Ashford (US:AINC)2023-08-06 16:45Financial Data and Key Metrics Changes - The net loss attributable to common stockholders for Q2 2023 was $7.5 million, with adjusted EBITDA reported at $17.8 million [11] - Adjusted net income for the quarter was $12.7 million, translating to an adjusted net income per diluted share of $1.57 [12] - Total advisory fee revenue from Braemar increased by 15.1% compared to the prior year quarter [12] Business Line Data and Key Metrics Changes - INSPIRE generated $41.3 million in audiovisual revenue, a 14.9% increase year-over-year, with adjusted EBITDA of $5.1 million and a 12.3% margin [14] - Remington Hospitality executed eight new third-party hotel management agreements, generating $1.8 million in expected annual revenue, with adjusted EBITDA of $6.7 million and a 44.8% margin [16][17] - RED Hospitality & Leisure reported $9.8 million in revenue, a 27.5% increase year-over-year, with adjusted EBITDA of $2.3 million and a 23.7% margin [19] Market Data and Key Metrics Changes - Braemar's resort portfolio has stabilized in demand and pricing, while urban hotels are recovering due to strengthening corporate and group demand [8] - Ashford Trust ended the quarter with over $344 million in net working capital and has issued over $50 million in non-traded preferred stock [9] Company Strategy and Development Direction - The company aims to grow its assets under management and has a strategy focused on bolt-on acquisitions and capital raising through Ashford Securities, which has raised over $500 million since its launch [7][10][22] - The rebranding of Remington to Remington Hospitality reflects a commitment to innovation and expanding hospitality offerings [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is margin pressure due to increased labor costs, overall demand remains healthy, with a shift rather than a decrease in leisure travel demand [32] - The company is optimistic about future opportunities, particularly in the Texas commercial real estate market [23] Other Important Information - Braemar has completed three acquisitions during the cycle, including high-profile properties like the Ritz-Carlton Reserve in Puerto Rico [8] - The company is actively pursuing growth opportunities in Hawaii through its recent acquisition of Alii Nui [20] Q&A Session Summary Question: Can you discuss the labor market and wage growth? - Management indicated that while there are some open positions, they are not seeing a significant increase in the number of positions needed to fill, but labor costs are rising [26][27] Question: What drove the increase in third-party engagements for Premier? - The increase is attributed to a recovery from the pandemic, with many projects now coming to fruition, primarily in hospitality and multifamily sectors [28][30] Question: Is there any softness in leisure demand? - Management stated that demand remains generally healthy, with any softness being a shift in options available to leisure travelers rather than a decrease in overall demand [31][32]