Braemar Hotels & Resorts ((BHR)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Braemar Hotels & Resorts’ recent earnings call painted a largely positive picture, highlighting record RevPAR growth, robust urban hotel performance, effective debt management, and strategic asset management initiatives. Despite these achievements, the company faced a net loss for the quarter and encountered challenges from wildfires and a dip in international travel.
Record Quarterly RevPAR and Revenue Growth
Braemar Hotels & Resorts reported a record quarterly RevPAR of $404, marking a 4.2% increase over the previous year. This growth was complemented by a 4.4% rise in total hotel revenue, underscoring the company’s strong financial performance.
Strong Performance in Urban Hotels
Urban hotels were a standout, with a notable RevPAR growth of 11.3%. The Capital Hilton, in particular, benefited from the presidential inauguration, achieving a remarkable 19.3% year-over-year RevPAR growth.
Successful Debt Management
The company successfully addressed its final 2025 debt maturity, which helped reduce the cost of capital and improve its maturity schedule, showcasing its effective financial strategy.
Asset Management and CapEx Initiatives
Braemar Hotels & Resorts has planned significant capital expenditures to enhance its hotel offerings. This includes renovations at Hotel Yountville and Park Hyatt Beaver Creek, as well as new luxury cabanas at Ritz-Carlton St. Thomas.
Strong Group Revenue Growth
The first quarter saw a 31% increase in group revenue compared to the previous year, driven by strategic sales initiatives and major citywide events, highlighting the company’s successful revenue strategies.
Net Loss for the Quarter
Despite the positive developments, Braemar Hotels & Resorts reported a net loss attributable to common stockholders of $2.5 million or $0.04 per diluted share, indicating areas for improvement.
Impact of California Wildfires
The California wildfires disrupted the Los Angeles market, particularly affecting the Cameo Beverly Hills hotel, leading to displacement in group room revenue.
Challenges with International Inbound Travel
International inbound travel remains a minor part of the portfolio, with some markets experiencing declines in international arrivals, posing a challenge for the company.
Forward-Looking Guidance
Looking ahead, Braemar Hotels & Resorts is optimistic, with a 4.2% growth in comparable RevPAR and a 4.4% increase in total hotel revenue. The company has also improved its maturity schedule and reduced capital costs through refinancing efforts. Group room revenue pace is projected to rise by 7% in 2025 and 10% in 2026, indicating strong booking trends.
In summary, Braemar Hotels & Resorts’ earnings call highlighted a positive outlook with significant growth in RevPAR and revenue, strong urban hotel performance, and successful debt management. However, the company must address challenges such as the net loss and impacts from wildfires and international travel declines to maintain its upward trajectory.