Braemar Hotels & Resorts(US:BHR)2026-02-26 21:08Financial Performance - Comparable Total RevPAR for all hotels increased 1.8% over the prior year quarter to $579[4] - Net loss attributable to common stockholders for the quarter was $(46.0) million or $(0.67) per diluted share[4] - Adjusted EBITDAre was $28.8 million for the quarter[4] - For the full year, net loss attributable to common stockholders was $(72.7) million or $(1.07) per diluted share compared to a net loss of $(50.9) million or $(0.77) per diluted share in the prior year[10] - Comparable Hotel EBITDA for the year was $164.2 million compared to $159.3 million in the prior year[10] - Total hotel revenue for the year ended December 31, 2025, was $704.015 million, a decrease of 3.3% from $728.404 million in 2024[28] - Operating income for the year ended December 31, 2025, was $72.364 million, down from $128.750 million in 2024, reflecting a decline of 43.8%[28] - Net loss attributable to common stockholders for the year ended December 31, 2025, was $72.703 million, compared to a loss of $50.946 million in 2024, representing a 42.7% increase in losses[28] - Total assets decreased to $1.861 billion as of December 31, 2025, from $2.136 billion in 2024, a decline of 12.9%[26] - Indebtedness, net, was $1.103 billion as of December 31, 2025, down from $1.210 billion in 2024, a reduction of 8.8%[26] - Total liabilities decreased to $1.337 billion in 2025 from $1.414 billion in 2024, a decrease of 5.4%[26] - The company reported impairment charges of $54.492 million for the year ended December 31, 2025, compared to no impairment charges in 2024[28] - Basic net loss per share attributable to common stockholders for the year ended December 31, 2025, was $(1.07), compared to $(0.77) in 2024[28] - Cash and cash equivalents as of December 31, 2025, were $124.354 million, a slight decrease from $135.465 million in 2024[26] - The company declared dividends of $0.20 per common share for both years ended December 31, 2025, and 2024[28] Capital Expenditures and Investments - Capex invested during the quarter was $23.4 million[4] - The Company completed the sale of the 410-room The Clancy in San Francisco for $115 million, representing a 5.2% capitalization rate[9] - The Company initiated a process for the sale of the Company or its assets in August 2025[6] - The company anticipates continued capital expenditures in 2025 and 2026, particularly for hotels with significant renovations planned[75] Debt and Financing - As of December 31, 2025, the Company had total assets of $1.9 billion and $1.1 billion of loans[8] - Approximately 14% of the Company's consolidated debt is effectively fixed and approximately 86% is effectively floating[8] - Total indebtedness as of December 31, 2025, was $1,107,665,000, with a weighted average interest rate of 6.65%[34] - Interest expense for the year was $31,046 thousand, indicating a substantial cost associated with debt financing[78] - Interest expense totaled $20,530 million, reflecting the company's ongoing financial obligations[80] - Interest expense totaled $22,462,000, with significant contributions from various properties[85] - Total interest expense amounted to $101,737 million, indicating a substantial financial burden on the company[109] Revenue and Performance Metrics - Total hotel revenue for the three months ended December 31, 2025, was $167,475,000, a decrease of 4.42% compared to $175,217,000 in 2024[47] - Comparable total hotel revenue increased by 1.76% to $162,443,000 for the three months ended December 31, 2025, compared to $159,636,000 in 2024[47] - Hotel net income for the year ended December 31, 2025, was $80,080,000, down 35.92% from $124,976,000 in 2024[47] - Comparable hotel net income for the three months ended December 31, 2025, was a loss of $49,403,000, compared to a loss of $2,180,000 in 2024, representing a decrease of 2,166.19%[47] - Hotel EBITDA for the three months ended December 31, 2025, was $39,640,000, a decrease of 3.39% from $41,030,000 in 2024[47] - Comparable hotel EBITDA increased by 3.10% to $164,235,000 for the year ended December 31, 2025, compared to $159,304,000 in 2024[47] - Hotel net income margin for the year ended December 31, 2025, was 11.27%, down from 17.02% in 2024, a decrease of 5.75%[47] - Comparable hotel EBITDA margin for the year ended December 31, 2025, was 25.30%, slightly up from 25.24% in 2024[47] Operational Challenges and Adjustments - The company experienced a loss on disposition of assets and hotel properties of $82,797,000 for the year ended December 31, 2025[30] - Legal, advisory, and settlement costs for the year ended December 31, 2025, totaled $12,676,000, compared to $3,138,000 in 2024[32] - The company experienced significant non-property adjustments totaling $(27,266) thousand for the year, impacting overall financial performance[78] - Non-comparable adjustments for the year totaled $(19,501) thousand, indicating variability in earnings due to one-time events[78] - The company reported a net income (loss) reconciliation to hotel EBITDA for the three months ended June 30, 2025, indicating ongoing financial analysis and performance tracking[4] Market and Strategic Outlook - The company is focusing on market expansion and new product development to enhance future revenue streams[75] - Future guidance indicates a focus on strategic acquisitions and market expansion to drive growth in the upcoming quarters[91] - The company is actively exploring acquisition opportunities to strengthen its market position and diversify its offerings[99] - Future outlook includes potential market expansion and continued investment in property improvements to drive revenue growth[104] Property-Specific Performance - Rooms revenue for Capital Hilton Washington D.C. decreased by 5.46% to $9,274 million compared to $9,810 million in 2024[55] - Total hotel revenue for Capital Hilton Washington D.C. fell by 4.46% to $14,766 million from $15,455 million in 2024[55] - Hotel net income for Capital Hilton Washington D.C. improved by 79.71% to a loss of $1,890 million, compared to a loss of $9,314 million in 2024[55] - Hotel EBITDA margin for Capital Hilton Washington D.C. was 21.89%, down from 24.65% in 2024, reflecting a decrease of 2.76%[55] - Hotel net income for Sofitel Chicago Magnificent Mile showed a significant improvement of 135.09%, reaching $40 million compared to a loss of $114 million in 2024[55] - Hotel EBITDA for Sofitel Chicago Magnificent Mile increased by 245.10% to $74 million from a loss of $51 million in 2024[55] - Total hotel revenue for Bardessono Hotel and Spa increased by 9.31% to $5,458 million from $4,993 million in 2024[55] - Hotel net income for Bardessono Hotel and Spa reported a loss of $8,458 million, a drastic decline of 19,322.73% compared to a profit of $44 million in 2024[55] - Hotel EBITDA margin for Bardessono Hotel and Spa was -154.97%, compared to 0.88% in 2024, indicating a significant decline[55]