Pebblebrook Hotel Trust (PEB) is a hotel REIT holding 44 properties (11,052 rooms) as of March 31, 2026. Under a liquidation lens, recovery to common equity is deeply negative. Total assets are $5.30B at book, but the dominant asset is hotel PP&E: gross real estate at cost of $6.72B less accumulated depreciation of $1.75B yields a net book value of $4.97B. Applying a 50-70% liquidation haircut to hotel real estate (illiquid, asset-specific, long-tail disposition timelines) produces an asset-side recovery of roughly $2.5B-$3.5B from the property portfolio alone. Cash at $196M recovers at par; restricted cash of $8.4M is mostly encumbered by lender agreements. AR of $39.7M recovers at 90-95%. Intangibles and other soft assets are zeroed. On the liability side, obligations stand at face: long-term debt face value of $2.10B, operating lease liabilities of $333.0M, finance lease liabilities of $44.7M, deferred revenue (advance deposits) of $113.8M, and accounts payable/accruals of $215.7M. Critically, the ASC 842 operating lease stack is substantial—17 ground leases with expirations extending to 2112 and $1.9B in total future fixed minimum payments (with $25.0M due within 12 months). These lease obligations do not extinguish on liquidation and are face-value claims against the estate. Preferred stock carries a liquidation preference of $676.7M ($25.00/share across 27.1M shares of Series E, F, G, and H), senior to common equity. The Series Z Preferred Units (3.1M units at $25/unit) add another ~$77.6M of senior claim. After securing lenders, operating and finance lease counterparties, trade creditors, and preferred holders, there is no recovery pathway to common equity under any reasonable PP&E haircut scenario. This is consistent with MFFAIS's reported CLV/LLV/OLV of -$2.26B. Key changes since the December 31, 2025 10-K (prior filing): the $360M Term Loan 2027 was extended to mature in February 2031 (now 'Term Loan 2031'), eliminating a near-term maturity cliff; the $40M Margaritaville mortgage was repaid, reducing the secured mortgage stack to $52.6M (Estancia La Jolla); and a $7.7M real estate impairment was recognized on one hotel, signaling at least one asset's book value exceeded recoverable value. The filing discusses the impairment charge and write-down of investment ($1.6M) in MD&A but neither includes a separate XBRL disclosure of which hotel was impaired nor discloses a fair value for the impaired asset. PP&E impairment signals at-risk assets where liquidation values may sit below even the haircut range assumed above.
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