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    Pebblebrook Hotel Trust (PEB): Is Its Slow Share Price Recovery Hiding Undervalued Upside?

    Simply Wall St·12/21/2025 12:12:33
    語音播報

    Pebblebrook Hotel Trust (PEB) has been quietly grinding higher this month, and that slow climb makes the stock worth a closer look. Recent returns hint at shifting sentiment around its hotel portfolio.

    See our latest analysis for Pebblebrook Hotel Trust.

    Zooming out, the 30 day share price return of 3.97% barely dents a negative year to date share price return of 13.26%, while the one year total shareholder return of 14.75% in the red shows that momentum is still rebuilding rather than fully turning.

    If Pebblebrook’s slow turn is on your radar, this could be a good moment to compare it with other real estate names and uncover fast growing stocks with high insider ownership.

    With shares still trading below analyst targets yet showing improving earnings momentum, the key question now is whether Pebblebrook is quietly undervalued or if the market is already pricing in its next phase of recovery.

    Most Popular Narrative Narrative: 8.5% Undervalued

    Against a last close of $11.51, the most followed narrative pegs Pebblebrook Hotel Trust’s fair value modestly higher, setting up a cautiously optimistic gap.

    The portfolio is set to benefit from a loaded pipeline of major citywide events, convention calendars, and sports/entertainment spectacles (World Cup, Super Bowl, Olympics) in 2026 to 2028, which are expected to significantly boost occupancy, push ADR higher, and drive revenue growth in core urban markets. Proactive risk management, strong balance sheet positioning (low fixed rate debt and high cash/reserves), and continued focus on asset recycling and CapEx discipline enhance FFO visibility and enable the company to capitalize on sector consolidation trends, supporting resilient long term earnings growth.

    Read the complete narrative.

    Curious how modest revenue growth, margin repair, and a richer future earnings multiple combine into that fair value story? The tension between slow forecasts and an elevated valuation multiple is where this narrative gets interesting.

    Result: Fair Value of $12.58 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, concentrated exposure to coastal gateway cities and persistent labor cost pressures could squeeze margins and challenge the upbeat recovery narrative investors are leaning on.

    Find out about the key risks to this Pebblebrook Hotel Trust narrative.

    Build Your Own Pebblebrook Hotel Trust Narrative

    If you see the setup differently or want to stress test the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way.

    A great starting point for your Pebblebrook Hotel Trust research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.