Braemar Hotels & Resorts (BHR) AI Stock Analysis

• Market Cap: $176.33M
• Dividend Yield: 7.6%
• Average Volume (3M): 260.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: -1.48%
• EPS Growth: 32.04%
• Country: US
• Employees: 116
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.77
• Shares Outstanding: 67,046,524
• 10 Day Avg. Volume: 208,778
• 30 Day Avg. Volume: 260,182
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.26
• Price to Cash Flow (P/CF): 7.10
• P/FCF Ratio: 1.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Braemar Hotels & Resorts has demonstrated a commendable recovery trajectory with significant improvements in financial health and strategic corporate actions. Despite these strengths, challenges remain with technical analysis indicators showing bearish trends and valuation concerns due to a negative P/E ratio. The company's strong dividend yield and strategic refinancing efforts provide a positive outlook, balanced by the need to address profitability and market momentum issues.

Braemar Hotels & Resorts Business Overview & Revenue Model

Company Description

Braemar Hotels & Resorts (BHR) is a real estate investment trust (REIT) that specializes in the acquisition, ownership, and operation of luxury hotels and resorts. Primarily focused on the upscale and luxury segments of the hospitality industry, Braemar invests in high-end properties that are typically located in urban, resort, and destination markets. The company aims to deliver superior returns to its investors by leveraging its expertise in asset management and strategic value creation.

How the Company Makes Money

Braemar Hotels & Resorts generates revenue primarily through the ownership and operation of luxury hotel properties. The company's primary revenue stream comes from room rentals, including premium suites and upscale accommodations, catering to affluent travelers. Additional sources of revenue include food and beverage services, event hosting, spa services, and other guest amenities offered at their properties. Braemar's business model is designed to maximize revenue through strategic property management and operational efficiencies. Partnerships with leading hotel brands and management companies allow Braemar to enhance their service offerings and attract a loyal customer base, contributing to the company's profitability. Additionally, as a REIT, Braemar benefits from favorable tax treatment, as it is required to distribute at least 90% of its taxable income to shareholders as dividends.

Braemar Hotels & Resorts Financial Statement Overview

Summary

Braemar Hotels & Resorts shows a strong recovery trajectory post-2020 with improving revenue and profitability metrics. The balance sheet is strengthening with reduced leverage, and cash flow generation is stable. While the company shows positive financial health, attention should be given to net profit margins and return on equity fluctuations, which could impact long-term sustainability.

Income Statement

Braemar Hotels & Resorts has shown a robust recovery in revenue from 2020, with a notable revenue growth rate of 7% from 2021 to 2022 and a slight decline in 2023. Gross profit margin improved significantly from negative in 2020 to 100% in 2024, indicating efficient cost management. However, net profit margin was inconsistent, with negative margins in some years, reflecting potential challenges in cost control and profitability.

Balance Sheet

The company's balance sheet shows a healthy equity ratio, with equity increasing over the years. The debt-to-equity ratio improved, with total debt eliminated by 2024, enhancing financial stability. However, return on equity fluctuated due to varying net income, indicating potential volatility in returns for shareholders.

Cash Flow

Operating cash flow has remained relatively stable, with positive free cash flow in recent years, indicating strong cash generation capabilities. The free cash flow to net income ratio was positive, suggesting efficient cash conversion, although there was some variability in free cash flow growth rates.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
728.40M	739.34M	669.59M	427.54M	226.97M
	Gross Profit
153.68M	168.47M	175.09M	92.42M	-2.58M
	EBIT
128.75M	61.67M	68.39M	-2.01M	-79.85M
	EBITDA
227.91M	160.03M	146.88M	73.59M	-25.20M
	Net Income Common Stockholders
21.45M	-27.02M	17.76M	-32.91M	-124.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
135.47M	88.45M	261.54M	216.00M	78.61M
	Total Assets
2.14B	2.23B	2.40B	1.88B	1.67B
	Total Debt
1.23B	1.22B	1.39B	1.23B	1.19B
	Net Debt
1.09B	1.14B	1.13B	1.02B	1.11B
	Total Liabilities
1.87B	1.41B	1.57B	1.36B	1.28B
	Stockholders Equity
240.73M	795.07M	801.79M	504.33M	383.21M
Cash Flow		Free Cash Flow
66.82M	84.64M	60.34M	38.31M	-75.84M
	Operating Cash Flow
66.82M	84.71M	109.48M	63.95M	-50.29M
	Investing Cash Flow
35.51M	-77.07M	-402.22M	-41.68M	-16.54M
	Financing Cash Flow
-83.77M	-156.84M	345.06M	127.95M	49.59M

Braemar Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHR, the sentiment is Negative. The current price of 2.63 is below the 20-day moving average (MA) of 2.91, below the 50-day MA of 2.73, and below the 200-day MA of 2.97, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.56 is Neutral, neither overbought nor oversold. The STOCH value of 13.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BHR.

