Braemar Hotels & Resorts Inc. (BHR) Q4 2024 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2025
0mins
Should l Buy BHR?
Source: SeekingAlpha
Comparable RevPAR $305, reflecting an increase of 1.9% over the prior year quarter.
Total hotel revenue Increased by 5.3% over the prior year period.
Comparable hotel EBITDA $41.1 million, which represents a 0.7% increase over the prior year quarter.
Net loss attributable to common stockholders $31.1 million or $0.47 per diluted share.
AFFO per diluted share Negative $0.06.
Adjusted EBITDAre $30.2 million for the quarter.
Total assets $2.1 billion.
Total loans $1.2 billion at a blended average interest rate of 7.2%.
Net debt to gross assets 40.8%.
Cash and cash equivalents $135.5 million plus restricted cash of $49.6 million.
Quarterly common stock dividend $0.05 per share or $0.20 per diluted share on an annualized basis.
Group rooms revenue Increased by 7% compared to the prior year period.
Group room revenue growth at Ritz-Carlton St. Thomas Over 100% growth over the prior year period in both October and November.
Future group revenue secured $61 million in the fourth quarter, an increase from $41 million during the third quarter.
Gross operating profit margin increase 30 basis points increase compared to 2019.
Ritz-Carlton Reserve Dorado Beach gross operating profit margin increase Over 1,100 basis points compared to 2019.
Total hotel revenue growth at Ritz-Carlton Lake Tahoe 49% increase over the prior year quarter.
Capital expenditures for 2024 Approximately $70 million.
Expected capital expenditures for 2025 Between $75 million and $95 million.
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Analyst Views on BHR
About BHR
Braemar Hotels & Resorts Inc. is a real estate investment trust focused on investing in luxury hotels and resorts. Its business objectives are to generate attractive returns on its invested capital and long-term growth in cash flow to maximize total returns to its stockholders. The Company operates in the direct hotel investment segment of the hotel lodging industry. It owns interests in approximately 14 hotel properties in seven states, the District of Columbia, Puerto Rico and St. Thomas, U.S. Virgin Islands. The hotel properties in its portfolio are predominantly located in the United States urban and resort locations. It owns 14 of its hotel properties directly and the remaining hotel property through an investment in a majority-owned consolidated joint venture entity. All the hotel properties in its portfolio are asset-managed by Ashford LLC. The Company's hotel properties include Capital Hilton, The Notary Hotel and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ashford Inc. CFO Deric Eubanks to Retire After 23 Years
- Executive Retirement: Ashford Inc. announced that CFO Deric Eubanks will retire in June 2026 after a 23-year career, highlighting the company's commitment to executive stability and continuity.
- Transition Plan: Eubanks will step down as CFO on March 31, 2026, but will continue as Senior Managing Director to assist with financial and transitional matters until June 30, ensuring a smooth leadership transition.
- Leadership Confidence: Eubanks expressed confidence in the company's future, emphasizing the capability of the team and the soundness of the strategy, which enhances investor confidence in the company's ongoing development.
- Succession Plan: Following Eubanks' departure, current Chief Accounting Officer Justin Coe will assume the role of CFO, ensuring continuity and stability in financial management, reflecting the company's focus on future leadership.
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- Executive Retirement: Ashford Inc. announced that CFO Deric Eubanks will retire in June 2026, concluding a 23-year career during which he played a pivotal role in various key positions, ensuring financial stability for the company.
- Transition Plan: Eubanks will officially step down as CFO on March 31, 2026, but will continue as Senior Managing Director to assist with financial and transitional matters until June 30, ensuring a smooth leadership transition.
- Leadership Confidence: Ashford Chairman Monty Bennett noted that Eubanks has demonstrated unwavering commitment to the strategic processes over the past 12 years as CFO, leaving the company in a strong financial position, reflecting his significant impact on leadership.
- Succession Strategy: Following Eubanks' departure, current Chief Accounting Officer Justin Coe will assume the role of Principal Financial Officer for the company and its advised REITs, ensuring continuity and stability in financial management while further solidifying the company's strategic foundation.
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Retirement Announcement: Ashford has announced the planned retirement of Chief Financial Officer Deric Eubanks.
Impact on Leadership: Eubanks' retirement may lead to changes in the company's financial leadership and strategy moving forward.
See More
Brancous Questions Governance Structure at Braemar Hotels & Resorts
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- Independence Issues Highlighted: Brancous emphasizes that the Board's independence is merely superficial when addressing economic matters related to the external manager, failing to effectively protect shareholder interests during critical conflicts of interest.
- Need for Renegotiation of Termination Framework: Brancous believes that the termination economics should be based on current and forward-looking economic conditions rather than outdated historical data to avoid overcompensating the external advisor and ensure maximum shareholder value.
- Demand for Full Disclosure: Brancous calls for Braemar's Board to publicly disclose the basis for termination fee calculations, the processes involved, and all relevant legal and advisory opinions to ensure shareholders can fully understand and evaluate this significant economic issue.
See More
Braemar Hotels & Resorts Q4 2025 Earnings Call Insights
- Asset Sale Progress: Braemar has engaged Robert W. Baird & Co as its financial adviser to initiate the sale process, although no completion deadline has been set, which may impact the company's asset restructuring and future strategic direction.
- Financial Performance Overview: The company reported a net loss of $46 million for the fourth quarter, translating to a diluted loss of $0.67 per share, despite an adjusted EBITDA of $28.8 million, indicating ongoing financial pressure amid asset sales and restructuring efforts.
- Strong Resort Performance: The resort portfolio achieved a 4.1% increase in comparable RevPAR to $536, with comparable hotel EBITDA rising 6%, demonstrating robust operational efficiency and market demand despite flat overall RevPAR.
