Braemar Hotels & Resorts(US:BHR)2023-05-07 16:00Financial Position - As of March 31, 2023, total indebtedness was approximately $1.3 billion, with $1.2 billion in variable-rate debt[75]. - Net debt to gross assets ratio was 37.1% as of March 31, 2023[81]. - Total assets increased to $2.41 billion as of March 31, 2023, from $2.40 billion as of December 31, 2022[92]. - Total liabilities decreased to $1.50 billion as of March 31, 2023, from $1.57 billion as of December 31, 2022[92]. - Redeemable preferred stock increased to $378.9 million as of March 31, 2023, from $291.1 million as of December 31, 2022[92]. - Indebtedness, net as of March 31, 2023, was $1.28 billion, a decrease from $1.33 billion as of December 31, 2022[134]. - The aggregate principal balance on corresponding mortgage loans was $958,750,000 as of March 31, 2023[147]. - The total indebtedness as of March 31, 2023, was $1,280,443,000, with an estimated fair value range of $1,160,589,000 to $1,282,757,000, compared to $1,337,250,000 with a fair value range of $1,229,671,000 to $1,359,110,000 as of December 31, 2022[169]. Cash and Cash Equivalents - The company held cash and cash equivalents of $281.5 million and restricted cash of $63.1 million as of March 31, 2023[81]. - Cash and cash equivalents at the end of the period were $281,490, up from $185,157 at the end of March 2022, indicating a year-over-year increase of approximately 52%[108]. - Total cash, cash equivalents, and restricted cash at the end of the period was $344,553, up from $226,338 at the end of March 2022, reflecting an increase of approximately 52.3%[106]. - The company reported a net change in cash, cash equivalents, and restricted cash of $28,857 for the three months ended March 31, 2023, compared to a decrease of $37,036 in the prior year[106]. Revenue and Income - Total hotel revenue for the three months ended March 31, 2023, was $215.301 million, up from $161.880 million in the same period last year, representing a 33% increase[96]. - Operating income for the same period was $37.799 million, compared to $26.452 million in the prior year, reflecting a 43% increase[96]. - Net income attributable to common stockholders was $3.230 million, down from $11.360 million year-over-year, indicating a decline of 72%[96]. - The company reported a net income of $16.604 million for the three months ended March 31, 2023, compared to $15.604 million in the previous year, a 6% increase[98]. - Total revenue for the three months ended March 31, 2023, was $215.3 million, an increase from $161.9 million for the same period in 2022, representing a growth of 32.9%[128]. - Food and beverage revenue for Q1 2023 was $52.2 million, up from $36.7 million in Q1 2022, marking a 42.5% increase[128]. - Net income for the three months ended March 31, 2023, was $16,604, compared to $15,604 for the same period in 2022, representing an increase of approximately 6.4%[106]. - Net income attributable to the Company for the three months ended March 31, 2023, was $16,034,000, compared to $14,663,000 for the same period in 2022, reflecting an increase of approximately 9.3%[170]. Expenses - Total operating expenses increased to $177.502 million from $135.428 million, marking a 31% rise[96]. - The company incurred interest expense of $22.873 million, significantly higher than $8.522 million in the prior year[96]. - Total hotel operating expenses included $62.295 million in other expenses, up from $46.207 million, a 35% increase[96]. - Depreciation and amortization expenses increased to $22,521 for the three months ended March 31, 2023, up from $18,441 in the prior year, reflecting a rise of about 22.5%[106]. - Corporate, general, and administrative expenses were $1.195 million, compared to $527,000 for the same period in 2022, reflecting a significant increase[241]. Dividends and Stock Repurchase - The company declared a quarterly cash dividend of $0.05 per share for the first quarter of 2023, amounting to an annualized dividend of $0.20 per share[80]. - Common stock dividends declared for the three months ended March 31, 2023, totaled $3.334 million, significantly higher than $720,000 declared in the same period of 2022, representing an increase of approximately 363.9%[182]. - The company declared dividends and distributions of $8,756 for the three months ended March 31, 2023, compared to $3,229 for the same period in 2022, showing a substantial increase[108]. - During the three months ended March 31, 2023, the company repurchased 3.9 million shares of common stock for approximately $18.9 million, completing the $25 million repurchase authorization[196]. Investments and Property Management - Investments in hotel properties, net, were $1.88 billion as of March 31, 2023, compared to $1.88 billion as of December 31, 2022[92]. - The company has made equity investments in OpenKey, Inc. totaling $2.9 million, enhancing its technology offerings in the hospitality sector[125]. - As of March 31, 2023, the company owned 16 hotel properties with a total of 4,192 rooms, reflecting its commitment to expanding its luxury hotel portfolio[115]. - The company operates its hotel properties through management contracts, with Remington Hotels managing four of the 16 properties as of March 31, 2023[265]. - The company has a management fee structure that includes a minimum of approximately $16,000 per hotel or 3% of gross revenues, with agreements expiring between December 2027 and December 2065[244]. Legal and Regulatory Matters - The company is engaged in ongoing legal proceedings, including a class action lawsuit related to California employment laws, which may impact future financial results[251]. - The company has elected to be taxed as a REIT under the Internal Revenue Code, with a focus on high RevPAR luxury hotels[262]. Market and Economic Conditions - The company anticipates potential impacts from rising interest rates, inflation, and macroeconomic conditions on its financial performance and liquidity[258]. - The company’s operating results for the three months ended March 31, 2023, are not necessarily indicative of the results expected for the year ending December 31, 2023, due to historical seasonality patterns[121].