Braemar Hotels & Resorts(US:BHR)2020-11-01 14:00Financial Data and Key Metrics Changes - The company reported a net loss attributable to common stockholders of $18.7 million, or $0.55 per diluted share for Q3 2020 [24] - Adjusted EBITDA for the quarter was negative $3.1 million, with AFFO per diluted share at negative $0.15 [24] - Total assets at quarter's end were $1.7 billion, with $1.1 billion in mortgage loans and a blended average interest rate of 2.5% [25] - Cash and cash equivalents totaled $88.2 million, with restricted cash of $34.7 million [26] Business Line Data and Key Metrics Changes - All hotels achieved positive hotel EBITDA for the quarter, with resort properties showing strong occupancy performance of over 48% [12] - Comparable RevPAR for the portfolio decreased by 65.6%, while resort hotels saw a smaller decline of 37% [35] - The Ritz-Carlton Sarasota had a hotel EBITDA increase of over 500% compared to the prior year period [38] Market Data and Key Metrics Changes - The company noted that leisure demand is holding up well, particularly on weekends, while corporate transient demand remains weak [13] - Urban assets experienced RevPAR declines of up to 91%, contrasting with the positive performance of resort hotels [36] Company Strategy and Development Direction - The company is focused on maintaining liquidity and has reduced corporate expenses by approximately 25% [21] - A strategic repositioning of the Courtyard San Francisco Downtown into The Clancy was completed, with over $30 million invested [18] - The company plans to preserve cash until there is more clarity on the recovery of the economy [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trajectory, noting that October occupancy was tracking ahead of September [52] - The company is encouraged by the positive feedback from guests and the reopening of all hotels [15] - Future performance is expected to improve as corporate transient demand and group demand recover post-vaccination [13] Other Important Information - The company settled an insurance claim related to the Ritz-Carlton St. Thomas for a total of $123.5 million [23] - The company has signed forbearance agreements on six loans to manage operating shortfalls [27] Q&A Session Summary Question: Demand trends post Labor Day and in October - Management noted that October is tracking several occupancy points ahead of September, with strong ADR [52] Question: Revenue management strategy and rate environment - The company is holding firm on rates due to the quality of its assets and the demand for travel [56] Question: Performance of St. Thomas and likelihood of future shutdowns - Management indicated that the island has reopened and is performing well, with positive hotel EBITDA despite previous shutdowns [59][60] Question: Strategy for urban hotels facing RevPAR declines - The company is focusing on cost-cutting and leveraging leisure demand while waiting for corporate travel to recover [67][68] Question: Future acquisition plans - The company is monitoring the market but will not pursue acquisitions until achieving positive cash flow [73]