Why Pebblebrook Hotel Trust Stock Jumped as Much as 10% Today
Shares of hotel-focused real estate investment trust (REIT) Pebblebrook Hotel Trust (NYSE: PEB) were up as much as 10% at 1 p.m. EDT on Wall Street. Although the shares had pulled back a touch by 2:30 p.m., they were still holding on to a roughly 8% advance. It was a pretty good day for a stock that, even including that gain, is off by nearly 50% for 2020. The reason for the day's advance and the year-to-date tumble are one and the same -- COVID-19.
Over the weekend, AstraZeneca announced that it had resumed the phase three trials on its version of a COVID-19 vaccine. That news has investors excited about the prospects that a successful, safe, and widely available vaccine will help the world to move past the stifling economic impact of the pandemic. As a hotel owner, Pebblebrook has been heavily impacted by the economic shutdowns used to slow the spread of the coronavirus and, perhaps even worse, by the lingering fear people have of group settings and travel. (For reference, the second-quarter adjusted fund from operations loss was a painful $0.58 per share.) As such, it isn't unreasonable that good news on the COVID-19 front would lead investors to bid up Pebblebrook Hotel Trust's shares.
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Source Fool.com
