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Braemar Hotels & Resorts Reports Positive Earnings Call

Braemar Hotels & Resorts Reports Positive Earnings Call

Braemar Hotels & Resorts ((BHR)) has held its Q2 earnings call. Read on for the main highlights of the call.

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Braemar Hotels & Resorts recently held an earnings call that painted a generally positive picture of the company’s financial health and strategic direction. The call highlighted strong RevPAR and EBITDA growth, successful asset sales, and promising trends in group revenue. However, challenges such as a reported net loss and temporary setbacks from hotel renovations were also discussed.

RevPAR and EBITDA Growth

The company reported a 1.5% growth in comparable RevPAR and a 3.7% increase in total comparable hotel EBITDA. This marks the third consecutive quarter of RevPAR growth, underscoring the company’s steady performance in the hospitality sector.

Strong Resort Performance

Braemar’s resort properties demonstrated robust performance, with a 6.9% increase in comparable hotel EBITDA. Notably, the Ritz-Carlton Lake Tahoe and Ritz-Carlton Reserve Dorado Beach reported impressive total revenue growth of 39% and 14%, respectively.

Successful Asset Sale

In alignment with its strategic objectives, Braemar signed a definitive agreement to sell the 369-room Marriott Seattle Waterfront for $145 million. This move is part of the company’s efforts to deleverage its portfolio and concentrate on luxury hotel investments.

Group Revenue Growth

The earnings call highlighted a promising increase in group revenue pace, with an 8.6% rise projected for 2025 and 3.6% for 2026. Properties like Four Seasons Scottsdale and Ritz-Carlton Sarasota are pacing significantly ahead, indicating strong future demand.

Capital Expenditures and ROI Projects

Braemar is actively engaged in numerous renovation and value-enhancing projects, with capital expenditures projected between $75 million and $95 million for 2025. Completed projects at Ritz-Carlton Lake Tahoe have already generated approximately $300,000 in NOI.

Net Loss Reported

Despite the positive developments, the company reported a net loss of $16 million, or $0.24 per diluted share, attributed to common stockholders for the quarter.

Renovation Impact

Renovations at Park Hyatt Beaver Creek and Hotel Yountville posed temporary challenges, slightly muting the overall results for the quarter.

Government Segment Softness

The government segment experienced significant softness, notably affecting the Capital Hilton in Washington D.C., which impacted the company’s performance in this area.

Forward-Looking Guidance

Looking ahead, Braemar Hotels & Resorts remains optimistic about its financial trajectory. The company reported a 1.5% increase in comparable RevPAR and a 3.7% rise in total comparable hotel EBITDA for the second quarter of 2025. The luxury resort portfolio showed a notable 6.9% increase in hotel EBITDA, with significant revenue growth at key properties. The company has also addressed its final 2025 debt maturity and announced the sale of the Marriott Seattle Waterfront, maintaining a strong cash position and a net debt to gross assets ratio of 44.2%.

In conclusion, Braemar Hotels & Resorts’ earnings call highlighted a generally positive outlook, driven by strong RevPAR and EBITDA growth, successful asset sales, and promising group revenue trends. While challenges such as a net loss and renovation impacts were noted, the company’s strategic focus on luxury hotels and financial robustness position it well for future growth.

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