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. (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.
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.
Ashford announced the conclusion of an SEC investigation into the company, stating that the SEC enforcement staff does not intend to recommend any action against Ashford, Braemar Hotels & Resorts, and Ashford Hospitality Trust. This investigation's closure is a significant relief for the companies, affirming their compliance with regulatory standards. Ashford operates in alternative asset management, focusing on real estate and hospitality sectors, providing various asset and investment management services.
Ashford Hospitality Trust (AHT) announced that the SEC has concluded its investigation without recommending any action against the company. Braemar Hotels & Resorts Inc. (BHR) and Ashford Inc. (AINC) also received similar notifications from the SEC. This marks a significant relief for these companies, particularly for AHT, which focuses on investing in upper upscale, full-service hotels. The announcement may positively influence investor sentiment, as regulatory uncertainties have been resolved.
Braemar Hotels & Resorts (NYSE: BHR) announced the conclusion of an SEC investigation without any recommended actions against the company. Both Ashford Hospitality Trust (NYSE: AHT) and Ashford Inc. (NYSE American: AINC) received similar letters confirming the closure of their investigations. This news signifies a positive outcome for all three companies, allowing them to move forward without pending legal concerns.
Braemar Hotels & Resorts Inc. (NYSE: BHR) announced quarterly dividends for its Series B, Series D, and monthly dividends for Series E and Series M Redeemable Preferred Stocks. The Series B dividend is $0.3438 per share, while Series D is $0.5156 per share, both payable on April 15, 2022. The Series E and M dividends are set at a quarterly rate of $0.50 and $0.5125, respectively, with monthly payments scheduled starting February 15, 2022. The company will continue suspending common stock dividends into 2022 to protect liquidity.
Braemar Hotels & Resorts (NYSE: BHR) reported a preliminary portfolio occupancy of 60% for December 2021, with an average daily rate (ADR) of approximately $494, resulting in a RevPAR of about $296. This marks a 189% increase from December 2020 and a 29% increase from December 2019. For Q4 2021, occupancy is expected to be 61%, and RevPAR is projected at $240, reflecting a 163% increase from Q4 2020 and a 7% increase from Q4 2019. The company credits its luxury resorts for this strong performance, achieving the highest quarterly RevPAR in its history.
FAQ
What is the current stock price of Braemar Hotels & Resorts (BHR)?
What is the market cap of Braemar Hotels & Resorts (BHR)?
What type of properties does Braemar Hotels & Resorts invest in?
How does Braemar generate revenue?
What differentiates Braemar from other hospitality REITs?
What is Braemar’s approach to asset management?
Which hotel brands are part of Braemar’s portfolio?
How does Braemar manage financial risks?
Where are Braemar’s properties located?
What is RevPAR, and why is it important to Braemar?
How does Braemar create value for shareholders?
What is Braemar’s competitive advantage?
