Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Investor Presentation (September 2021)
37 slides from Braemar Hotels & Resorts's investor presentation, Sep 23, 2021
Slide 1: Braemar Hotels & Resorts September 2021
BR AEM AR’ September 2021 HOTELS & RESORTS
Slide 2: Forward Looking Statements and Non-GAAP Measures
Company Presentation | September 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
Slide 3: Management Team
Company Presentation | September 2021 3 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 years of ho
Slide 4: BHR Market Position and Strategy Signal Sharp Recovery
Company Presentation | September 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 | September 2021 6 Luxury Asset Class Recovering Rapidly $- $50 $100 $150 $200 $250 $300 RevPAR by STR Chain Scale: Trailing 28-Days Luxury Chains Upper Upscale Chains Upscale Chains Upper Midscale Chains Midscale Chains Independents Source: STR, a Costar Company
Slide 7: Resort Markets Outperforming
Company Presentation | September 2021 7 Resort Markets Outperforming Source: STR, a Costar Company $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 RevPAR by Location: Trailing 28-Days Urban Suburban Airport Interstate Resort Small Metro/Town
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 | September 2021 9 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 Clancy San Francisco, CA Hi
Slide 10: TripAdvisor Ratings by Lodging REIT
Company Presentation | September 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) 1
Slide 11: Portfolio Resort Exposure Lifts Performance: Occupancy
Company Presentation | September 2021 11 Portfolio Resort Exposure Lifts Performance Occupancy Ramping Up – 03/1/20 to 08/31/21 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 U
Slide 12: Portfolio Resort Exposure Lifts Performance: ADR
Company Presentation | September 2021 12 Portfolio Resort Exposure Lifts Performance ADR Ramping Up – 03/1/20 to 08/31/21 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:
Slide 13: Portfolio Resort Exposure Lifts Performance: RevPAR
Company Presentation | September 2021 13 RevPAR Ramping Up – 03/1/20 to 08/31/21 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 Se
Slide 14: Q2 2021 Core Assets
Company Presentation | September 2021 14 Q2 2021 Core Assets Location Market Type Number of Rooms Occ% ADR RevPAR Hotel EBITDA Ritz-Carlton St. Thomas St. Thomas, USVI Resort 180 88% $1,063 $934 $8,136 Ritz-Carlton Sarasota Sarasota, FL Resort 266 87% $530 $462 $7,723 Pier House Key West, FL Resort
Slide 15: EBITDA By Brand, Class, and Market
Company Presentation | September 2021 15 EBITDA By Brand, Class, and Market 2021 Q2 TTM Hotel EBITDA by Brand(1) 2021 Q2 TTM Hotel EBITDA by Class(1) (1) Comparable TTM as of 6/30/2021, see appendix for a reconciliation of TTM hotel net income (loss) to hotel TTM EBITDA; In thousands. 2021 Q2 TTM Ro
Slide 16: Strong Asset Class and Strategic Market Exposure
Company Presentation | September 2021 16 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 202
Slide 17: Highest EBITDA Per Room & RevPAR
Company Presentation | September 2021 17 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 (In thousands) $233 $211 $196 $189 $188 $184 $183 $171 $145 $134 $128 $106 $70 $1
Slide 18: Recent Results & Developments
Recent Results & Developments Solid Q2 Results Signals Sharp Recovery
Slide 19: 2021 Q2 Hotel Operating Results
Company Presentation | September 2021 19 2021 Q2 Hotel Operating Results Comparable Hotel Operating Results(1)(4)(5) 2021 Q2 2020 Q2 2019 Q2 % Variance 2020 % Variance 2019 ADR $ 380.98 $ 282.11 $290.53 35.1% 31.1% Occupancy 49.2% 6.8% 80.2% 621.6% (38.7)% RevPAR $ 187.31 $ 19.22 $232.94 874.6% (19.
