrook's Top Urban Markets by EBITDA Contribution
Boston | 88% | 80% | 80% | (1%) | (10%) |
San Diego | 85% | 79% | 80% | 1% | (6%) |
San Francisco | 87% | 64% | 72% | 13% | (18%) |
Los Angeles | 83% | 74% | 71% | (3%) | (14%) |
Washington, DC | 77% | 66% | 65% | (2%) | (16%) |
Total Urban(1) | 85% | 72% | 74% | 2% | (13%) |
Boston | $84.2 | $85.5 | $76.1 | (11%) | (10%) |
San Diego | $42.0 | $45.0 | $37.4 | (17%) | (11%) |
San Francisco | $66.5 | $15.9 | $25.2 | 59% | (62%) |
Los Angeles(2) | $47.7 | $26.7 | $16.1 | (40%) | (66%) |
Washington, DC | $22.0 | $16.5 | $12.4 | (25%) | (44%) |
Total Urban(1) | $288.1 | $201.4 | $181.0 | (10%) | (37%) |
revere hotel boston common
le parc at melrose
hotel zephyr fisherman's wharf
Includes information for all urban hotels the Company owned as of May 27, 2026. Any differences are due to rounding.
Los Angeles was impacted by the brand conversion disruption at Hyatt Centric Delfina Santa Monica (Q4 2024-Q2 2025) and the LA wildfires (Q1-Q2 2025). 5
Hotel EBITDA shown in millions.
TOTAL URBAN | |||||||
2019 | 2025 | Recovery Scenario | Var. vs. 2025 (#) (%) | Var. vs. 2019 (#) (%) | |||
Occupancy | 85% | 74% | 80% | 6% | 9% | (5%) | (5%) |
ADR | $265 | $278 | $304 | $26 | 9% | $38 | 14% |
RevPAR | $224 | $205 | $243 | $38 | 19% | $19 | 8% |
Total Revenue | $882 | $832 | $986 | $154 | 18% | $104 | 12% |
Total Expenses | $594 | $651 | $735 | $84 | 13% | $142 | 24% |
Hotel EBITDA | $288 | $181 | $251 | $70 | 38% | ($38) | (13%) |
Hotel EBITDA Margin | 33% | 22% | 25% | 4% | 17% | (7%) | (22%) |
Pebblebrook's urban recovery remains in progress. The recovery scenario assumes occupancy improves to approximately 80% - still below 2019's 85% - generating an estimated ~$70 million of incremental Hotel EBITDA as demand normalizes, operating leverage drives growth and new supply remains limited.
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 LA wildfire disruption recovery, San Francisco's booming economy, improving government-related demand in Washington, DC, and event-driven compression from major 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.
6
PEB Urban Market | Actual Occupancy % 2019 2025 | Recovery Scenario Occ % Range | Implied EBITDA Recovery (vs. 2025) | |
Los Angeles | 83% | 71% | 75-80% | $22 |
San Francisco | 87% | 72% | 80-85% | $18 |
Boston | 88% | 80% | 80-85% | $14 |
San Diego | 85% | 80% | 80-85% | $8 |
Washington, DC | 77% | 65% | 70-75% | $5 |
Other(1) | $3 | |||
TOTAL URBAN | 85% | 74% | ~80% | $70 |
Note: Dollars in millions, except for ADR and RevPAR. Figures include all urban hotels owned by the Company as of May 27, 2026. Any differences are due to rounding.
Other urban markets include Portland, OR and Chicago, IL.
Embedded EBITDA recovery should expand NAV/share valuation.
($55K)
(11%)
Public Discount to Private Per-Key Value ($)
Public Discount to Private Per-Key Value (%)(7)
Total Implied Public Value $431K
Private-Market Valuation | |||
Low | High | Mid | |
Enterprise Value Net Debt(1) Convertible Notes(2) Preferred Equity | $5.1 (1.1) (0.75) (0.72) | $5.6 (1.1) (0.75) (0.72) | $5.3 (1.1) (0.75) (0.72) |
NAV | $2.5B | $3.0B | $2.7B $23.50 |
NAV Per Share(3) | $21.50 | $25.50 | |
Estimated Private-Market Values | ||||
Low | High | Mid | Mid/Key | |
Resorts(4) | $2.4 | $2.6 | $2.5 | $792 |
Boston | 1.0 | 1.1 | 1.0 | 523 |
San Diego | 0.5 | 0.6 | 0.5 | 416 |
Washington, DC | 0.2 | 0.3 | 0.2 | 350 |
Los Angeles | 0.4 | 0.5 | 0.5 | 315 |
San Francisco(5) | 0.4 | 0.4 | 0.4 | 265 |
Other Markets(6) | 0.2 | 0.2 | 0.2 | 201 |
Total Private Value | $5.1B | $5.6B | $5.3B | $486K |
Pebblebrook regularly evaluates property values and NAV using transaction data, financing conditions, market fundamentals, forward-looking cash flows, and buyer sentiment. At a recent share price of approximately $18.50, PEB trades at an estimated 21% discount to the private-market NAV midpoint of $23.50 per share, representing approximately 27% upside to estimated NAV.
Implied Upside to Estimated Private-Market NAV | |||
Low | High | Mid | |
NAV Per Share ($) NAV Per Share (%) | $3.00 16% | $7.00 38% | $5.00 27% |
Public-Market Valuation | |
Mid | |
Enterprise Value Net Debt, Converts, & Pfd Equity(1,2) | $4.7 (2.6) |
Equity Market Cap | $2.1B $18.50 |
Recent Share Price | |
Note: Dollars in billions, except per key values (in thousands) and per-share data. Share-based metrics assume 114.3M estimated shares outstanding. Includes hotels owned as of May 27, 2026.
Net Debt is net of cash, cash equivalents, and liquid securities as of March 31, 2026, adjusted for the estimated impact of the sale of Chamberlain West Hollywood Hotel in May 2026.
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.
7
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 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.
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.
High-Quality, Well-Maintained PortfolioNearly all hotels have undergone major renovations or redevelopments, increasing asset quality, improving competitive positioning, and reducing near to intermediate term capital requirements.
Largely Unencumbered Portfolio - 81% of Hotels(1)Assets unencumbered by 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.
Favorable Ownership Structure - 90% Fee Simple or Preferred Ground LeasePebblebrook's property ownership structure supports value and liquidity, with 60% of assets owned fee simple and 30% held through government or non-profit ground leases, which generally carry lower renewal and consent risk than private-entity ground leases.
the valorian los angeles
laplaya beach resort & club
argonaut hotel
Note: Percentages are based on hotels owned by the Company as of May 27, 2026. For further details on portfolio unencumbrance and ownership/lease structure, please refer to the
Appendix on page 13. 8
"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.
Capital Allocation Actions to Narrow the NAV DiscountSince August 2025, Pebblebrook has taken significant capital allocation actions to strengthen its balance sheet and narrow the gap between public and private market value, including asset sales, debt reduction, preferred equity retirement, and common share repurchases.
Pebblebrook's preferred and common share repurchases completed between August 2025 and March 2026 have driven approximately
$0.66/share in additional NAV value.Action | Amount | |
Asset Sales(1) | ~$160M | 15.4x EBITDA Multiple | 4.6% Cap Rate |
Debt Reduction(1) | ~$160M | Lowers leverage; improves flexibility |
Preferred Equity Retired(2) | ~$47M | Retired at a $10.8M (23%) discount |
Common Repurchases(1) | ~$62M | 5.4M shares at $11.51/share |
Debt/EBITDA(1) | 5.5x | Reduced from 5.9x YE '25 to 5.5x at Q1 '26 |
Sales Since 2021 | >$1.0B | Demonstrated transaction execution |
Reflects capital allocation activity from August 1, 2025, through March 31, 2026.
Reflects activity from August 1, 2025, through May 27, 2026.
9
the westin michigan avenue chicago (sold)
chamberlain west hollywood hotel (sold)
Capital allocation remains returns-based and opportunistic and will shift among debt reduction, preferred equity retirement, common repurchases, and high-return reinvestment as relative returns change.
Portfolio Repositioned: More Resort, More East Coast, Less Urban Concentration
Since 2019, Pebblebrook has repositioned its portfolio toward higher-quality leisure and group demand, increased resort and East Coast concentration, and reduced urban exposure-creating a more durable earnings profile with enhanced upside potential as pandemic- and event-impacted urban markets recover. For 2025, 99% of Hotel EBITDA came from the Company's 42 Luxury and Upper-Upscale properties.
Resorts in 2025 were 48% of Hotel EBITDA vs. 17% in 2019;
East Coast was 57% in 2025 vs. 38% in 2019.
Hotel EBITDA Contribution 2025(1) | |
San Diego | 23% |
Boston | 22% |
Naples | 10% |
Key West | 8% |
San Francisco | 7% |
Top 5 Markets | 70% |
East Coast | 57% |
West Coast | 41% |
43 Hotels
35 Unencumbered Properties 13 Urban and Resort Markets
= Urban Location
= Resort Location
Resort Urban | 48% 52% | ||
Balanced 50/50 business/leisure demand mix 25% Business Transient 45% Leisure Transient 25% Business Group 5% Leisure Group | Total RevPAR(3) $340 +$21 / +6.6% higher than peer average of $319.(4) | ||
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.
