Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Investor Presentation (June 2021)
36 slides from Braemar Hotels & Resorts's investor presentation, Jun 10, 2021
Slide 1: Braemar Hotels & Resorts June 2021
pee a BRAEMAR June 2021 HOTELS & RESORTS
Slide 2: Forward Looking Statements and Non-GAAP Measures
Company Presentation | June 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 diff
Slide 3: Management Team
Company Presentation | June 2021 3 Management Team .. 23 years of hospitality experience .. 4 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 .. 20 years of h
Slide 4: BHR Market Position and Strategy Signal Sharp Recovery
Company Presentation | June 2021 4 BHR Market Position and Strategy Signal Sharp Recovery Market Outlook: Recovery Favors Luxury Resorts BHR Portfolio: Taking Advantage of Strategic Asset Class 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: Luxury Asset Class Recovering Rapidly
Company Presentation | June 2021 6 Luxury Asset Class Recovering Rapidly 7 of BHR’s 13 properties are Luxury Assets
Slide 7: Resort Markets Outperforming
Company Presentation | June 2021 7 Resort Markets Outperforming 8 of BHR’s 13 properties are Resort destinations Source: B. Riley Securities and STR, a Costar Company
Slide 8: BHR Portfolio Taking Advantage of Strategic Asset Class
BHR Portfolio Taking Advantage of Strategic Asset Class
Slide 9: High Quality Assets in High Barrier to Entry Markets
Company Presentation | June 2021 9 Pier House Resort Key West, FL 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 C
Slide 10: TripAdvisor Ratings by Lodging REIT
Company Presentation | June 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 3,7
Slide 11: Portfolio Resort Exposure Lifts Performance: Occupancy and ADR
Company Presentation | June 2021 11 Portfolio Resort Exposure Lifts Performance Occupancy and ADR Ramping Up – 03/1/20 to 04/24/21 Resort: Bardessono, Hotel Yountville, Ritz-Carlton St. Thomas, Pier House, Hilton Torrey Pines, Park Hyatt Beaver Creek, Ritz-Carlton Lake Tahoe and Ritz-Carlton Sarasot
Slide 12: Rolling 7-Day RevPAR
Company Presentation | June 2021 12 Rolling 7-Day RevPAR – 03/1/20 to 04/24/21 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: Portfolio Q1 2021 Performance
Company Presentation | June 2021 13 Portfolio Q1 2021 Performance Hilton Torrey Pines (1) In thousands Q1 2021 Core Assets Location Market Type Number of Rooms Occ% ADR RevPAR Hotel EBITDA Ritz-Carlton St. Thomas St. Thomas, USVI Resort 180 78.6% $1,040.97 $818.31 $7,505 Ritz-Carlton Sarasota Saraso
Slide 14: EBITDA By Brand, Class, and Market
Company Presentation | June 2021 14 EBITDA By Brand, Class, and Market 2021 Q1 TTM Hotel EBITDA by Brand(1) 2021 Q1 TTM Hotel EBITDA by Class(1) (1) Comparable TTM as of 3/31/2021, see appendix for a reconciliation of TTM hotel net income (loss) to hotel TTM EBITDA; In thousands. 2021 Q1 TTM Room Re
Slide 15: Portfolio Positioned for Potential Rapid Recovery
Company Presentation | June 2021 15 Strong Asset Class and Strategic Market Exposure Position Portfolio for Potential Rapid Recovery ($20,000) ($10,000) $0 $10,000 $20,000 $30,000 $40,000 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 Quarterly EBITDA (In Thousands) $0 $50 $100 $150 $200 $250 2019
Slide 16: Highest EBITDA Per Room & RevPAR
Company Presentation | June 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 $233 $211 $196 $189 $188 $184 $183 $171 $145 $134 $128 $106 $70 $100 $130 $160 $190 $2
Slide 17: Recent Results & Developments
Recent Results & Developments Solid Q1 Results Signals Sharp Recovery
Slide 18: 2021 Q1 Hotel Operating Results
Company Presentation | June 2021 18 2021 Q1 Hotel Operating Results Comparable Hotel Operating Results(1)(4)(5) 2021 Q1 2020 Q1 % Variance ADR $ 433.43 $ 345.88 25.3% Occupancy 36.9% 59.8% (38.3)% RevPAR $ 159.97 $ 206.90 (22.7)% Total Hotel Revenue(2) $ 83,848 $ 117,382 (28.6)% Hotel EBITDA(2) $ 20
