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Q1: 2026-04-28 Earnings Summary

EPS of -$0.23 beats by $0.11

 | Revenue of $345.66M (7.93% Y/Y) beats by $15.63M

Pebblebrook Hotel Trust (PEB) Q1 2026 Earnings Call April 29, 2026 9:00 AM EDT

Company Participants

Raymond Martz – Co-President, CFO, Treasurer & Secretary
Jon Bortz – Chairman & CEO
Thomas C. Fisher – Co-President & Chief Investment Officer

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Conference Call Participants

Cooper Clark – Wells Fargo Securities, LLC, Research Division
Bennett Rose – Citigroup Inc., Research Division
Gregory Miller – Truist Securities, Inc., Research Division
Aryeh Klein – BMO Capital Markets Equity Research
Richard Hightower – Barclays Bank PLC, Research Division
Duane Pfennigwerth – Evercore ISI Institutional Equities, Research Division
Michael Bellisario – Robert W. Baird & Co. Incorporated, Research Division
Chris Darling – Green Street Advisors, LLC, Research Division

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Presentation

Operator

Greetings, and welcome to Pebblebrook Hotel Trust First Quarter Earnings Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Raymond Martz, Co-President and Chief Financial Officer. Thank you. Please go ahead.

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Raymond Martz
Co-President, CFO, Treasurer & Secretary

Thank you, Donna, and good morning, everyone. Welcome to our first quarter 2026 earnings call. Joining me today is Jon Bortz, our Chairman and Chief Executive Officer; and Tom Fisher, our Co-President and Chief Investment Officer. But before we begin, I’d like to remind everyone that our remarks are as of today, April 29, 2026 and today’s comments may include forward-looking statements that are subject to various risks and uncertainties. Please review our SEC filings for a detailed discussion of these risk factors and visit our website for reconciliations of any non-GAAP financial measures mentioned today.

Now let’s jump into the first quarter financial results. We had an exceptional first quarter with results well above the high end of our outlook across key earnings metrics. Same-property hotel EBITDA increased 27.6% to $82.2 million, coming in $8.2 million above the high end of our outlook. Adjusted EBITDA was $73.3 million, up 29.5% from last year

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DUBAI — The Strait of Hormuz, the critical chokepoint for global oil and gas shipments, continued operating under severe restrictions on Wednesday, April 29, 2026, with maritime traffic at just 5% of normal levels as the ongoing Iran conflict and U.S.-led blockade limited commercial transits to a handful of vessels daily.

Real-time tracking data from platforms like Hormuz Strait Monitor and Kpler showed only three to eight ships crossing the narrow waterway in the past 24 hours, compared to the pre-crisis average of around 60 vessels per day. The majority of transits involved smaller dry bulk carriers or vessels with special permissions, while large oil tankers and LNG carriers largely avoided the route due to security risks and insurance costs that have skyrocketed since late February.

The restrictions stem from a combination of Iranian military actions, U.S. enforcement of a blockade on Iranian ports, and heightened tensions following strikes and counterstrikes in the region. Iran has periodically demanded tolls, conducted inspections, and in some cases launched strikes on vessels it deemed non-compliant, effectively turning the strait into a high-risk zone for commercial shipping. The U.S. has maintained its blockade on Iranian ports, further complicating navigation and leading to a near-standstill in normal traffic patterns.

Despite a fragile ceasefire in place, shipping data indicates the waterway has been in a restricted state for over 60 days. On some days, only a handful of ships have made the transit, often by switching off transponders or taking unconventional routes closer to Iranian waters. A recent LNG tanker successfully crossed the strait, marking a rare breakthrough, but overall commercial activity remains muted as major shipping companies reroute around Africa or delay voyages.

Oil prices have remained elevated above $100 per barrel as a direct result of the disruptions. The strait normally carries about one-fifth of the world’s oil and natural gas supply. Reduced flows have forced buyers to seek alternative sources, driving up costs for energy importers worldwide and contributing to inflationary pressures in multiple economies, including Australia’s ongoing fuel crisis.

