Core Insights - Braemar Hotels & Resorts Inc. has successfully completed the sale of the 369-room Marriott Seattle Waterfront for $145 million, equating to $393,000 per key, with an anticipated capitalization rate of 8.1% based on net operating income for the trailing 12 months ending May 31, 2025 [1][2]. Financial Summary - The company plans to utilize the proceeds from the sale to pay down approximately $88.4 million of debt, retaining around $50.8 million in net proceeds after transaction costs [2]. - For the 12 months ending May 31, 2025, the hotel reported a net loss of $1.6 million, with a Hotel EBITDA of $14.3 million and a Hotel Net Operating Income of $12.4 million [4]. Company Overview - Braemar Hotels & Resorts is a real estate investment trust (REIT) that focuses on investing in luxury hotels and resorts [3].

Financial Data and Key Metrics Changes - The company reported a net loss attributable to common stockholders of $16 million or $0.24 per diluted share for the quarter [14] - Adjusted EBITDA for the quarter was $38.9 million, with total assets at $2.1 billion and total loans of $1.2 billion at a blended average interest rate of 7.1% [14][15] - The company ended the quarter with cash and cash equivalents of $80.2 million and announced a quarterly common stock dividend of $0.05 per share, equating to an annual yield of approximately 9.1% [15] Business Line Data and Key Metrics Changes - Comparable RevPAR reached $318, reflecting a 1.5% increase year-over-year, marking the third consecutive quarter of RevPAR growth [7][8] - Comparable total hotel revenue increased by 3.3% year-over-year, with comparable hotel EBITDA at $47.8 million, a 3.7% increase [9] - The resort portfolio reported comparable RevPAR of $464, a 1.6% increase, and combined comparable hotel EBITDA of $25.7 million, a 6.9% increase [9] Market Data and Key Metrics Changes - Urban hotels delivered comparable RevPAR growth of 0.5%, with The Clancy in San Francisco achieving total revenue growth of 14% [10] - Group revenue for 2025 is up 8.6%, with 2026 showing continued growth at 3.6% [10] Company Strategy and Development Direction - The company is focused on deleveraging the portfolio while sharpening its focus on the luxury hotel sector, as evidenced by the sale of the Marriott Seattle Waterfront for $145 million [12] - The company plans to continue capital expenditures between $75 million and $95 million for the full year 2025, emphasizing long-term value creation through portfolio quality and brand alignment [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong booking pace and performance of the portfolio, despite challenges from renovations and softness in the government segment [10][36] - The company anticipates continued growth in group revenue and strong demand across multiple key markets, reflecting the resilience of its high-quality portfolio [28] Other Important Information - The company has redeemed approximately $107 million of its non-traded preferred stock, representing about 23% of the original capital raise [13] - The transition of the Sofitel Chicago Magnificent Mile to a franchise model is expected to enhance property value and operational performance [11][25] Q&A Session Summary Question: Is there incremental focus on grouping up across properties? - Management confirmed that they are looking to group up broadly across the portfolio, focusing on groups that generate additional catering and banquet spend [31][32] Question: How did May and June perform compared to expectations? - Management indicated that May and June performed more in line with expectations, despite some headwinds from renovations and softness in the government segment [35][36] Question: Following the Seattle sale, will there be less urgency to sell more assets? - Management stated that the sale provides significant cash balance and flexibility, but they do not have further property sales planned for this year, with a reassessment for 2026 [38][39]

