Pebblebrook Hotel Trust: The 40% Discount To Book Value Is An Opportunity

Pacifica Yield
12.61K Followers

Summary

  • Pebblebrook Hotel Trust is currently swapping hands at a 40% discount to its book value.
  • The hotel REIT has been buying back its common shares in response to this discount in lieu of paying a dividend. The Series E preferreds trade at a smaller discount.
  • A recovery of its urban hotels and continued share buybacks could drive the common shares higher.

The Westin San Diego Gaslamp Quarter - SAN DIEGO - CALIFORNIA - APRIL 21, 2017

cineman69/iStock Editorial via Getty Images

Pebblebrook Hotel Trust (NYSE:PEB) has yet to reinstate quarterly cash dividends long suspended since the outbreak of the pandemic in early 2020. This dearth of income has been at odds with other hotel REIT peers

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12.61K Followers
The equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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