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SEC filingRevenue grew 7.9% to $345.7M while operating income swung to $8.1M profitability from a prior loss, driven by lower depreciation after 2025 property sales; net loss narrowed 41.5% to -$19.3M amid ongoing interest costs, with strong $84.1M operating cash flow signaling liquidity improvement.
Pebblebrook Hotel Trust reported Q1 2026 results showing revenue growth and a return to operating profitability. Total revenue reached $345.7 million, up 7.9% from $320.3 million in the prior year quarter. This increase reflects resilient demand across the portfolio, despite one-time headwinds such as the absence of 2025 presidential inauguration revenue and reduced performance at Revere Hotel Boston Common due to room refreshments. The revenue expansion provided a foundation for improved margins.
Net income reflected a 41.5% narrowing of the loss to -$19.3 million from -$32.9 million, with diluted EPS improving to -$0.26 from -$0.37 (29.7% better). While operating gains provided uplift, net results continued to face pressure from interest expenses on the debt portfolio. Management notes principal uses of cash include debt service payments alongside capital investments and operating costs, underscoring the ongoing impact of leverage in a rising rate environment.
Liquidity strengthened notably, with net cash provided by operating activities rising to $84.1 million from $50.3 million. This robust cash generation supports the company's commitment to maintaining hotels in good repair, including routine capital investments administered by hotel management companies and executed purchase orders for renovation projects. These efforts align with conforming to laws, franchisor standards, and management agreements.