PEB Intrinsic Stock Value – Pebblebrook Hotel Trust Extends Debt Maturity and Reduces Total Liability
January 5, 2024
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Pebblebrook Hotel Trust ($NYSE:PEB), a publicly-traded real estate investment trust, has recently taken action to extend the maturity date of its 2024 debt and reduce its total liability. This move is expected to provide the company with greater financial flexibility and improve its position in the current economic environment. By extending the maturity date of its 2024 debt to 2028, Pebblebrook Hotel Trust has lowered its total debt, allowing it to focus on other strategic priorities. Pebblebrook Hotel Trust is the largest publicly-traded pure-play hotel investment company in the United States, owning and operating a variety of hospitality properties.
These properties include a diverse mix of upper-upscale to luxury full-service hotels located in urban markets across the country. Largely focused on investing in premium branded hotels, Pebblebrook Hotel Trust is an industry leader in creating value for shareholders through strategic acquisitions, innovative management, and successful development activities. With its recent debt maturity extension, Pebblebrook Hotel Trust is positioning itself to be even more agile and responsive to changing market conditions.
Market Price
On Thursday, PEBBLEBROOK HOTEL TRUST stock opened at $15.5 and closed at $15.7, up by 2.1% from prior closing price of 15.4. The extension of the debt maturity provides the company with additional flexibility to manage its capital structure and finance growth initiatives. Moreover, reducing total liability provides more financial flexibility and reduces interest expenses, potentially boosting profitability over the long-term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PEB. More…
| Total Revenues | Net Income | Net Margin |
| 1.41k | -111.91 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PEB. More…
| Operations | Investing | Financing |
| 226.62 | 53.52 | -298.65 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for PEB. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6k | 3.06k | 23.64 |
Key Ratios Snapshot
Some of the financial key ratios for PEB are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 3.9% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – PEB Intrinsic Stock Value
At GoodWhale, we recently performed an analysis of PEBBLEBROOK HOTEL TRUST’s wellbeing. Through our proprietary Valuation Line, we calculated the fair value of PEBBLEBROOK HOTEL TRUST share to be around $17.7. However, PEBBLEBROOK HOTEL TRUST’s stock is currently trading at $15.7, meaning it is undervalued by 11.1%. Therefore, this presents a great investment opportunity for those interested in investing in PEBBLEBROOK HOTEL TRUST. More…
Peers
The company’s portfolio consists of over 60 hotels across the United States. Park Hotels & Resorts Inc, Summit Hotel Properties Inc, Braemar Hotels & Resorts Inc are all competitors in the hotel industry.
– Park Hotels & Resorts Inc ($NYSE:PK)
The company’s market cap is $2.75 billion as of 2022. The company owns and operates a portfolio of hotels and resorts in the United States and Canada. The company’s hotels and resorts are located in major metropolitan areas, including New York City, Los Angeles, San Francisco, Boston, Chicago, and Washington, D.C. The company also operates a number of smaller hotels and resorts in select markets, including Palm Springs, Florida, and Maui, Hawaii.
– Summit Hotel Properties Inc ($NYSE:INN)
Summit Hotel Properties, Inc. is a real estate investment trust. The Company owns, acquires, redevelops and repositions premium-branded select-service and extended-stay hotels in the United States. As of December 31, 2016, the Company’s portfolio included 69 hotels with approximately 10,700 guestrooms located in 27 states. The Company operates in the hotel industry segment. The Company’s primary business is to own and acquire premium-branded select-service and extended-stay hotels in the upscale and upper midscale segments of the United States lodging industry.
– Braemar Hotels & Resorts Inc ($NYSE:BHR)
With a market cap of 259.39M as of 2022, Braemar Hotels & Resorts Inc is a company that owns, operates, develops, and invests in hotels and resorts. The company’s portfolio includes properties in North America, Europe, Asia, and Australia.
Summary
Pebblebrook Hotel Trust recently announced a debt restructuring plan to extend its 2024 term debt to 2028. The extended maturity date and reduced debt load are expected to provide significant benefits to the company, increasing shareholders’ value by allowing more capital to be allocated for more profitable investments. The restructuring is a positive sign for investors as it will likely result in increased financial stability and long-term sustainability.
The plan is also anticipated to increase cash flow and reduce financial risk, allowing for further investment opportunities. Pebblebrook Hotel Trust has a strong portfolio of assets and an impressive track record of steady growth, making it a favorable investment option for any investor looking to gain exposure to the hospitality industry.
