Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Investor Presentation (January 2022)
37 slides from Braemar Hotels & Resorts's investor presentation, Jan 19, 2022
Slide 1: Braemar Hotels & Resorts January 2022
ce BRAEMAR January 2022 HOTELS & RESORTS
Slide 2: Forward Looking Statements and Non-GAAP Measures
Company Presentation | January 2022 2 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 d
Slide 3: Experienced Management Team
Company Presentation | January 2022 3 Experienced Management Team 24 years of hospitality experience 5 years with the Company 15 years with Morgan Stanley Cornell School of Hotel Administration BS University of Pennsylvania MBA RICHARD J. STOCKTON Chief Executive Officer & President 21 y
Slide 4: BHR Positioned Ideally For Potential Rapid Recovery
Company Presentation | January 2022 4 BHR Positioned Ideally For Potential Rapid Recovery Market Outlook: Recovery Favors Luxury Resorts Attractive Portfolio Composition Recent Results & Developments Balance Sheet Strategy Ritz-Carlton Sarasota
Slide 5: Market Outlook: Recovery Favors Luxury Resort Assets
Market Outlook Recovery Favors Luxury Resort Assets
Slide 6: Industry RevPAR Expected to Exceed 2019 by 2023
Company Presentation | January 2022 6 Industry RevPAR Expected to Exceed 2019 by 2023 Source: STR U.S. KPIs, Indexed to 2019 87.4 99.7 105.1 108.6 110.4 0 20 40 60 80 100 120 2021 2022 2023 2024 2025 Demand Index 94.1 99.6 105.0 108.5 111.7 0 20 40 60 80 100 120 2021 2022 2023 2024 2025 ADR Index 81
Slide 7: Luxury Assets and Resorts Recovering Rapidly
Company Presentation | January 2022 7 Luxury Assets and Resorts Recovering Rapidly Source: CBRE October 2021 42% 50% 67% 80% 91% 107% 117% 99% 100% 0% 20% 40% 60% 80% 100% 120% 140% Resort 24% 31% 40% 42% 48% 58% 73% 64% 61% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Luxury RevPAR as a % of 2019
Slide 8: Attractive Portfolio Composition
Attractive Portfolio Composition Taking Advantage of Strategic Asset Class
Slide 9: High Quality Assets with High Barriers to Entry
Company Presentation | January 2022 9 The Ritz-Carlton Lake Tahoe Truckee, CA Hotel Yountville Yountville, CA Marriott Seattle Waterfront Seattle, WA Sofitel Chicago Magnificent Mile Chicago, IL The Notary Hotel Philadelphia, PA Bardessono Hotel & Spa Yountville, CA The Clancy San Francisco, CA Hilt
Slide 10: Braemar Tops the TripAdvisor Rating List
Company Presentation | January 2022 10 (1) Source: TripAdvisor, Raymond James Research (2) Room count-weighted average TripAdvisor Ratings by Lodging REIT(1) Braemar Tops the TripAdvisor Rating List TripAdvisor Rating by Company – February 2021 84%
Slide 11: Resort Exposure Lifts Performance: Occupancy & ADR
Company Presentation | January 2022 11 Resort Exposure Lifts Performance Occupancy & ADR Ramping Up – 03/1/20 to 12/21/21 Resort: Bardessono, Hotel Yountville, Ritz-Carlton St. Thomas, Pier House, Hilton Torrey Pines, Park Hyatt Beaver Creek, Ritz-Carlton Lake Tahoe and Ritz-Carlton Sarasota Urban:
Slide 12: Resort Exposure Lifts Performance: RevPAR
Company Presentation | January 2022 12 RevPAR Ramping Up – 03/1/20 to 12/21/21 Resort: Bardessono, Hotel Yountville, Ritz-Carlton St. Thomas, Pier House, Hilton Torrey Pines, Park Hyatt Beaver Creek, Ritz-Carlton Lake Tahoe and Ritz-Carlton Sarasota Urban: The Clancy, The Notary Hotel, Marriott Seat
Slide 13: Q3 2021 Core Assets
Company Presentation | January 2022 13 Q3 2021 Core Assets Location Market Type Number of Rooms Occ% ADR RevPAR Hotel EBITDA Ritz-Carlton St. Thomas St. Thomas, USVI Resort 180 77% $965 $745 $5,271 Pier House Key West, FL Resort 142 77% $574 $441 $3,915 Ritz-Carlton Sarasota Sarasota, FL Resort 266
Slide 14: Luxury Hotels Drive Q3 TTM Hotel EBITDA
Company Presentation | January 2022 14 Ritz Carlton Drives Q3 TTM Hotel EBITDA(1) Luxury Hotels Drive Q3 TTM Hotel EBITDA(1) (1) Comparable TTM as of 9/30/2021, see appendix for a reconciliation of TTM hotel net income (loss) to hotel TTM EBITDA; In thousands. High Transient Demand Drives Q3 Revenue
Slide 15: Strong Asset Class and Strategic Market Exposure
Company Presentation | January 2022 15 Strong Asset Class and Strategic Market Exposure Position Portfolio for Potential Rapid Recovery Ritz-Carlton Lake Tahoe $- $50 $100 $150 $200 $250 $300 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 Quarterly RevPAR $(2
Slide 16: Highest EBITDA Per Room & RevPAR
Company Presentation | January 2022 16 Highest EBITDA Per Room & RevPAR $38 $37 $30 $30 $28 $27 $27 $23 $20 $19 $17 $15 $10 $15 $20 $25 $30 $35 $40 BHR PEB SHO XHR DRH HST PK HT RLJ INN CLDT APLE 2019 EBITDA Per Room (In thousands) $233 $211 $196 $189 $188 $184 $183 $171 $145 $134 $128 $106 $70 $100
Slide 17: Recent Results & Developments
Recent Results & Developments Solid Q3 Results Signals Potential For Sharp Recovery
