Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Q1 2024 Earnings Presentation
46 slides from Braemar Hotels & Resorts's earnings presentation, May 9, 2024
Slide 1: 1st Quarter 2024 Earnings Update
1st Quarter 2024 Earnings Update
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 CHRISTOPHER C. NIXON Chief Executive Officer & Chief Financial Officer Executive Vice President & President Head of Asset Management 28 years of hospitality 23 years of hospitality 14 years of hospitality experience experien
Slide 4: Company Fact Sheet
Company Fact Sheet Since inception in 2013, we have significantly increased Gross Asset Value and EBITDA for our iconic and irreplaceable portfolio $147.6M NYSE: $1.8B EQUITY MARKET CAP(1) BHR ENTERPRISE VALUE(1) HIGHEST RevPAR LODGING REIT Total Assets(2) Number of Hotels % of Total Hotel Rev Hotel
Slide 5: BHR Positioned Ideally for Outperformance
BHR Positioned Ideally for Outperformance Strong Industry Outlook Continuing Optimal Portfolio Composition Recent Results & Developments Liquidity & Liability Management The Notary Hotel Company Presentation | May 2024 5
Slide 6: Strong Industry Outlook Continuing
Hotel Yountville Strong Industry Outlook Continuing
Slide 7: Industry RevPAR Continues to Exceed 2019
Industry RevPAR Continues to Exceed 2019 U.S. KPIs, Indexed to 2019 Occupancy Index ADR Index RevPAR Index 140 140 140 122 118 120 120 120 116 114 113 108 100 95 96 95 100 95 100 87 83 80 80 80 60 60 60 40 40 40 20 20 20 0 0 0 2021 2022 2023 2024F 2021 2022 2023 2024F 2021 2022 2023 2024F Source: Lo
Slide 8: Real Industry ADR Nearing Full Recovery
Real Industry ADR Nearing Full Recovery Real ADR Stabilizing Occupancy Down Slightly $200 80% 68% 70% 64% $160 $133 $130 60% $120 50% 40% $80 30% $40 20% $0 10% Q1'19 Q1'20 Q1'21 Q1'22 Q1'23 Q1'24 0% Real ADR Nominal ADR Q1'19 Q1'20 Q1'21 Q1'22 Q1'23 Q1'24 Real RevPAR Down Slightly $110 $91 $95 $83
Slide 9: 2024 RevPAR Forecast
2024 RevPAR Forecast 2024 Forecasted Growth YoY 5.00% 3.9% 4.00% 3.6% 3.00% 2.7% 2.3% 2.4% 2.00% 1.4% 1.5% 1.3% 1.1% 0.9% 1.00% 0.5% 0.0% 0.00% -0.2% -1.00% -0.8% -0.9% -1.0% -1.1% -1.0% -2.00% Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Source: Lodging Analytics Research & Consulti
Slide 10: Optimal Portfolio Composition
Bardessono Hotel and Spa Optimal Portfolio Composition Taking Advantage of Strategic Asset Class
Slide 11: High Quality Assets with High Barriers to Entry
High Quality Assets with High Barriers to Entry Properties Resort Hotel Q1 2024 TTM EBITDA(2) Ritz-Carlton St. Thomas $23,738 Ritz-Carlton Sarasota $23,338 Ritz-Carlton Reserve Dorado Beach $22,925 Four Seasons Scottsdale $22,652 Hilton Torrey Pines $17,188 Pier House $14,710 Park Hyatt Beaver Creek
Slide 12: Portfolio ADR and Occupancy Stabilizing
Portfolio ADR and Occupancy Stabilizing ADR(1) Stabilizing – Q1 2019 to Q1 2024 Occupancy(1) Stabilizing – Q1 2019 to Q1 2024 1,200 90% Pandemic 80% 1,000 +59.4% 70% -10.1% -12.8% -15.4% 800 60% 50% 600 +47.2% 40% 400 30% 20% +6.5% 200 10% - 0% Q1'19 Q1'20 Q1'21 Q1'22 Q1'23 Q1'24 Q1'19 Q1'20 Q1'21 Q
Slide 13: Portfolio RevPAR Stabilizing
Portfolio RevPAR Stabilizing RevPAR(1) Stabilizing – Q1 2019 to Q1 2024 700 Key Observations +43.2% 600 Urban properties stabilizing below 2019 levels 500 Resort properties stabilizing 400 +28.6% significantly above 2019 levels 300 Average RevPAR stabilizing well 200 above 2019 levels -9.4% 100 5.2%
Slide 14: 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) $90,000 $160,000 Luxury Ritz-Carlton $74,004 $139,507 $75,000 $140,000 $120,000 $60,000 Marriott/ $100,000 Autograph $45,000 $32,270 $80,000 Upper Upscale Hilton Four $32,
Slide 15: Recent Results & Developments
Bardessono Hotel and Spa Recent Results & Developments Solid Q1 Results Signal Potential For Steady Recovery
Slide 16: Q1 EBITDA Results Supported By Strong Resort Contribution
Q1 EBITDA Results Supported By Strong Resort Contribution Quarter Highlights • Significant outperformance YoY at Dorado Beach • Sarasota & St. Thomas resuming regular RevPAR growth after a difficult 2023 • Beaver Creek & Lake Tahoe were negatively impacted by lack of snow • Napa Valley continues to
Slide 17: Portfolio Performance Essentially Flat YOY
Portfolio Performance Essentially Flat YOY Comparable Hotel Operating Results(1) 2024 Q1 2023 Q1 % Variance 2023 ADR $563 $569 (1%) Occupancy 65% 65% <1% RevPAR $368 $369 <(1%) Total Hotel Revenue(2) $221,438 $217,180 2% Hotel EBITDA(2) $70,979 $72,796 (3%) Hotel EBITDA Margin 32% 34% (2%) COMPARABL
Slide 18: Occupancy and ADR Stabilizing
Occupancy and ADR Stabilizing HOTEL OCCUPANCY(1) 100% 78.9% 80% 64.7% 66.9% 67.1% 60% 51.9% 40% 30.3% 20% 0% 2019 2020 2021 2022 2023 TTM Q1'24 HOTEL ADR(1) $500 $482 $458 $458 $457 $400 $333 $296 $300 $200 Cameo Beverly Hills $100 $- 2019 2020 2021 2022 2023 TTM Q1'24 (1) As reported in Earnings Re
