Braemar Hotels & Resorts(US:BHR)2025-07-31 21:18Financial 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]