Financial Data and Key Metrics Changes - The company reported a net loss attributable to common stockholders of $16 million or $0.24 per diluted share for the quarter [13] - Adjusted EBITDA for the quarter was $38.9 million, with total assets amounting to $2.1 billion [13] - The company ended the quarter with cash and cash equivalents of $80.2 million and restricted cash of $55.5 million [14] Business Line Data and Key Metrics Changes - Comparable RevPAR reached $318, reflecting a 1.5% increase year-over-year, marking the third consecutive quarter of RevPAR growth [7][8] - Comparable hotel EBITDA increased by 3.7% to $47.8 million, with nine out of fifteen hotels classified as resort destinations [8][16] - The resort portfolio reported a RevPAR of $464, a 1.6% increase, and a combined hotel EBITDA of $25.7 million, a 6.9% increase [8] Market Data and Key Metrics Changes - Urban hotels experienced a RevPAR growth of 0.5%, with The Clancy in San Francisco achieving a total revenue growth of 14% [9] - Group revenue for the third quarter is currently up 8.8% compared to the prior year quarter, with full-year group revenue pacing ahead by 8.6% [19] Company Strategy and Development Direction - The company aims to deleverage its portfolio while focusing on the luxury hotel sector, as evidenced by the sale of the Marriott Seattle Waterfront for $145 million [11] - Continued renovations and strategic repositioning of properties are planned to enhance guest experiences and drive revenue [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong booking pace and performance of the portfolio, despite challenges from renovations and government segment softness [9][36] - The company anticipates continued growth in group demand and revenue, supported by strong performance across multiple key markets [27] Other Important Information - The company has redeemed approximately $107 million of its non-traded preferred stock, representing about 23% of the original capital raise [12] - Capital expenditures for the full year 2025 are expected to total between $75 million and $95 million [27] Q&A Session Summary Question: Is there incremental focus on grouping up across properties? - Management confirmed they are looking to group up broadly across the portfolio, focusing on groups that generate additional catering and banquet spend [31][32] Question: How did May and June perform compared to expectations? - Management indicated that May and June performed more in line with expectations, despite some headwinds from renovations and government business softness [35][37] Question: Following the Seattle sale, will there be less urgency to sell more assets? - Management stated that the sale provides significant cash balance and flexibility, but they do not have further property sales planned for this year [38][39]

Financial Performance - The company's Equity Market Cap is $1804 million[10] - The company's Enterprise Value is $18 billion[10] - TTM Q2'25 Hotel EBITDA reached $184 million, a 209% increase compared to $721 million in 2013[11] - Total Assets as of June 30, 2025, were $2064 billion, a 115% increase from $962 million on December 31, 2013[11] - Comparable Hotel EBITDA for Q2 2025 was $47805 thousand, a 37% increase year-over-year[33, 58] - Adjusted Funds From Operations (AFFO) was $009 per diluted share for the quarter[58] - Net loss attributable to common stockholders for the quarter was $(160) million or $(024) per diluted share[58] Portfolio Metrics - Portfolio RevPAR in Q2 '25 was up 15% YoY and up 241% vs Q2 '19[40] - Resort RevPAR in Q2 '25 was up 16% YoY and up 503% vs Q2 '19[40] - Urban RevPAR in Q2 '25 was up 13% YoY and up 10% vs Q2 '19[40] - Total Hotel Revenue for comparable hotels in Q2 2025 was $179943 thousand, a 33% increase year-over-year[33] - The company plans to invest $75 million - $95 million in capital expenditures in 2025[59] Liabilities - The company extended the mortgage loan secured by Ritz-Carlton Lake Tahoe to July 15, 2026[74] - The company expects to repay $88 million of the CMBS due 2030 from the proceeds of the sale of Marriott Seattle Waterfront[74]

