Braemar Hotels & Resorts(US:BHR)2023-02-23 21:33Financial Data and Key Metrics Changes - The company reported a net loss attributable to common stockholders of $13.5 million or $0.19 per diluted share for the fourth quarter, and a full-year net loss of $10.7 million or $0.15 per diluted share [78] - Adjusted EBITDAre for the fourth quarter was $39.2 million, reflecting a growth rate of 33% over the prior-year quarter and 54% higher than the fourth quarter of 2019 [78] - For the full-year, adjusted EBITDAre was $172.4 million, reflecting a growth rate of 97% over the prior-year [78] - The company announced a significant increase in the quarterly common stock dividend to $0.05 per share, equating to an annual yield of approximately 4% based on the stock price [79] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA for the portfolio was $52.2 million during the fourth quarter, driven by strong results at resort properties [75] - Comparable RevPAR for the portfolio increased 8% during the fourth quarter relative to the prior-year quarter and 20% compared to the fourth quarter of 2019 [8][75] - Group room revenue for the fourth quarter was 7% ahead of 2019, with group rate actualized for the fourth quarter 18% above comparable 2019 [27] Market Data and Key Metrics Changes - The company reported a strong leisure demand, particularly on weekends, with combined RevPAR during the fourth quarter ahead of 2019 by about 28% [81] - Preliminary figures for January indicated 55% occupancy and an ADR of $541, equating to a RevPAR of $297, exceeding the prior-year month by 19% and January of 2019 by 20% [23] Company Strategy and Development Direction - The company is focused on owning luxury hotels and resorts, with recent acquisitions including the Four Seasons Resort Scottsdale at Troon North for $267.8 million [76] - The company plans to continue capital investments, having spent approximately $49 million in 2022 and anticipating about $80 million in 2023 [62] - The company is actively assessing deals and underwriting opportunities, with a competitive advantage in the current market due to the availability of debt for highly leveraged buyers being challenging [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued ramp-up of urban hotels, which generated $11 million of comparable hotel EBITDA in the fourth quarter [55] - The company is optimistic about the prospects for its properties, particularly the Ritz-Carlton Reserve Dorado Beach and Four Seasons Scottsdale, expecting improved results in 2023 [56][57] - Management noted that labor challenges persist, particularly in ski and resort destinations, but they are optimistic about improvements in staffing [86] Other Important Information - The company completed a stock repurchase program of up to $25 million, acquiring 5.4 million shares at an average price of $4.60 per share [7] - The company ended the quarter with cash and cash equivalents of $261.5 million and restricted cash of $54.2 million [58] Q&A Session Summary Question: What are the expectations for operating expense growth in 2023? - Management anticipates wage increases of 4% to 5%, with hourly wages likely growing more than management wages [40] Question: What are the plans for allocating cash now that the preferred offering has closed? - The company plans to utilize cash on hand for growth opportunities and is not currently planning a second preferred offering [18][88] Question: What is the outlook for acquisition activity this year? - Management is optimistic about acquisition opportunities, noting a significant amount of excess cash available and a favorable market for pricing [68]