PK - Pebblebrook: The 30% NAV Discount Is Not A Good Reason For Commitment
Summary
For those unfamiliar with this name, Pebblebrook Hotel Trust (PEB) is an upper-upscale lodging REIT owning 57 properties predominantly in key US coastal markets (94% 2018 EBITDA). Despite being smaller than close peers Host Hotels & Resorts (HST) and Park Hotels & Resorts (PK), Pebblebrook has recently scaled up its operations significantly through the acquisition of LaSalle Hotel Properties (LHO).
The acquisition, primarily funded using PEB’s equity, successfully stole LaSalle’s portfolio from a take-private bid by Blackstone Group (BX) already backed by the