分组1 - Braemar Hotels & Resorts reported quarterly funds from operations (FFO) of $0.09 per share, missing the Zacks Consensus Estimate of $0.12 per share, and down from $0.1 per share a year ago, representing an FFO surprise of -25.00% [1] - The company posted revenues of $179.08 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.36%, but down from year-ago revenues of $187.59 million [2] - Over the last four quarters, Braemar Hotels & Resorts has surpassed consensus revenue estimates three times [2] 分组2 - The stock has underperformed, losing about 24.7% since the beginning of the year compared to the S&P 500's gain of 8.2% [3] - The current consensus FFO estimate for the coming quarter is -$0.11 on $144 million in revenues, and for the current fiscal year, it is $0.44 on $697.1 million in revenues [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 36% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Net loss attributable to common stockholders for the quarter was $(16.0) million or $(0.24) per diluted share, while adjusted funds from operations (AFFO) was $0.09 per diluted share[6] - Adjusted EBITDAre for the quarter was $38.9 million, and comparable Hotel EBITDA was $47.8 million, reflecting a 3.7% increase year-over-year[6] - Total hotel revenue for Q2 2025 was $179.1 million, a decrease of 4.0% from $187.6 million in Q2 2024[25] - Net income attributable to common stockholders for Q2 2025 was a loss of $16.0 million, compared to a loss of $21.9 million in Q2 2024[29] - Adjusted EBITDAre for the six months ended June 30, 2025, was $101.9 million, down from $108.9 million in the same period of 2024[27] - Total operating expenses for Q2 2025 were $161.2 million, a decrease of 8.1% from $175.4 million in Q2 2024[25] - Interest expense for Q2 2025 was $22.7 million, down 12.5% from $25.8 million in Q2 2024[25] - Funds from operations (FFO) available to common stockholders for Q2 2025 was $5.2 million, compared to a loss of $0.2 million in Q2 2024[29] - Adjusted FFO per diluted share for the six months ended June 30, 2025, was $0.49, down from $0.52 in the same period of 2024[29] - Total hotel revenue for the six months ended June 30, 2025, was $398,352, down 2.78% from $409,745 in 2024[44] - Hotel net income margin improved to 8.92% for the three months ended June 30, 2025, compared to 7.45% in 2024[44] - Hotel EBITDA margin for the three months ended June 30, 2025, was 26.56%, slightly down from 27.12% in 2024[44] Revenue Metrics - Comparable RevPAR for all hotels increased 1.5% year-over-year to $318, with comparable ADR rising 0.9% to $443 and comparable occupancy increasing 0.6% to 71.9%[6] - Rooms revenue for the three months ended June 30, 2025, was $110,883,000, reflecting a decrease of 5.31% compared to the same period in 2024[37] - RevPAR (Revenue per Available Room) for the same period was $318.14, an increase of 4.42% year-over-year[37] - Occupancy rate for the three months ended June 30, 2025, was 71.85%, down 1.33% from 2024[37] - ADR (Average Daily Rate) increased by 5.84% to $442.81 for the three months ended June 30, 2025[37] - The six-month RevPAR was $360.83, showing a 7.27% increase year-over-year[38] - The occupancy rate for the six months ended June 30, 2025, was 68.23%, a decline of 1.26% from 2024[38] - Total hotel revenue for the three months ended June 30, 2025, was $179,943, a decrease of 4.44% compared to $188,307 in 2024[44] - Comparable total hotel revenue increased by 3.30% to $179,943 from $174,195 year-over-year[44] Asset Management - The company ended the quarter with cash and cash equivalents of $80.2 million and restricted cash of $55.5 million, with net debt to gross assets at 44.2%[6] - Total assets as of June 30, 2025, were $2.1 billion, with total liabilities amounting to $1.4 billion[9] - The company has redeemed approximately $107 million of its non-traded preferred stock and has no remaining debt maturities in 2025[13] - Total indebtedness amounts to $1,220,763,000, with $86,250,000 in convertible senior notes and $1,134,513,000 in other debt[34] - The company entered into a definitive agreement to sell the 369-room Marriott Seattle Waterfront for $145 million, representing a capitalization rate of 8.1% on net operating income[10] Capital Expenditures and Dividends - Capital expenditures during the quarter totaled $17.7 million, and approximately $14.7 million of non-traded preferred stock was redeemed[6] - The board declared a quarterly cash dividend of $0.05 per diluted share for the third quarter, equating to an annual rate of $0.20 per share[11] Property Performance - The company converted the 415-room Sofitel Chicago Magnificent Mile to a franchise structure, expected to enhance property value[5][8] - Hotel net income for the three months ended June 30, 2025, was $16,054, up 14.41% from $14,032 in 2024[44] - Comparable hotel net income rose by 59.52% to $16,072 from $10,075 year-over-year[44] - Hotel EBITDA for the three months ended June 30, 2025, was $47,793, a decrease of 6.43% from $51,078 in 2024[44] - Comparable hotel EBITDA increased by 3.72% to $47,805 from $46,091 year-over-year[44] Future Outlook - The company anticipates capital expenditures, although specific amounts and timelines were not detailed in the provided content[82] - Future performance may be influenced by the ongoing renovations and their impact on occupancy rates[92] - The company is focused on expanding its portfolio and enhancing revenue through strategic property management[90] - Future outlook includes strategic initiatives aimed at improving user data analytics and customer engagement across hotel properties[96] - The company plans to expand its market presence by opening five new properties in key urban locations by the end of 2025[118] - Investment in new technology and services is expected to enhance guest experience and operational efficiency, with a budget allocation of $50 million for the upcoming fiscal year[118]

