Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Investor Presentation (March 2022)
35 slides from Braemar Hotels & Resorts's investor presentation, Mar 24, 2022
Slide 1: Braemar Hotels & Resorts March 2022
BRAEMAR March 2022 HOTELS & RESORTS
Slide 2: Forward Looking Statements and Non-GAAP Measures
Company Presentation | March 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 dif
Slide 3: Experienced Management Team
Company Presentation | March 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 yea
Slide 4: BHR Positioned Ideally For Potential Rapid Recovery
Company Presentation | March 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 | March 2022 6 87.4 96.8 100.3 101.3 101.8 0 20 40 60 80 100 120 2021 2022 2023 2024 2025 Occupancy Index 83.2 99.4 107 111.7 115.5 0 20 40 60 80 100 120 2021 2022 2023 2024 2025 RevPAR Index 95.2 102.7 106.8 110.3 113.5 0 20 40 60 80 100 120 2021 2022 2023 2024 2025 ADR Index I
Slide 7: Resorts and Urban Assets Recovering Rapidly
Company Presentation | March 2022 7 Resorts and Urban Assets Recovering Rapidly Source: CBRE Hotels Research, Kalibri Labs, Q4 2021, Febuary 7th, 2022 Data from 1/1/2021 – 12/31/2021 43% 51% 68% 81% 93% 108% 119% 102% 104% 101% 102% 109% 32% 34% 37% 41% 46% 54% 71% 67% 66% 68% 74% 83% 0% 20% 40% 60%
Slide 8: Attractive Portfolio Composition
Attractive Portfolio Composition Taking Advantage of Strategic Asset Class
Slide 9: Balanced Market Mix
Company Presentation | March 2022 9 Key Urban Resort Resort 60% Urban 40% Balanced Market Mix Beverly Hills, CA Mr. C Beverly Hills Hotel Chicago, IL Sofitel Chicago Magnificent Mile Washington, D.C. Capital Hilton Philadelphia, PA The Notary Hotel Seattle, WA Marriott Seattle Waterfront San Francis
Slide 10: Resort Exposure Lifts Performance: Occupancy & ADR
Company Presentation | March 2022 10 Resort Exposure Lifts Performance Occupancy & ADR Ramping Up – 03/01/20 to 02/12/22 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: T
Slide 11: Resort Exposure Lifts Performance: RevPAR
Company Presentation | March 2022 11 RevPAR Ramping Up – 03/01/20 to 02/12/22 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 Seatt
Slide 12: Q4 2021 Core Assets
Company Presentation | March 2022 12 Q4 2021 Core Assets Location Market Type Number of Rooms Occ% ADR RevPAR Hotel EBITDA Ritz-Carlton Sarasota Sarasota, FL Resort 276 79% $565 $444 $6,944 Ritz-Carlton St. Thomas St. Thomas, USVI Resort 180 74% $1,129 $841 $6,638 Pier House Key West, FL Resort 142
Slide 13: High Exposure to Luxury Hotels and Resorts
Company Presentation | March 2022 13 Urban, 26% Resort, 74% Ritz Carlton Drives Q4 TTM Hotel EBITDA(1) Luxury Hotels Drive Q4 TTM Hotel EBITDA(1) (1) Comparable TTM as of 12/31/2021, see appendix for a reconciliation of TTM hotel net income (loss) to hotel TTM EBITDA; In thousands. High Transient De
Slide 14: Strong Asset Class and Strategic Market Exposure
Company Presentation | March 2022 14 Strong Asset Class and Strategic Market Exposure Position Portfolio for Potential Rapid Recovery Ritz-Carlton Lake Tahoe $(20,000) $(10,000) $- $10,000 $20,000 $30,000 $40,000 $50,000 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2
Slide 15: Highest EBITDA Per Room & RevPAR
Company Presentation | March 2022 15 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 $
Slide 16: Recent Results & Developments
Recent Results & Developments Solid Q4 Results Signals Potential For Sharp Recovery
Slide 17: Comparable Hotel Operating Results
Company Presentation | March 2022 17 Comparable Hotel Operating Results(1)(4) 2021 Q4 2020 Q4 2019 Q4 % Variance 2020 % Variance 2019 ADR $ 392.08 $ 330.93 $ 296.42 18% 32% Occupancy 61.12% 27.55% 76.07% 122% (20)% RevPAR $ 239.62 $ 91.16 $ 225.47 163% 6% Total Hotel Revenue(2) $ 130,925 $ 53,605 $
