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Braemar Hotels & Resorts(BHR) - 2024 Q4 - Earnings Call Transcript
BHRBraemar Hotels & Resorts(BHR)2025-02-27 21:47
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Financial Data and Key Metrics Changes - The company reported a fourth quarter comparable RevPAR of 305,reflectinga1.9305, reflecting a 1.9% increase over the prior year quarter, and a comparable total hotel revenue increase of 5.3% [10][11] - For the full year, the company reported a net loss attributable to common stockholders of 50.9 million or 0.77perdilutedshare,andAFFOperdilutedshareof0.77 per diluted share, and AFFO per diluted share of 0.21 [27][28] - Adjusted EBITDAre for the quarter was 30.2millionandforthefullyearwas30.2 million and for the full year was 157.6 million [27] Business Line Data and Key Metrics Changes - Group revenue increased by 7% in the fourth quarter, indicating a resurgence in group bookings and events [11] - The luxury resort portfolio achieved a comparable RevPAR of 515,a1.3515, a 1.3% increase over the prior year period, with combined comparable hotel EBITDA of 31 million, a 4.1% increase [13] - Urban hotels achieved comparable RevPAR growth of 3.3% in the fourth quarter, with strong performance across all demand segments [13][14] Market Data and Key Metrics Changes - The company noted that January RevPAR was impressive, with growth over the prior year, and excluding the Capital Hilton, portfolio RevPAR growth was still over 9% [14] - The company experienced fluctuations in the Los Angeles market due to recent events, but February saw a return to stable group bookings [24][25] Company Strategy and Development Direction - The company is in active discussions for refinancing a 193millionloanmaturinginJune,whichwilleliminateremainingdebtmaturitiesin2025[10]−Thecompanyplanstoinvestbetween193 million loan maturing in June, which will eliminate remaining debt maturities in 2025 [10] - The company plans to invest between 75 million and 95millionincapitalexpendituresin2025toenhanceitsluxuryportfolio[51]−Thecompanyisfocusingonoptimizingrevenueopportunitiesandenhancingguestexperiencesthroughstrategicrenovationsandoperationalefficiencies[16][46]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismaboutthereturnofsteadygrowthinresortmarkets,drivenbyhistoricallylowsupplygrowth[71][72]−ThecompanyisencouragedbythepositiveperformanceinJanuaryandanticipatescontinuedstrengthingroupbookingsandoveralldemand[68][69]−Managementhighlightedthefavorableenvironmentforhoteldebtcapitalmarkets,whichisbecomingmoreattractiveforborrowers[35]OtherImportantInformation−Thecompanyredeemedapproximately95 million in capital expenditures in 2025 to enhance its luxury portfolio [51] - The company is focusing on optimizing revenue opportunities and enhancing guest experiences through strategic renovations and operational efficiencies [16][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return of steady growth in resort markets, driven by historically low supply growth [71][72] - The company is encouraged by the positive performance in January and anticipates continued strength in group bookings and overall demand [68][69] - Management highlighted the favorable environment for hotel debt capital markets, which is becoming more attractive for borrowers [35] Other Important Information - The company redeemed approximately 80 million of non-traded preferred stock, representing about 17% of the original capital raise [22] - The company announced a quarterly stock dividend of 0.05pershare,equatingtoanannualyieldofapproximately7.70.05 per share, equating to an annual yield of approximately 7.7% [33] Q&A Session Summary Question: Can you provide an update on capital expenditures in Tahoe and spending plans for 2025? - Management confirmed that Tahoe renovations are complete, with a small project planned for under 2 million in 2025 [58] Question: Is the company still restricted from repurchasing common stock? - Management confirmed that they are currently restricted from repurchasing common stock [61] Question: Can you elaborate on the RevPAR strength in January and its sustainability? - Management noted that January performance benefited from calendar shifts and capital investments, leading to broad-based demand [67][69] Question: What is the outlook for the transaction market regarding high-quality assets? - Management indicated strong interest from buyers and a positive reception for hotel sales, suggesting higher transaction volumes in the future [78][80]