Slide 19: 2021 Q1 Highlights and Results
Company Presentation | June 2021 19 2021 Q1 Highlights and Results AFFO PER SHARE ADJUSTED EBITDARE Quarter Highlights Full Year Highlights • Net loss attributable to common stockholders for the quarter was $11.2 million or $0.28 per diluted share. • Comparable RevPAR for all hotels decreased 22.7%
Slide 20: Recent Developments: Mr. C Beverly Hills
Company Presentation | June 2021 20 Recent Developments: Mr. C Beverly Hills 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) • Hotel acquisi
Slide 21: Balance Sheet Strategy
Balance Sheet Strategy Maintain Liquidity, Monitor Leverage, Navigate Recovery
Slide 22: Current Liquidity
Company Presentation | June 2021 22 Current Liquidity(1) $85.7M CASH & CASH EQUIVALENTS $39.3M RESTRICTED CASH 73% CAD PAYOUT RATIO(3) 44% AFFO PAYOUT RATIO(1)(3) TOTAL CASH $143.6M CASH POSITION (1) As of 3/31/21 (2) Q1 2021 $16.6M ADJ. EBITDARE ($6.0M) INTEREST EXPENSE POSITIVE OPERATING CASH FLOW
Slide 23: Well Designed to Handle Pandemic Impact
Company Presentation | June 2021 23 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 Well
Slide 24: Laddered Debt Maturities
Company Presentation | June 2021 24 Laddered debt maturities(1)(2)(3) Debt Maturities 2022 NEXT HARD DEBT MATURITY OVERVIEW (1) As of 3/31/2021 (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 more
Slide 25: Highly Aligned Management Team
Company Presentation | June 2021 25 Highly Aligned Management Team Management has significant personal wealth invested in the Company 11.0% Insider ownership 2.9x higher than public lodging REIT industry average 2.9x Total dollar value of insider ownership (as of 05/28/2020) $32.4M REIT Avg includes
Slide 26: Key Takeaways
Company Presentation | June 2021 26 Key Takeaways Market Outlook: Recovery Favors Luxury Resorts BHR Portfolio: Taking Advantage of Strategic Asset Class Recent Results & Developments Balance Sheet Strategy Ritz-Carlton Sarasota
Slide 27: Appendix
Appendix
Slide 28: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Company Presentation | June 2021 28 Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA In thousands
Slide 29: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Company Presentation | June 2021 29 Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre In thousands
Slide 30: Reconciliation of Net Income (Loss) to Adjusted FFO
Company Presentation | June 2021 30 Reconciliation of Net Income (Loss) to Adjusted FFO In thousands
Slide 31: Indebtedness
Company Presentation | June 2021 31 Indebtedness In thousands (1) This mortgage loan has five one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in June 2020. This mortgage loan is secured by the Chicago Sofitel Magnificent Mile, The Clancy, Se
Slide 32: Indebtedness
Company Presentation | June 2021 32 Indebtedness In thousands (1) This mortgage loan is secured by the Chicago Sofitel Magnificent Mile, The Clancy, Seattle Marriott Waterfront and The Notary Hotel.
Slide 33: Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Company Presentation | June 2021 33 Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Slide 34: Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Company Presentation | June 2021 34 Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Slide 35: Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Company Presentation | June 2021 35 Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Slide 36: Reconciliation of Net Income (Loss) to Adjusted FFO Q1
Company Presentation | June 2021 36 Reconciliation of Net Income (Loss) to Adjusted FFO Q1
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