REITs issue updates on sales and conservative guidance

NATIONAL REPORT — February is ending with a ton of hotel REITs delivering their fourth quarter and full-year 2025 earnings in the final week.

The result is a lot of news and updates from some of the highest-profile REITs in hospitality right now, including:

• Ashford Hospitality Trust is saying it is marketing potential sales for 18 more of its hotels as it continues to deleverage its portfolio to help it pay off debt and increase its EBITDA. The REIT offered no update on its potential sale, which is currently under review by a special committee of its board.
• Braemar Hotels & Resorts, which also put itself up for sale last year, said there were no definitive updates on the process or timetable right now.
• RLJ Lodging Trust also announced two hotel sales in Dallas and Houston that happened late in the year for almost $50 million.

Click here for our preview roundup of REIT earnings from earlier in the week, including Apple Hospitality, Ryman Hospitality and Xenia Hotels & Resorts.

We take a deeper look at other major REITs that have reported so far this week below:

Ashford Hospitality Trust

Dallas-based Ashford Hospitality Trust reported a net loss of $215 million for all of 2025 (including $78.3 million for the fourth quarter)  and RevPAR declines of 1.8% in Q4 year-over-year (which it said was largely driven by the extended government shutdown) and 0.7% YOY for the full year. The REIT, which has been actively shedding assets throughout the year to help pay down debt and increase EBITDA through its GRO AHT initiative, closed 2025 by selling six hotels and generating approximately $145 million in sales proceeds. Through the end of the year, Ashford Trust had total loans of $2.6 billion with a blended average interest rate of 7.7%. Approximately 95% of the REIT’s current debt is floating rate. CEO Stephen Zsigray said the REIT is currently marketing and negotiating off-market transactions on 18 additional hotels. He also spoke about the $325 million Wilmington Trust loan, which was reported as in default last week.

“While we have engaged with a special servicer and we’ll continue to work towards a favorable resolution, disposition of these assets for the balance of the debt would represent a 6.2% trailing cap rate and would yield many of the same benefits for the portfolio as our ongoing sales efforts in terms of cash flow improvement and future capex savings,” he said during the company’s earnings call.

In December, formed a special committee “to evaluate strategic alternatives to maximize shareholder value, including a potential transaction,” but Zsigray said there was no new information to share at this time.

Braemar Hotels & Resorts

The Dallas-based REIT, which, like Ashford Trust, is advised by Dallas-based Ashford Inc., made headlines last fall by putting itself up for sale. The company did not report an update on the progress of that process or outline a deadline or definitive timetable.

“In the context of evaluating all potential options to create shareholder value, we have also appointed real estate broker co-advisers to evaluate the potential for individual asset sales in conjunction with the company’s sale process,” CEO Richard Stockton said during the company’s earnings calls. “We look forward to providing an update as soon as the board of directors has approved next steps, a specific transaction, or determines that a development warrants public disclosure.”

In terms of performance, the REIT reported RevPAR gains of 1.8% in the fourth quarter YOY and 3.1% YOY for full-year 2025. The increases were driven by ADR gains of 5.4% YOY in Q4 and 3.9% YOY in 2025, compared to occupancy declines. The REIT also reported the sale of the 410-key The Clancy in San Francisco for $115 million to San Francisco and Dallas-based Sixth Street during the year.

DiamondRock Hospitality Co.

Bethesda, Maryland-based DiamondRock Hospitality Co. reported a RevPAR decline of 0.3% YOY in Q4 and a total RevPAR increase of 0.6% over the same period during its fourth quarter earnings, with RevPAR increases of 0.4% YOY and total RevPAR increase of 1.2% YOY for full-year 2025 earnings. The REIT also issued guidance with RevPAR growth of 1-3%.

“A stronger than anticipated re-acceleration in transient demand and out-of-room spend following the end of the federal government shutdown, combined with our disciplined approach to right-sized property level and corporate costs, enabled the company to exceed the high end of our 2025 guidance for comparable total RevPAR growth, adjusted EBITDA, and adjusted FFO per share,” said CEO Jeffrey Donnelly.

Analyst Michael Bellisario of R.W. Baird said lower expenses helped DiamondRock beat Street forecasts.

“Management noted stronger-than-forecasted out-of-rooms spend during the quarter, particularly at resorts,” he said. “Overall, we view DiamondRock’s update relatively favorably… and supportive of our positive fundamental view; we expect near-term consensus estimates to be relatively unchanged.”

Analyst Patrick Scholes of Truist Securities said he sees lots of positives in DiamondRock’s earnings beat and 2026 guidance.

“While no single line-item contributed to the majority of the earnings beat, the ones that stood out more than others were better-than-expected performance in F&B revenues (+$2 million) and room margins (+$2 million; 74.7% actual vs. 73.6% consensus),” he said. “Unless something materially derails how the rest of the year is shaping up to perform (see our research), we will ‘take the over’ on the high-end of this guide, but of course can understand the company’s initial conservatism given various geopolitical/economic/wildcard uncertainties.”