U.S. and Iranian officials have engaged in sporadic talks aimed at de-escalation, but no comprehensive agreement has been reached. Iran has offered to reopen the strait to commercial shipping in exchange for lifted sanctions and an end to the U.S. blockade, but Washington has expressed dissatisfaction with the terms. Recent diplomatic efforts, including involvement from regional mediators, have yet to yield a breakthrough.

For shipping companies, the risks are enormous. Insurance premiums for vessels attempting the transit have increased dramatically, making the route economically unviable for most operators. Several tankers have been stranded or diverted, with crews facing extended waits in safer waters. A Russian superyacht linked to a Putin ally successfully transited the strait recently, highlighting how some well-connected vessels can still navigate the restrictions while ordinary commercial traffic remains severely limited.

The humanitarian and economic impacts extend far beyond energy markets. Countries dependent on Gulf oil, including many in Asia, have faced higher fuel costs and supply uncertainties. India, China, Japan and South Korea have all been forced to adjust import strategies, with some turning to emergency reserves or alternative suppliers at higher prices.

In the United States, the situation has added complexity to domestic energy policy. Higher global prices have supported U.S. oil producers but also increased costs for consumers at the pump. The Trump administration has used the disruptions to push for expanded domestic production and energy independence, while critics argue the blockade has backfired by driving up costs without achieving clear strategic gains.

Maritime security firms have reported increased activity by the Iranian Revolutionary Guard Corps Navy in the area, with vessels conducting patrols and occasional boardings. Some shipping companies have hired private security teams for protection, adding further costs to already expensive voyages.

Environmental groups have raised concerns about potential oil spills or accidents in the narrow waterway, which could have devastating consequences for the fragile marine ecosystem in the Persian Gulf. The restricted traffic has reduced the immediate risk of collisions, but any escalation could quickly change that dynamic.

As April draws to a close, shipping analysts expect continued volatility. Diplomatic talks remain stalled, and military posturing by multiple parties keeps the situation tense. Some vessels continue attempting the transit using unconventional methods, but the vast majority of commercial operators have rerouted around the Cape of Good Hope, adding thousands of nautical miles and weeks to journeys.

The Strait of Hormuz crisis has become a defining feature of the 2026 global energy landscape. Its restricted status has reshaped trade patterns, driven up prices and highlighted the vulnerability of global supply chains to geopolitical flashpoints. For now, the narrow passage between Iran and Oman remains a high-stakes chokepoint where commerce, conflict and diplomacy intersect in real time.

The coming days and weeks will be critical as parties seek a resolution. Any significant breakthrough in talks could quickly restore traffic and ease pressure on global energy markets. Until then, the strait’s restricted status continues to ripple through economies worldwide, affecting everything from fuel prices to inflation and supply chain stability.

Federal Reserve Chair Jerome Powell on Wednesday announced he will remain a member of the Fed’s Board of Governors after his term as chairman ends next month, though he added that he won’t be a “shadow Fed chair.”

The outgoing Fed chair hosted his final news conference after the Federal Open Market Committee (FOMC) voted to hold interest rates steady at the current range of 3.5% to 3.75%. The news conference occurred hours after the Senate Banking Committee voted to advance his successor as Fed chair, former Fed Governor Kevin Warsh.

Powell said he intends to continue serving as a member of the Fed’s Board of Governors for a “period of time to be determined” and was asked during the press conference about how he will conduct himself as a governor and not have an outsized influence over the process.

“That’s just something I would never do, the shadow chair thing. I don’t know what the exact specifics of it will be, but I’m going back to being a governor. I respect the role of chair,” Powell said. “I was a governor for six years, and I know what that’s like.

FEDERAL RESERVE LEAVES INTEREST RATES UNCHANGED AS POWELL’S CHAIRMANSHIP NEARS END

“I had a pretty front row seat, particularly with Chair Yellen, to whom I was close. When I worked with Chairman Bernanke for two years, I was brand new at that time. So I got a sense of what it was, and I had real sympathy for how hard it is to get that group to consensus,” he explained. 

