Braemar Hotels & Resorts (BHR) AI Stock Analysis

• Market Cap: $198.52M
• Dividend Yield: 6.87%
• Average Volume (3M): 527.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -3.68%
• EPS Growth: 38.92%
• Country: US
• Employees: 116
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.24
• Shares Outstanding: 68,219,430
• 10 Day Avg. Volume: 1,155,652
• 30 Day Avg. Volume: 527,824
• PEG Ratio: 3.70
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 2.99
• Enterprise Value/Market Cap: 8.54
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 10.73
• Enterprise Value/Ebitda: 12.48
• 1Y Price Target: $3.50
• Price Target Upside: 16.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $3.00 ▲(0.00% Upside)

Braemar Hotels & Resorts' overall stock score is driven by a mixed financial performance, with strong cash flow management but challenges in profitability and high leverage. The technical analysis suggests bullish momentum, although caution is advised due to overbought indicators. The valuation is hindered by a negative P/E ratio, but the high dividend yield is a positive factor. The earnings call highlights strategic growth initiatives and a positive outlook, contributing to the score.

Positive Factors

Revenue and EBITDA Growth

The consistent growth in revenue and EBITDA across urban and resort segments indicates strong operational performance and market demand, supporting long-term financial health.

Strategic Asset Management

Strategic restructuring and renovations enhance property value and guest experience, positioning the company for sustained growth and competitive advantage in the luxury hotel sector.

Refinancing to Improve Liquidity

Refinancing at a lower interest rate improves liquidity and reduces debt costs, strengthening the company's financial position and flexibility for future investments.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.

Net Loss

Ongoing net losses highlight profitability challenges, which can undermine long-term financial sustainability and investor confidence if not addressed.

Declining Revenue Growth

Declining revenue growth suggests potential market saturation or competitive pressures, which could hinder the company's ability to expand and maintain its market position.

Braemar Hotels & Resorts Business Overview & Revenue Model

Company Description

Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.

How the Company Makes Money

Braemar 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	716.63M	728.40M	739.34M	669.59M	427.54M	226.97M
Gross Profit	158.13M	153.68M	168.47M	175.09M	92.42M	-2.58M
EBITDA	135.95M	135.70M	160.03M	146.88M	73.59M	-25.20M
Net Income	-526.00K	-1.69M	-27.02M	17.76M	-32.91M	-124.68M
Balance Sheet
Total Assets	2.06B	2.14B	2.23B	2.40B	1.88B	1.67B
Cash, Cash Equivalents and Short-Term Investments	80.23M	135.47M	88.45M	261.54M	216.00M	78.61M
Total Debt	1.23B	1.23B	1.22B	1.39B	1.23B	1.19B
Total Liabilities	1.40B	1.41B	1.41B	1.57B	1.36B	1.28B
Stockholders Equity	646.66M	695.57M	795.07M	801.79M	504.33M	383.21M
Cash Flow
Free Cash Flow	99.39M	66.82M	84.64M	60.34M	38.31M	-75.84M
Operating Cash Flow	44.86M	66.82M	84.71M	109.48M	63.95M	-50.29M
Investing Cash Flow	62.53M	35.51M	-77.07M	-402.22M	-41.68M	-16.54M
Financing Cash Flow	-152.76M	-83.77M	-156.84M	345.06M	127.95M	49.59M

Braemar Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 3 is above the 20-day moving average (MA) of 2.54, above the 50-day MA of 2.43, and above the 200-day MA of 2.51, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 74.00 is Negative, neither overbought nor oversold. The STOCH value of 76.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHR.

Braemar Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INN	68 Neutral	$685.84M	41.24	0.93%	5.57%	-1.91%	-256.67%
CLDT	61 Neutral	$354.12M	268.68	1.22%	4.43%	-0.87%	―
BHR	58 Neutral	$198.52M	―	-0.07%	6.87%	-3.68%	38.92%
Sector *	53 Neutral	$1.28B	3.13	-6.08%	5.51%	-8.21%	-81.31%
IHT	48 Neutral	$22.94M	―	-25.86%	1.04%	-0.89%	-702.65%
SOHO	46 Neutral	$32.47M	―	3.37%	―	1.78%	-33.00%
AHT	46 Neutral	$37.96M	―	-25.85%	―	-11.83%	-4186.83%

Braemar Hotels & Resorts Corporate Events

Braemar Hotels Initiates Strategic Sale Process

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.

Braemar Hotels & Resorts Announces New Board Appointment

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.

Braemar Hotels Refinances Loan for Scottsdale Resort

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 Reports Strong Q2 2025 Performance

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.

Braemar Hotels Reports Q2 2025 Financial Growth

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.

Braemar Hotels Reports Q2 2025 Financial Results

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.

Braemar Hotels Declares Q3 2025 Cash Dividends

On July 11, 2025, Braemar Hotels & Resorts announced that its Board of Directors declared various cash dividends for the third quarter of 2025 for its common and preferred stocks. These dividends, payable on October 15, 2025, reflect the company’s commitment to providing returns to its shareholders and indicate a stable financial strategy amidst market conditions.

Braemar Hotels Sells Marriott Seattle Waterfront Hotel

On July 3, 2025, Braemar Hotels & Resorts announced an agreement to sell the Marriott Seattle Waterfront hotel for $145 million, with the transaction expected to close in the third quarter of 2025. This sale is part of Braemar’s strategy to deleverage its portfolio and align its financial performance with the luxury hotel sector, although the completion of the sale is subject to customary conditions.

Braemar Hotels Reschedules 2025 Annual Stockholders Meeting

Braemar Hotels & Resorts Inc. has rescheduled its 2025 Annual Meeting of Stockholders from July 30, 2025, to December 15, 2025. This postponement may impact the company’s stakeholder engagement and decision-making timeline.