Slide 18: Sharp Recovery Trends in Q4 2021 Continue
Company Presentation | March 2022 18 AFFO PER SHARE IS ROBUSTADJUSTED EBITDARE RECOVERING STRONGLY Quarter Highlights Full Year Highlights • Comparable RevPAR for all hotels increased 163% to $239.62 during the quarter. Comparable ADR increased 18.5% to $392.08 and comparable occupancy increased 121
Slide 19: YTD 2022 RevPAR Exceeds 2019
Company Presentation | March 2022 19 49%OCCUPANCY $523ADR $258REVPAR YTD 2022(1) • RevPAR above 2019 levels • Resort properties continue to capitalize on strong leisure demand • Urban properties continue to recover Highlights +11%VS. 2019 +89%VS. 2021 RevPAR Growth YTD 2022 RevPAR Exceeds 2019 (1) Y
Slide 20: Transaction Overview: Dorado Beach Acquisition
Company Presentation | March 2022 20 TRANSACTION OVERVIEW • 6.0M shares of BHR common stock valued at $5.84 per share, $54M of mortgage debt, and $104M cash (funded from available excess cash) • Hotel acquisition price of $193M(1), a 12x 2021 EBITDA Multiple • Closed on March 11th, 2022 • The transa
Slide 21: Balance Sheet Strategy
Balance Sheet Strategy Maintain Liquidity, Monitor Leverage, Navigate Recovery
Slide 22: Current Liquidity is Sufficient for Growth
Company Presentation | March 2022 22 Current Liquidity is Sufficient for Growth(1) $216.0MCASH & CASH EQUIVALENTS $47.4MRESTRICTED CASH 73% CAD PAYOUT RATIO(3) 44% AFFO PAYOUT RATIO(1)(3) TOTAL CASH $290.9M CASH POSITION (1) As of 12/31/21 (2) Q4 2021 (3) Excludes amortization payments $29.4MADJ. EB
Slide 23: Laddered Debt Maturities
Company Presentation | March 2022 23 Laddered debt maturities(1)(2) (1) As of 12/31/2021, Pro Forma for Beaver Creek Loan (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 extensions are not ex
Slide 24: Highly Aligned Management Team
Company Presentation | March 2022 24 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 2/28/2022)$37.5M REIT Avg includes: AH
Slide 25: Key Takeaways
Company Presentation | March 2022 25 Key Takeaways Market Outlook: Recovery Favors Luxury Resorts Attractive Portfolio Composition Focus on Growth Solid Balance Sheet and Liquidity Ritz-Carlton Sarasota
Slide 26: Appendix
Appendix
Slide 27: Indebtedness
Company Presentation | March 2022 27 Indebtedness
Slide 28: Indebtedness
Company Presentation | March 2022 28 Indebtedness
Slide 29: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Company Presentation | March 2022 29 Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA 2019 2019 2019 2019 December 31, 2019 4th Q uarter 3rd Q uarter 2nd Q uarter 1st Q uarter TTM Net income (loss) 31,806$ 9,410$ 12,828$ 16,800$ 70,844$ Non-property adjustments (26,320) 1,441 (9) — (24
Slide 30: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel
Company Presentation | March 2022 30 Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel In thousands
Slide 31: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Company Presentation | March 2022 31 Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre In thousands
Slide 32: Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Company Presentation | March 2022 32 Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Slide 33: Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Company Presentation | March 2022 33 Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Slide 34: Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Company Presentation | March 2022 34 Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Slide 35: Reconciliation of Net Income (Loss) to Adjusted FFO Q1
Company Presentation | March 2022 35 Reconciliation of Net Income (Loss) to Adjusted FFO Q1
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