Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Q1 2022 Earnings Presentation
38 slides from Braemar Hotels & Resorts's earnings presentation, May 5, 2022
Slide 1: May 2022
May 2022 BRAEMAR
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: Experienced Management Team
Experienced Management Team RICHARD J. STOCKTON DERIC S. EUBANKS, CFA JEREMY J. WELTER Chief Executive Officer & Chief Financial Officer Chief Operating Officer President 24 years of hospitality 21 years of hospitality 16 years of hospitality experience experience experience 5 years with the
Slide 4: BHR Positioned Ideally For Potential Rapid Recovery
BHR Positioned Ideally For Potential Rapid Recovery Market Outlook: Recovery Favors Luxury Resorts Attractive Portfolio Composition Recent Results & Developments Balance Sheet Strategy The Notary Hotel Company Presentation | May 2022 4
Slide 5: Market Outlook
Market Outlook Recovery Favors Luxury Resort Assets
Slide 6: Industry RevPAR Expected to Exceed 2019 by 2023
Industry RevPAR Expected to Exceed 2019 by 2023 U.S. KPIs, Indexed to 2019 Occupancy Index ADR Index RevPAR Index 120 120 120 115.5 113.5 110.3 111.7 106.8 107 101.3 101.8 102.7 100.3 99.4 100 96.8 100 95.2 100 87.4 83.2 80 80 80 60 60 60 40 40 40 20 20 20 0 0 0 2021 2022 2023 2024 2025 2021 2022 20
Slide 7: Resorts and Urban Assets Recovering Rapidly
Resorts and Urban Assets Recovering Rapidly RevPAR as a % of 2019 140% 120% 110% 100% 83% 80% 60% 40% 20% 0% Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 Resort Urban Source: CBRE Hotels Research, Kalibri Labs, Q1 2022, May 5th, 2022 Data from 1/1
Slide 8: Attractive Portfolio Composition
Attractive Portfolio Composition Taking Advantage of Strategic Asset Class
Slide 9: High Quality Assets with High Barriers to Entry
High Quality Assets with High Barriers to Entry The Ritz-Carlton Lake Tahoe Park Hyatt Beaver Creek Pier House Resort & Spa Truckee, CA Beaver Creek, CO Key West, FL Bardessono Hilton La Jolla Torrey Pines The Ritz-Carlton Reserve Dorado Beach Yountville, CA La Jolla, CA Dorado, PR Hotel Yountville
Slide 10: Resort Exposure Lifts Performance
Resort Exposure Lifts Performance Occupancy & ADR Ramping Up – 03/01/20 to 04/22/22 Occupancy (30-Day Avg.) ADR (30-Day Avg.) 100% $1,200 90% $1,000 80% 70% 71% $826 67% $800 63% 60% 50% $600 40% $498 $400 30% 20% $250 $200 10% 0% $0 Mar-20 Apr-20 Jun-20 Jul-20 Mar-21 Apr-21 Jun-21 Jul-21 Mar-22 Apr
Slide 11: Resort Exposure Lifts Performance
Resort Exposure Lifts Performance RevPAR Ramping Up – 03/01/20 to 04/22/22 $800 RevPAR (30-Day Avg.) $700 $600 $589 $500 $400 $331 $300 $200 $158 $100 $0 Resort Urban Total Resort: Bardessono; Hotel Yountville; Ritz-Carlton St. Thomas, Lake Tahoe, Sarasota, and Dorado Beach (data begins 3/27/22 for
Slide 12: Hotel EBITDA Rebounding Through Resorts
Hotel EBITDA Rebounding Through Resorts Q1 2022 Core Assets Location Market Type Number of Rooms Occ% ADR RevPAR Hotel EBITDA(1) Ritz-Carlton Sarasota Sarasota, FL Resort 276 78% $808 $633 $12,485 Ritz-Carlton St. Thomas St. Thomas, USVI Resort 180 82% $1,445 $1,184 $11,263 Park Hyatt Beaver Creek B
Slide 13: High Exposure to Luxury Hotels and Resorts
High Exposure to Luxury Hotels and Resorts Ritz-Carlton Drives Q1 TTM Hotel EBITDA(1) Luxury Hotels Drive Q1 TTM Hotel EBITDA(1) $120,000 Luxury $160,000 Ritz-Carlton $143,778 $105,000 $92,051 $140,000 $90,000 $120,000 $75,000 $100,000 $60,000 Independent $41,202 $80,000 $45,000 $60,000 $30,000 Park
Slide 14: Quarterly Hotel EBITDA and RevPAR Now Exceed 2019 Levels
Quarterly Hotel EBITDA and RevPAR Now Exceed 2019 Levels Quarterly Hotel EBITDA (In Thousands) $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $- $(10,000) $(20,000) 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Quarterly RevPAR $350
Slide 15: Highest EBITDA Per Room & RevPAR
Highest EBITDA Per Room & RevPAR ($ in thousands) 2019 EBITDA Per Room 2021 EBITDA Per Room $40 $38 $30 $28 $37 $35 $25 $30 $30 $30 $28 $20 $27 $27 $14 $14 $14 $25 $23 $15 $13 $11 $20 $10 $9 $9 $19 $9 $20 $10 $7 $17 $15 $6 $15 $5 $10 $- BHR PEB SHO XHR DRH HST PK HT RLJ INN CLDT APLE BHR XHR HST DRH
Slide 16: Recent Results & Developments
Recent Results & Developments Solid Q1 Results Signal Potential For Sharp Recovery
Slide 17: RevPAR Recovers Significantly in Q1
