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 coveted five-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 |
$962 million |
| Industry |
Hotel/Motel REIT |
| Trailing-12-Month Revenue |
$239.7 million |
| Management |
Chairman/CEO Jon Bortz (since 2009)
CFO Raymond Martz (since 2009) |
| Trailing-12-Month Operating Margin |
6.4% |
| Cash/Debt |
$75.3 million / $251.8 million |
| Dividend Yield |
2.5% |
| Competitors |
FelCor Lodging Trust (NYSE: FCH )
Host Hotels & Resorts (NYSE: HST )
Strategic Hotels & Resorts (NYSE: BEE ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 318 members who have rated Pebblebrook believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Andy Cross (TMFOpie) and boxxer55, both of whom are ranked in the top 5% of our community.
Late last month, Andy tapped Pebblebrook as a solid bargain opportunity: "Trading [at book value] for a manager that has demonstrated past performance on pulling out more value from hotel properties. And Pebble has some very nice properties on the coasts."
In fact, Pebblebrook trades at a cheapish price-to-book of 1.1. That represents a discount to industry peers like FelCor Lodging (2.8), Host Hotels & Resorts (1.5), and Strategic Hotels & Resorts (2.0).
CAPS All-Star boxxer55 elaborates on the Pebblebrook bull case:
In my opinion, this stock has the potential to be one of the best long-term performers in my portfolio over the long term (5-10 years). Management is very experienced and have already demonstrated their ability to execute their business plan. They raised money to purchase hotels after the crash, taking advantage of depressed valuations then invest to both improve revenue and reduce overhead. As earnings ramp up, the dividend will rapidly follow. ... Combine the future high dividend level with the appreciation potential of the common and you get the best of both worlds, a high dividend based on what you pay today and enormous upside appreciation potential.
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!
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