Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Investor Day (October 2021)
56 slides from Braemar Hotels & Resorts's investor day presentation, Oct 12, 2021
Slide 1: Investor Day 2021
BRAEMAR HOTELS & RESORTS Investor Day | 2021
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: Investor Day Agenda
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies
Slide 4: High Quality Portfolio
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 4 High Quality Portfolio Marriott Seattle Hilton Torrey Pines Park Hyatt Beaver Creek Sofi
Slide 5: The Ritz-Carlton St. Thomas
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix The Ritz-Carlton St. Thomas St. Thomas, USVI BHR | Page 5
Slide 6: The Ritz-Carlton Lake Tahoe
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] The Ritz-Carlton Lake Tahoe Truckee, CA BHR | Page 6
Slide 7: The Ritz-Carlton Sarasota
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] The Ritz-Carlton Sarasota Sarasota, FL BHR | Page 7
Slide 8: High Quality Portfolio: Benefits from Resort Exposure
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 J a n -1 9 F e b -1 9 M a r- 1 9 A p r- 1 9 M a y -1
Slide 9: High Quality Portfolio: Why We Focus on Luxury
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix $- $50 $100 $150 $200 $250 $300 J a n -1 9 F e b -1 9 M a r- 1 9 A p r- 1 9 M a y -1 9 J u n -1 9 J u
Slide 10: High Quality Portfolio: Room Revenue & Hotel EBITDA
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Ritz-Carlton $40,863 Independent $19,032 Park Hyatt $5,168 Sofitel -$3,104 Hilton -$5,727 Marriott/ A
Slide 11: High Quality Portfolio: RevPAR and EBITDA Per Room
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix $233 $211 $196 $189 $188 $184 $183 $171 $145 $134 $128 $106 $70 $100 $130 $160 $190 $220 $250 B H R P
Slide 12: Hilton La Jolla Torrey Pines
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] Hilton La Jolla Torrey Pines La Jolla, CA BHR | Page 12
Slide 13: Pier House Resort & Spa
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] Pier House Resort & Spa Key West, FL BHR | Page 13
Slide 14: Occupancy Ramping Up
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Occupancy Ramping Up – 03/1/20 to 09/30/21 BHR | Page 14 Portfolio Position Lifts Performance 62% 53%
Slide 15: ADR Ramping Up
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix ADR Ramping Up – 03/1/20 to 09/30/21 BHR | Page 15 Portfolio Position Lifts Performance $477 $226 $33
Slide 16: RevPAR Ramping Up
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix RevPAR Ramping Up – 03/1/20 to 09/30/21 Resort: Bardessono, Hotel Yountville, Ritz-Carlton St. Thomas
Slide 17: Preliminary RevPAR Results for 2021 Q3
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Preliminary RevPAR Results for 2021 Q3 BHR | Page 17 Recent Performance 2021 Q3 September 56.4%OCCUPA
Slide 18: The Notary Hotel
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] The Notary Hotel Philadelphia, PA BHR | Page 18
Slide 19: Mr. C Beverly Hills
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] Mr. C Beverly Hills Beverly Hills, CA BHR | Page 19
Slide 20: The Clancy
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] The Clancy San Francisco, CA BHR | Page 20
Slide 21: Best-In-Class Asset Management Team
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Best-In-Class Asset Management Team Overview Asset Managers Legal Risk/Property Tax Revenue Optimizat
Slide 22: Historical Portfolio Performance
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Historical Portfolio Performance Hotel EBITDA Growth On Pace To Outperform Peers in 5 of Last 6 Years
Slide 23: The Ritz-Carlton Lake Tahoe Post-Acquisition Outperformance
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix The Ritz-Carlton Lake Tahoe Post-Acquisition Outperformance Total Revenue $42.2M $46.2M+ 9.4% FY 2018
Slide 24: The Ritz-Carlton Lake Tahoe Ski Chalet
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix The Ritz-Carlton Lake Tahoe Ski Chalet Development Strategy Developing ultra-luxury townhomes on va
Slide 25: Key West Pier House Resort and Spa
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Key West Pier House Resort and Spa More Than Doubled Hotel EBITDA In First 8 Years Strategy Impleme
Slide 26: The Ritz-Carlton St. Thomas Insurance Settlement
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix The Ritz-Carlton St. Thomas Insurance Settlement Propels Record Performance Strategy Most successfu
Slide 27: Bardessono Hotel and Spa Luxury Villas
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Bardessono Hotel and Spa Luxury Villas Development Strategy Developed three ultra-luxury villas, op
Slide 28: Mr. C Beverly Hills Short-Term Opportunities
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Mr. C Beverly Hills Short-Term Opportunities For Asset Acquisition Strategy BHR acquisition closed
Slide 29: The Ritz-Carlton Sarasota Record Setting Performance
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix The Ritz-Carlton Sarasota Record Setting Performance Strategy Pricing targeted extremely strong pen
