Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Investor Presentation (December 2021)
36 slides from Braemar Hotels & Resorts's investor presentation, Dec 9, 2021
Slide 1: Braemar Hotels & Resorts December 2021
BR AEM AR December 2021 HOTELS & RESORTS
Slide 2: Forward Looking Statements and Non-GAAP Measures
Company Presentation | December 2021 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
Slide 3: Management Team
Company Presentation | December 2021 3 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 years of hos
Slide 4: BHR Market Position and Strategy Signal Potential For Sharp Recovery
Company Presentation | December 2021 4 BHR Market Position and Strategy Signal Potential For Sharp Recovery Market Outlook: Recovery Favors Luxury Resorts Ideal 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: Smith Travel Research Forecast
Company Presentation | December 2021 6 Smith Travel Research Forecast 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 81.5 95.6 105.0 11
Slide 7: Luxury Asset Class and Resorts Recovering Rapidly
Company Presentation | December 2021 7 Luxury Asset Class 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 2
Slide 8: BHR Portfolio Taking Advantage of Strategic Asset Class
BHR Portfolio Taking Advantage of Strategic Asset Class
Slide 9: High Quality Assets Situated in High Barrier to Entry Markets
Company Presentation | December 2021 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 Hil
Slide 10: TripAdvisor Ratings by Lodging REIT
Company Presentation | December 2021 10 (1) Source: TripAdvisor, Raymond James Research (2) Room count-weighted average TripAdvisor Ratings by Lodging REIT(1) AVG ROOMS TOTAL TRIPADVISOR REVIEWS PER AVG TRIPADVISOR COMPANY (SYMBOL) HOTELS ROOMS PER HOTEL REVIEWS ROOM HOTEL RATING(2) Braemar (BHR) 13
Slide 11: Portfolio Resort Exposure Lifts Performance: Occupancy & ADR
Company Presentation | December 2021 11 Portfolio Resort Exposure Lifts Performance Occupancy & ADR Ramping Up – 03/1/20 to 11/27/21 Resort: Bardessono, Hotel Yountville, Ritz-Carlton St. Thomas, Pier House, Hilton Torrey Pines, Park Hyatt Beaver Creek, Ritz-Carlton Lake Tahoe and Ritz-Carlton Saras
Slide 12: RevPAR Ramping Up
Company Presentation | December 2021 12 RevPAR Ramping Up – 03/1/20 to 11/27/21 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 Sea
Slide 13: Q3 2021 Core Assets
Company Presentation | December 2021 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: EBITDA By Brand, Class, and Market
Company Presentation | December 2021 14 EBITDA By Brand, Class, and Market 2021 Q3 TTM Hotel EBITDA by Brand(1) 2021 Q3 TTM Hotel EBITDA by Class(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. 2021 Q3 Room Re
Slide 15: Strong Asset Class and Strategic Market Exposure Position Portfolio for Recovery
Company Presentation | December 2021 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 $(
Slide 16: Highest EBITDA Per Room & RevPAR
Company Presentation | December 2021 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 $10
Slide 17: Recent Results & Developments
Recent Results & Developments Solid Q3 Results Signals Potential For Sharp Recovery
Slide 18: 2021 Q3 Hotel Operating Results
Company Presentation | December 2021 18 2021 Q3 Hotel Operating Results 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)%
Slide 19: 2021 Q3 Highlights and Results
Company Presentation | December 2021 19 2021 Q3 Highlights and Results AFFO PER SHAREADJUSTED EBITDARE 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 (I n m ill io n s) $0.46 $0.46 $0.44 $0.12 $0.20 $0.50
Slide 20: November 2021 Update on Recent Operating Performance
Company Presentation | December 2021 20 60.8%OCCUPANCY $348ADR $212REVPAR November 2021 Update on Recent Operating Performance (1) Comparable Hotel Operating Results • RevPAR above 2019 levels • Resort properties continue to capitalize on strong leisure demand • Urban properties continue to recover
Slide 21: Recent Developments: Mr. C Beverly Hills Hotel
Company Presentation | December 2021 21 Recent Developments: Mr. C Beverly Hills Hotel TRANSACTION OVERVIEW • 2.5M OP units in BHR, warrants for 500k shares of common stock at a $6.00 strike price, $30M of mortgage debt, and $30.0M cash (the majority of which is used to pay down existing debt) • Hot
Slide 22: Balance Sheet Strategy
Balance Sheet Strategy Maintain Liquidity, Monitor Leverage, Navigate Recovery
Slide 23: Current Liquidity
Company Presentation | December 2021 23 Current Liquidity(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 $58.1MADJ. EBITDARE POSITIVE OPE
Slide 24: Leverage Strategy Well Designed to Handle Pandemic Impact
Company Presentation | December 2021 24 Floating-rate debt provides a natural hedge to hotel cash flows and maximizes flexibility in all economic environments Long-standing lender relationships Proactive strategy to opportunistically refinance loans and extend maturities Overview Leverage Strategy W
Slide 25: Laddered Debt Maturities
Company Presentation | December 2021 25 Laddered debt maturities(1)(2) 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. In the event one or mor
Slide 26: Highly Aligned Management Team
Company Presentation | December 2021 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)$35.5M REIT Avg includes:
Slide 27: Key Takeaways
Company Presentation | December 2021 27 Key Takeaways Market Outlook: Recovery Favors Luxury Resorts Ideal Portfolio Composition Focus on Growth Solid Balance Sheet and Liquidity Ritz-Carlton Sarasota
Slide 28: Appendix
Appendix
Slide 29: Indebtedness
Company Presentation | December 2021 29 Indebtedness
Slide 30: Indebtedness
Company Presentation | December 2021 30 Indebtedness (1) This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the third was exercised in April 2021. (2) This mortgage loan has five one-year extension options subject to satisfaction of certai
Slide 31: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Company Presentation | December 2021 31 Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA In thousands 2019 2019 2019 2019 December 31, 2019 4th Q uarter 3rd Q uarter 2nd Q uarter 1st Q uarter TTM Net income (loss) 31,806$ 9,410$ 12,828$ 16,800$ 70,844$ Non-property adjustments (26,320)
Slide 32: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Company Presentation | December 2021 32 Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre In thousands
Slide 33: Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Company Presentation | December 2021 33 Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Slide 34: Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Company Presentation | December 2021 34 Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Slide 35: Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Company Presentation | December 2021 35 Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Slide 36: Reconciliation of Net Income (Loss) to Adjusted FFO Q1
Company Presentation | December 2021 36 Reconciliation of Net Income (Loss) to Adjusted FFO Q1
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