Pebblebrook raises 2026 outlook after lifting Adjusted FFO to $1.88–$1.92 per share
Key Facts
Pebblebrook Hotel Trust raised its full-year 2026 outlook after its third-quarter results, setting a range for Adjusted FFO of $1.88 to $1.92 per diluted share and comparable-hotel RevPAR growth of 7.6% to 8.0%. The company said in a statement published via Nasdaq that the midpoint of its RevPAR outlook rose 280 basis points from its previous forecast. It also increased the midpoint of its Adjusted FFO outlook by $0.17, putting it 20.3% above the 2025 level. Management linked the update to third-quarter outperformance and growing confidence in fourth-quarter demand trends. The chief executive said: "We are raising our full-year outlook once again to reflect our significant third-quarter outperformance and growing confidence in fourth-quarter demand trends."
The indicators Pebblebrook reported combine performance for the quarter ended with its outlook for the rest of the year, as the company raised both its range for adjusted operating earnings per share and its forecast for revenue per available room at comparable hotels. The Adjusted FFO range puts the annual estimate at $1.88 to $1.92 per diluted share, while the RevPAR growth range is 7.6% to 8.0%. According to the statement, the midpoint of the latter range is 280 basis points above the previous forecast, while the midpoint of the Adjusted FFO outlook increased by $0.17. The company said the new midpoint for adjusted earnings represents an increase of 20.3% compared with 2025. Management presented the changes as reflecting third-quarter results and the demand trends it expects in the fourth quarter.
Pebblebrook management also pointed to demand-related factors in 2027, expecting stronger convention calendars in San Diego and Boston, its two largest markets, as well as Los Angeles hosting the Super Bowl. This outlook places activity indicators tied to conventions and the sporting event within the context the company cited for next year. The statement did not provide numerical estimates of the events' impact on revenue or earnings. The outlook update published in the statement covers fiscal 2026 and sets ranges for Adjusted FFO and RevPAR, while highlighting the improvement in the RevPAR outlook midpoint from the previous estimate. The management's stated confidence in fourth-quarter demand thus extends to operating expectations for specific markets in 2027.
Closing prices recorded on October 28 provide context ahead of the announcement: CUZ closed at $28.51, GLPI at $38.45 and PEB at $21.47. These prices precede the results announcement dated October 29 in the evidence, so they do not represent a market move in response to the figures or Pebblebrook's outlook update. The three tickers are for the companies mentioned in the news draft, while the detailed update here focuses on Pebblebrook's fiscal 2026 outlook. These prices do not include a comparison with closes after the announcement. Pebblebrook's forward guidance sets a range for RevPAR growth and a range for adjusted diluted earnings per share, alongside management's expectations for fourth-quarter demand.
Essex Property Trust's results show a different picture in the comparison between earnings and revenue: the company reported adjusted earnings of $1.52 per share in the third quarter, beating the average estimate of $1.47. But revenue was $490.37 million, below the market estimate of $490.92 million. Same-property revenue rose 3.0% year over year, according to Investing.com. Essex raised its 2026 same-property revenue growth outlook to 2.9% and set its same-property net operating income growth outlook at 3.0%. After the results, the stock fell 4.14% in after-hours trading to $263.47, compared with a previous close of $274.85.