Braemar Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HST	74 Outperform	$9.98B	14.41	10.53%	5.61%	7.02%	-4.78%
PK	68 Neutral	$2.20B	10.80	5.68%	9.17%	-3.67%	122.68%
Sector *	61 Neutral	$4.71B	17.72	-2.95%	11.43%	6.02%	-21.34%
BHR	60 Neutral	$176.33M	―	-0.23%	7.60%	-1.48%	32.04%
PEB	58 Neutral	$1.22B	―	-0.16%	0.39%	2.35%	57.81%
RLJ	58 Neutral	$1.22B	29.30	2.94%	6.23%	3.31%	-15.16%
XHR	54 Neutral	$1.20B	76.64	1.24%	4.06%	1.33%	-10.65%

Braemar Hotels & Resorts Corporate Events

Braemar Hotels & Resorts Highlights Financial Growth in 2025

On March 10, 2025, Braemar Hotels & Resorts Inc. released an investor presentation detailing their financial performance and strategic positioning. The presentation highlighted significant growth in gross asset value and EBITDA since 2013, with a focus on luxury and resort properties driving 2024’s hotel EBITDA. The company has seen stabilization in key performance metrics such as ADR and RevPAR, with urban properties returning to near pre-pandemic levels and resort properties stabilizing at higher levels. This indicates a strong recovery and strategic positioning in the hospitality market, potentially benefiting stakeholders by enhancing the company’s market value and operational resilience.

Braemar Hotels & Resorts Reports Q4 2024 Earnings Growth

On February 27, 2025, Braemar Hotels & Resorts held an earnings conference call to discuss its fourth-quarter and full-year 2024 results. The company reported a 1.9% increase in Comparable RevPAR and a 5.3% rise in Comparable Total Hotel Revenue for the fourth quarter, marking a recovery after several quarters of decline. The company is actively refinancing a $293 million loan and has redeemed approximately $80 million of non-traded preferred stock as part of its Shareholder Value Creation Plan. Despite challenges such as unseasonably mild winter weather and calendar shifts affecting festive bookings, the company’s portfolio showed resilience, with urban hotels achieving a 3.3% growth in Comparable RevPAR. Braemar also completed significant capital projects to enhance guest experiences, including renovations at The Ritz-Carlton Reserve Dorado Beach and The Ritz-Carlton St. Thomas. The company extended its mortgage loan for the Ritz-Carlton Lake Tahoe and supported local recovery efforts following the Southern California fires.

Braemar Hotels Announces 2024 Tax Reporting Details

On January 27, 2025, Braemar Hotels & Resorts Inc. announced the tax reporting information for its 2024 distributions on common and preferred shares. The announcement details the income tax treatment for distributions on the company’s common shares and various series of preferred shares, providing clarity on how these distributions are reportable for tax purposes in 2024 and 2025.

Braemar Hotels Extends Loan for Ritz-Carlton Property

Braemar Hotels & Resorts announced on January 15, 2025, the successful extension of its mortgage loan for the 170-room Ritz-Carlton Lake Tahoe, extending its maturity to January 2026 with a $10 million paydown. The company is optimistic about the improving hotel lending market and is actively discussing further refinancing options, which could positively impact their financial strategy and operations.

Braemar Hotels Strengthens Board with New Appointment

Braemar Hotels & Resorts Inc. announced the appointment of Ms. Rebecca Musser to its Board of Directors and as Chair of the Audit Committee, highlighting her extensive 20-year experience in accounting and audits across various industries. Ms. Musser’s appointment, effective immediately, underscores her qualifications as an independent director and financial expert, positioning the company favorably in terms of corporate governance and enhancing its audit capabilities.