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Braemar Hotels & Resorts (BHR)
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Braemar Hotels & Resorts (BHR) AI Stock Analysis

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BHR

Braemar Hotels & Resorts

(NYSE:BHR)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
$2.50
▼(-3.47% Downside)
Braemar Hotels & Resorts faces significant challenges with profitability and high leverage, reflected in a negative P/E ratio. While the company shows operational efficiency and strong cash flow management, the technical indicators suggest potential short-term weakness. The high dividend yield may appeal to some investors, but the overall financial and valuation concerns weigh heavily on the stock's score.

Braemar Hotels & Resorts (BHR) vs. SPDR S&P 500 ETF (SPY)

Braemar Hotels & Resorts Business Overview & Revenue Model

Company DescriptionBraemar Hotels & Resorts (BHR) is a publicly traded real estate investment trust (REIT) that focuses on acquiring and managing a diverse portfolio of high-quality hotels and resorts across the United States. The company operates primarily in the hospitality sector, targeting both urban and leisure destinations to cater to a wide range of travelers. BHR's core offerings include upscale accommodations, amenities, and services aimed at enhancing guest experiences, while also providing long-term value for its investors.
How the Company Makes MoneyBraemar Hotels & Resorts generates revenue primarily through the ownership and operation of its hotel properties. The company earns income from room rentals, food and beverage services, and other ancillary services provided to guests. Additionally, BHR benefits from management fees and lease income derived from properties leased to third-party operators. Key revenue streams include daily room rates, event hosting and conference services, and partnerships with travel platforms that facilitate bookings. The company also capitalizes on brand affiliations and loyalty programs that drive repeat business and enhance occupancy rates. Strategic partnerships with major hotel brands further bolster BHR's market presence and revenue potential.

Braemar Hotels & Resorts Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive picture with growth in revenue, EBITDA, and strong performance in both urban and resort segments. Despite challenges such as a net loss and some performance dips due to renovations and softness in the government segment, the company's strategic initiatives and future bookings indicate a positive outlook.
Q2-2025 Updates
Positive Updates
Revenue and EBITDA Growth
The portfolio achieved 1.5% growth in comparable RevPAR and a 3.7% increase in total comparable hotel EBITDA in Q2 2025, with revenue and EBITDA growth in both urban and resort segments.
Resort Performance
Resort portfolio reported comparable RevPAR of $464, a 1.6% increase, and combined comparable hotel EBITDA of $25.7 million, a 6.9% increase over the prior year. Ritz-Carlton Lake Tahoe and Dorado Beach reported 39% and 14% growth in total revenue, respectively.
Booking and Group Revenue Pace
Group pace for 2025 is up 8.6% with continued growth of 3.6% for 2026. Notably, Four Seasons Scottsdale and Ritz-Carlton Sarasota are pacing ahead for full year 2025 by 20.3% and 26.9%, respectively.
Strategic Asset Management and Capital Expenditure
Sofitel Chicago Magnificent Mile restructured as a franchise, showing strong performance with increased revenue. Several renovations and value-enhancing projects are underway to improve property value and guest experience.
Negative Updates
Net Loss
The company reported a net loss attributed to common stockholders of $16 million or $0.24 per diluted share for the quarter.
Softness in Government Segment
There was extreme softness in the government segment affecting the Capital Hilton in D.C., which contributed to some challenges during the quarter.
Renovation Displacement
Temporary headwinds from ongoing renovations at Park Hyatt Beaver Creek and Hotel Yountville muted results, affecting overall performance.
Company Guidance
During the Braemar Hotels & Resorts second quarter 2025 earnings call, several key metrics were highlighted. The company reported a 1.5% growth in comparable RevPAR, reaching $318, and a total comparable hotel EBITDA growth of 3.7%, amounting to $47.8 million. The resort portfolio showed a strong performance with a 1.6% increase in RevPAR to $464 and a 6.9% rise in combined comparable hotel EBITDA, totaling $25.7 million. Urban hotels also saw a 0.5% RevPAR growth, while the Ritz-Carlton Lake Tahoe and Ritz-Carlton Reserve Dorado Beach reported significant total revenue increases of 39% and 14%, respectively. The company maintained a solid liquidity position, addressing its final 2025 debt maturity and agreeing to sell the Marriott Seattle Waterfront, with a transaction expected to close soon. Group revenue pace for the third quarter was up 8.8%, and the company retained a strong cash and cash equivalents position of $80.2 million. Additionally, the strategic focus on luxury hotels and asset management activities, including renovations and operational improvements, were emphasized as drivers for future growth and value creation.

