Braemar Hotels & Resorts(US:BHR)2025-11-07 21:29Property Ownership and Sales - As of September 30, 2025, the company owned interests in 14 hotel properties with a total of 3,438 rooms, representing 3,298 net rooms[159]. - The company sold the Marriott Seattle Waterfront hotel for $145 million in cash and repaid approximately $88.4 million on the related mortgage loan[168]. - The company sold The Clancy for $115 million in cash, repaying approximately $64.7 million on the related mortgage loan[175]. - The company owns 3,298 rooms across various hotel properties, with 75% ownership in the Capital Hilton and 100% ownership in several other properties[282]. - The Ritz-Carlton Reserve Dorado Beach has 96 rooms, fully owned by the company, contributing to its portfolio[282]. Financial Performance - Total revenue decreased by $4.8 million, or 3.3%, to $143.6 million for the three months ended September 30, 2025, compared to $148.4 million in 2024[180]. - Rooms revenue declined by $6.7 million, or 7.3%, to $85.7 million in the 2025 quarter, primarily due to the sales of Marriott Seattle and Hilton La Jolla Torrey Pines[182]. - Net income attributable to the Company decreased by $6.9 million, or 54.4%, to $5.7 million in the 2025 quarter from $12.6 million in 2024[181]. - Total hotel revenue decreased by $16.6 million, or 3.0%, to $538.5 million for the nine months ended September 30, 2025, compared to $555.1 million in 2024[211]. - Net income attributable to the Company decreased by $5.7 million, or 33.5%, from $16.9 million in 2024 to $11.3 million in 2025[211]. Expenses and Costs - Total hotel operating expenses decreased by $2.1 million, or 1.8%, to $111.6 million in the 2025 quarter compared to $113.7 million in 2024[180]. - Corporate general and administrative expenses increased significantly by $5.1 million, or 57.1%, to $3.8 million in the 2025 quarter[180]. - Depreciation and amortization expenses decreased by $5.3 million, or 7.0%, from $75.2 million in 2024 to $69.9 million in 2025[211]. - Property taxes, insurance, and other expenses decreased by $4.2 million, or 13.6%, to $26.6 million in 2025 compared to $30.7 million in 2024[211]. Revenue Streams - Food and beverage revenue increased by $1.9 million, or 5.3%, to $36.6 million in the 2025 quarter compared to $34.8 million in 2024[182]. - Other hotel revenue increased slightly by $28,000, or 0.1%, to $21.2 million in the 2025 quarter[184]. - Food and beverage revenue decreased by $1.9 million, or 1.4%, to $134.0 million during the 2025 period[216]. - Other hotel revenue increased by $873,000, or 1.2%, to $72.8 million during the 2025 period[217]. Debt and Financing - The company refinanced its $140 million mortgage loan secured by the Four Seasons Scottsdale, increasing the loan balance to $180 million with a new interest rate of SOFR + 3.00%[169]. - Total indebtedness as of September 30, 2025, was approximately $1.2 billion, with about $1.1 billion in variable-rate debt[284]. - A 25-basis point increase in interest rates would impact the results of operations by approximately $2.7 million per year on the variable-rate debt[284]. Strategic Initiatives - The company entered into a cooperation agreement with the Ghassemieh Group, appointing Mr. Ghassemieh to the board of directors[170]. - The company plans to rebrand and convert Mr. C Beverly Hills to Cameo Beverly Hills, with renovations expected to complete by the end of 2025[282]. - The company may enter into hedging arrangements to manage interest rate and currency fluctuations, particularly for international operations[283]. Market and Operational Insights - The company operates under an investment strategy focused on high RevPAR luxury hotels, with a target of at least twice the U.S. national average RevPAR, which was $199 for 2024[158]. - The company acknowledges that its properties' operations are seasonal, which can lead to fluctuations in quarterly lease revenue[268]. - The analysis of market risk indicates that interest rate changes have no impact on the remaining $86.3 million of fixed-rate debt[284]. Cash Flow and Dividends - Net cash flows provided by operating activities were $32.4 million for the nine months ended September 30, 2025, down from $60.2 million in 2024[260]. - The company expects to pay a quarterly cash dividend of $0.05 per share for 2025, totaling $0.20 per share on an annualized basis[267]. - The board of directors will review the dividend policy on a quarter-to-quarter basis, indicating no commitment to future dividends[267].