“I always felt like I don’t want to add that unnecessarily, and that means trying to support the chair or the direction the chair wants to go. And if you can’t, you can’t. I think that’s the way it’s always worked there because the chair only has one vote plus the ability to develop consensus,” Powell said. 

“I propose to be a very constructive participant in that process, really out of respect for the office of the chair.”

In his opening remarks, Powell said he plans to “keep a low profile as a governor,” and explained, “There’s only ever one chair of the Federal Reserve Board. When Kevin Warsh is confirmed and sworn in, he will be that chair. Once sworn in as board chair, his new colleagues will elect him to chair the FOMC as well.”

KEVIN WARSH MOVES ONE STEP CLOSER TO BECOMING NEXT FED CHAIR

Powell said that while he planned to retire at the end of his chairmanship, the Justice Department investigation launched by the Trump administration prompted him to shift those plans because he was concerned about threats to the independence of the Fed to conduct monetary policy free of political pressure.

In January, U.S. District Attorney for the District of Columbia Jeanine Pirro issued subpoenas to the Fed as part of a criminal investigation into whether Powell misled Congress about the Fed’s costly renovation project at its D.C. headquarters.

Powell said the investigation was politically motivated, and courts quashed the DOJ subpoenas as being a “pretext” to pressure him into cutting interest rates or stepping down.

WHO IS KEVIN WARSH, TRUMP’S PICK TO SUCCEED JEROME POWELL AS FED CHAIR?

Pirro announced on Friday that the DOJ is dropping the investigation and allowing the Fed’s inspector general, Michael Horowitz, to handle the matter. Pirro said she wouldn’t hesitate to “restart a criminal investigation should the facts warrant doing so,” while the DOJ told Powell and the Fed over the weekend that it would only be reopened if the IG submits a criminal referral. The move allowed Warsh’s nomination to advance in the Senate after a Republican senator lifted his block over concerns about Fed independence.

“My concern is really about the series of legal attacks on the Fed, which threaten our ability to conduct monetary policy without political factors,” Powell said. “These legal actions by the administration are unprecedented in our 113-year history, and there are ongoing threats of additional such actions.”

He added that the Fed’s ability to operate independently is “so important for our economy, for the people that we serve, that they can depend, over time, on a central bank that operates that way free of political influence. It’s part of the absolute foundation of this amazing economy that we have. It’s just one of the many reasons why the U.S. economy is the envy of the world.”

POWELL ASKS FOR IG REVIEW AFTER TRUMP ADMINISTRATION FLAGS FED’S COSTLY BUILDING RENOVATION

During Wednesday’s news conference, Powell was asked if remaining at the Fed after his chairmanship was a political act to influence the board’s actions. He responded that the legal inquiry left him with no choice but to stay on until it’s truly over and that he doesn’t want to interfere in the Fed’s operations when Warsh becomes the chair.

“I’m literally staying because of the actions that have been taken. I had long planned to be retiring. And you know, the things that have happened, really in the last three months, left me no choice but to stay until I see them through, at least that long,” Powell explained. “In addition, I don’t see how this will interfere. My intention is not to interfere.”

Powell’s term as a member of the Fed’s Board of Governors runs until January 31, 2028, though he didn’t say whether he would consider staying on for the remainder of his term and emphasized he will leave when the investigation is “well and truly over with finality and transparency, and I’m waiting for that, and I will leave when I think it’s appropriate to do so.”

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Powell won’t be the first former Fed chair to remain as a governor after his term as chair expires. Marriner Eccles, who one of the buildings at the Federal Reserve’s D.C. headquarters is named for, served as Fed chair from 1934 to 1948 and remained on as a member of the Fed’s Board of Governors until 1951.

Amazon.com topped Wall Street estimates for quarterly cloud revenue growth on Wednesday, driven by strong enterprise spending on its cloud computing services as companies step up artificial intelligence adoption.

Revenue at Amazon Web Services (AWS) jumped 28% to $37.6 billion in the first quarter ended March, compared with analysts’ average estimate of a 25.08% increase to $36.61 billion, according to data compiled by LSEG.

Shares of ‌the company, however, ⁠dipped ⁠2% in volatile extended trading after it projected current-quarter operating income between $20 billion and $24 billion, slightly lower than estimates of $22.62 billion at midpoint.