Braemar Hotels & Resorts Financial Statement Overview

Summary
Braemar Hotels & Resorts exhibits mixed financial health. Operational improvements are evident in better EBIT and EBITDA margins, but the company faces profitability challenges with ongoing net losses. High leverage and negative returns on equity pose financial risks. Strong cash flow management is a positive, though liquidity remains a concern.
Income Statement
45
Neutral
The income statement shows a mixed performance. The TTM gross profit margin is approximately 31.18%, indicating a decent level of profitability. However, the TTM net profit margin is negative due to net losses, highlighting profitability challenges. Revenue growth has been inconsistent, with a decline in the latest period. EBIT and EBITDA margins are improving, suggesting better operational efficiency, but net losses remain a concern.
Balance Sheet
50
Neutral
The balance sheet reflects a high debt-to-equity ratio of approximately 5.12, indicating significant leverage, which could pose financial risk. The return on equity is negative due to losses, which is a concern for shareholders. Despite high liabilities, the equity ratio stands at 11.39%, suggesting a stable capital structure.
Cash Flow
55
Neutral
Cash flow statements show strong free cash flow growth recently, but operating cash flow has decreased. The operating cash flow to net income ratio is positive, indicating effective cash generation relative to earnings. However, free cash flow to net income is negative due to net losses, suggesting potential liquidity issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue716.63M728.40M739.34M669.59M427.54M226.97M
Gross Profit158.13M153.68M168.47M175.09M92.42M-2.58M
EBITDA135.95M135.70M160.03M146.88M73.59M-25.20M
Net Income-526.00K-1.69M-27.02M17.76M-32.91M-124.68M
Balance Sheet
Total Assets2.06B2.14B2.23B2.40B1.88B1.67B
Cash, Cash Equivalents and Short-Term Investments80.23M135.47M88.45M261.54M216.00M78.61M
Total Debt1.23B1.23B1.22B1.39B1.23B1.19B
Total Liabilities1.40B1.41B1.41B1.57B1.36B1.28B
Stockholders Equity646.66M695.57M795.07M801.79M504.33M383.21M
Cash Flow
Free Cash Flow99.39M66.82M84.64M60.34M38.31M-75.84M
Operating Cash Flow44.86M66.82M84.71M109.48M63.95M-50.29M
Investing Cash Flow62.53M35.51M-77.07M-402.22M-41.68M-16.54M
Financing Cash Flow-152.76M-83.77M-156.84M345.06M127.95M49.59M

Braemar Hotels & Resorts Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.59
Price Trends
50DMA
2.65
Positive
100DMA
2.50
Positive
200DMA
2.41
Positive
Market Momentum
MACD
0.01
Negative
RSI
59.48
Neutral
STOCH
83.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHR, the sentiment is Positive. The current price of 2.59 is below the 20-day moving average (MA) of 2.66, below the 50-day MA of 2.65, and above the 200-day MA of 2.41, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of 83.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHR.

Braemar Hotels & Resorts Risk Analysis

Braemar Hotels & Resorts disclosed 94 risk factors in its most recent earnings report. Braemar Hotels & Resorts reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Braemar Hotels & Resorts Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$650.51M0.93%5.95%-1.91%-256.67%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
61
Neutral
$320.32M246.791.22%5.20%-0.87%
49
Neutral
$35.91M-2.803.37%1.78%-33.00%
46
Neutral
$188.29M-0.07%7.12%-3.68%38.92%
44
Neutral
$397.13M-32.60%1.69%-0.23%-38.68%
41
Neutral
$31.27M-11.83%-4186.83%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BHR
Braemar Hotels & Resorts
2.81
0.06
2.18%
INN
Summit Hotel Properties
5.38
-0.49
-8.35%
SVC
Service Properties
2.37
-1.19
-33.43%
CLDT
Chatham Lodging
6.55
-1.28
-16.35%
AHT
Ashford Hospitality
4.94
-0.63
-11.31%
SOHO
Sotherly Hotels
0.89
-0.48
-35.04%

Braemar Hotels & Resorts Corporate Events

Dividends
Braemar Hotels & Resorts Declares Q4 2025 Dividends
Neutral
Oct 14, 2025

On October 14, 2025, Braemar Hotels & Resorts announced that its Board of Directors declared dividends for the fourth quarter of 2025 for its common stock and various preferred stock series. These dividends are scheduled to be paid in January 2026, with specific dates for stockholders of record. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its financial planning and investor relations strategies.

The most recent analyst rating on (BHR) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Braemar Hotels & Resorts stock, see the BHR Stock Forecast page.

