Braemar Hotels & Resorts (BHR) Q3 2024 earnings summary

Executive summary

• Urban hotels outperformed with a 6% RevPAR increase year-over-year, while resort properties underperformed, and the portfolio consists of 15 hotels with 3,667 net rooms.

• Q3 2024 saw a net loss of $1.4 million or $(0.02) per diluted share, but a significant gain of $88.2 million was recognized from the $165 million sale of Hilton La Jolla Torrey Pines, which also repaid a $66.6 million mortgage.

• Major refinancing activities included a $407 million CMBS loan for five hotels, extending maturities and reducing interest costs.

• Shareholder value initiatives included a $50 million preferred redemption and a $50 million share repurchase program, with no shares repurchased as of quarter-end.

• Portfolio refinancings and asset sales improved balance sheet flexibility and liquidity.

Financial highlights

• Q3 2024 total hotel revenue was $148.4 million, down 7.1% year-over-year, mainly due to the asset sale; comparable hotel revenue was flat at $147.2 million.

• Net loss attributable to common stockholders was $1.4 million, or $(0.02) per diluted share; Adjusted EBITDAre was $18.5 million; comparable hotel EBITDA was $24.7 million.

• Comparable hotel EBITDA margin declined to 16.8% from 20.3% year-over-year.

• Cash and cash equivalents at quarter-end were $168.7 million, with restricted cash of $48.5 million.

• Net debt to gross assets stood at 41.0%.

Outlook and guidance

• Management expects the portfolio to be well-positioned for near- and long-term outperformance, with urban hotels as the primary growth driver.

• Group pace for Q1 2025 is up nearly 40%, and full-year 2025 group rooms revenue is pacing ahead by 13%.

• Capital expenditures for 2024 are expected between $70 million and $90 million.

• The Board declared a $0.05 per share quarterly dividend for Q3 and Q4 2024, with future dividends subject to review.

• No material changes to risk factors or forward-looking statements since the last annual report.