10
Includes information for all hotels the Company owned as of May 27, 2026.
Includes information for all hotels the Company owned as of December 31, 2019.
Based on full-year 2025 information as reported in company filings.
Peer set average reflects 2025 full year same-property information reported by nine comparable lodging REITs.
Estimated 2026 retained free cash flow of $115M ($1.00/share)(1) supports debt reduction, opportunistic repurchases and investments.
2026 convertible notes to be addressed with existing cash, expected 2026 retained free cash flow, and $90M delayed-draw term loan capacity. No significant other maturities until 2028.
As of March 31, 2026, consolidated debt and convertible notes carry a 4.1% weighted-average interest rate and 3.0-year weighted-average maturity, with approximately 98% effectively fixed and 98% unsecured.
Comparison of Debt vs. Peer Group
Company Stated Weighted Average Cost(5)
Interest Cost / Adj. EBITDA(5)
Pebblebrook
4.1%(4)
30.2%
Peer Set Avg.(6)
5.3%
33.4%
PEB vs. Peer Avg.
(120 bps)
(320 bps)
Debt Composition
Amount
Wtd. Avg. Interest Rate(4)
% of Total Debt
Unsecured Bank Group Term Loans
$902
5.1%
42.9%
Unsecured Convertible Notes
$750
1.7%
35.6%
Unsecured Senior Notes
$400
6.4%
19.0%
Secured Mortgage Loan
$53
5.1%
2.5%
Total / Wtd. Avg
$2,105
4.1%
100.0%
Debt Maturities as of March 31, 2026
$585
$409
$400(3)
$90M delayed-draw term loan capacity
~$200M cash on hand
+ 2026 free cash flow(1)
$350(2)
$360
2026
$0
2027
2028
2029
2030
2031
Bank Group Term Loans Mortgage Loan
Convertible Notes Senior Notes
Pebblebrook has the lowest weighted-average cost of debt among lodging REIT peers.(5,6)
A 120-bps cost advantage on approximately $2.1B of debt equates to roughly $25M+ of annual interest expense savings-representing over $100M 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.
Note: Dollars in millions. Any differences are due to rounding.
As of May 28, 2026, the Company's 2026 Outlook for Free Cash Flow (AFFO less actual capital investments and actual common dividends) is $114.5M to $116.5M.
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).
11
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).
Takes into account effect of swap agreements.
Based on full-year 2025 information as reported in company filings.
Peer set average reflects information reported by nine comparable lodging REITs.
Appendix12
hotel zelos san francisco
Management, Brand/Franchise & Ground Lease FlexibilityStructural flexibility supports private value.
Of Pebblebrook's 43 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 (30%).
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(1) | ✓ | ✓ | |||||
Jekyll Island | ✓ | ✓ | |||||
L'Auberge | ✓ | ✓ | |||||
Estancia | ✓ | ✓ | |||||
Paradise Point | ✓ | ✓ | |||||
SD Mission Bay | ✓ | ✓ | |||||
Boston | Hyatt Boston | ✓ | ✓ | ||||
Liberty | ✓ | ✓ | |||||
Revere | ✓ | ✓ | |||||
W Boston | ✓ | ✓ | |||||
Westin Copley(2) | ✓ | ✓ | |||||
IL | Hotel Chicago | ✓ | ✓ | ||||
Los Angeles | Hotel Ziggy | ✓ | ✓ | ||||
Hyatt Delfina | ✓ | ✓ | |||||
Le Parc | ✓ | ✓ | |||||
Valorian LA | ✓ | ✓ | |||||
Palomar LA | ✓ | ✓ | |||||
Viceroy San. Mon. | ✓ | ✓ | |||||
W LA | ✓ | ✓ | ✓ | ||||
Port. | The Nines | ✓ | ✓ | ||||
Zags | ✓ | ✓ | |||||
San Diego | Embassy Suites SD(3) | ✓ | ✓ | ||||
Hilton Gaslamp | ✓ | ✓ | |||||
Margaritaville SD | ✓ | ✓ | |||||
Westin Gaslamp | ✓ | ✓ | ✓ | ||||
San Francisco | 1 Hotel SF | ✓ | ✓ | ||||
Argonaut | ✓ | ✓ | |||||
Harbor Court | ✓ | ✓ | |||||
Zelos | ✓ | ✓ | |||||
Zephyr | ✓ | ✓ | |||||
Zeppelin(4) | ✓ | ✓ | |||||
Zetta | ✓ | ✓ | |||||
Wash DC | Hotel George | ✓ | ✓ | ||||
Monaco DC | ✓ | ✓ | |||||
Viceroy DC | ✓ | ✓ | |||||
Zena | ✓ | ✓ | |||||
# Hotels (% of total) | 35 (81%) | 2 (5%) | 8 (19%) | 26 (60%) | 13 (30%) | 4 (9%) | |
Note: Any differences are due to rounding.
