Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Investor Presentation (June 2020)
18 slides from Braemar Hotels & Resorts's investor presentation, Jun 2, 2020
Slide 1: Braemar Hotels & Resorts June 2020
BRAEMAR June 2020 HOTELS & RESORTS
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures In keeping with the SEC's "Safe Harbor" guidelines, certain statements made during this presentation could be considered forward-looking and subject to certain risks and uncertainties that could cause results to differ materially from those projected.
Slide 3: Management Team
Management Team RICHARD J. STOCKTON DERIC S. EUBANKS, CFA JEREMY J. WELTER Chief Executive Officer & Chief Financial Officer Chief Operating Officer President . 23 years of hospitality . 20 years of hospitality . 15 years of hospitality experience experience experience . 4 years with the Company . 1
Slide 4: Post COVID-19 Strategic Initiatives
Post COVID-19 Strategic Initiatives Conserve Liquidity Manage the Balance Sheet Return to Profitability Grow the Portfolio The Ritz-Carlton Sarasota Sarasota, FL Company Presentation // June 2020 4
Slide 5: 2020 Q1 Hotel Operating Results
2020 Q1 Hotel Operating Results Comparable Hotel Operating Results(1)(4) 2020 Q1 2019 Q1 % Variance ADR $ 345.88 $ 321.54 7.6% Occupancy 59.8% 75.5% (20.8)% RevPAR $ 206.90 $ 242.75 (14.8)% Total Hotel Revenue(2) $ 116,731 $ 130,697 (10.7)% Hotel EBITDA(2) $ 26,861 $40,283 (33.3)% Hotel EBITDA Margi
Slide 6: 2020 Q1 Highlights and Results
2020 Q1 Highlights and Results Quarter Highlights • Net loss attributable to common stockholders for the quarter was $15.5 million or $0.48 per diluted share. • Comparable RevPAR for all hotels decreased 14.8% to $206.90 during the quarter. • Adjusted funds from operations (AFFO) was $0.12 per dilut
Slide 7: High Quality Assets Situated in High Barrier Leisure and Urban Markets
High Quality Assets Situated in High Barrier Leisure and Urban Markets Hotel Yountville The Ritz-Carlton Lake Tahoe Marriott Seattle Waterfront Sofitel Chicago Magnificent Mile The Notary Hotel Yountville, CA Truckee, CA Seattle, WA Chicago, IL Philadelphia, PA Bardessono Hotel & Spa Capital Hilton
Slide 8: Portfolio Detail
Portfolio Detail Portfolio Status Number of Planned Core Assets Location Market Type Rooms Re-Opening(2) Bardessono Napa Valley, CA Drive-to Leisure 65 Jun-08 Hotel Yountville Napa Valley, CA Drive-to Leisure 80 Jun-08 Ritz-Carlton St. Thomas St. Thomas, USVI Fly-to Leisure 180 Jun-15 Pier House Key
Slide 9: EBITDA Contribution by Brand and Class
EBITDA Contribution by Brand and Class 2020 Q1 TTM Hotel EBITDA by Brand(1) 2020 Q1 TTM Hotel EBITDA by Class(1) 0% 0% 5% 7% 23% 10% 47% 53% 17% 21% 17% Ritz-Carlton Hilton Autograph Independent Luxury Upper Upscale Marriott Park Hyatt Sofitel 2020 Q1 TTM Room Revenue(1) 1% 24% 75% Group Transient C
Slide 10: Current Liquidity
Current Liquidity(1) CASH POSITION CASH & CASH EQUIVALENTS $142M RESTRICTED CASH $45M TOTAL CASH $187M MONTHLY CASH UTILIZATION SUSPENDED HOTEL 73% 44% OPERATIONS $10M CAD AFFO PAYOUT RATIO(3) PAYOUT RATIO(1)(3) INTEREST EXPENSE $3M G&A /ADVISORY FEES $1.3M Company Presentation // June 2020 10 (1) A
Slide 11: Conservative Capital Structure
Conservative Capital Structure Prudent Use of Debt Target Leverage Overview Gross Assets Non-recourse debt lowers risk profile Floating-rate debt provides a natural hedge to hotel cash flows and maximizes flexibility 45% in all economic environments Proactive strategy to opportunistically Net Debt r
Slide 12: Debt Maturities
Debt Maturities OVERVIEW 2022 1.5x 3.3% NEXT HARD DEBT WEIGHTED AVG. FCCR(1) MATURITY INTEREST RATE(1) Laddered debt maturities(1)(2) 500 400 300 200 $446.5 $435.0 100 $0.5 $159.5 (In millions)(In $98.5 0 $0.0 The Notary Hotel Fixed-Rate Floating-Rate (1) As of 03/31/2020 (2) Assumes extension optio
Slide 13: Portfolio Well Positioned for Ramp Up
Portfolio Well Positioned for Ramp Up Strategic 2018/2019 Initiatives Position Braemar for Ramp Up in 2021 Beach Improvement Villa Construction Completed 2019 Completed 2019 Ritz-Carlton Sarasota Bardessono Hotel & Spa Autograph Conversion Hurricane Recovery Completed 2019 Completed 2019 Ritz-Carlto
Slide 14: Highly Aligned Management Team
Highly Aligned Management Team 14.5% Management has significant personal wealth invested in the Company 3.3x Insider ownership 3.4x higher than REIT industry average $19M Total dollar value of insider ownership (as of 5/29/2020) 20.0% 18.2% 18.0% Highly-aligned management team is among 16.0% highest
Slide 15: Key Takeaways
Key Takeaways Conserve Liquidity Manage the Balance Sheet Return to Profitability Grow the Portfolio The Ritz-Carlton Sarasota Sarasota, FL Company Presentation // June 2020 15
Slide 16: Appendix
Appendix
Slide 17: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA In thousands except room and per room data Three Months Ended Three Months Ended Three Months Ended Three Months Ended TTM Ended March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2020 Net income (loss) $ (2,046)
Slide 18: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre In thousands Three Months Ended Three Months Ended Three Months Ended Three Months Ended TTM Ended March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2020 Net income (loss) $ (15,387) $ 17,095 $ (8,954) $
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