Jon E. Bortz, Chairman and CEO of Pebblebrook Hotel Trust (NYSE:), recently acquired 26,000 common shares of the company. The shares were purchased at an average price of $12.48, totaling approximately $324,480. Following this transaction, Bortz holds 1,375,284 shares directly.
In addition to his direct holdings, Bortz’s wife owns 200,000 common shares indirectly, although he disclaims beneficial ownership of these shares. Bortz also holds 18,000 of the company’s 5.70% Series H Preferred Shares and 403,963 LTIP Class B Units, which are restricted units that can be converted into common shares under certain conditions.
These transactions reflect Bortz’s continued investment in Pebblebrook Hotel Trust, a real estate investment trust headquartered in Bethesda, Maryland.
In other recent news, Pebblebrook Hotel Trust reported a rise in revenue per available room (RevPAR) and exceeded financial expectations for its third quarter, despite facing challenges from Hurricanes Debby and Helene, a brand conversion, and capital investments. The company saw a 2.2% increase in same-property RevPAR, a 2.7% rise in total RevPAR, and a 3.8% growth in out-of-room spending. Same-property hotel EBITDA reached $110.8 million, surpassing guidance by $8.7 million, while adjusted FFO exceeded expectations by $9.7 million.
Pebblebrook also issued $400 million in senior unsecured notes and extended bank term loans to 2029. The Delfina Santa Monica Hotel was rebranded to Hyatt Centric, with a refresh completion expected by Q1 2025. However, the company anticipates that the hurricanes and the rebranding will reduce Q4 same-property RevPAR by about 100 basis points.
Looking ahead, the company is optimistic about improved performance in 2025, driven by urban market recovery, redeveloped property growth, and favorable group booking pace. However, weaker transient demand in certain urban markets is expected to lead to a $3 million reduction in same-property EBITDA. These are the recent developments for Pebblebrook Hotel Trust.
InvestingPro Insights
Jon E. Bortz’s recent acquisition of 26,000 shares aligns with one of the key InvestingPro Tips for Pebblebrook Hotel Trust (NYSE:PEB): “Management has been aggressively buying back shares.” This insider buying activity, coupled with the company’s share repurchase program, suggests a strong belief in the company’s future prospects.
Another relevant InvestingPro Tip indicates that PEB is “Trading at a low revenue valuation multiple.” This could be seen as an attractive entry point for investors, especially considering the CEO’s recent purchase. The company’s Price to Book ratio of 0.53, based on the last twelve months as of Q3 2023, further supports this notion of potential undervaluation.
Despite these positive signals, it’s worth noting that PEB’s stock price movements are quite volatile, according to InvestingPro. This volatility is reflected in the company’s recent performance, with a year-to-date price total return of -22.93% as of the latest data.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Pebblebrook Hotel Trust, providing a deeper understanding of the company’s financial health and market position.
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