I present to you, the world's most pristine Hotel REIT balance sheet!

Pebblebrook Hotel Trust (PEB) executed a public stock offering today, about 17.5 million shares offered for $20 each. They currently own nothing, and plan to use proceeds from this offering to acquire interests in hotels opportunistically, in part by focusing on situations where the owners are in financial distress. The registration document is quite long, but offers some great detail on their strategy and risks involved.

To make a long story short, the great thing about this stock is that there is no debt overhang, nor withering properties or loans on the balance sheet. The main risk, highlighted below, is that the (hopefully prudent) management cannot find an acceptable place to invest funds.

Speaking of management, the CEO and CFO are both purchasing about $2.7million in stock through this IPO, however they're also being given a truckload of "LTIP" units (LTIP = Long Term Incentive Plan). Expect equity compensation to loom large with this company, but at least management interests will be very closely aligned with common shareholders.

The main risks highlighted: