[First Quarter 2025 Results](index=1&type=section&id=First%20Quarter%202025%20Results) Braemar Hotels & Resorts reported its Q1 2025 results, highlighting RevPAR growth, strategic capital management, and operational transitions, alongside a declared dividend [First Quarter 2025 Financial and Operating Highlights](index=1&type=section&id=FIRST%20QUARTER%202025%20FINANCIAL%20HIGHLIGHTS) In the first quarter of 2025, Braemar Hotels & Resorts reported a 4.2% increase in Comparable RevPAR to $404, driven by a 4.5% rise in ADR, despite a slight 0.3% dip in occupancy. The company posted a net loss of $(2.5) million, or $(0.04) per share, while Adjusted FFO was $0.40 per share. Key operational activities included extending a mortgage loan for the Ritz-Carlton Lake Tahoe and redeeming $26.2 million of non-traded preferred stock Q1 2025 Key Financial Metrics (in millions, except per share and percentage data) | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Comparable RevPAR | $404 | ▲ 4.2% | | Comparable ADR | $626 | ▲ 4.5% | | Comparable Occupancy | 64.6% | ▼ 0.3% | | Net Loss (to common stockholders) | $(2.5) million | - | | Net Loss per Diluted Share | $(0.04) | - | | Adjusted FFO per Diluted Share | $0.40 | - | | Adjusted EBITDAre | $63.0 million | - | | Comparable Hotel EBITDA | $70.8 million | ▲ 5.3% | - The company ended the quarter with **$81.7 million** in cash and cash equivalents and **$54.5 million** in restricted cash[5](index=5&type=chunk) - During the quarter, the company extended its mortgage loan for the 170-room Ritz-Carlton Lake Tahoe[4](index=4&type=chunk) - Approximately **$26.2 million** of non-traded preferred stock was redeemed in cash during the quarter[5](index=5&type=chunk) [Operational Updates](index=2&type=section&id=SOFITEL%20CHICAGO%20MAGNIFICENT%20MILE) The company transitioned the 415-room Sofitel Chicago Magnificent Mile to a franchise structure in May 2025. Under this new arrangement, the hotel will continue to operate under the Sofitel brand but will be managed by Remington Hospitality. This move does not require an immediate property improvement plan, though renovations to the lobby, restaurant, and meeting spaces are planned over the next two years - The Sofitel Chicago Magnificent Mile was converted to a franchise structure, managed by Remington Hospitality, effective early May 2025[6](index=6&type=chunk) - The conversion is expected to increase the property's value as the management agreement with Remington is terminable on sale[13](index=13&type=chunk) [Capital Structure and Debt Management](index=2&type=section&id=CAPITAL%20STRUCTURE) As of March 31, 2025, Braemar had total assets of $2.1 billion and $1.2 billion in loans with a blended average interest rate of 7.1%. Approximately 77% of the debt is effectively floating. The company successfully extended the mortgage for the Ritz-Carlton Lake Tahoe and refinanced loans for five hotels, totaling $363 million, which addressed its final 2025 debt maturity and lowered interest costs - Total assets were **$2.1 billion** and total loans were **$1.2 billion** as of March 31, 2025[7](index=7&type=chunk) - The blended average interest rate on total loans is **7.1%**, with **23%** of debt effectively fixed and **77%** effectively floating[7](index=7&type=chunk) - A **$363 million** refinancing was completed for five hotels, addressing the final 2025 debt maturity. The new loan has a floating rate of SOFR + 2.52%[9](index=9&type=chunk) - The mortgage loan for the Ritz-Carlton Lake Tahoe was extended with a **$10 million** paydown, and the new spread is SOFR + 3.25%[8](index=8&type=chunk) [Dividends](index=2&type=section&id=DIVIDENDS) The Board of Directors declared a quarterly cash dividend of $0.05 per common share for the second quarter of 2025. This dividend, equating to an annual rate of $0.20 per share, is payable on July 15, 2025, to stockholders of record as of June 30, 2025. The dividend policy will be reviewed quarterly - A quarterly cash dividend of **$0.05 per share** was declared for Q2 2025[10](index=10&type=chunk) - The dividend will be paid on July 15, 2025, to stockholders of record as of June 30, 2025[10](index=10&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) CEO Richard J. Stockton expressed satisfaction with the solid Q1 performance, highlighting the 4.2% RevPAR growth as an important inflection point. He noted strong performance in the urban portfolio, with 11.3% RevPAR growth, boosted by the presidential inauguration, while the resort portfolio saw nearly 2% RevPAR growth. Stockton emphasized progress on the shareholder value creation plan, including the redemption of approximately $90 million in non-traded preferred stock and the value-enhancing conversion of the Sofitel Chicago - CEO highlighted the **4.2% RevPAR growth** as the second consecutive quarter of growth, signaling an 'important inflection point'[13](index=13&type=chunk) - The urban hotel portfolio delivered **11.3% RevPAR growth**, benefiting from the presidential inauguration in Washington, D.C.