RevPAR Recovers Significantly in Q1 Comparable Hotel Operating 2022 Q1 2021 Q1 % Variance 2019 Q1 % Variance Results(1)(4) 2021 2019 ADR $ 595 $ 523 14% $ 366 62% Occupancy 55% 37% 48% 75% (27)% RevPAR $ 326 $ 194 68% $ 274 19% Total Hotel Revenue(2) $ 178,570 $ 105,411 69% $ 155,045 15% Hotel EBITD
Slide 18: Sharp Recovery Trends Continue in Q1 2022
Sharp Recovery Trends Continue in Q1 2022 Quarter Highlights • Comparable RevPAR for all hotels increased 68% to $326.42 during the quarter, the highest quarterly RevPAR in the Company’s history. Comparable ADR increased 13.9% to $595.09 and comparable occupancy increased 47.5% to 54.9%. • Net incom
Slide 19: Q1 2022 RevPAR Exceeds 2019
Q1 2022 RevPAR Exceeds 2019 Q1 2022 RevPAR Growth OCCUPANCY 55% VS. 2019 +19% ADR $595 REVPAR $326 VS. 2021 +68% Highlights • RevPAR above 2019 levels • Resort properties continue to capitalize on strong leisure demand • Urban properties continue to recover Company Presentation | May 2022 19
Slide 20: Exciting New Acquisition
Exciting New Acquisition Property Overview Number of Rooms 96 Residences 14 Meeting Space (S.F.) 4,800 Location Dorado, Puerto Rico Last Renovation 2018 One of Only 5 Ritz-Carlton Reserves in the World Fee Simple 50 Acres site Forbes 5-Star Rating, AAA Five Diamond Award, Conde Nast – Reader’s Choic
Slide 21: Balance Sheet Strategy
Balance Sheet Strategy Maintain Liquidity, Monitor Leverage, Navigate Recovery
Slide 22: Current Liquidity is Sufficient for Growth
Current Liquidity is Sufficient for Growth(1) CASH POSITION CASH & CASH EQUIVALENTS $185.2M RESTRICTED CASH $41.2M DUE FROM 3RD PARTY MANAGERS $40.1M TOTAL CASH $266.5M POSITIVE OPERATING CASH FLOW(2) ADJ. EBITDARE $49.2M PREFERRED DIVIDENDS ($3.3M) CAPEX ($10.8M) DEBT SERVICE(3) ($7.9M) CASH FLOW ~
Slide 23: Conservative Leverage Strategy
Conservative Leverage Strategy With No Significant Near-Term Debt Maturities Overview • Delever to 35% Net Debt to Gross Assets • Hold 10% of Gross Debt Balance as cash on the balance sheet • Floating-rate debt provides a natural hedge to hotel cash flows NEXT HARD DEBT MATURITY 2023 and increases f
Slide 24: Highly Aligned Management Team
Highly Aligned Management Team 8.7% Management has significant personal wealth invested in the Company 2.3x Insider ownership 2.3x higher than public lodging REIT industry average $38.9M Total dollar value of insider ownership (as of 3/31/2022) 20% 18.2% 18% Highly-aligned management team is among 1
Slide 25: Key Takeaways
Key Takeaways Market Outlook: Recovery Favors Luxury Resorts Attractive Portfolio Composition Focus on Growth Solid Balance Sheet and Liquidity The Notary Hotel Company Presentation | May 2022 25
Slide 26: Appendix
Appendix
Slide 27: Indebtedness
Indebtedness Company Presentation | May 2022 27
Slide 28: Indebtedness
Indebtedness Company Presentation | May 2022 28
Slide 29: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA 2019 2019 2019 2019 De ce mbe r 31, 2019 4th Q uarte r 3rd Q uarte r 2nd Q uarte r 1st Q uarte r TTM Net income (loss) $ 31,806 $ 9,410 $ 12,828 $ 16,800 $ 70,844 Non-property adjustments (26,320) 1,441 (9) — (24,888) Interest income (69
Slide 30: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | May 2022 30
Slide 31: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | May 2022 31
Slide 32: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | May 2022 32
Slide 33: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | May 2022 33
Slide 34: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre Company Presentation | May 2022 34
Slide 35: Reconciliation of Net Income (Loss) to Adjusted FFO Q1
Reconciliation of Net Income (Loss) to Adjusted FFO Q1 Company Presentation | May 2022 35
Slide 36: Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Reconciliation of Net Income (Loss) to Adjusted FFO Q4 Company Presentation | May 2022 36
Slide 37: Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Reconciliation of Net Income (Loss) to Adjusted FFO Q3 Company Presentation | May 2022 37
Slide 38: Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Reconciliation of Net Income (Loss) to Adjusted FFO Q2 In thousands except per share amounts Company Presentation | May 2022 38
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