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Braemar Hotels & Resorts Inc (BHR)
NYSE:BHR
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Braemar Hotels & Resorts (BHR) AI Stock Analysis

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BHR

Braemar Hotels & Resorts

(NYSE:BHR)

Rating:55Neutral
Price Target:
$2.50
▲(13.64%Upside)
The overall score is driven by mixed financial performance, with operational improvements but ongoing net losses and high leverage. Technical indicators are weak, indicating bearish momentum. Despite a high dividend yield, valuation concerns remain due to a negative P/E ratio. Earnings call insights provide some optimism with strong operational metrics and effective debt management.

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

Braemar Hotels & Resorts Business Overview & Revenue Model

Company DescriptionBraemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.
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 sales, and other hotel services provided to guests. As a REIT, BHR benefits from a tax-advantageous structure, as long as it distributes a significant portion of taxable income to shareholders in the form of dividends. Key revenue streams include room revenue, which is the largest component, followed by revenue from food and beverage outlets, and ancillary services such as spa and event hosting. Additionally, BHR's partnerships with leading hotel management companies and luxury brands enhance its ability to attract affluent guests and maintain high occupancy rates, thereby maximizing revenue potential.

Braemar Hotels & Resorts Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: 5.77%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook, with strong RevPAR and EBITDA growth, successful asset sales, and promising group revenue trends. However, the company faced challenges such as a net loss and temporary headwinds from hotel renovations.
Q2-2025 Updates
Positive Updates
RevPAR and EBITDA Growth
The company achieved a 1.5% growth in comparable RevPAR and a 3.7% increase in total comparable hotel EBITDA, marking the third consecutive quarter of RevPAR growth.
Strong Resort Performance
Resort properties showed strong performance with a 6.9% increase in comparable hotel EBITDA. Ritz-Carlton Lake Tahoe and Ritz-Carlton Reserve Dorado Beach reported 39% and 14% growth in total revenue, respectively.
Successful Asset Sale
A definitive agreement was signed to sell the 369-room Marriott Seattle Waterfront for $145 million, aligning with the strategic objective to deleverage the portfolio and focus on luxury hotels.
Group Revenue Growth
The group revenue pace showed a promising increase of 8.6% for 2025 and 3.6% for 2026, with properties like Four Seasons Scottsdale and Ritz-Carlton Sarasota pacing significantly ahead.
Capital Expenditures and ROI Projects
Numerous renovation and value-enhancing projects are underway, with capital expenditures expected between $75 million and $95 million for 2025. Completed projects at Ritz-Carlton Lake Tahoe generated approximately $300,000 in NOI.
Negative Updates
Net Loss Reported
The company reported a net loss attributed to common stockholders of $16 million or $0.24 per diluted share for the quarter.
Renovation Impact
Renovations at Park Hyatt Beaver Creek and Hotel Yountville resulted in temporary headwinds, muting results to some extent.
Government Segment Softness
The government segment showed extreme softness, notably impacting the Capital Hilton in Washington D.C.
Company Guidance
During the second quarter of 2025, Braemar Hotels & Resorts reported a 1.5% increase in comparable RevPAR and a 3.7% increase in total comparable hotel EBITDA, achieving $47.8 million in comparable hotel EBITDA. The luxury resort portfolio saw a RevPAR increase of 1.6% and a significant 6.9% rise in hotel EBITDA, with highlights including a 39% revenue growth at the Ritz-Carlton Lake Tahoe and a 14% increase at the Ritz-Carlton Reserve Dorado Beach. Urban hotels also saw a modest RevPAR growth of 0.5%. The company remains financially robust, having addressed its final 2025 debt maturity and announcing the sale of the Marriott Seattle Waterfront for $145 million. As of the quarter's end, Braemar had $80.2 million in cash with a net debt to gross assets ratio of 44.2%. The group revenue pace is up by 8.6% for 2025 and 3.6% for 2026, reflecting strong group demand.

Braemar Hotels & Resorts Financial Statement Overview

Summary
Braemar Hotels & Resorts exhibits mixed financial health. While EBIT and EBITDA margins show improvement, the company faces profitability challenges with ongoing net losses, high leverage, and negative returns on equity. Strong cash flow management is a positive, though liquidity remains a concern.
Income Statement
62
Positive
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
58
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue728.40M739.34M669.59M427.54M226.97M
Gross Profit153.68M168.47M175.09M92.42M-2.58M
EBITDA135.70M160.03M146.88M73.59M-25.20M
Net Income-1.69M-27.02M17.76M-32.91M-124.68M
Balance Sheet
Total Assets2.14B2.23B2.40B1.88B1.67B
Cash, Cash Equivalents and Short-Term Investments135.47M88.45M261.54M216.00M78.61M
Total Debt1.23B1.22B1.39B1.23B1.19B
Total Liabilities1.87B1.41B1.57B1.36B1.28B
Stockholders Equity240.73M795.07M801.79M504.33M383.21M
Cash Flow
Free Cash Flow66.82M84.64M60.34M38.31M-75.84M
Operating Cash Flow66.82M84.71M109.48M63.95M-50.29M
Investing Cash Flow35.51M-77.07M-402.22M-41.68M-16.54M
Financing Cash Flow-86.73M-156.84M345.06M127.95M49.59M

