Braemar Hotels & Resorts Inc (BHR) Q3 2024 Earnings Call Highlights: Navigating Challenges ...

In This Article:

  • Comparable RevPAR: $261 for the third quarter, a 1.6% decrease over the prior year quarter.

  • Comparable Hotel EBITDA: $24.7 million for the quarter.

  • Urban Hotels RevPAR Growth: 6% increase over the prior year quarter.

  • Net Loss Attributable to Common Stockholders: $1.4 million or 2 per diluted share.

  • FFO per Diluted Share: Negative 24.

  • Adjusted EBITDAre: $18.5 million for the quarter.

  • Total Assets: $2.2 billion at quarter end.

  • Total Loans: $1.2 billion with a blended average interest rate of 7.6%.

  • Cash and Cash Equivalents: $168.7 million at quarter end.

  • Restricted Cash: $48.5 million at quarter end.

  • Common Stock Dividend: 5 per share, equating to an annual yield of approximately 6.8%.

  • Portfolio Composition: 15 hotels with 3,667 net rooms as of September 30, 2024.

  • Group Revenue Increase: 14% increase year-to-date through the third quarter compared to the prior year period.

  • Urban Portfolio Revenue Growth: 8% increase in total hotel revenue and 4% growth in occupancy compared to the prior year period.

  • Ancillary Revenue Increase: 8.3% increase on a per occupied room basis compared to the prior year quarter.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Braemar Hotels & Resorts Inc (NYSE:BHR) reported a strong performance in their urban hotels with a 6% RevPAR growth over the prior year quarter.

  • The company successfully addressed all 2024 debt maturities and is working on refinancing its sole 2025 maturity.

  • Braemar Hotels & Resorts Inc (NYSE:BHR) completed the sale of Hilton La Jolla Torrey Pines at an attractive value, contributing to their shareholder value creation plan.

  • The company reported a 7.5% increase in comparable RevPAR for October, with total revenue growth of almost 11%, setting a positive outlook for the fourth quarter.

  • Group revenue increased by 14% through the third quarter compared to the prior year, with group rooms revenue pacing ahead by 13% for the full year of 2025.

Negative Points

  • Braemar Hotels & Resorts Inc (NYSE:BHR) reported a net loss attributable to common stockholders of $1.4 million or 2 cents per diluted share for the quarter.

  • Comparable hotel RevPAR for the portfolio decreased by 1.6% over the prior year quarter, primarily due to renovation work at the Ritz Carlton Lake Tahoe.

  • The company experienced a slight decline in leisure demand year over year, impacting their resort hotels.

  • San Francisco remains a challenging market for Braemar Hotels & Resorts Inc (NYSE:BHR), with high office vacancy rates affecting corporate demand.

  • The company faced some group cancellations and estimated an impact of $500,000 to $700,000 at the Ritz Carlton Sarasota due to hurricane damage.

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