[13](index=13&type=chunk) - Resort properties continued their recovery with nearly **2% RevPAR growth**[13](index=13&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=BRAEMAR%20HOTELS%20%26%20RESORTS%20INC.%20AND%20SUBSIDIARIES%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents Braemar Hotels & Resorts' consolidated financial statements, including balance sheets and statements of operations, detailing asset, liability, equity, revenue, and expense figures for the reported periods [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Braemar's total assets stood at $2.10 billion, a slight decrease from $2.14 billion at year-end 2024. Total liabilities also decreased marginally to $1.40 billion from $1.41 billion. Cash and cash equivalents decreased to $81.7 million from $135.5 million over the same period Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,098,029** | **$2,136,059** | | Cash and cash equivalents | $81,689 | $135,465 | | Investments in hotel properties, net | $1,769,945 | $1,778,686 | | **Total Liabilities** | **$1,402,332** | **$1,413,889** | | Indebtedness, net | $1,202,668 | $1,210,018 | | **Total Equity** | **$235,477** | **$237,362** | [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the first quarter of 2025, total hotel revenue was $215.8 million, down from $219.1 million in Q1 2024. Operating income decreased to $36.7 million from $42.5 million year-over-year. The company reported a net loss attributable to common stockholders of $(2.5) million, or $(0.04) per share, compared to a net income of $3.5 million, or $0.05 per share, in the prior-year quarter Q1 Statement of Operations Highlights (in thousands, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total hotel revenue | $215,820 | $219,079 | | Total operating expenses | $179,080 | $176,612 | | Operating Income | $36,740 | $42,467 | | Net Income (Loss) | $10,672 | $15,482 | | **Net (Loss) Income to Common Stockholders** | **$(2,547)** | **$3,524** | | **(Loss) Income Per Share - Diluted** | **$(0.04)** | **$0.05** | [Non-GAAP Financial Measures and Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides reconciliations of the company's non-GAAP financial measures, including EBITDA, EBITDAre, Adjusted EBITDAre, FFO, and Adjusted FFO, to their most directly comparable GAAP measures [Reconciliation to EBITDA, EBITDAre, and Adjusted EBITDAre](index=7&type=section&id=RECONCILIATION%20OF%20NET%20INCOME%20%28LOSS%29%20TO%20EBITDA%2C%20EBITDAre%20AND%20ADJUSTED%20EBITDAre) In Q1 2025, the company's Adjusted EBITDAre was $63.0 million, a decrease from $66.2 million in Q1 2024. The reconciliation from net income of $10.7 million includes adjustments for interest, depreciation, taxes, and other items such as transaction costs and unrealized losses on derivatives EBITDAre Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $10,672 | $15,482 | | EBITDAre | $60,361 | $68,837 | | **Adjusted EBITDAre** | **$63,003** | **$66,192** | [Reconciliation to FFO and Adjusted FFO](index=7&type=section&id=RECONCILIATION%20OF%20NET%20INCOME%20%28LOSS%29%20TO%20FUNDS%20FROM%20OPERATIONS%20%28FFO%29%20AND%20ADJUSTED%20FFO) For Q1 2025, Adjusted Funds From Operations (AFFO) available to common stockholders was $29.1 million, or $0.40 per diluted share. This is a slight decrease from $30.3 million, or $0.42 per diluted share, in the same period last year. The calculation starts with net income and adjusts for non-cash items like depreciation and other specific charges FFO and Adjusted FFO (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) attributable to common stockholders | $(2,547) | $3,524 | | FFO available to common stockholders | $19,867 | $27,982 | | **Adjusted FFO available to common stockholders** | **$29,114** | **$30,260** | | **Adjusted FFO per diluted share** | **$0.40** | **$0.42** | [Debt and Capital Structure Details](index=8&type=section&id=Debt%20and%20Capital%20Structure%20Details) This