PEB - Management meetings recap: Favorable lodging cycle and PEB-specific fundamentals beyond 2026. PT to $22 from $17

Research evidence excerpt

PEB - Management meetings recap: Favorable lodging cycle and PEB-specific fundamentals beyond 2026. PT to $22 from $17

Truist Securities

to build, benefits from the wealth effect, and related support from the K-shaped economy to higher-end travel demand. We add anecdotally

that positive media from international travelers visiting the U.S. during the World Cup may be of future benefit particularly to PEB's

urban markets.

• PEB noted the 2027 holiday calendar is similarly positive as this year. While some holiday timing is worse marginally in 2027, the

impact is not material. We covered this topic in detail in our upgrade note and re-highlight our calendar below.

• 2027 convention calendars: Boston and San Diego have better calendars y/y. In San Francisco, some demand around this year's

Super Bowl timing will be replaced by some conventions.

• PEB expects healthy corporate negotiated room rate growth for 2027 given the current 2026 corporate demand patterns and broadly

strong corporate profits.

Exhibit 1: We are republishing our 2027 holiday calendar analysis which shows a similarly positive day of week setup as 2026

for the timing of holidays as it relates to impact to leisure and corporate travel.

Source: Truist Securities Research

World Cup impact (surprisingly not as big of a discussion point from investors, including hedge funds): Similar to PEB

expectations, World Cup is playing out well. World Cup impact is primarily ADR-led growth (~ +20%). Occupancy is flat-to-down for

PEB, somewhat from normal travelers avoiding World Cup markets (i.e. bad traffic/commuting). Which teams play in particular markets

matters. The bigger impact will come from knockout rounds, especially good if the U.S. stays in the tournament. (Please see our detailed