BHR-PB — Braemar Hotels & Resorts Inc.

Braemar Hotels & Resorts, Inc. (BHR-PB) Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Comparable RevPAR increased by 1.4% to $257, marking the fourth consecutive quarter of growth.
• Total hotel revenue rose by 3.9% year-over-year.
• Comparable hotel EBITDA reached $21.4 million, a 15.1% increase from the prior year.
• Net loss attributable to common stockholders was $8.2 million, or $0.12 per diluted share.
• Adjusted Funds From Operations (AFFO) per diluted share was negative $0.19.
• Cash and cash equivalents stood at $116.3 million, with total assets of $2 billion and a net debt to gross assets ratio of 43.2%.

2. Strategic Updates and Business Highlights:

• The company initiated a sale process in August 2025, engaging Robert W. Baird & Co as its financial adviser, although no updates were provided during the call.
• Significant renovations are ongoing at three hotels, impacting overall portfolio results; excluding these renovations, RevPAR growth would have been 3.4%.
• The luxury resort segment performed strongly, with a 5.5% increase in RevPAR and a 58% increase in comparable hotel EBITDA.
• The sale of the Marriott Seattle Waterfront for $145 million and the upcoming sale of the Clancy in San Francisco for $115 million were highlighted as strategic moves to deleverage and focus on luxury assets.
• Approximately $125 million of nontraded preferred stock has been redeemed, representing 27% of the original capital raise.

3. Forward Guidance and Outlook:

• The company remains optimistic about sustaining momentum in RevPAR and EBITDA growth, particularly within its resort portfolio.
• Group room revenue for 2025 is pacing up 9.1% compared to the prior year, indicating strong demand.
• Anticipated capital expenditures for 2025 are between $75 million and $85 million, focused on enhancing portfolio quality and brand alignment.

4. Bad News, Challenges, or Points of Concern:

• Urban hotels experienced a decline in RevPAR by 3.9%, attributed to renovations and citywide occupancy declines in Philadelphia.
• The ongoing renovations at several properties are seen as temporary headwinds, potentially affecting short-term performance.
• The company noted some cancellations and reduced group sizes in the D.C. market due to government pullbacks, although overall impacts were considered muted.

5. Notable Q&A Insights:

• Management indicated that the sales process has not affected property-level performance or employee focus.
• Discussions about internalization of management were considered but ultimately set aside in favor of pursuing a sale.
• The acquisition landscape is improving, with increased interest from private equity and capital availability for hotel assets.
• Leisure travel remains strong, with luxury consumers showing less price sensitivity and increased spending on experiences and ancillary services.

Overall, BHR-PB reported solid performance in Q3 2025, particularly in its resort segment, while navigating challenges in urban markets and ongoing renovations. The company is strategically positioning itself for future growth through asset sales and capital improvements.