Slide 20: 2021 Q2 Highlights and Results
Company Presentation | September 2021 20 2021 Q2 Highlights and Results AFFO PER SHAREADJUSTED EBITDARE Quarter Highlights Full Year Highlights $111.1 $119.3 $121.5 $(4.5) $36.2 $(20) $- $20 $40 $60 $80 $100 $120 $140 2017 2018 2019 2020 2021 YTD (I n m ill io n s) $0.46 $0.46 $0.44 $0.12 $0.20 $0.5
Slide 21: August 2021 Update on Recent Operating Performance
Company Presentation | September 2021 21 59%OCCUPANCY $346ADR $205REVPAR August 2021 Update on Recent Operating Performance August 2021 RevPAR Exceeded August 2019 RevPAR -12%VS. 2019 149%VS. 2020 RevPAR Growth “It is especially encouraging that all of our resorts and all but one of our urban proper
Slide 22: Recent Developments: Mr. C Beverly Hills
Company Presentation | September 2021 22 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 ac
Slide 23: Balance Sheet Strategy
Balance Sheet Strategy Maintain Liquidity, Monitor Leverage, Navigate Recovery
Slide 24: Current Liquidity
Company Presentation | September 2021 24 Current Liquidity(1) $157.7M CASH & CASH EQUIVALENTS $57.4MRESTRICTED CASH 73% CAD PAYOUT RATIO(3) 44% AFFO PAYOUT RATIO(1)(3) TOTAL CASH $236.6M CASH POSITION (1) As of 6/30/21 (2) Q2 2021 YTD $36.2MADJ. EBITDARE ($12.7M)INTEREST EXPENSE POSITIVE OPERATING C
Slide 25: Leverage Strategy Well Designed to Handle Pandemic Impact
Company Presentation | September 2021 25 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
Slide 26: Laddered Debt Maturities
Company Presentation | September 2021 26 Laddered debt maturities(1)(2)(3) Debt Maturities 2022 NEXT HARD DEBT MATURITY OVERVIEW (1) As of 6/30/2021 (2) Pro Forma for Mr. C (3) Assumes extension options are exercised. There can be no guaranty that extension options are exercisable on or before matur
Slide 27: Highly Aligned Management Team
Company Presentation | September 2021 27 Highly Aligned Management Team Management has significant personal wealth invested in the Company10.7% Insider ownership 2.8x higher than public lodging REIT industry average2.8x Total dollar value of insider ownership (as of 08/10/2021)$36.1M REIT Avg includ
Slide 28: Key Takeaways
Company Presentation | September 2021 28 Key Takeaways Market Outlook: Recovery Favors Luxury Resorts BHR Portfolio: Taking Advantage of Strategic Asset Class Recent Results & Developments Balance Sheet Strategy Ritz-Carlton Sarasota
Slide 29: Appendix
Appendix
Slide 30: Indebtedness
Company Presentation | September 2021 30 Indebtedness
Slide 31: Indebtedness
Company Presentation | September 2021 31 Indebtedness (1) This mortgage loan has five one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in June 2020. This mortgage loan is secured by the Chicago Sofitel Magnificent Mile, The Clancy, Seattle Ma
Slide 32: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Company Presentation | September 2021 32 Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA In thousands 2019 2019 2019 2019 December 31, 2019 4th Q uarter 3rd Q uarter 2nd Q uarter 1st Q uarter TTM Net income (loss) 31,806$ 9,410$ 12,828$ 16,800$ 70,844$ Non-property adjustments (26,320
Slide 33: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Company Presentation | September 2021 33 Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre In thousands
Slide 34: Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Company Presentation | September 2021 34 Reconciliation of Net Income (Loss) to Adjusted FFO Q4
Slide 35: Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Company Presentation | September 2021 35 Reconciliation of Net Income (Loss) to Adjusted FFO Q3
Slide 36: Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Company Presentation | September 2021 36 Reconciliation of Net Income (Loss) to Adjusted FFO Q2
Slide 37: Reconciliation of Net Income (Loss) to Adjusted FFO Q1
Company Presentation | September 2021 37 Reconciliation of Net Income (Loss) to Adjusted FFO Q1
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