Financial Data and Key Metrics Changes - The company reported a net loss attributable to common stockholders of 1.4million,or0.02 per diluted share, and an AFFO per diluted share of negative 0.24[16]−AdjustedEBITDAreforthequarterwas18.5 million, with total assets of 2.2billionand1.2 billion in loans at a blended average interest rate of 7.6% [16][17] - Comparable RevPAR for the portfolio was 261,witha1.624.7 million [9][23] Business Line Data and Key Metrics Changes - Urban hotels achieved Comparable RevPAR of 213andComparableHotelEBITDAof16.4 million, with a 6% growth in RevPAR over the prior year quarter [10][9] - Resort hotels saw a 16.2% increase in RevPAR compared to the same period in 2019, but a slight decline in leisure demand year-over-year [24] - Group revenue increased by 14% year-over-year, with urban assets showing an 8% growth in total hotel revenue and a 4% increase in occupancy [24] Market Data and Key Metrics Changes - The company noted strong demand in corporate revenue, which was up 12% year-on-year, except for San Francisco, which faced challenges [41] - Group rooms revenue for the third quarter was 14% higher than the prior year, with a 40% increase in group pace for the first quarter of 2025 [26][14] - The company reported a 7.5% increase in Comparable RevPAR for October, setting a positive tone for fourth-quarter performance [14] Company Strategy and Development Direction - The company is focused on a Shareholder Value Creation Plan, which includes non-core asset sales, debt repayment, preferred share redemption, and common share buybacks [11] - The recent sale of Hilton La Jolla Torrey Pines for 165millionwaspartofthisstrategy,withplanstoevaluateadditionalhotelpropertysales[12]−Thecompanyaimstoenhancebalancesheetflexibilityandhassuccessfullyaddressedall2024debtmaturities[11][13]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismaboutthecontinuedstrengthofurbanhotelsastheprimarygrowthdriverfortheportfolio[10]−Thecompanyanticipatesastrongperformanceintheupcomingquarters,supportedbypositivegrouppaceandrevenuetrends[14][37]−Managementacknowledgedsomesofteningingovernment−relatedtravelduetoelectionuncertaintybutexpectsareboundpost−election[44]OtherImportantInformation−ThecompanycompletedseveralrenovationsatTheRitz−CarltonLakeTahoeandotherproperties,withcapitalexpendituresexpectedtorangebetween70 million and 90millionfor2024[36]−Thecompanyhasimplementedvariousinitiativestoboostproductivity,resultingina40basispointimprovementinoverallproductivity[25]−Thecompanyhasasolidcashpositionwith168.7 million in cash and cash equivalents and 48.5 million in restricted cash [17] Q&A Session Summary Question: Impact of mixed shifts to more BT demand and strong group outlook - Management noted a historical mix of 25% to 30% group business, with strong group pace increases expected for 2025 [39] Question: Strength of corporate demand post-Labor Day - There was a slight acceleration in corporate demand post-Labor Day, with overall corporate revenue up 12% year-on-year [42] Question: Election impact on overall portfolio demand - Management observed softening in government segments in DC due to election uncertainty but mitigated some impact through strong group pace [43][44] Question: Transaction market volume and pricing - Management indicated positive trends in the transaction market, with firming cap rates and plans to sell additional hotels next year [45][46] Question: Financing market changes - Management noted that spreads have continued to come down, with plenty of debt capital available, although large banks remain less active [47][48] Question: 4Q impact from hurricane damage - The estimated impact from hurricane damage was between 500K to $700K at the affected hotel, but overall portfolio performance remained strong [51]
Braemar Hotels & Resorts(BHR)2024-11-09 11:38