HST Host Hotels and Resorts Inc

Pebblebrook Hotel Trust, (PEB) a publicly owned real estate investment trust recently increased its unsecured credit facility size of $150 million to $200.0 million, with an option of increasing the facility size to $400 million. The new bank facility maturity has been extended to June 3, 2014, with an option to extend till June 3, 2015. Pebblebrook Hotel has not borrowed any funds against the facility.

This expanded new facility will enable the company to attain financial flexibility and seize investment opportunities and make acquisitions, which in turn will boost top-line growth. On March 31, 2011, the company had $340.6 million of cash and cash equivalents.

During the first quarter of 2011, the company reported FFO (fund from operations) of $3.4 million or 8 cents per share compared with a loss of $0.1 million or 1 cent per share in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

The property portfolio of the company and the balance sheet remain strong coupled with property acquisitions, which has encouraged Pebblebrook Hotel to give its FFO guidance. The company currently anticipates adjusted FFO in the range of 77 cents - 82 cents per share for 2011.

Pebblebrook Hotel acquires and invests in hotel properties located primarily in major United States' cities, with an emphasis on the major coastal markets. The company intends to focus on full-service hotel properties in the upscale segment of the lodging industry.

Pebblebrook Hotel currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Host Hotels & Resorts Inc (HST) currently retains a Zacks #3 Rank.

 
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