Slide 18: Comparable Hotel Operating Results
Company Presentation | January 2022 18 Comparable Hotel Operating Results(1)(4) 2021 Q3 2020 Q3 2019 Q3 % Variance 2020 % Variance 2019 ADR $ 360.94 $ 310.36 $283.61 18.5% 27.3% Occupancy 61.7% 26.8% 83.1% 129.9% (25.8)% RevPAR $ 222.52 $ 83.15 $235.60 172.5% (5.6)% Total Hotel Revenue(2) $ 118,254
Slide 19: Quarter and Full Year Highlights
Company Presentation | January 2022 19 AFFO PER SHARE RECOVERING STRONGLYADJUSTED EBITDARE RECOVERING STRONGLY Quarter Highlights Full Year Highlights $111.1 $119.3 $121.5 $(4.5) $58.1 $(20) $- $20 $40 $60 $80 $100 $120 $140 2017 2018 2019 2020 2021 YTD (In m ill io n s) $0.46 $0.46 $0.44 $0.12 $0.2
Slide 20: 2021 Q4 RevPAR Exceeds 2019
Company Presentation | January 2022 20 61%OCCUPANCY $393ADR $240REVPAR Q4 2021 (1) Comparable Hotel Operating Results • RevPAR above 2019 levels • Resort properties continue to capitalize on strong leisure demand • Urban properties continue to recover Highlights 7%VS. 2019 163%VS. 2020 RevPAR Growth
Slide 21: Transaction Overview: Dorado Beach, A Ritz-Carlton Reserve
Company Presentation | January 2022 21 TRANSACTION OVERVIEW • 6.0M shares of BHR common stock, $54M of mortgage debt, and $104M cash (funded from avaialable excess cash) • Hotel acquisition price of $186.6M(1), a 10.2x 2021F EBITDA Multiple • Expected to close on or prior to February 1, 2022 • The t
Slide 22: Balance Sheet Strategy
Balance Sheet Strategy Maintain Liquidity, Monitor Leverage, Navigate Recovery
Slide 23: Current Liquidity is Sufficient for Growth
Company Presentation | January 2022 23 Current Liquidity is Sufficient for Growth(1) $195.5MCASH & CASH EQUIVALENTS $44.7MRESTRICTED CASH 73% CAD PAYOUT RATIO(3) 44% AFFO PAYOUT RATIO(1)(3) TOTAL CASH $260.6M CASH POSITION (1) As of 9/30/21 (2) Q3 2021 YTD (3) Excludes amortization payments $58.1MAD
Slide 24: Conservative Leverage Strategy
Company Presentation | January 2022 24 Floating-rate debt provides a natural hedge to hotel cash flows and increases flexibility in various economic environments Long-standing lender relationships Proactive strategy to opportunistically refinance loans and extend maturities Overview Conservative Lev
Slide 25: No Significant Near-Term Debt Maturities
Company Presentation | January 2022 25 Laddered debt maturities(1)(2) No Significant Near-Term Debt Maturities 2022 NEXT HARD DEBT MATURITY OVERVIEW (1) As of 9/30/2021 (2) Assumes extension options are exercised. There can be no guaranty that extension options are exercisable on or before maturity.
Slide 26: Highly Aligned Management Team
Company Presentation | January 2022 26 Highly Aligned Management Team Management has significant personal wealth invested in the Company9.1% Insider ownership 2.4x higher than public lodging REIT industry average2.4x Total dollar value of insider ownership (as of 11/1/2021)$35.5M REIT Avg includes:
Slide 27: Key Takeaways
Company Presentation | January 2022 27 Key Takeaways Market Outlook: Recovery Favors Luxury Resorts Attractive Portfolio Composition Focus on Growth Solid Balance Sheet and Liquidity Ritz-Carlton Sarasota
Slide 28: Appendix
Appendix
Slide 29: Indebtedness
Company Presentation | January 2022 29 Indebtedness
Slide 30: Indebtedness
Company Presentation | January 2022 30 Indebtedness (1) This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the third was exercised in April 2021. (2) This mortgage loan has five one-year extension options subject to satisfaction of certain
Slide 31: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Company Presentation | January 2022 31 Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA 2019 2019 2019 2019 December 31, 2019 4th Q uarter 3rd Q uarter 2nd Quarter 1st Q uarter TTM Net income (loss) 31,806$ 9,410$ 12,828$ 16,800$ 70,844$ Non-property adjustments (26,320) 1,441 (9) — (2
Slide 32: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel
Company Presentation | January 2022 32 Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel In thousands
Slide 33: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Company Presentation | January 2022 33 Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre In thousands
Slide 34: Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Company Presentation | January 2022 34 Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Slide 35: Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Company Presentation | January 2022 35 Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Slide 36: Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Company Presentation | January 2022 36 Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Slide 37: Reconciliation of Net Income (Loss) to Adjusted FFO Q1
Company Presentation | January 2022 37 Reconciliation of Net Income (Loss) to Adjusted FFO Q1
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