section details the company's debt profile, including its composition by rate type, maturity schedule, and the calculation of its total enterprise value [Summary of Indebtedness](index=8&type=section&id=SUMMARY%20OF%20INDEBTEDNESS) As of March 31, 2025, Braemar's total debt was approximately $1.22 billion. The majority of the debt (92.9%) is floating-rate, with a weighted average interest rate of 7.27%, while 7.1% is fixed-rate at 4.50%. The overall weighted average interest rate, adjusted for caps, is 7.07% Indebtedness Summary (as of March 31, 2025, in thousands) | Debt Type | Amount (in thousands) | Percentage | Weighted Avg. Interest Rate | | :--- | :--- | :--- | :--- | | Fixed-Rate Debt | $86,250 | 7.1% | 4.50% | | Floating-Rate Debt | $1,134,513 | 92.9% | 7.27% | | **Total Debt** | **$1,220,763** | **100.0%** | **7.07%** | [Indebtedness by Maturity](index=9&type=section&id=INDEBTEDNESS%20BY%20MATURITY%20ASSUMING%20EXTENSION%20OPTIONS%20ARE%20EXERCISED) Assuming all extension options are exercised, the company has no debt maturing in 2025. Maturities are scheduled for 2026 ($129.7 million), 2027 ($74.5 million), 2028 ($246.6 million), 2029 ($407.0 million), and thereafter ($363.0 million) Debt Maturity Schedule (in thousands) | Maturity Year | Principal Due | | :--- | :--- | | 2025 | $0 | | 2026 | $129,663 | | 2027 | $74,500 | | 2028 | $246,600 | | 2029 | $407,000 | | Thereafter | $363,000 | | **Total** | **$1,220,763** | [Total Enterprise Value](index=25&type=section&id=TOTAL%20ENTERPRISE%20VALUE) As of March 31, 2025, Braemar's Total Enterprise Value (TEV) was calculated at approximately $1.78 billion. This value is derived from its market capitalization of $184.1 million, preferred stock, total indebtedness, and net working capital Total Enterprise Value Calculation (in thousands) | Component | Value | | :--- | :--- | | Market capitalization | $184,076 | | Preferred stock (All Series) | $501,167 | | Indebtedness | $1,220,763 | | Joint venture partner's share of debt | $(27,650) | | Net working capital | $(99,530) | | **Total Enterprise Value (TEV)** | **$1,778,826** | [Hotel Portfolio Performance](index=10&type=section&id=Hotel%20Portfolio%20Performance) This section analyzes the performance of the company's hotel portfolio, detailing key performance indicators, EBITDA, and performance segmented by property type and trailing twelve months [Key Performance Indicators (KPIs)](index=10&type=section&id=KEY%20PERFORMANCE%20INDICATORS) For the first quarter of 2025, the company's entire portfolio of 15 hotels achieved a comparable RevPAR of $404, a 4.2% increase year-over-year. This was driven by a 4.5% increase in ADR to $626, while occupancy saw a minor decrease of 0.3% to 64.6%. Hotels not under renovation showed slightly stronger performance with a 4.5% RevPAR increase Comparable KPIs for All Hotels (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | % Variance | | :--- | :--- | :--- | :--- | | RevPAR | $403.99 | $387.90 | 4.15% | | Occupancy | 64.58% | 64.80% | (0.34)% | | ADR | $625.59 | $598.60 | 4.51% | - The 13 hotels not under renovation during the quarter reported a comparable RevPAR increase of **4.49%** year-over-year[41](index=41&type=chunk) [Hotel Net Income & EBITDA](index=11&type=section&id=HOTEL%20NET%20INCOME%20%26%20EBITDA) In Q1 2025, comparable Hotel EBITDA for all properties increased by 5.3% to $70.8 million compared to the prior year. The comparable Hotel EBITDA margin improved slightly to 32.42%. For hotels not under renovation, the comparable Hotel EBITDA grew by 6.0% to $71.2 million, with a margin of 32.92% Comparable Hotel EBITDA for All Hotels (Q1 2025 vs Q1 2024, in thousands) | Metric | Q1 2025 | Q1 2024 | % Variance | | :--- | :--- | :--- | :--- | | Comparable total hotel revenue | $218,409 | $209,698 | 4.15% | | **Comparable hotel EBITDA** | **$70,799** | **$67,208** | **5.34%** | | Comparable hotel EBITDA margin | 32.42% | 32.05% | 0.37% | [Performance by Property Type (Resort vs. Urban)](index=13&type=section&id=SELECTED%20FINANCIAL%20AND%20OPERATING%20INFORMATION%20BY%20PROPERTY) In Q1 2025, the Urban properties portfolio significantly outperformed the Resort portfolio in terms of growth. Urban properties saw a 38.9% increase in Hotel EBITDA and an 11.3% increase in RevPAR. In contrast, Resort properties had a more modest 2.0% increase in Hotel EBITDA and a 1.9% increase in RevPAR Comparable Performance by Property Type (Q1 2025 vs