BHR-PB — Braemar Hotels & Resorts Inc.

Summary of Braemar Hotels & Resorts Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

   • Q4 2025 Performance:
     • Net loss attributable to common stockholders: $46 million ($0.67 per diluted share).
     • Adjusted Funds From Operations (AFFO) per diluted share: negative $0.02.
     • Comparable total revenue growth: 1.8%.
     • Comparable hotel EBITDA growth: 6%.
     • Comparable RevPAR: $340 (flat year-over-year).
   • Full Year 2025 Performance:
     • Net loss attributable to common stockholders: $72.7 million ($1.07 per diluted share).
     • AFFO per diluted share: $0.28.
     • Comparable total revenue growth: 2.8%.
     • Comparable hotel EBITDA growth: 3.1%.
     • Total assets: $1.9 billion; total loans: $1.1 billion with a blended interest rate of 6.7%.

2. Strategic Updates and Business Highlights:

   • Initiated a sale process for the company, engaging Robert W. Baird & Co. as financial adviser, with no definitive timeline for completion.
   • Sold the 410-room Clancy in San Francisco for $115 million, using proceeds to pay down $65 million of debt.
   • Significant renovations at three hotels impacted results; excluding these, RevPAR growth was 2.6%.
   • The Cameo Beverly Hills was rebranded to Hilton's luxury LXR brand.
   • Redeemed $149 million of non-traded preferred stock (32% of original capital raise).

3. Forward Guidance and Outlook:

   • Continued focus on deleveraging and improving cash flow per share.
   • Anticipated capital expenditures of $25 million to $35 million in 2026.
   • Confidence in sustaining operating momentum and delivering strong results due to recent renovations and strategic positioning.

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

   • Overall RevPAR was flat, indicating potential stagnation in demand.
   • Renovation-related disruptions negatively impacted performance at several properties.
   • Weather-related factors, including below-normal snowfall, affected results at ski resort locations.
   • The ongoing sale process may create uncertainty regarding future operations and dividend policies.

5. Notable Q&A Insights:

   • No questions were posed during the Q&A session, indicating either a lack of immediate investor concerns or satisfaction with the information presented.

In summary, while Braemar Hotels & Resorts reported solid revenue growth and strategic initiatives, challenges such as flat RevPAR and renovation disruptions remain. The company is actively pursuing a sale process and remains optimistic about future performance, particularly following recent renovations and repositioning efforts.