- Future Outlook and Uncertainty: Management expressed optimism about the future, emphasizing that recent renovations and asset sales will drive performance, but the ongoing sale process has left the common equity dividend policy for 2026 undetermined, adding uncertainty for shareholders.
See More
Braemar Hotels & Resorts Reports Q4 Earnings
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- Revenue Insights: The company achieved Q4 revenue of $165.5 million, a 4.5% year-over-year decline, yet it surpassed market expectations by $18.3 million, suggesting some resilience in market demand despite difficulties.
- Balance Sheet Concerns: Despite the revenue beat, concerns regarding Braemar's balance sheet persist, which could impact its future financing capabilities and operational flexibility, necessitating investor attention on its financial health.
- Market Reaction: Given the earnings miss, market reactions may lead to stock price volatility for Braemar, prompting investors to carefully assess its future investment value.
See More
Ashford Inc. CFO Deric Eubanks to Retire After 23 Years
- Executive Retirement: Ashford Inc. announced that CFO Deric Eubanks will retire in June 2026 after a 23-year career, highlighting the company's commitment to executive stability and continuity.
- Transition Plan: Eubanks will step down as CFO on March 31, 2026, but will continue as Senior Managing Director to assist with financial and transitional matters until June 30, ensuring a smooth leadership transition.
- Leadership Confidence: Eubanks expressed confidence in the company's future, emphasizing the capability of the team and the soundness of the strategy, which enhances investor confidence in the company's ongoing development.
- Succession Plan: Following Eubanks' departure, current Chief Accounting Officer Justin Coe will assume the role of CFO, ensuring continuity and stability in financial management, reflecting the company's focus on future leadership.
See More
Ashford Inc. CFO Deric Eubanks to Retire After 23 Years
- Executive Retirement: Ashford Inc. announced that CFO Deric Eubanks will retire in June 2026, concluding a 23-year career during which he played a pivotal role in various key positions, ensuring financial stability for the company.
- Transition Plan: Eubanks will officially step down as CFO on March 31, 2026, but will continue as Senior Managing Director to assist with financial and transitional matters until June 30, ensuring a smooth leadership transition.
- Leadership Confidence: Ashford Chairman Monty Bennett noted that Eubanks has demonstrated unwavering commitment to the strategic processes over the past 12 years as CFO, leaving the company in a strong financial position, reflecting his significant impact on leadership.
- Succession Strategy: Following Eubanks' departure, current Chief Accounting Officer Justin Coe will assume the role of Principal Financial Officer for the company and its advised REITs, ensuring continuity and stability in financial management while further solidifying the company's strategic foundation.
See More
ASHFORD DECLARES INTENT TO RETIRE OF CFO DERIC EUBANKS
Retirement Announcement: Ashford has announced the planned retirement of Chief Financial Officer Deric Eubanks.
Impact on Leadership: Eubanks' retirement may lead to changes in the company's financial leadership and strategy moving forward.
See More
Brancous Questions Governance Structure at Braemar Hotels & Resorts
- Lack of Governance Transparency: Brancous LP1 asserts that Braemar's Board lacks transparency in the termination economics with the external manager, preventing shareholders from assessing whether the agreement was negotiated fairly, potentially harming shareholder interests.
- Independence Issues Highlighted: Brancous emphasizes that the Board's independence is merely superficial when addressing economic matters related to the external manager, failing to effectively protect shareholder interests during critical conflicts of interest.
- Need for Renegotiation of Termination Framework: Brancous believes that the termination economics should be based on current and forward-looking economic conditions rather than outdated historical data to avoid overcompensating the external advisor and ensure maximum shareholder value.
- Demand for Full Disclosure: Brancous calls for Braemar's Board to publicly disclose the basis for termination fee calculations, the processes involved, and all relevant legal and advisory opinions to ensure shareholders can fully understand and evaluate this significant economic issue.
See More
Braemar Hotels & Resorts Q4 2025 Earnings Call Insights
- Asset Sale Progress: Braemar has engaged Robert W. Baird & Co as its financial adviser to initiate the sale process, although no completion deadline has been set, which may impact the company's asset restructuring and future strategic direction.
- Financial Performance Overview: The company reported a net loss of $46 million for the fourth quarter, translating to a diluted loss of $0.67 per share, despite an adjusted EBITDA of $28.8 million, indicating ongoing financial pressure amid asset sales and restructuring efforts.
- Strong Resort Performance: The resort portfolio achieved a 4.1% increase in comparable RevPAR to $536, with comparable hotel EBITDA rising 6%, demonstrating robust operational efficiency and market demand despite flat overall RevPAR.
- Future Outlook and Uncertainty: Management expressed optimism about the future, emphasizing that recent renovations and asset sales will drive performance, but the ongoing sale process has left the common equity dividend policy for 2026 undetermined, adding uncertainty for shareholders.
See More
Braemar Hotels & Resorts Reports Q4 Earnings
- Earnings Performance: Braemar Hotels & Resorts reported a Q4 GAAP EPS of -$0.67, missing expectations by $0.16, indicating challenges in profitability that may affect investor confidence.
- Revenue Insights: The company achieved Q4 revenue of $165.5 million, a 4.5% year-over-year decline, yet it surpassed market expectations by $18.3 million, suggesting some resilience in market demand despite difficulties.
- Balance Sheet Concerns: Despite the revenue beat, concerns regarding Braemar's balance sheet persist, which could impact its future financing capabilities and operational flexibility, necessitating investor attention on its financial health.
- Market Reaction: Given the earnings miss, market reactions may lead to stock price volatility for Braemar, prompting investors to carefully assess its future investment value.
See More