Pebblebrook Hotel Trust

Bethesda, Maryland-based Pebblebrook reported a $62.2 million loss for full-year 2025, which includes $49.9 million of impairment charges from hotel dispositions, but saw operating positives in the fourth quarter with Q4 RevPAR up 1.2% YOY and total RevPAR up 2.9% YOY. The REIT also reported resort total RevPAR was up 4.9% YOY in Q4, reflecting solid demand and stronger F&B performance, while urban total RevPAR was up 1.7%, despite the government shutdown. Pebblebrook issued RevPAR guidance of 2-4% growth.

“In 2025, our portfolio benefited from a continuing recovery in several urban markets and resilient leisure demand throughout the portfolio,” said chairman and CEO Jon Bortz. “‘Looking ahead to 2026, we are cautiously optimistic... Yet we remain mindful of macroeconomic and policy uncertainty that could negatively affect demand, as it did in 2025. We believe hotel demand will re-correlate with economic growth, aligning with its long-term historical relationship, and supply growth is extremely limited and a non-factor.”

Bellisario said Pebblebrook’s Q4 performance and 2026 guidance are aligned with estimates.

“Pebblebrook’s outlook matches our forecasts… an expected rebound in Los Angeles and continued strong performance in San Francisco are driving the 2-4% RevPAR growth guidance, and 1Q26 is tracking well ahead of Baird/Street estimates.”

Analyst Gregory Miller of Truist Securities said the REIT’s conservative 2026 guidance leaves lots of room for upside.

“[Pebblebrook] has every rationale to start guidance with conservatism, but a +2-4% RevPAR guide is a fine starting place, even if investors generally expected PEB to provide one of the better top-line 2026 guidances,” he said. “Beneath the headline: a positively interesting start to the year, including an implied 2Q-4Q RevPAR guide of +1-2% that seems beatable to us.”

RLJ Lodging Trust

Bethesda-based RLJ Lodging Trust reported a RevPAR decrease of 1.5% YOY in Q4 and 1.7% YOY for full-year 2025. The REIT also issued guidance of 0.5% to 3% RevPAR growth. RLJ also sold, in separate transactions, two hotels in December: the Embassy Suites by Hilton Dallas-Love Field and the Residence Inn Houston by the Galleria, for a combined $49.5 million.

“We achieved solid fourth quarter results that came in ahead of our outlook despite a choppy operating environment that was further constrained by a protracted government shutdown, driven by the outperformance of our urban markets, the successful ramp of our completed conversions, robust non-room revenue growth, and benefits from our disciplined cost management efforts,” said president and CEO Leslie Hale. These results capped a productive year for RLJ in which we advanced a number of our strategic initiatives,” commented Leslie D. Hale, President and Chief Executive Officer.

Bellisario said the REIT’s Q4 earnings beat on higher revenue and real estate tax credits.

“Results topped Baird/Street estimates on better top-line performance, which drove approximately $1.5 million of upside versus our model; another $4.7 million of real estate tax credits drove further upside,” he said. 

Miller said the 2026 guidance is in line with consensus after adjusting for the EBITDA impact of the two sold assets.

“We find the guidance very reasonable, including on RevPAR — encouraging, but appreciate we are both early in the year and RLJ has limited bookings visibility with much of their demand booking less than seven days prior to arrival,” he said.

Sunstone Hotel Investors

Aliso Viejo, California-based Sunstone Hotel Investors, which has also been involved in sales rumors, reported RevPAR gains of 9.6% YOY in the fourth quarter and 3.8% YOY for full-year 2025, driven by overperformance at its resort properties. The REIT also issued RevPAR guidance of 4-7% and total RevPAR growth of 3.5-6.5%.

“Our portfolio outperformed our expectations in the fourth quarter, delivering impressive total RevPAR growth of 12.5% as the benefit of our recent investment activity added to generally broad-based strength across our portfolio,” said CEO Bryan Giglia. “We were particularly encouraged by stronger performance at Andaz Miami Beach and Wailea Beach Resort, which saw robust demand over the festive period with the momentum continuing into 2026.”

Bellisario said Sunstone was an earnings beat but that the company’s 2026 adjusted EBITDA will be a focus for investors because it’s below forecasts.

“Fourth quarter results topped Baird/Street estimates due to better revenues and strong resort performance over the holidays, which has been a consistent theme this earnings season,” he said. “We expect investors to be focused on adjusted EBITDA guidance for 2026, the midpoint of which is (approximately) 4% below consensus (How much is the forecasted ramp-up in Andaz Miami Beach impacting the outlook?) and commentary regarding capital allocation and potential progress on the asset sale front.”

Scholes said the earnings beat was driven by strong F&B revenues.

“We see 4Q adjusted EBITDA 6% ahead of Street expectations…  driven by better-than-expected total RevPAR as food & beverage revenues were $4 million above consensus,” he said. “RevPAR growth of +9.6%... was above consensus for +7.6%.”