Braemar Hotels & Resorts Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.20
Price Trends
50DMA
2.40
Negative
100DMA
2.32
Negative
200DMA
2.59
Negative
Market Momentum
MACD
-0.04
Positive
RSI
34.61
Neutral
STOCH
5.85
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 2.2 is below the 20-day moving average (MA) of 2.46, below the 50-day MA of 2.40, and below the 200-day MA of 2.59, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 34.61 is Neutral, neither overbought nor oversold. The STOCH value of 5.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$334.07M118.401.42%4.69%1.75%
69
Neutral
$668.97M42.134.45%6.13%-1.86%
63
Neutral
$6.78B14.59-1.87%7.22%3.95%-36.33%
55
Neutral
$147.50M-0.90%9.09%-2.42%23.64%
54
Neutral
$36.14M9.72%3.82%18.62%
47
Neutral
$37.27M-25.85%-11.83%-4186.83%
41
Neutral
$22.23M-25.86%1.03%-0.89%-702.65%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BHR
Braemar Hotels & Resorts
2.08
-0.80
-27.78%
INN
Summit Hotel Properties
5.03
-0.83
-14.16%
CLDT
Chatham Lodging
6.65
-1.60
-19.39%
AHT
Ashford Hospitality
6.28
-3.52
-35.92%
SOHO
Sotherly Hotels
0.87
-0.38
-30.40%
IHT
InnSuites Hospitality
1.86
0.25
15.53%

Braemar Hotels & Resorts Corporate Events

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.

DividendsBusiness Operations and Strategy
Braemar Hotels Declares Q3 2025 Cash Dividends
Positive
Jul 11, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Braemar Hotels Sells Marriott Seattle Waterfront Hotel
Neutral
Jul 8, 2025

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.

Shareholder Meetings
Braemar Hotels Reschedules 2025 Annual Stockholders Meeting
Neutral
Jul 2, 2025

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.

Executive/Board Changes
Braemar Hotels & Resorts Director Resignation Announced
Neutral
Jun 6, 2025

On June 2, 2025, Mr. Jay H. Shah resigned from the Board of Directors of Braemar Hotels & Resorts Inc., effective immediately. His resignation was not due to any disagreements with the company’s operations, policies, or practices.

Executive/Board ChangesShareholder Meetings
Braemar Hotels Appoints Kellie Sirna to Board
Neutral
May 23, 2025

On April 1, 2025, Braemar Hotels & Resorts appointed Ms. Kellie Sirna to its Board of Directors, and she was later assigned to the Nominating and Corporate Governance Committee on May 22, 2025. Ms. Sirna, an experienced interior designer and entrepreneur, brings significant expertise from her work in the hospitality design sector. Additionally, the Board decided to replace the expired equity incentive plan with an additional cash payment for non-employee directors and announced that the 2025 Annual Meeting will be held on July 30, 2025, with a record date of June 24, 2025.

Business Operations and StrategyFinancial Disclosures
Braemar Hotels Reports Strong Financial Performance
Positive
May 8, 2025

On May 8, 2025, Braemar Hotels & Resorts released an investor presentation detailing its financial performance and strategic positioning. The company reported a substantial increase in Gross Asset Value and EBITDA, highlighting its strong market presence in the luxury hotel sector. The presentation also discussed industry trends, including a forecasted growth in luxury RevPAR and stabilization of ADR at higher levels, indicating a positive outlook for Braemar’s continued success in the competitive lodging market.

Business Operations and StrategyFinancial Disclosures
Braemar Hotels & Resorts Reports Strong Q1 2025 Results
Positive
May 8, 2025

On May 8, 2025, Braemar Hotels & Resorts held an earnings conference call to discuss its first-quarter results, highlighting a 4.2% growth in Comparable RevPAR and a 4.4% increase in Comparable Total Hotel Revenue. The company addressed its final 2025 debt maturity, resulting in a lower cost of capital and an improved maturity schedule. The urban and resort hotels showed strong performance, with the urban portfolio achieving an 11.3% RevPAR growth, partly boosted by the presidential inauguration in Washington, D.C. Braemar also restructured the Sofitel Chicago Magnificent Mile as a franchise, expecting an uplift in property value. The company continues to focus on deleveraging and improving cash flow per share.

DividendsBusiness Operations and StrategyFinancial Disclosures
Braemar Hotels Reports Q1 2025 Financial Results
Neutral
May 7, 2025

Braemar Hotels & Resorts reported its first quarter 2025 financial results, highlighting a 4.2% increase in RevPAR and a 4.5% rise in ADR compared to the previous year. Despite a net loss of $2.5 million, the company achieved an adjusted EBITDAre of $63 million and ended the quarter with $81.7 million in cash. Key operational moves included refinancing five hotels to reduce interest costs and transitioning the Sofitel Chicago Magnificent Mile to a franchise structure, expected to enhance property value. The company also announced a quarterly dividend of $0.05 per share, reflecting a cautious but optimistic outlook on financial performance improvements.

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: Aug 01, 2025