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4-Star Stocks Poised to Pop: Pebblebrook Hotel Trust

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, real estate investment trust Pebblebrook Hotel Trust (NYSE: PEB  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Pebblebrook's business and see what CAPS investors are saying about the stock right now.

Pebblebrook facts

Headquarters (Founded)

Bethesda, Md. (2009)

Market Cap

$764.5 million

Industry

Hotel/Motel REIT

Trailing-12-Month Revenue

$171.3 million

Management

Chairman/CEO Jon Bortz (since 2009)

CFO Raymond Martz (since 2009)

Trailing-12-Month Operating Margin

3.1%

Cash/Debt

$140 million / $252.1 million

Dividend Yield

3.2%

Competitors

FelCor Lodging Trust (NYSE: FCH  )

Hospitality Properties Trust (NYSE: HPT  )

Host Hotels & Resorts (NYSE: HST  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 241 members who have rated Pebblebrook believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars njmiles03 and FoolTheRest, both of whom are ranked in the top 10% of our community.

A few months ago, njmiles03 tapped Pebblebrook as a real opportunity:

I have little experience with REITs, but it seems reasonable to buy them in the trough of the market. Pebblebrook has great management, former Jones Lang LaSalle guy. Has the makings of an up-and-coming best in breed.

In fact, Pebblebrook sports a solid debt-to-equity of 25%. That's much lower than that of competitors like FelCor (219%), Hospitality Properties (75%), and Host Hotels (86%).

CAPS All-Star FoolTheRest elaborates on the Pebblebrook bull case:

A few years ago, I thought about how I could buy all kinds of assets that others werre unloading at what I found to be sale prices. ... Now, it looks like we have the opportunity in distressed real estate through [Pebblebrook]. ... Jon Bortz is also an industry veteran, and an investment in [Pebblebrook] is a bet that he can perform. We should realize a rising dividend as we get in on the ground floor of this REIT and, as a result, a rising stock price. Naturally, we concern ourselves with the issues inherent to all REITs. Since there is not much cash to plow back into the business, [Pebblebrook] will have to raise funds through new debt or share issuance, neither of which is positive for us. If the dividend continues to appreciate quickly, though, and the money is spent to purchase undervalued assets, it will be worth it.

What do you think about Pebblebrook, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Pebblebrook? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Pebblebrook and Jones Lang LaSalle, and The Fool owns shares in both. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 25, 2011, at 10:29 AM, hellomojo wrote:

    Pebblebrook is a great buy right now.. seeing as it has lost 25% of its value in the last 30 days. Plus it pays a nice dividend.

  • Report this Comment On September 06, 2011, at 12:57 PM, FoolTheRest wrote:

    Thanks, Brian. I was just looking through articles on Pebblebrook and I see you used my CAPS pitch. It is an pleasant surprise.

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Related Tickers

5/25/2012 4:00 PM
PEB $21.69 Down -0.20 -0.91%
Pebblebrook Hotel… CAPS Rating: *****
HST $15.15 Up +0.06 +0.40%
Host Hotels & Reso… CAPS Rating: **
HPT $24.16 Down -0.06 -0.25%
Hospitality Proper… CAPS Rating: ****
FCH $4.07 Down -0.07 -1.69%
FelCor Lodging Tru… CAPS Rating: **

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