Business Operations and StrategyM&A Transactions
Braemar Hotels Sells The Clancy for $115 Million
Neutral
Oct 7, 2025

On October 6, 2025, Braemar Hotels & Resorts announced an agreement to sell The Clancy hotel in San Francisco for $115 million. This strategic divestiture aims to maximize shareholder value and is expected to close in the fourth quarter of 2025, though completion is not guaranteed.

The most recent analyst rating on (BHR) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Braemar Hotels & Resorts stock, see the BHR Stock Forecast page.

Business Operations and StrategyM&A Transactions
Braemar Hotels Initiates Strategic Sale Process
Neutral
Aug 26, 2025

On August 26, 2025, Braemar Hotels & Resorts Inc. announced the initiation of a sale process, following a decision by its Board of Directors to explore strategic alternatives to maximize shareholder value. The company has entered into a Letter Agreement with its advisor, Ashford Inc., agreeing to a discounted termination fee of $480 million in the event of a sale. The sale process aims to attract private market buyers, leveraging the company’s strong portfolio performance and favorable market conditions. The potential sale is seen as a strategic move to address undervaluation and activist investor pressures, similar to past industry trends.

The most recent analyst rating on (BHR) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Braemar Hotels & Resorts stock, see the BHR Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Braemar Hotels & Resorts Announces New Board Appointment
Neutral
Aug 26, 2025

On August 25, 2025, Braemar Hotels & Resorts Inc. entered a cooperation agreement with Babak ‘Bob’ Ghassemieh and related parties, leading to Mr. Ghassemieh’s appointment to the company’s board of directors. This agreement includes provisions for board nominations and standstill commitments, reflecting a strategic collaboration aimed at supporting Braemar’s interests and stakeholder relations.

The most recent analyst rating on (BHR) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Braemar Hotels & Resorts stock, see the BHR Stock Forecast page.

Private Placements and Financing
Braemar Hotels Refinances Loan for Scottsdale Resort
Positive
Aug 18, 2025

On August 18, 2025, Braemar Hotels & Resorts Inc. announced the successful refinancing of the existing mortgage loan for the Four Seasons Resort Scottsdale at Troon North. The previous loan of $140 million with an interest rate of SOFR + 3.75% was replaced with a new non-recourse loan of $180 million at a lower interest rate of SOFR + 3.00%, provided by Aareal Capital Corporation. This refinancing enhances Braemar’s liquidity and reduces its cost of debt, reflecting an improving credit market for lodging assets.

Braemar Hotels & Resorts Q2 2025 Financial Overview
Aug 2, 2025

Braemar Hotels & Resorts is a real estate investment trust (REIT) specializing in luxury hotels and resorts, known for its strategic focus on high-end hospitality properties.

Braemar Hotels & Resorts Reports Positive Earnings Call
Aug 2, 2025

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.

Financial Disclosures
Braemar Hotels Reports Strong Q2 2025 Performance
Positive
Aug 1, 2025

On August 1, 2025, Braemar Hotels & Resorts Inc. released its investor presentation for the second quarter of 2025. The presentation highlighted the company’s strong financial performance, with a notable increase in hotel EBITDA and total hotel revenue compared to the previous year. The company also reported a slight increase in occupancy and RevPAR, indicating a stable growth trajectory. These results underscore Braemar’s robust positioning in the luxury lodging sector, despite broader economic uncertainties.

Business Operations and StrategyFinancial Disclosures
Braemar Hotels Reports Q2 2025 Financial Growth
Positive
Aug 1, 2025

On August 1, 2025, Braemar Hotels & Resorts reported a 1.5% growth in comparable RevPAR and a 3.7% increase in total comparable hotel EBITDA for the second quarter ended June 30, 2025. The company highlighted strong performance in both urban and resort segments, with notable revenue growth at properties like Ritz-Carlton Lake Tahoe and Ritz-Carlton Reserve Dorado Beach. Braemar also addressed its final 2025 debt maturity and agreed to sell the Marriott Seattle Waterfront, aligning with its strategy to focus on luxury hotels. The company continues to see strong booking trends and expects further growth, despite ongoing renovations at some properties.

Business Operations and StrategyFinancial Disclosures
Braemar Hotels Reports Q2 2025 Financial Results
Negative
Jul 31, 2025

Braemar Hotels & Resorts reported its financial results for the second quarter of 2025, highlighting a 1.5% increase in comparable RevPAR and a net loss of $16 million for common stockholders. The company converted its Sofitel Chicago Magnificent Mile to a franchise structure, and plans to sell the Marriott Seattle Waterfront for $145 million, aiming to align its financial performance with the luxury hotel sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 16, 2025