Pebblebrook Hotel Trust

PEB

Market cap $1.28B

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BETHESDA, Md.--(BUSINESS WIRE)---- $PEB #REIT--The Unofficial Z Collection Redefines Lifestyle Hotels: Pebblebrook's Hotels Earn Top Rankings in the 2025 Condé Nast Traveler Readers' Choice Awards.

Pebblebrook Hotel Trust Series H preferred shares offer a healthy 7.8% dividend yield and trade at a notable discount to liquidation value. PEB's diversified urban and resort hotel portfolio is showing signs of recovery, with revenue and occupancy growth realized during its second quarter as core urban markets rebound. I maintain a buy rating on the Series H preferreds on the back of robust cash generation, manageable debt, and improving refinancing prospects amid expected Fed rate cuts.

Fed rate cuts are likely to push capital out of money market funds, benefiting high-yield equities, preferreds, and long-duration bonds. Gladstone Commercial (GOOD) stands to gain significant FFO accretion from lower interest expense as its variable-rate debt benefits from Fed cuts. High-leverage REITs like NexPoint Residential (NXRT) are positioned for AFFO growth as lower rates eventually reduce their financing costs.

U.S. equity markets notched another series of record highs this past week after the Federal Reserve resumed its rate-cutting cycle following a nine-month pause and affirmed a "cautiously dovish" pivot. The Fed's decision to lower rates by a quarter point to 4.25% carried surprising unity following months of contentious political maneuvering, with all 12 members backing a rate cut. A bit unsettling for policymakers, longer-term yields rose this week, driven primarily by surprisingly solid retail sales and a dip in initial jobless claims that reversed a prior-week surge.

BETHESDA, Md.--(BUSINESS WIRE)---- $PEB #REIT--Pebblebrook Hotel Trust Announces Exercise in Full of Initial Purchasers' Over-Allotment Option and Closing of 2030 1.625% Convertible Senior Notes.

U.S. stock futures were mixed this morning, with the Dow futures gaining around 0.1% on Wednesday.

BETHESDA, Md.--(BUSINESS WIRE)---- $PEB #REIT--Pebblebrook Hotel Trust Announces Pricing of 1.625% Convertible Senior Notes Due 2030.

BETHESDA, Md.--(BUSINESS WIRE)---- $PEB #REIT--Pebblebrook Hotel Trust Launches Private Offering of Convertible Senior Notes Due 2030.

BETHESDA, Md.--(BUSINESS WIRE)---- $PEB #REIT--Pebblebrook Hotel Trust Declares Dividends for Third Quarter 2025.