Q1 2024, in thousands, except RevPAR) | Property Type | Metric | Q1 2025 | % Variance (YoY) | | :--- | :--- | :--- | :--- | | **Resort Properties** | RevPAR | $800.22 | ▲ 1.92% | | | Hotel EBITDA | $62,392K | ▲ 2.02% | | **Urban Properties** | RevPAR | $166.59 | ▲ 11.25% | | | Hotel EBITDA | $8,407K | ▲ 38.94% | [Trailing Twelve Months (TTM) Performance](index=18&type=section&id=TTM%20Performance) For the trailing twelve months ending March 31, 2025, the company's comparable portfolio generated $715.0 million in total revenue and $182.6 million in Hotel EBITDA, resulting in a Hotel EBITDA margin of 25.54%. The comparable RevPAR for the period was $320.53 Comparable TTM Performance (ended March 31, 2025, in thousands, except RevPAR) | Metric | Value (in thousands, except RevPAR) | | :--- | :--- | | Total hotel revenue | $715,027 | | Hotel net income | $33,388 | | **Hotel EBITDA** | **$182,624** | | Hotel EBITDA margin | 25.54% | | RevPAR | $320.53 | [Other Disclosures](index=26&type=section&id=Other%20Disclosures) This section outlines anticipated capital expenditures for various properties, which may lead to operational displacement [Anticipated Capital Expenditures](index=26&type=section&id=ANTICIPATED%20CAPITAL%20EXPENDITURES%20CALENDAR%20%28a%29) The company has planned significant capital expenditures for 2025 that may cause displacement at several properties. Projects are scheduled for Hotel Yountville throughout the year, Park Hyatt Beaver Creek from Q2 to Q4, and Cameo Beverly Hills in Q3 and Q4 - Significant capital expenditures are planned for 2025 at Hotel Yountville, Park Hyatt Beaver Creek, and Cameo Beverly Hills, which could lead to displacement[75](index=75&type=chunk)

Core Viewpoint - The focus is on building a financial portfolio aimed at achieving financial independence through investments in dividend stocks, which provide a steady income stream. Group 1: Financial Strategy - The strategy emphasizes the importance of dividend stocks for generating consistent income to support the goal of financial independence [1]

Dividend Announcements - Braemar Hotels & Resorts Inc. declared a quarterly cash dividend of $0.05 per diluted share for its common stock for the second quarter ending June 30, 2025, equating to an annual rate of $0.20 per share, payable on July 15, 2025 [1] - A quarterly cash dividend of $0.3438 per diluted share was declared for the Company's 5.5% Series B Cumulative Convertible Preferred Stock, also payable on July 15, 2025 [2] - The Company announced a quarterly cash dividend of $0.5156 per diluted share for its 8.25% Series D Cumulative Preferred Stock, payable on July 15, 2025 [3] - Monthly cash dividends for the Series E Redeemable Preferred Stock were declared at $0.15625 per share, with payments scheduled for May 15, June 16, and July 15, 2025 [4] - For the Series M Redeemable Preferred Stock, monthly cash dividends of $0.17708 and $0.17500 per share were declared, with similar payment schedules [5][6] Share Information - As of March 31, 2025, there were 13,909,632 shares of the Company's Series E Redeemable Preferred Stock and 1,459,040 shares of the Company's Series M Redeemable Preferred Stock issued and outstanding [7] Company Overview - Braemar Hotels & Resorts is identified as a real estate investment trust (REIT) focused on investing in luxury hotels and resorts [7]

Core Viewpoint - Braemar Hotels & Resorts Inc. is transitioning the Sofitel Chicago Magnificent Mile to a franchise structure, which is expected to enhance the property's value while maintaining the Sofitel brand [1][2]. Company Transition - The 415-room Sofitel Chicago Magnificent Mile will be managed by Remington Hospitality under the existing Master Hotel Management Agreement with Braemar [1]. - The conversion is anticipated to be effective in May 2025, with Remington Hospitality offering positions to all employees on the conversion date [1]. - There is no required property improvement plan, but renovations to the lobby, restaurant, and meeting space are planned over the next two years [1]. Management Insights - Richard J. Stockton, President and CEO of Braemar, expressed optimism about the conversion, expecting an immediate uplift in property value due to the continued association with the Sofitel brand and the flexibility of the management agreement [2]. Company Profile - Braemar Hotels & Resorts is identified as a real estate investment trust (REIT) focused on luxury hotels and resorts [2].

