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Overview of Braemar Hotels & Resorts Inc.
Braemar Hotels & Resorts Inc. (NYSE: BHR) is a publicly traded real estate investment trust (REIT) specializing in the acquisition, ownership, and management of luxury hotels and resorts. The company's portfolio primarily consists of high revenue per available room (RevPAR) properties, strategically located in gateway cities, resort destinations, and other high-demand markets across the United States and the U.S. Virgin Islands. Braemar’s properties operate under globally recognized brands such as Marriott, Hilton, Ritz-Carlton, and Renaissance, providing a strong competitive advantage through brand equity and customer loyalty.
Core Business Model and Revenue Streams
Braemar generates revenue through its direct hotel investment segment, leveraging its portfolio of upscale and luxury hotels. Its diversified revenue streams include room bookings, food and beverage services, and other ancillary services such as event hosting and spa facilities. The company’s focus on high RevPAR properties ensures robust income generation, even in competitive markets. By targeting upscale and luxury segments, Braemar positions itself to attract affluent travelers and business clients, which supports higher margins and long-term asset appreciation.
Strategic Asset Management
Braemar employs a proactive asset management strategy aimed at maximizing shareholder value. This includes acquiring high-quality properties in prime locations, optimizing operations to improve profitability, and selectively disposing of non-core assets. Recent transactions, such as the sale of the Hilton La Jolla Torrey Pines, underscore the company’s commitment to refining its portfolio and enhancing financial flexibility. Additionally, Braemar’s refinancing initiatives and debt management efforts demonstrate its focus on maintaining a strong capital structure.
Market Position and Competitive Landscape
Operating in the competitive hospitality REIT sector, Braemar differentiates itself through its exclusive focus on luxury and upper-upscale properties. Its portfolio includes iconic assets in markets such as California, Texas, Florida, and Washington, D.C., which are known for their strong tourism and business travel demand. The company competes with other hospitality REITs by leveraging its partnerships with top-tier hotel brands and its strategic investments in high-demand locations. This approach not only enhances its market positioning but also mitigates risks associated with economic downturns.
Commitment to Shareholder Value
Braemar is dedicated to creating long-term value for its shareholders. The company’s initiatives include optimizing its capital structure, reducing interest expenses, and repurchasing shares. By focusing on high-quality assets and maintaining financial discipline, Braemar aims to deliver consistent returns while navigating market challenges. Its alignment with well-established hotel brands further supports its ability to drive strong financial performance and maintain investor confidence.
Industry Expertise and Operational Excellence
With deep experience in the luxury hospitality sector, Braemar’s management team brings a wealth of industry knowledge and strategic vision. The company’s focus on operational excellence is evident in its ability to maintain high occupancy rates and RevPAR metrics across its portfolio. By continuously evaluating market trends and adapting its strategy, Braemar demonstrates a commitment to staying at the forefront of the hospitality industry.
Conclusion
Braemar Hotels & Resorts Inc. stands out as a premier player in the luxury hospitality REIT space. Through its focus on high RevPAR properties, strategic asset management, and alignment with leading hotel brands, the company is well-positioned to capitalize on opportunities in the upscale and luxury travel markets. Its disciplined approach to portfolio optimization and financial management underscores its commitment to delivering value to shareholders while maintaining a strong competitive edge in the industry.
Braemar Hotels & Resorts Inc. (NYSE: BHR) has announced plans to release its first quarter earnings results for the period ending March 31, 2023. The earnings release will occur after market close on May 2, 2023. Following this, a conference call is scheduled for May 3, 2023, at 11:00 a.m. ET, accessible via phone or online stream. The replay will be available until May 10, 2023. Braemar operates as a real estate investment trust (REIT), focusing on luxury hotels and resorts, a sector poised for potential growth as travel resumes.
On March 14, 2023, Braemar Hotels & Resorts (NYSE: BHR) addressed concerns regarding its cash holdings amid recent banking industry events. The Company stated that approximately 60% of its cash is invested in short-term U.S. Treasury Securities with maturities under 90 days. Additionally, 18% is held in fully insured Insured Cash Sweep accounts at commercial banks. About 16% is related to property-level operating cash with Global Systemically Important Banks. The remaining 6% is deposited with other commercial banks. The statement aims to provide transparency and reassurance to shareholders about the Company's liquidity position.
Ashford Securities LLC, a subsidiary of Ashford Inc. (NYSE: AINC), has successfully closed its offering of Series E & M Redeemable Preferred Stock for Braemar Hotels & Resorts Inc. (NYSE: BHR), raising $460 million. C. Jay Steigerwald III, President of Ashford Securities, praised the team's efforts in creating a strong platform for investment. This capital will support further fundraising for Ashford Hospitality Trust, Inc. (NYSE: AHT) through upcoming Series J & K offerings. Ashford Securities aims to continue leveraging its relationships with broker-dealers and RIAs to enhance capital acquisition in the real estate and hospitality sectors.
Braemar Hotels & Resorts (BHR) declared a $0.05 quarterly cash dividend for Q1 2023, totaling $0.20 annually, payable on April 17, 2023, to shareholders recorded by March 31, 2023. Additionally, dividends for preferred stock include $0.3438 for Series B, $0.5156 for Series D, and various amounts for Series E and M, all payable on April 17, 2023. As of December 31, 2022, there were over 12.6M Series E and 1.4M Series M shares outstanding.
Braemar Hotels & Resorts (BHR) reported expected fourth-quarter 2022 occupancy of about 64% and an average daily rate of $469, yielding a RevPAR of approximately $301. This marks an 8% increase in RevPAR compared to Q4 2021 and a robust 20% rise compared to Q4 2019. For December 2022 alone, RevPAR soared 26% vs. December 2019. This data is based on the performance of 16 hotel properties owned by the Company as of December 31, 2022.
Braemar Hotels & Resorts (NYSE: BHR) announced the schedule for its fourth quarter earnings release for the period ending December 31, 2022. The earnings report will be issued after market close on February 22, 2023. A conference call to discuss the results will be held on February 23, 2023, at 11:00 a.m. ET, with a replay available until March 2, 2023. Investors can access the live broadcast on Braemar's website, reflecting its focus on luxury hotels and resorts.
Braemar Hotels & Resorts (NYSE: BHR) announced the closing of a $100 million non-recourse mortgage loan for the Four Seasons Resort Scottsdale. The loan features a three-year term with options for extensions and an interest rate of SOFR + 3.75%. Proceeds will primarily pay off a higher interest loan on the Ritz-Carlton Reserve Dorado Beach, which has an interest rate of LIBOR + 6.00%. This refinancing is expected to lower the company's overall interest expense.
Braemar Hotels & Resorts reported preliminary expectations for Q4 2022, estimating net income between $0.5 million and $3.5 million, and Adjusted EBITDAre between $36.0 million and $39.0 million. These figures indicate a strong performance, particularly with RevPAR growth of 14% in October and 15% in November compared to 2019. The preliminary results are subject to adjustments as the company finalizes its financial statements, which are not yet audited.
Braemar Hotels & Resorts (NYSE: BHR) announced an increase in its quarterly cash dividend from $0.01 to $0.05 per share, effective for the fourth quarter ending December 31, 2022. The annual dividend rate now stands at $0.20 per share, payable on January 17, 2023. Additionally, the company authorized a $25 million stock repurchase program, which may be executed through various means, depending on market conditions. The dividend policy will be reviewed quarterly but does not guarantee future payouts.
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