Slide 30: Ritz-Carlton Sarasota Golf Club Residences
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Ritz-Carlton Sarasota Golf Club Residences Development Strategy Develop 55-60 Ritz-Carlton branded
Slide 31: Class-Leading ADR Outpaced Luxury ADR
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Class-Leading ADR Outpaced Luxury ADR For 18-Months Running(1) Strategy BHR’s portfolio commanded a
Slide 32: Reduced Pressure From New Supply
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Reduced Pressure From New Supply Majority of New Builds Sitting In Earlier Phases Next 12-Months 2.3%
Slide 33: RevPAR Outperformance
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 33 RevPAR Outperformance BHR’s RevPAR Primed to Break Historical Records Capital Hilton Hi
Slide 34: Bardessono Hotel & Spa
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] Bardessono Hotel & Spa Yountville, CA BHR | Page 34
Slide 35: Sofitel Chicago Magnificent Mile
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] Sofitel Chicago Magnificent Mile Chicago, IL BHR | Page 35
Slide 36: Marriott Seattle Waterfront
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix Marriott Seattle Waterfront Seattle, WA BHR | Page 36
Slide 37: Cash & Liquidity Position
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix (1) As of 6/30/21 (2) Q2 2021 YTD BHR | Page 37 Cash & Liquidity Position(1) Cash Position Highlights
Slide 38: Leverage Strategy & Debt Position
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix (1) As of 6/30/2021, adjusted for recent extension for Hotel Yountville and Bardessono Hotel; Pro For
Slide 39: Floating Rate Rationale
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 5.0% 4.0% 2.5% 2.7% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2018 2019 2020 2Q21 Weighted Avg. Interest rat
Slide 40: Capital Hilton
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] Capital Hilton Washington, D.C. BHR | Page 40
Slide 41: Hotel Yountville
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] Hotel Yountville Yountville, CA BHR | Page 41
Slide 42: Park Hyatt Beaver Creek
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix 1) [Footnote] Park Hyatt Beaver Creek Beaver Creek, CO BHR | Page 42
Slide 43: Where To Go From Here: Acquisition Opportunities
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 43 Where To Go From Here: Acquisition Opportunities Source: Real Capital Analytics $300,00
Slide 44: Where To Go From Here: Valuation
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 44 Where To Go From Here: Valuation $323 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 Curren
Slide 45: Where To Go From Here: 3-Year Plan
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 45 Where To Go From Here: 3-Year Plan Highlights • Capitalize on accelerated portfolio rec
Slide 46: Reasons to Own BHR
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 46 Reasons to Own BHR Attractive Portfolio • Highest RevPAR portfolio • Luxury resorts con
Slide 47: Appendix
Appendix
Slide 48: Reconciliations: Ritz-Carlton Lake Tahoe
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 48 Reconciliations of Net Income (Loss) to Comparable Hotel EBITDA Ritz-Carlton Lake Tahoe
Slide 49: Reconciliations: Key West Pier House Resort
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 49 Reconciliations of Net Income (Loss) to Comparable Hotel EBITDA Key West Pier House Res
Slide 50: Reconciliations: Ritz-Carlton St. Thomas
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 50 Reconciliations of Net Income (Loss) to Comparable Hotel EBITDA Ritz-Carlton St. Thomas
Slide 51: Reconciliations: Ritz-Carlton Sarasota
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 51 Reconciliations of Net Income (Loss) to Comparable Hotel EBITDA Ritz-Carlton Sarasota 2
Slide 52: Reconciliations: Hotel Bardessono
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 52 Reconciliations of Net Income (Loss) to Comparable Hotel EBITDA Hotel Bardessono 2019 Q
Slide 53: Reconciliations: All Hotels TTM June 30, 2021
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 53 Reconciliations of Net Income (Loss) to Comparable Hotel EBITDA All Hotels TTM June 30,
Slide 54: Reconciliations: Year-to-Date June 30, 2021
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 54 Reconciliations of Net Income (Loss) to Comparable Hotel EBITDA Year-to-Date June 30, 2
Slide 55: Reconciliations: TTM Ended December 31, 2019
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 55 Reconciliations of Net Income (Loss) to Comparable Hotel EBITDA TTM Ended December 31,
Slide 56: Reconciliation to Adjusted EBITDAre
Agenda High Quality Portfolio Portfolio Performance Asset Management Overview Asset Management Case Studies Cash & Liquidity Position Balance Sheet/Leverage Looking Ahead Reasons to Own BHR Appendix BHR | Page 56 Reconciliations of Net Income (Loss) to Adjusted EBITDAre Six Months Ended, June 30, 20
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