The upbeat cloud revenue comes when Amazon – the world’s largest cloud services provider – has already boosted investor confidence by deepening its partnership with the two biggest AI firms, OpenAI and Anthropic, within days of each other.

On Tuesday, Amazon made available all of OpenAI’s latest models and its coding agent, Codex, on AWS, taking ⁠advantage of loosened ‌ties between the ChatGPT maker and cloud rival Microsoft.

Last week, Amazon stuck a deal to invest up to $25 billion in Anthropic, while the Claude creator ⁠committed to spending more than $100 billion on AWS in the next 10 years.
The announcements, coupled with a disclosure earlier this month that AI services at AWS were generating more than $15 billion in annualized revenue, have helped push Amazon’s stock up some 14% so far this year, putting it among the best performers in the “Magnificent 7” group of tech mega-caps. Amazon, which has set a target of around $200 billion in capital spending this year, has been going all out to ‌reassure investors that its spending on AI infrastructure will generate returns in the near term.

CEO Andy Jassy said in his shareholder letter this month that much of the company’s 2026 spending will ⁠be monetized over 2027 and 2028.

Still, the roughly $600 billion that Big Tech is expected to pour into AI this year – a historic outlay that has dented cash flows at these companies – is testing investors’ patience, even as companies say that it is necessary to increase computing capacity as strong AI demand outstrips supply.

At its retail business, Amazon has been investing in expanding same-day delivery to more towns and small cities, and has sharpened focus on grocery delivery in a bid to better compete with supermarket chains such as Walmart and Kroger.

NEW YORK — NXP Semiconductors NV shares skyrocketed more than 24% on Wednesday, April 29, 2026, trading around $314 in morning action after the analog chipmaker reported robust first-quarter results that beat Wall Street expectations and highlighted broad-based growth driven by industrial, automotive and AI-related demand.

The company posted revenue of $3.18 billion for the quarter ended March 29, 2026, up 12% year-over-year and exceeding analyst forecasts. Non-GAAP diluted earnings per share reached $3.05, surpassing consensus estimates. GAAP net income attributable to stockholders was $1.13 billion, significantly boosted by a one-time gain from the sale of its MEMS sensors business.

CEO Rafael Sotomayor described the quarter as a strong start to 2026, noting broad-based improvement across all focus end markets. “Our growth reflects sustained investment, disciplined execution, and growing customer adoption of our differentiated portfolio, particularly in industrial and automotive processing that supports software-defined vehicles and physical AI,” he said in the earnings release.

The results triggered enthusiastic buying, with volume surging well above average. The move ranks among the strongest percentage gains on Nasdaq Wednesday morning and reflects renewed investor confidence in NXP’s positioning within high-growth segments like AI infrastructure, automotive electrification and industrial automation.

NXP’s performance was driven by strength in multiple segments. Automotive revenue rose 6% year-over-year (10% on an adjusted basis excluding the MEMS divestiture), while Industrial & IoT and Communication Infrastructure & Other segments posted gains exceeding 20%. The company’s focus on higher-margin, differentiated products helped expand non-GAAP gross margin to 57.1% and operating margin to 33.1%.

Analysts reacted positively to the beat. Several firms raised price targets following the report, citing improved visibility, margin expansion and NXP’s exposure to secular growth drivers. The results validate the company’s strategy of investing in advanced analog and mixed-signal solutions for emerging technologies.

For investors, today’s surge underscores the market’s appetite for companies benefiting from AI, automotive electrification and industrial digitization. NXP’s semiconductors are critical components in a wide range of applications, from vehicle safety systems and data centers to industrial automation and consumer electronics. As these markets expand, demand for NXP’s specialized chips is expected to remain robust.

The company also returned capital to shareholders, paying $256 million in dividends and repurchasing $102 million of common shares in the quarter. This disciplined approach to capital allocation has been well-received by investors seeking both growth and shareholder returns.