Slide 19: Flat Results Deliver Slightly Down AFFO/Share
Flat Results Deliver Slightly Down AFFO/Share Quarter Highlights • Comparable RevPAR for all hotels decreased 0.2% over the prior year quarter to $368. Comparable ADR decreased 1.0% over the prior year quarter to $563 and Comparable Occupancy increased 0.8% over the prior year quarter to 65.4%. • Ad
Slide 20: Major 2024 Planned Capital Expenditures
Major 2024 Planned Capital Expenditures $85M - $105M Range in Capital Expenditures Planned in 2024 Ritz-Carlton St. Thomas Ritz-Carlton Lake Tahoe Ritz-Carlton Sarasota • Restaurant renovation • Public space renovation • Spa renovation (90% complete) Capital Hilton Bardessono Hotel Cameo Beverly Hil
Slide 21: Liquidity & Liability Management
Park Hyatt Beaver Creek Liquidity & Liability Management Maintain Liquidity, Manage Maturities and Interest Cost
Slide 22: Liability Management Strategy
Liability Management Strategy Liquidity Position (1) Pro Forma Maturity Schedule (2) $400.0 14.2% 15% CASH & CASH EQUIVALENTS $137.1M 12.9% 11.9% 10.6% $300.0 (% of Gross Assets) 10% $82.4M (in millions) RESTRICTED CASH $200.0 $324.2 $23.8M $293.2 DUE FROM 3RD PARTY $270.5 5% $242.6 $100.0 2.9% MANA
Slide 23: BHR Positioned Ideally for Outperformance
BHR Positioned Ideally for Outperformance Strong Industry Outlook Continuing Optimal Portfolio Composition Recent Results & Developments Liquidity & Liability Management Four Seasons Scottsdale Company Presentation | May 2024 23
Slide 24: Appendix
Ritz-Carlton Lake Tahoe Appendix
Slide 25: Indebtedness
Indebtedness Company Presentation | May 2024 25
Slide 26: Indebtedness
Indebtedness Company Presentation | May 2024 26
Slide 27: 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 2024 27
Slide 28: 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 2024 28
Slide 29: 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 2024 29
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 2024 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 2024 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 2024 32
Slide 33: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | May 2024 33
Slide 34: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | May 2024 34
Slide 35: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | May 2024 35
Slide 36: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | May 2024 36
Slide 37: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Note: As reported, used in Comparable Hotel EBITDA Slide 17 Company Presentation | May 2024 37
Slide 38: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | May 2024 38
Slide 39: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre (1) Incentive fee adjustment represents the true-up for the actual 2022 incentive fee Company Presentation | May 2024 39
Slide 40: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre (1) Incentive fee adjustment represents the true-up for the actual 2022 incentive fee Company Presentation | May 2024 40
Slide 41: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre Company Presentation | May 2024 41
Slide 42: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre Company Presentation | May 2024 42
Slide 43: Reconciliation of Net Income (Loss) to Adjusted FFO Q1
Reconciliation of Net Income (Loss) to Adjusted FFO Q1 In thousands except per share amounts Effective beginning with the third quarter of 2022 we no longer included the effect of the Series B Cumulative Convertible Preferred Stock and convertible notes on an “as-converted” basis in AFFO. For compar
Slide 44: Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Reconciliation of Net Income (Loss) to Adjusted FFO Q4 In thousands except per share amounts Effective beginning with the third quarter of 2022 we no longer included the effect of the Series B Cumulative Convertible Preferred Stock and convertible notes on an “as-converted” basis in AFFO. For compar
Slide 45: Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Reconciliation of Net Income (Loss) to Adjusted FFO Q3 In thousands except per share amounts Effective beginning with the third quarter of 2022 we no longer included the effect of the Series B Cumulative Convertible Preferred Stock and convertible notes on an “as-converted” basis in AFFO. For compar
Slide 46: Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Reconciliation of Net Income (Loss) to Adjusted FFO Q2 In thousands except per share amounts Effective beginning with the third quarter of 2022 we no longer included the effect of the Series B Cumulative Convertible Preferred Stock and convertible notes on an “as-converted” basis in AFFO. For compar
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