Core Viewpoint - Braemar Hotels & Resorts Inc. is set to release its first-quarter earnings results for the period ending March 31, 2025, on May 7, 2025, after market close [1][2]. Group 1: Earnings Release Details - The earnings release will be issued after market close on May 7, 2025 [2]. - A conference call to discuss the earnings will take place on May 8, 2025, at 11:00 a.m. ET [2]. - The conference call can be accessed by calling (646) 960-0284, with a replay available until May 15, 2025, at (609) 800-9909 using confirmation number 2925607 [2]. Group 2: Online Availability - The live broadcast of the quarterly conference call will be available on the company's website starting at 11:00 a.m. ET on May 8, 2025 [3]. - An online replay of the conference call will be accessible shortly after the call and will remain available for approximately one year [3]. Group 3: Company Profile - Braemar Hotels & Resorts operates as a real estate investment trust (REIT) with a focus on investing in luxury hotels and resorts [3].

Hotel Properties Overview - The company owns interests in 15 hotel properties across seven states, the District of Columbia, Puerto Rico, and St. Thomas, U.S. Virgin Islands, totaling 3,807 rooms, with 3,667 net rooms after excluding joint venture partner contributions[13]. - Ashford LLC manages all hotel properties, focusing on maximizing operating performance and cash flow through strategic asset management[25]. - The company is advised by Ashford Hospitality Advisors LLC, which provides asset management and operational accountability for the hotel properties[14][19]. Financial Performance - The company’s total net income for the year ended December 31, 2024, was $30.07 million, with EBITDA of $179.03 million[30]. - For the year ended December 31, 2024, the total weighted average occupancy rate across all properties was 67.00%, with an average daily rate (ADR) of $465.21 and revenue per available room (RevPAR) of $311.68[30]. - Approximately 75% of rooms revenue was generated by transient business, 23% from group sales, and 2% from contract sales for the year ended December 31, 2024[29]. Capital Expenditures and Investments - The Notary Hotel has incurred approximately $62.8 million in capital expenditures since its acquisition in 2007, enhancing its facilities and services[45]. - The company intends to pursue a disciplined capital allocation strategy, selectively selling properties that no longer align with its investment strategy to redeploy capital into higher-return opportunities[28]. - The company plans to concentrate investments in markets with significant growth opportunities, considering factors like supply risk and potential for RevPAR increases post-renovation[23]. Revenue and Occupancy Rates by Property - Capital Hilton achieved an occupancy rate of 78.6% in 2024, up from 72.9% in 2023 and 65.2% in 2022[34]. - Average Daily Rate (ADR) for Capital Hilton increased to $262.26 in 2024, compared to $250.11 in 2023 and $228.36 in 2022, reflecting a growth of 4.6% year-over-year[34]. - Revenue per Available Room (RevPAR) for Capital Hilton rose to $206.23 in 2024, a 13.1% increase from $182.39 in 2023 and a 38.5% increase from $148.82 in 2022[34]. - Total revenue for Capital Hilton reached $65.134 million in 2023, up from $57.716 million in 2022, marking a growth of 12.3%[34]. - Marriott Seattle Waterfront reported a 73.0% occupancy rate in 2024, an increase from 70.7% in 2023 and 56.9% in 2022[38]. - The ADR for Marriott Seattle Waterfront was $307.67 in 2024, up from $298.39 in 2023 and $286.14 in 2022, indicating a year-over-year increase of 3.8%[38]. - RevPAR for Marriott Seattle Waterfront improved to $224.48 in 2024, a 6.8% increase from $210.94 in 2023 and a 38.0% increase from $162.75 in 2022[38]. - Total revenue for Marriott Seattle Waterfront was $38.776 million in 2023, compared to $34.629 million in 2022, reflecting a growth of 12.4%[38]. - The Notary Hotel reported a total revenue of $36,455,000 for 2024, up 10.9% from $33,117,000 in 2023 and 32.1% from $27,536,000 in 2022[49]. - The Notary Hotel's occupancy rate improved to 67.0% in 2024, compared to 62.4% in 2023 and 55.9% in 2022[49]. - Sofitel