Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Investor Presentation (November 2020)
22 slides from Braemar Hotels & Resorts's investor presentation, Nov 16, 2020
Slide 1: Braemar Hotels & Resorts November 2020
a = BRAEMAR’ November 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 | November 2020 4
Slide 5: 2020 Q3 Hotel Operating Results
2020 Q3 Hotel Operating Results Comparable Hotel Operating Results(1)(4) 2020 Q3 2019 Q3 % Variance ADR $ 301.64 $ 281.86 7.0% Occupancy 26.8% 83.3% (67.8)% RevPAR $ 80.84 $234.81 (65.6)% Total Hotel Revenue(2) $ 44,754 $ 118,918 (62.4)% Hotel EBITDA(2) $ 358 $33,641 (98.9)% Hotel EBITDA Margin 0.8%
Slide 6: 2020 Q3 Highlights and Results
2020 Q3 Highlights and Results Quarter Highlights • Net loss attributable to common stockholders for the quarter was $18.7 million or $0.55 per diluted share. • Comparable RevPAR for all hotels decreased 65.6% to $80.84 during the quarter. • Adjusted funds from operations (AFFO) was negative $0.21 p
Slide 7: High Quality Assets Situated in High Barriers to Entry Leisure and Urban Markets
High Quality Assets Situated in High Barriers to Entry 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 Capit
Slide 8: Portfolio Detail
Portfolio Detail Portfolio Status Q3 2020 Core Assets Location Market Type Number of Rooms Occ% ADR RevPAR Bardessono Napa Valley, CA Drive-to Leisure 65 51.5% $879.12 $452.50 Ritz-Carlton Lake Tahoe Truckee, CA Drive-to Leisure 170 58.8% $457.60 $268.91 Hotel Yountville Napa Valley, CA Drive-to Lei
Slide 9: EBITDA Contribution by Brand and Class
EBITDA Contribution by Brand and Class 2020 Q3 TTM Hotel EBITDA by Brand(1) 2020 Q3 TTM Hotel EBITDA by Class(1) 75% 100% Ritz-Carlton Luxury 50% 80% 50% 80% Independent Park Hyatt 60% 25% Marriott/ 25% 12% Autograph Hilton 10% 10% 40% Upper Upscale 0% 20% 20% Sofitel -8% -25% 0% 2020 Q3 TTM Room Re
Slide 10: Post COVID-19 Recovery Underway
Post COVID-19 Recovery Underway Occupancy and ADR Ramping Up – March 15 to October 24 7-Day Avg Occupancy 100% 80% 60% 49.2% Resort 40% 31.9% Total 20% 19.3% Urban 0% 7-Day Avg. Occ (Resort) 7-Day Avg. Occ (Urban) 7-Day Avg. Occ (TOTAL) 7-Day Avg ADR % Change 30% 20% 10% 2.0% Resort 0% -10% -6.0% To
Slide 11: Reduced New Supply Estimates
Reduced New Supply Estimates DECLINING ESTIMATED GROSS SUPPLY GROWTH(1)(2) PRE-COVID CURRENT As of Feb-2020 As of Oct-2020 NEXT 12 MONTHS +2.3% +1.5% NEXT 13-24 MONTHS +2.0% +1.9% (1) Source: Smith Travel Research (2) Weighted by revenue exposure by market Company Presentation | November 2020 11
Slide 12: Current Liquidity
Current Liquidity(1) CASH POSITION CASH & CASH EQUIVALENTS $88.2M RESTRICTED CASH $34.7M TOTAL CASH $122.9M MONTHLY CASH UTILIZATION 73% 44% PROPERTY CASH CAD AFFO BURN ~$0M PAYOUT RATIO(3) PAYOUT RATIO(1)(3) INTEREST EXPENSE, G&A, AND ADVISORY FEES $5M Company Presentation | November 2020 12 (1) As
Slide 13: Leverage Strategy Well Designed to Handle Pandemic Impact
Leverage Strategy Well Designed to Handle Pandemic Impact Target Leverage Overview Gross Hold 10% of Gross Debt Balance as cash on Assets the balance sheet Non-recourse debt lowers risk profile 45% Floating-rate debt provides a natural hedge to hotel cash flows and maximizes flexibility in all econo
Slide 14: Debt Maturities
Debt Maturities OVERVIEW 2022 2.5% NEXT HARD DEBT WEIGHTED AVG. MATURITY INTEREST RATE(1) Laddered debt maturities(1)(2) 500 400 300 $435.0 200 $371.5 (In millions) 100 $223.5 $0.0 $0.0 (3) $100.0 The Notary Hotel 0 2020 2021 2022 2023 2024 Thereafter Fixed-Rate Floating-Rate (1) As of 09/30/2020 (2
Slide 15: Portfolio Well Positioned for Ramp Up
Portfolio Well Positioned for Ramp Up Strategic 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-Carlton St. The
Slide 16: Highly Aligned Management Team
Highly Aligned Management Team 13.1% Management has significant personal wealth invested in the Company 3.3x Insider ownership 3.1x higher than REIT industry average $13.5M Total dollar value of insider ownership (as of 11/03/2020) 14.0% 13.1% 13.1% 12.9% 12.0% Highly-aligned management team is amon
Slide 17: Key Takeaways
Key Takeaways Conserve Liquidity Manage the Balance Sheet Return to Profitability Grow the Portfolio The Ritz-Carlton Sarasota Sarasota, FL Company Presentation | November 2020 17
Slide 18: Appendix
Appendix
Slide 19: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA In thousands Three Months Ended Three Months Ended Three Months Ended Three Months Ended TTM Ended September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2020 Net income (loss) $ (10,815) $ (38,076) $ (1,459) $ 3
Slide 20: 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 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2020 Net income (loss) $ (23,057) $ (56,105) $ (15,
Slide 21: Reconciliation of Net Income (Loss) to Adjusted FFO
Reconciliation of Net Income (Loss) to Adjusted FFO In thousands Three Months Ended Three Months Ended Three Months Ended Three Months Ended TTM Ended September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2020 Net income (loss) $ (23,057) $ (56,105) $ (15,387) $ 17,095 $ (7
Slide 22: Indebtedness
Indebtedness In thousands (1) LIBOR rates were 0.148% and 1.763% at September 30, 2020 and December 31, 2019, respectively. (2) Base Rate, as defined in the secured term loan agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1
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