Group 1 - The article invites active investors to join a free trial at Trade With Beta, where they can discuss investment ideas in detail with sophisticated traders and investors [1] Group 2 - There are no stock, option, or similar derivative positions held by the analyst in any of the mentioned companies, nor are there plans to initiate such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not compensated for it, except from Seeking Alpha [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are provided [3]

Core Points - Braemar Hotels & Resorts Inc. declared a quarterly cash dividend of $0.05 per diluted share for its common stock for Q3 2025, equating to an annual rate of $0.20 per share, payable on October 15, 2025 [1] - The Board also declared a quarterly cash dividend of $0.3438 per diluted share for the 5.5% Series B Cumulative Convertible Preferred Stock, payable on October 15, 2025 [2] - A quarterly cash dividend of $0.5156 per diluted share was declared for the 8.25% Series D Cumulative Preferred Stock, also payable on October 15, 2025 [3] - Monthly cash dividends were declared for the Series E Redeemable Preferred Stock at $0.15625 per share, with payments scheduled for August 15, September 15, and October 15, 2025 [4] - For the Series M Redeemable Preferred Stock, monthly dividends of $0.17917, $0.17708, and $0.17500 per share were declared, with similar payment schedules [5][6][7] - As of June 30, 2025, there were 13,391,250 shares of Series E Redeemable Preferred Stock and 1,420,421 shares of Series M Redeemable Preferred Stock issued and outstanding [8]

Core Insights - The article emphasizes the importance of value investing, highlighting the identification of undervalued companies through fundamental analysis and metrics [2][8] - It introduces Zacks' Style Scores system, which helps investors find stocks with specific traits, particularly those with high grades in the Value category [3] Company Analysis - Braemar Hotels & Resorts (BHR) has a Zacks Rank of 1 (Strong Buy) and an A grade for Value, with a Forward P/E ratio of 5.41, significantly lower than the industry average of 15.75 [4] - BHR's P/B ratio is 0.71, compared to the industry's average P/B of 1.80, indicating it is undervalued [5] - City Office REIT (CIO) holds a Zacks Rank of 2 (Buy) and an A grade for Value, with a Forward P/E ratio of 4.87 and a PEG ratio of 0.81, both favorable compared to the industry averages [6] - CIO's P/B ratio is 0.36, also lower than the industry's average P/B of 1.80, suggesting it is undervalued [7] Investment Outlook - Both BHR and CIO are highlighted as strong value stocks, likely undervalued based on their earnings outlook and valuation metrics [8]

Core Insights - The article emphasizes the importance of a proven ranking system that focuses on earnings estimates and revisions to identify winning stocks [1] - Value investing is highlighted as a popular strategy for finding great stocks across various market conditions [2] - The Zacks Rank and Style Scores system are tools for investors to identify stocks with specific traits, particularly in the "Value" category [3] Company Analysis: Braemar Hotels & Resorts (BHR) - Braemar Hotels & Resorts currently holds a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating strong investment potential [4] - The stock is trading at a P/E ratio of 5.24, significantly lower than the industry average P/E of 15.62, suggesting it may be undervalued [4] - BHR's Forward P/E has fluctuated between 3.52 and 7.43 over the past year, with a median of 5.36, further indicating its valuation status [4] - The P/B ratio for BHR is 0.68, which is also lower than the industry average P/B of 1.78, reinforcing the notion of undervaluation [5] - Over the past year, BHR's P/B has ranged from 0.53 to 0.94, with a median of 0.73, highlighting its strong value metrics [5] - Overall, BHR's strong value grade and positive earnings outlook suggest it is an impressive value stock at the moment [6]