Broader semiconductor sector sentiment has been mixed in 2026, with some names facing headwinds from inventory corrections and macroeconomic uncertainty. NXP’s strong results and positive commentary stand out, highlighting the resilience of its diversified portfolio and focus on high-value applications.

Longer-term, analysts remain constructive on NXP. The combination of secular tailwinds, strong competitive positioning and operational execution supports a favorable outlook. While valuations have expanded on AI enthusiasm, many view current levels as reasonable given the company’s growth trajectory and margin profile.

As trading continued Wednesday morning, shares held near session highs with sustained volume. Technical analysts noted the breakout above recent resistance levels, with potential near-term targets in the low-to-mid $320s if momentum persists. Options activity showed aggressive call buying, suggesting traders anticipate further upside.

The day’s performance caps a strong period for NXP. The stock has delivered significant returns for investors who recognized its critical role in the semiconductor supply chain. With record results and positive momentum, many expect continued upside through the remainder of 2026 and beyond.

For long-term investors, NXP offers exposure to key technology trends including automotive electrification, industrial IoT and AI infrastructure. Its focus on analog and mixed-signal solutions provides differentiation in a market increasingly driven by advanced nodes and system-level integration.

Near-term risks include macroeconomic uncertainty, potential slowdowns in end-market demand and geopolitical factors affecting supply chains. However, NXP’s diversified customer base and technological leadership provide a solid foundation for navigating these challenges.

As the market digests today’s move, NXP Semiconductors stands out as a standout performer, illustrating how strong execution and exposure to high-growth technologies can drive significant shareholder value in the semiconductor space. The coming quarters will reveal whether the company can sustain this momentum and continue capitalizing on favorable industry trends.

Meta Platforms raised its annual capital expenditure forecast on Wednesday, doubling down on its decision to plow billions into artificial intelligence infrastructure even as it seeks cost savings via planned layoffs.

The Facebook-parent now expects 2026 capital expenditure between $125 billion and $145 billion, compared with its prior forecast of $115 billion to $135 billion.

Shares of the company fell around 5% in extended trading.

Family daily active people (DAP), a metric Meta uses to track unique users who ‌open any one ⁠of ⁠its apps in a day, rose 4% from a year earlier to 3.56 billion.

The results come weeks after Reuters reported first about Meta’s plans for sweeping layoffs, as CEO Mark Zuckerberg attempts to aggressively integrate AI into the company’s workflows and reshape its workforce around the technology.

Meta, which owns Instagram, WhatsApp and Threads, has been spending heavily on AI infrastructure and high compensation for employees such as those working in its Meta Superintelligence Labs, which released its first AI model ⁠called Muse ‌Spark earlier this month.
The company’s robust ad platform, which allows advertisers to automate and personalize their campaigns, has remained its growth engine and has helped support its ⁠investments in AI infrastructure. Its Advantage+ ad automation tools are powered by ad-retrieval engine Andromeda, ranking architecture Lattice and generative recommendation model GEM, helping it attract more marketers on the platform even as companies face geopolitical uncertainty due to the Middle East conflict.

Meta launched ads on messaging service WhatsApp and microblogging platform Threads last year, intensifying competition with platforms like Elon Musk’s X. Simultaneously, Instagram’s Reels continue to jostle with TikTok and YouTube Shorts in the lucrative short-video market.

For the first time, Meta is projected to ‌overtake Alphabet as the world’s biggest online advertiser, with an expected $243.46 billion in global net ad revenue this year, excluding traffic acquisition costs. The forecast, by research firm Emarketer, puts the Google- and YouTube-parent’s ⁠annual ad revenue at $239.54 billion.

Last week, the company expanded the availability of Meta AI business assistant, designed to help advertisers optimize campaign performance and resolve technical issues through real-time guidance.

Meta is installing new tracking software on U.S.-based employees’ computers to capture mouse movements, clicks and keystrokes to train its AI models, part of a broad initiative to build AI agents that can perform work tasks autonomously, Reuters reported last week.

Meanwhile, China ordered Meta to unwind its $2 billion-plus acquisition of AI startup Manus on Monday, as Beijing tightens scrutiny of U.S. investment in domestic startups developing frontier technologies.