Chicago Magnificent Mile achieved total revenue of $37,568,000 in 2024, a 10.0% increase from $33,917,000 in 2023[53]. - The occupancy rate for Sofitel Chicago Magnificent Mile rose to 72.5% in 2024, up from 70.3% in 2023 and 65.4% in 2022[53]. - Total revenue for The Ritz-Carlton St. Thomas decreased to $74.375 million in 2024 from $75.394 million in 2023, down 1.4% year-over-year[66]. - Total revenue for the Park Hyatt Beaver Creek Resort & Spa decreased to $47.907 million in 2024 from $49.335 million in 2023, a decline of 2.9%[71]. - Total revenue for Hotel Yountville decreased to $14.711 million in 2024 from $15.296 million in 2023, a decline of 3.8%[76]. - Total revenue for The Ritz-Carlton Sarasota increased to $86.764 million in 2024 from $85.520 million in 2023, an increase of 1.5%[81]. - The Cameo Beverly Hills hotel generated total revenue of $13.139 million in 2023, down from $16.113 million in 2022[94]. - The Ritz-Carlton Reserve Dorado Beach achieved total revenue of $78.388 million in 2024, compared to $83.744 million in 2023[100]. - Total revenue for the year ended December 31, 2024, was $72,113,000, representing a 6.4% increase from $67,666,000 in 2023 and a 17.7% increase from $61,253,000 in 2022[105]. Debt and Financing Strategy - As of December 31, 2024, total indebtedness was approximately $1.2 billion, with a weighted average interest rate of 7.23% per annum[115]. - Approximately 92.9% of the company's debt bears interest at a variable rate of SOFR plus 3.55%[115]. - The company targets a leverage ratio of 35% net debt to gross assets for its financing strategy[116]. - The company intends to finance long-term growth through operating cash flow, equity issuances, and secured and unsecured debt financings[116]. Management Agreements and Fees - The company operates hotel properties through third-party management agreements, ensuring compliance with REIT regulations[145]. - Management fees for hotel properties range from 3.0% to 5.0% of gross revenues, with additional incentive fees based on operating income[147]. - The Capital Hilton has a management fee of 3% and an owner's priority return of 11.5% on a total investment of $174,950,115[147]. - The Marriott Seattle Waterfront has a management fee of 3% and an owner's first priority return of 10.75% on a total investment of $91,571,054[147]. - The Notary Hotel has a management fee of 4% and an owner's priority return of $9,053,011, with additional fees based on capital expenditures[148]. - The Ritz-Carlton St. Thomas has a management fee of 3.0% and an owner's priority return of $11,097,622[148]. - The Four Seasons Resort Scottsdale has a management fee of 3.5% and an owner's priority return of $19,741,351.59, which will be reduced to zero in January 2039[149]. Performance Metrics and Termination Clauses - The performance termination threshold for Marriott Seattle Waterfront is set at 9.5% of the total investment in the hotel, while The Clancy and The Notary Hotel have thresholds of 82.6% and 85% of the owner's priority return, respectively[156]. - The hotel's yield index must not fall below 90% to avoid performance termination under the Hilton management agreement[164]. - The management agreement allows for termination without a fee if the manager fails to achieve certain performance criteria over two consecutive fiscal years[155]. - The hotel management agreement allows termination without a fee if the hotel's RevPAR is less than 90% of its competitive set for two consecutive operating years[181]. - The adjusted net operating income must be above a hurdle amount of approximately $13.9 million plus 8% of capital expenditures to avoid performance termination[181]. Related Party Transactions and Advisory Agreements - The company has established a Related Party Transactions Committee to review conflicts involving related party transactions[144]. - The advisory agreement allows for the potential spin-off or transfer of assets to a new entity, which would also be advised by Ashford LLC[142]. - The company must reimburse Ashford LLC for all costs incurred in connection with the performance of its services, with no specific limitation on the amount[138].

