Welcome to our dedicated page for Braemar Hotels & Resorts news (Ticker: BHR), a resource for investors and traders seeking the latest updates and insights on Braemar Hotels & Resorts stock.
Overview of Braemar Hotels & Resorts Inc
Braemar Hotels & Resorts Inc is a real estate investment trust (REIT) that focuses on acquiring and operating luxury, upper-upscale, and upscale hotels in key gateway and resort destinations. Operating in strategic U.S. markets such as California, Texas, Washington, Florida, Illinois, and select international locations like the U.S. Virgin Islands and Washington, D.C., the Company has established a diversified portfolio built on properties that deliver high revenue per available room (RevPAR). Keywords such as 'luxury hotels', 'REIT', and 'hospitality investments' underscore its market presence.
Business Model and Revenue Streams
At its core, Braemar’s business model is anchored in direct hotel investments. Its revenue is generated through multiple streams, including:
- Rooms Revenue: Income from guest stays at its portfolio properties.
- Food and Beverage Operations: Revenue from on-site restaurants, bars, and catering services.
- Ancillary Services: Additional earnings from recreational amenities and other guest services.
This multi-faceted revenue approach provides the Company with a level of resilience, ensuring that exposure to economic fluctuations is tempered by diversified income sources.
Portfolio Diversity and Brand Partnerships
The Company’s portfolio is characterized by quality and geographic diversity. By investing in properties under well-known hotel brands such as Marriott, Hilton, Courtyard, and Renaissance, Braemar leverages strong market recognition and industry expertise. This approach not only contributes to stable occupancy rates but also reinforces its reputation for operating within the high-end segment of the hospitality industry.
Market Position and Competitive Landscape
Braemar Hotels & Resorts Inc is positioned among a select group of REITs that specialize in the luxury and upscale segments of the hotel industry. The Company differentiates itself through:
- Strategic Asset Acquisition: Its focused investments in properties with high RevPAR in premium locations.
- Operational Excellence: A management approach that emphasizes detailed oversight of revenue streams and operational efficiencies.
- Brand Association: Partnerships with globally recognized hotel brands that bring both operational expertise and marketing strength.
This integrated model allows Braemar to maintain a competitive edge while addressing the inherent challenges of market volatility and refinancings without making speculative claims about future performance.
Capital Structure and Financial Prudence
Financial discipline remains a key characteristic of Braemar’s operational strategy. The Company actively manages its capital structure through carefully executed asset sales, debt refinancing, and strategic capital market transactions. Such initiatives aim to improve liquidity, optimize funding costs, and enhance overall financial flexibility. The recent capital market activities and strategic asset dispositions have been structured to reduce debt maturities and adjust the capital mix, further reinforcing its conservative yet dynamic financial posture.
Operational Strategy and Industry Insights
The operational strategy of Braemar Hotels & Resorts is centered around leveraging high-quality, high-revenue properties and maximizing the value of its asset portfolio. By focusing on properties that command high RevPAR and maintaining a balanced mix of revenue streams, the Company continues to solidify its position in the competitive landscape of luxury hotel investments. In addition, its approach to mitigating operational risks and managing capital resources reflects a deep understanding of the complex dynamics inherent to the hospitality investment sector.
Investor Considerations
For investors, Braemar’s clear focus on premium hospitality assets, coupled with its strategic asset management and diversified revenue model, offers an insightful case study of a REIT operating within the luxury hotel segment. Its transparent approach in addressing market challenges and executing strategic transactions provides a comprehensive view of its operations, making it a noteworthy subject for investment research and market analysis.
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.
Braemar Hotels & Resorts (NYSE: BHR) reported preliminary November 2022 portfolio occupancy at approximately 64%, with an average daily rate (ADR) of $394, leading to a RevPAR of $253. This marks a 5% increase year-over-year and a 15% rise since November 2019. October 2022 figures showed 73% occupancy and an ADR of $382, yielding a RevPAR of $280, up 25% from October 2021 and 14% from 2019. CEO Richard J. Stockton highlighted these results as significant, predicting ongoing growth toward pre-pandemic occupancy levels.
Braemar Hotels & Resorts (NYSE: BHR) has finalized its acquisition of the Four Seasons Resort Scottsdale at Troon North for $267.8 million. Funded entirely through cash reserves, the deal emphasizes the property's value at $1.2 million per key, reflecting a 5.7% capitalization rate on a net operating income of $14.2 million. With a stabilized yield projection of approximately 8.0% expected in 3-5 years, the acquisition also includes 5.7 acres of developable land, potentially allowing for new hotel keys and commercial facilities.
Braemar Hotels & Resorts (NYSE: BHR) announced the acquisition of the Four Seasons Resort Scottsdale at Troon North for $267.8 million, expected to close in Q4 2022. This acquisition enhances Braemar's luxury portfolio, targeting high revenue per available room (RevPAR). The resort features 210 rooms and world-class amenities, with a forecasted RevPAR of $407 for 2022. The deal is fully funded by cash on hand, with no equity issuance, aiming for an 8.0% yield over the next 3-5 years.
Braemar Hotels & Resorts (BHR) announced preliminary financial expectations for Q3 2022, showing a net loss attributable to common stockholders between $(14.7) million and $(13.3) million, or $(0.21) to $(0.19) per share. Adjusted EBITDAre is expected to range from $33.3 million to $34.7 million, with Adjusted FFO estimated at $12.0 million to $13.4 million. For the nine months ended Sept 30, 2022, net income is projected between $6.9 million and $8.3 million. The final results will be disclosed on November 2, 2022.
Braemar Hotels & Resorts (NYSE: BHR) reported preliminary results for Q3 2022, expecting an occupancy rate of approximately 71%. The average daily rate is anticipated to be around $403, leading to a RevPAR of $288, reflecting a 19% increase year-over-year and compared to Q3 2019. In September 2022, RevPAR surged 16% against September 2019 metrics, while August and July also showed notable increases. CEO Richard J. Stockton highlighted the outperformance amid strong leisure demand, with average daily rates up 36% versus Q3 2019, signaling continued growth potential.
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