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Braemar Hotels & Resorts Inc (BHR)
NYSE:BHR

Braemar Hotels & Resorts (BHR) AI Stock Analysis

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Braemar Hotels & Resorts

(NYSE:BHR)

Rating:74Outperform
Price Target:
$3.00
▲(18.58%Upside)
Braemar Hotels & Resorts scores well due to strong financial recovery, positive technical indicators, and an optimistic earnings call. Despite challenges with valuation due to negative net income, the high dividend yield and strategic initiatives provide a solid investment outlook.

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:May 07, 2025
(Q1-2025)
|
% Change Since: 34.57%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with record RevPAR growth, strong urban hotel performance, successful debt management, and significant asset management initiatives. However, the company faced challenges such as a net loss for the quarter and minor impacts from wildfires and international travel declines.
Q1-2025 Updates
Positive Updates
Record Quarterly RevPAR and Revenue Growth
Braemar Hotels & Resorts achieved a record quarterly RevPAR of $404, marking a 4.2% increase over the prior year. Total hotel revenue also increased by 4.4%.
Strong Performance in Urban Hotels
Urban hotels showed a notable RevPAR growth of 11.3%, with the Capital Hilton benefiting from the presidential inauguration, leading to a 19.3% year-over-year RevPAR growth.
Successful Debt Management
The company addressed its final 2025 debt maturity, reducing the cost of capital and improving the maturity schedule.
Asset Management and CapEx Initiatives
Significant capital expenditures are planned to enhance hotel offerings, including renovations at Hotel Yountville and Park Hyatt Beaver Creek, and new luxury cabanas at Ritz-Carlton St. Thomas.
Strong Group Revenue Growth
First quarter group revenue increased by 31% compared to the prior year, driven by strategic sales initiatives and major citywide events.
Negative Updates
Net Loss for the Quarter
Braemar Hotels & Resorts reported a net loss attributable to common stockholders of $2.5 million or $0.04 per diluted share.
Impact of California Wildfires
The California wildfires disrupted the Los Angeles market, affecting the Cameo Beverly Hills hotel with displacement in group room revenue.
Challenges with International Inbound Travel
International inbound travel remains a small part of the portfolio, with some markets experiencing minor declines in international arrivals.
Company Guidance
During the Braemar Hotels & Resorts First Quarter 2025 Results Conference Call, the company provided several key metrics reflecting its financial and operational performance. The portfolio achieved a notable 4.2% growth in comparable RevPAR, reaching a record high of $404. The overall comparable total hotel revenue increased by 4.4%, and the comparable hotel EBITDA rose by 5.3% to $70.8 million compared to the same quarter in the previous year. Resort destinations, comprising 9 out of the 15 hotels, reported a RevPAR of $800, up by 1.9%, while urban hotels posted an 11.3% growth in comparable RevPAR. The company also successfully extended its mortgage loan for the Ritz-Carlton Lake Tahoe and refinanced loans for five hotels with a new $363 million loan, improving its maturity schedule and reducing the cost of capital. Additionally, group room revenue pace for 2025 is up by 7%, with 2026 showing a further increase of 10%, indicating strong forward-looking booking trends.

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. However, challenges in net profit margins and fluctuating return on equity could impact long-term sustainability.
Income Statement
75
Positive
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
60
Neutral
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue725.14M728.40M739.34M669.59M427.54M226.97M
Gross Profit226.05M153.68M168.47M175.09M92.42M-2.58M
EBITDA160.50M135.70M160.03M146.88M73.59M-25.20M
Net Income-6.62M-1.69M-27.02M17.76M-32.91M-124.68M
Balance Sheet
Total Assets2.10B2.14B2.23B2.40B1.88B1.67B
Cash, Cash Equivalents and Short-Term Investments81.69M135.47M88.45M261.54M216.00M78.61M
Total Debt0.001.23B1.22B1.39B1.23B1.19B
Total Liabilities1.40B1.87B1.41B1.57B1.36B1.28B
Stockholders Equity238.91M240.73M795.07M801.79M504.33M383.21M
Cash Flow
Free Cash Flow69.26M66.82M84.64M60.34M38.31M-75.84M
Operating Cash Flow45.92M66.82M84.71M109.48M63.95M-50.29M
Investing Cash Flow44.13M35.51M-77.07M-402.22M-41.68M-16.54M
Financing Cash Flow-173.25M-86.73M-156.84M345.06M127.95M49.59M

Braemar Hotels & Resorts Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.53
Price Trends
50DMA
2.23
Positive
100DMA
2.35
Positive
200DMA
2.64
Negative
Market Momentum
MACD
0.07
Positive
RSI
57.74
Neutral
STOCH
41.39
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 2.53 is above the 20-day moving average (MA) of 2.49, above the 50-day MA of 2.23, and below the 200-day MA of 2.64, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 41.39 is Neutral, 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 (79)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€6.85B7.9111.14%4.16%9.26%22.16%
BHBHR
74
Outperform
$167.62M-0.90%8.00%-2.42%23.64%
70
Neutral
$346.81M122.921.42%5.08%1.75%
ININN
65
Neutral
$681.78M42.944.45%6.01%-1.86%
59
Neutral
$38.17M9.72%3.82%18.62%
IHIHT
49
Neutral
$25.92M-25.86%0.92%-0.89%-702.65%
AHAHT
48
Neutral
$37.68M-25.85%-14.65%-55.62%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BHR
Braemar Hotels & Resorts
2.53
-0.22
-8.00%
INN
Summit Hotel Properties
5.46
-0.02
-0.36%
CLDT
Chatham Lodging
7.22
-0.90
-11.08%
AHT
Ashford Hospitality
7.05
-3.15
-30.88%
SOHO
Sotherly Hotels
0.87
-0.24
-21.62%
IHT
InnSuites Hospitality
2.17
0.51
30.72%

Braemar Hotels & Resorts Corporate Events

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.

Dividends
Braemar Hotels & Resorts Declares Q2 2025 Dividends
Positive
Apr 10, 2025

On April 10, 2025, Braemar Hotels & Resorts announced that its Board of Directors declared various cash dividends for the second quarter of 2025. These dividends include a quarterly cash dividend of $0.05 per diluted share for common stock, and quarterly dividends for Series B and Series D Cumulative Convertible Preferred Stocks, as well as monthly dividends for Series E and Series M Redeemable Preferred Stocks. These payments are scheduled for May, June, and July 2025, impacting shareholders of record as of specific dates. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor confidence and market positioning.

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: Jun 19, 2025