DALLAS, March 10, 2025 /PRNewswire/ -- Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") today announced that it has closed on a refinancing involving five hotels. The new loan totals $363 million and has a two-year initial term with three one-year extension options, subject to the satisfaction of certain conditions, taking the final maturity to 2030. The loan is interest only and provides for a floating interest rate of SOFR + 2.52%. The loan is secured by five hotels:  The Clancy, The ...

While Braemar Hotels & Resorts (NYSE: BHR ) 8.25% Series D Preferreds (NYSE: BHR.PR.D ) are up more than 6% since my last article rating them as a buy, the rally likely has more roomThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.Analyst’s Dis ...

Financial Data and Key Metrics Changes - The company reported a fourth quarter comparable RevPAR of $305, reflecting a 1.9% increase over the prior year quarter, and a comparable total hotel revenue increase of 5.3% [10][11] - For the full year, the company reported a net loss attributable to common stockholders of $50.9 million or $0.77 per diluted share, and AFFO per diluted share of $0.21 [27][28] - Adjusted EBITDAre for the quarter was $30.2 million and for the full year was $157.6 million [27] Business Line Data and Key Metrics Changes - Group revenue increased by 7% in the fourth quarter, indicating a resurgence in group bookings and events [11] - The luxury resort portfolio achieved a comparable RevPAR of $515, a 1.3% increase over the prior year period, with combined comparable hotel EBITDA of $31 million, a 4.1% increase [13] - Urban hotels achieved comparable RevPAR growth of 3.3% in the fourth quarter, with strong performance across all demand segments [13][14] Market Data and Key Metrics Changes - The company noted that January RevPAR was impressive, with growth over the prior year, and excluding the Capital Hilton, portfolio RevPAR growth was still over 9% [14] - The company experienced fluctuations in the Los Angeles market due to recent events, but February saw a return to stable group bookings [24][25] Company Strategy and Development Direction - The company is in active discussions for refinancing a $193 million loan maturing in June, which will eliminate remaining debt maturities in 2025 [10] - The company plans to invest between $75 million and $95 million in capital expenditures in 2025 to enhance its luxury portfolio [51] - The company is focusing on optimizing revenue opportunities and enhancing guest experiences through strategic renovations and operational efficiencies [16][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return of steady growth in resort markets, driven by historically low supply growth [71][72] - The company is encouraged by the positive performance in January and anticipates continued strength in group bookings and overall demand [68][69] - Management highlighted the favorable environment for hotel debt capital markets, which is becoming more attractive for borrowers [35] Other Important Information - The company redeemed approximately $80 million of non-traded preferred stock, representing about 17% of the original capital raise [22] - The company announced a quarterly stock dividend of $0.05 per share, equating to an annual yield of approximately 7.7% [33] Q&A Session Summary Question: Can you provide an update on capital expenditures in Tahoe and spending plans for 2025? - Management confirmed that Tahoe renovations are complete, with a small project planned for under $2 million in 2025 [58] Question: Is the company still restricted from repurchasing common stock? - Management confirmed that they are currently restricted from repurchasing common stock [61] Question: Can you elaborate on the RevPAR strength in January and its sustainability? - Management noted that January performance benefited from calendar shifts and capital investments, leading to broad-based demand [67][69] Question: What is the outlook for the transaction market regarding high-quality assets? - Management indicated strong interest from buyers and a positive reception for hotel sales, suggesting higher transaction volumes in the future [78][80]

Core Viewpoint - Braemar Hotels & Resorts reported a quarterly loss of $0.06 per share, missing the Zacks Consensus Estimate of $0.10, and showing a significant decline from the previous year's FFO of $0.04 per share, resulting in an FFO surprise of -160% [1] Financial Performance - The company posted revenues of $173.34 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 6.28%, but down from $177.53 million in the same quarter last year [2] - Over the last four quarters, Braemar Hotels & Resorts has surpassed consensus revenue estimates two times [2] Stock Performance - Shares of Braemar Hotels & Resorts have declined approximately 10.3% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.35 on revenues of $199.3 million, and for the current fiscal year, it is $0.54 on revenues of $687 million [7] - The outlook for the REIT and Equity Trust - Other industry is currently in the bottom 46% of Zacks industries, which may impact the stock's performance [8]