5-Star Stocks Poised to Pop: Pebblebrook Hotel Trust

Updated

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 (NYS: 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

$1.1 billion

Industry

Hotel/Motel REIT

Trailing-12-Month Revenue

$290.3 million

Management

Chairman/CEO Jon Bortz (since 2009)
CFO Raymond Martz (since 2009)

Trailing-12-Month Return on Equity

1.7%

Cash/Debt

$65.7 million / $251.5 million

Dividend Yield

2.1%

Competitors

FelCor Lodging Trust
Hospitality Properties Trust
Host Hotels & Resorts


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 314 members who have rated Pebblebrook believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, marketk, succinctly summed up the bull case for our community:

Pebblebrook managers managed to get into the industry at the bottom of the cycle. They tend to buy hotels in areas where there is still good demand for them but yet not much room to build new ones. As the US economy improves prices for Hotels will go up. Since there area of concentration are luxury hotels, this class of customers tend to be more resilient to economic issues which will cushion the stock.

Of course, despite its strong five-star rating, Pebblebrook may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Pebblebrook. Motley Fool newsletter services have recommended buying shares of Pebblebrook. 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.

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