Braemar Hotels & Resorts(US:BHR)2021-02-26 21:41Financial Data and Key Metrics Changes - For Q4 2020, the company reported a net loss attributable to common stockholders of $28.3 million, or $0.77 per diluted share, with an AFFO per diluted share of negative $0.17 [16] - Adjusted EBITDAre for the quarter was negative $1.4 million, with total assets of $1.7 billion and $1.1 billion in mortgage loans at a blended average interest rate of 2.5% [17] - The company ended the quarter with cash and cash equivalents of $78.6 million and restricted cash of $34.5 million, indicating a strong liquidity position [18][20] Business Line Data and Key Metrics Changes - The portfolio achieved positive hotel EBITDA for the quarter, with December alone delivering positive hotel EBITDA of $3.3 million, the highest month since March of the previous year [10][19] - Comparable hotel EBITDA for resorts was $7.1 million in Q4, compared to negative $5.5 million for urban hotels, indicating a significant outperformance of resort properties [24][25] - The average daily rate (ADR) for luxury resorts increased by 10.8% year-over-year, with some resorts achieving ADRs over $1,000 during the holiday season [10][11] Market Data and Key Metrics Changes - RevPAR for January was down 55% to $104, but February was expected to finish with an occupancy of close to 40% and an ADR of around $400, resulting in a RevPAR of approximately $160 [11] - The company noted strong forward bookings for March and April, with current ADR above $500 for March reservations [11] Company Strategy and Development Direction - The company is focusing on the luxury segment and properties in drive-to markets, which positions it well for near-term performance and recovery [14][15] - The company has taken proactive measures to enhance liquidity, including cutting expenses and reducing planned capital expenditures [14] - The company believes it presents a compelling opportunity in the lodging REIT space, with a unique portfolio of desirable resort locations [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the hospitality industry, driven by vaccine rollouts and a decline in daily new COVID-19 cases [8][10] - The company anticipates a slow but steady recovery in financial results, with a focus on maintaining financial flexibility and protecting assets [33] Other Important Information - The company completed a Standby Equity Distribution Agreement, allowing it to sell up to approximately 7.8 million shares to improve liquidity [21] - The company has a solid balance sheet with attractive debt financing in place as it emerges from the pandemic [15] Q&A Session Summary Question: How does the company position itself for future acquisitions? - The company needs to achieve cash flow positive status and maintain a comfortable balance sheet before pursuing aggressive acquisitions [35] Question: What is the current status of preferred shares? - The pricing of preferred shares has improved, and the company is considering convertible instruments for long-term stability [38] Question: What is the outlook for urban assets? - Urban properties are seeing a slow recovery, with occupancy increasing to over 30%, but significant demand is still short-term [52][53] Question: What factors are supporting pricing in the market? - Forbearance from lenders and a significant amount of capital raised for hotel acquisitions are supporting current pricing levels [49][50] Question: What is the performance of the La Jolla property? - The La Jolla property has been impacted by restrictions and its reliance on group business, which has been non-existent [55][56]