13
Margaritaville Hollywood Beach Resort's management agreement becomes terminable at will beginning in September 2026.
The Westin Copley Place, Boston's management agreement expires in December 2028.
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.
Low New Supply Aids Urban Recovery as Demand Normalizes//
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 Avg: 2.3%
2.8% 2.9% 2.9%
2.7%
U.S. Urban Supply Growth 2010-2019, 2023-2028(4)
PEB Urban Market Supply Growth
Urban Market
Pre-Pandemic Average(1)
3Y Supply Forecast(2)
Boston
3.4%
0.4%
Washington, DC
3.0%
1.1%
Santa Monica
2.0%
0.1%
Hollywood/Beverly Hills
1.8%
0.9%
San Diego
1.8%
2.4%
San Francisco
0.4%
0.3%
Wtd. Average(3)
2.3%
0.8%
Across Pebblebrook's key urban markets, limited new supply should support growing occupancies and pricing power as business travel, convention demand and international inbound travel continue to recover. Supply growth is expected to remain low through at least 2029.
hilton san diego gaslamp quarter
3-year supply forecast 2026-2028 of 0.8% vs.
2015-2019 average of 2.3%
Convention / Citywide Room Nights On-the-Books(5) | ||||
Market | Pre-Pandemic Average(1) | 2025 | 2026 | 2027 |
San Francisco | 840 | 645 | 630 | 570 |
San Diego | 770 | 800 | 715 | 805 |
Washington, DC | 520 | 455 | 490 | 505 |
Boston | 440 | 475 | 475 | 470 |
Total | 2,570 | 2,375 | 2,310 | 2,350 |
Average from 2015-2019.
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 May 27, 2026. 14
2010-2025 data is based on U.S. Urban STR performance; 2026-2028 data is based on management's estimates.
Room Nights On-the-Books are shown in thousands. This is not pace.
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 gains of 6.0% over the period.
Year | Demand Growth | Supply Growth | Demand vs. Supply | Occupancy Growth | ADR Growth | RevPAR Growth | PEB RevPAR Growth(1) |
2010 | 7.2% | 1.6% | 553 bps | 5.4% | (0.2%) | 5.2% | |
2011 | 4.6% | 0.4% | 421 bps | 4.2% | 4.0% | 8.4% | 10.3% |
2012 | 2.8% | 0.4% | 242 bps | 2.4% | 4.0% | 6.5% | 8.1% |
2013 | 1.7% | 0.5% | 117 bps | 1.2% | 3.7% | 4.9% | 6.4% |
2014 | 3.9% | 0.6% | 331 bps | 3.3% | 4.5% | 7.9% | 9.2% |
2015 | 2.4% | 0.9% | 153 bps | 1.5% | 4.4% | 6.0% | 3.3% |
2016 | 1.4% | 1.3% | 16 bps | 0.2% | 3.0% | 3.2% | 2.4% |
7-Year Average | 3.4% | 0.8% | 262 bps | 2.6% | 3.3% | 6.0% | 6.6% |
U.S. Industry Data Source: CoStar Analytics 15
(1) PEB RevPAR Growth reflects the Company's Same-Property RevPAR variance to prior year for each respective period as reported at that time.
Successful Track Record with Redevelopment ProjectsPebblebrook has a strong track record of investing capital to elevate and remerchandise properties, enhance the guest experience, and revitalize underutilized venues and open spaces. Major redevelopments completed in recent years are expected to drive further cash flow improvements over the next two years.
$270M Invested | $40M Annualized ROI Realized | $4-8M Remaining EBITDA Upside
2018-24 Total Projects
(ROI Realized + Remaining)
$270M
$44-48M
16-18%
+$570-625M
ROI Capital | Estimated Annualized ROI Gains | Stabilized Annualized Cash ROI % | Implied Value Creation(2) | ||
2018-22 Projects(1) | $162M | $20M | 12% | +$260M | |
2023-24 Projects | $108M | $24-28M | 22-26% | +$310-365M | |
ROI Realized(1) | $20M | ||||
ROI Remaining | $4-8M | ||||
# Hotels Annualized ROI
2018/19 | 8 | $7M |
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 Guest Rooms Newport Harbor Island Resort | ||
Potential 2026/27/28 | ||
Paradise Point Resort & Spa(3) | ||
southernmost beach resort
Note: Includes information for all hotels the Company owned as of May 27, 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
based on actual RevPAR market-share gains and non-room revenue growth as of December 31, 2025. 16
Implied value creation assuming a 13x EBITDA multiple on the estimated annualized ROI gains.
