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.
Ashford Inc. (NYSE American: AINC) announced that Jeremy Welter, President and COO, will leave the company effective July 15, 2022. This will also end his roles at Ashford Hospitality Trust (NYSE: AHT) and Braemar Hotels & Resorts (NYSE: BHR). Monty J. Bennett, CEO, acknowledged Welter's significant contributions to maximizing hotel asset value and providing leadership. Ashford, an asset management company, continues to focus on the hospitality sector. The company warns that forward-looking statements carry inherent risks, including ongoing effects from COVID-19 and market volatility.
Braemar Hotels & Resorts (NYSE: BHR) announced a quarterly cash dividend for the second quarter of 2022 totaling $0.3438 per share on its 5.5% Series B Cumulative Convertible Preferred Stock and $0.5156 per share on its 8.25% Series D Cumulative Preferred Stock, both payable on July 15, 2022. Additionally, the Series E Redeemable Preferred Stock will pay a total of $0.50 per quarter, distributed monthly, with the first payment on May 16, 2022. The Series M Redeemable Preferred Stock will also pay a quarterly rate of $0.5125 per share.
Braemar Hotels & Resorts Inc. (BHR) anticipates first-quarter 2022 occupancy at approximately 55%, with an average daily rate of $597, leading to a RevPAR of around $328. This marks a 69% increase from Q1 2021 and 20% from Q1 2019. The recent acquisition of The Ritz-Carlton Reserve Dorado Beach is expected to enhance future RevPAR, potentially reaching $404 if it had been owned in March. Leisure demand remains strong, while corporate and group bookings are also increasing.
Braemar Hotels & Resorts (NYSE: BHR) announced its upcoming earnings release for the first quarter ending March 31, 2022. The earnings report will be issued after market close on May 4, 2022. Following this, a conference call is scheduled for May 5, 2022, at 11:00 a.m. ET, where participants can join by calling (201) 389-0920. A replay will be accessible until May 12, 2022, via (412) 317-6671, using confirmation number 13727684. Investors can also listen to the live broadcast on Braemar's website.
Braemar Hotels & Resorts (NYSE: BHR) has successfully completed the acquisition of the 96-room Dorado Beach, a Ritz-Carlton Reserve in Dorado, Puerto Rico, for approximately $193 million. This transaction, initially announced on December 27, 2021, also includes the income stream from fourteen luxury residential units participating in a rental management program.
The acquisition was financed through $104 million in cash, six million shares of common stock, and a $54 million mortgage assumption, valuing the share at $5.84.
On March 7, 2022, Braemar Hotels & Resorts Inc. (NYSE: BHR) announced the reinstatement of its quarterly cash dividend, set at $0.01 per diluted share for Q1 2022, translating to an annual rate of $0.04. This dividend will be payable on April 15, 2022, to shareholders on record by March 31, 2022. The company also established a quarterly dividend policy for 2022, intending to review it regularly based on financial performance. However, the board is not obligated to declare future dividends, making this a cautious approach amidst potential economic uncertainties.
Braemar Hotels & Resorts (NYSE: BHR) has successfully refinanced its mortgage for the 190-room Park Hyatt Beaver Creek Resort & Spa, maturing in April 2022. The new loan totals $70.5 million and features a two-year initial term with three one-year extension options, on an interest-only basis at a floating rate of SOFR + 2.86%. This refinancing eliminates the Company's only debt maturity in 2022, indicating stability in the debt capital markets for lodging assets. Company CEO Richard J. Stockton expressed satisfaction with maintaining the previous interest rate for the new financing.
Braemar Hotels & Resorts (NYSE: BHR) announced preliminary financial expectations for Q4 and the full year of 2021, estimating a net loss attributable to common stockholders between $(5.2) million to $(3.8) million for Q4, and $(41.0) million to $(39.6) million for the year.
Adjusted EBITDAre is expected to range from $28.7 million to $30.1 million for Q4, and $86.9 million to $88.3 million for the full year. Adjusted FFO is anticipated to be between $19.4 million to $20.8 million for Q4.
Final results will be published on February 24, 2022.
Ashford Securities, a subsidiary of Ashford, reported sales of $17.4 million in January 2022 for its Series E and M Redeemable Preferred Stock offerings by Braemar Hotels & Resorts. This strong performance was driven by institutional investors contributing approximately $15 million. Since its launch on July 9, 2021, Braemar has sold over $58 million of these stocks. Ashford Securities is backed by a syndicate of 26 broker-dealers and RIA firms, indicating solid interest in the investment products.
Braemar Hotels & Resorts (NYSE: BHR) announced the tax reporting details for 2021 distributions on its Series B, D, E, and M preferred shares. The Series B preferred stock received a total cash distribution of $1.3752 per share, while Series D received $2.0624 per share, Series E received $0.8330 per share, and Series M received $0.6832 per share. Notably, all distributions were classified as returns of capital, with 100% of the cash not taxable as dividends. The Company will post Form 8937 on its website to provide further details. Shareholders are advised to consult their tax advisors.
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