The potential renovation and redevelopment of Paradise Point Resort & Spa is in planning following recent coastal permit application approval.
Selected recent projects demonstrate Pebblebrook's ability to convert targeted capital into measurable EBITDA growth and private-market value creation.
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 17
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 18
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.
1.625% Convertible Note
Principal
$400M
Initial Conversion Premium
37.5%
Capped Call Premium
75.0%
Base Conversion Price
$15.89
Capped Call Cap Price
$20.23
Pebblebrook's $400 million 1.625% convertible senior notes due 2030 have become increasingly relevant given PEB's recent share price performance. The mechanics of this transaction are summarized below.
Stock Price | Shares Issued by Convert | Shares Received from Capped Call | Net Shares Issued |
$15.50 | 0.0 | 0.0 | 0.0 |
$15.89 | 0.0 | 0.0 | 0.0 |
$16.00 | 0.2 | (0.2) | 0.0 |
$18.00 | 2.9 | (2.9) | 0.0 |
$20.00 | 5.2 | (5.2) | 0.0 |
$20.23 | 5.4 | (5.4) | 0.0 |
$21.00 | 6.1 | (5.2) | 0.9 |
$22.00 | 7.0 | (5.0) | 2.0 |
embassy suites san diego bay - downtown
Illustrative Dilution Example: If PEB's average trading price during the 2Q26 reporting period was $22.00, then 2.0M incremental shares would be included in diluted shares for that period. At a 50% annualized weighting, this would equate to approximately 1.0M additional weighted average diluted shares for the full year, resulting in $0.01 of dilution to Pebblebrook's Adjusted FFO per share.(1)
Treasury Stock Method
Principal elected to be paid in cash
No Call Period
Callable after July 20, 2028
if stock is 30% above conversion price (i.e. $20.66) for 20/30 consecutive days
19
Note: Shares shown in millions.
(1) Dilution estimate based on the Company's 2026 Outlook as of May 28, 2026.
Balance Sheet, ContinuedA snapshot of Pebblebrook's credit metrics indicates a strong balance sheet and reasonable leverage level given its size and profile. As of March 31, 2026, net debt to trailing 12-month corporate EBITDA improved to 5.5x, driven by both EBITDA growth and reduced net debt versus year-end 2025.
Debt to Asset Value Comparison
$5.3B
$486K/Key
$4.7B
$431K/Key
$4.6B
$416K/Key
$2.8B
$258K/Key
Estimated Gross Public Enterprise Net Book Value(3) Debt, Pfd Equity Asset Value(1) Value(2) and Converts
At a recent share price of $18.50, the 1.625% 2030 Convertible Notes are in the money versus the $15.89 initial conversion price. Inclusive of capped call transactions covering approximately 75% of the notes, the effective dilution protection extends to $20.23 per share.
Preferred Equity(4)
$0.72B
Convertible Notes
$0.75B
Debt
$1.35B
Financial Ratios
YE 2025
Q1 2026
Net Debt/EBITDA Ratio
5.9x
5.5x
Net Debt/EBITDA Ratio
(Assuming 2030 Convertible Notes Settled w/ Equity)
4.7x
4.4x
Fixed Charge Ratio
1.8x
1.9x
Net Debt/Net Book Value
42%
41%
Net Debt to Gross Asset Value %
37%
36%
Secured Property Debt % of Total Debt
4%
3%
Preferred Equity(4)
Amount
Yield
Redeemable
Starting
Series E
$100.8
6.375%
Redeemable
Series F
$142.7
6.300%
Redeemable
Series G
$211.3
6.375%
Redeemable
Series H
$188.2
5.700%
July 2026
Series Z
$77.6
6.000%
May 2027
Total / Wtd. Avg
$720.6
6.143%
Based on $23.50 per share and assumptions detailed on page 7.
Based on $18.50 per share and assumptions detailed on page 7. 20
Reflects GAAP-defined investment in hotel properties, net of accumulated depreciation and amortized right-of-use assets, as of May 27, 2026.
Reflects preferred equity as of May 27, 2026.
the