Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Q4 2024 Earnings Presentation
48 slides from Braemar Hotels & Resorts's earnings presentation, Feb 27, 2025
Slide 1: 4th Quarter 2024 Earnings Update
4th Quarter 2024 Earnings Update Ritz-Carlton St. Thomas
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: 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 $221.5MM NYSE: $1.8B EQUITY MARKET CAP(1) BHR ENTERPRISE VALUE(1) HIGHEST RevPAR LODGING REIT Total Assets (1)(2) Number of Hotels(1)(3) Luxury Hotels D
Slide 4: Discussion Topics
Discussion Topics 5 Industry Update 9 Portfolio Overview Recent Results & 14 Developments 22 Liability Management 24 Appendix Ritz-Carlton Reserve Dorado Beach
Slide 5: Industry Update
Pier House Resort and Spa Industry Update
Slide 6: Industry RevPAR Continues to Exceed 2019
Industry RevPAR Continues to Exceed 2019 U.S. KPIs, Indexed to 2019 Occupancy Index ADR Index RevPAR Index 140 140 140 124 119 121 120 120 120 118 114 113 115 108 100 95 96 95 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 2025F 2021 2022 2023 2024F 2025F 2021 202
Slide 7: Industry Real RevPAR Stabilizing at a New Level
Industry Real RevPAR Stabilizing at a New Level Real ADR Continues to Rise Occupancy Down Slightly $200 70% 66% 63% $160 60% $132 $129 50% $120 40% $80 30% $40 20% $0 10% Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 Q4'24 0% Real ADR Nominal ADR Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 Q4'24 Real RevPAR Stabilizing $105 $87
Slide 8: Luxury RevPAR Growth Forecasted
Luxury RevPAR Growth Forecasted 2025 Forecasted Growth YoY 5% 4.0% 4% 3.4% 3.4% 3.4% 3.2% 3.2% 3% 2.3% 2.3% 1.9% 2% 1.7% 1.6% 1.1% 1.1% 1% 0.7% 0.3% 0.2% 0% -0.1% -0.4% -1% -2% Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Source: Lodging Analytics Research & Consulting Q4 2024 Compan
Slide 9: Portfolio Overview
Bardessono Hotel and Spa Portfolio Overview
Slide 10: High Quality Assets with High Barriers to Entry
High Quality Assets with High Barriers to Entry Properties Resort Hotel 2024 EBITDA(2) Four Seasons Scottsdale $23,286 Ritz-Carlton Sarasota $21,924 Ritz-Carlton St. Thomas $20,620 Ritz-Carlton Reserve Dorado Beach $19,138 Pier House $13,604 Park Hyatt Beaver Creek $12,092 Ritz-Carlton Lake Tahoe $5
Slide 11: ADR Stabilized Higher; Occ Stabilized Lower
ADR Stabilized Higher; Occ Stabilized Lower ADR(1) Stabilized – Q4 2019 to Q4 2024 Occupancy(1) Stabilized – Q4 2019 to Q4 2024 1,000 90% Pandemic +55.5% 900 80% 800 70% -13.9% 700 -14.5% 60% -15.3% 600 50% 500 +36.8% 40% 400 30% 300 +11.4% 20% 200 100 10% - 0% Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 Q4'24 Q4
Slide 12: Portfolio RevPAR at Higher Stabilized Level
Portfolio RevPAR at Higher Stabilized Level RevPAR(1) Stabilizing – Q4 2019 to Q4 2024 700 Key Observations 600 Urban properties almost flat to 2019 levels +31.8% 500 400 Resort RevPARs Stabilized at +16.9% Higher Levels 300 200 -4.1% Average RevPAR well 100 above 2019 levels - Q4'19 Q4'20 Q4'21 Q4'
Slide 13: High Exposure to Luxury Hotels and Resorts
High Exposure to Luxury Hotels and Resorts Ritz-Carlton Drives 2024 Hotel EBITDA(1)(2) $75,000 Ritz-Carlton $66,769 $60,000 $45,000 Marriott/ Autograph $31,678 Four Seasons Independent $30,000 $23,286 $21,994 Hilton $17,472 Park Hyatt $12,092 Sofitel $15,000 $5,742 $- High Transient Demand Drives 20
Slide 14: Recent Results & Developments
Park Hyatt Beaver Creek Recent Results & Developments Resorts Pass Cyclical Bottom; Resume Growth
Slide 15: Q4 RevPAR Results Differ By Property Type
Q4 RevPAR Results Differ By Property Type Quarter Highlights • Resorts delivered 3x the EBITDA as urban properties • Two most recent acquisitions delivered highest EBITDA for the quarter • Resorts resuming RevPAR growth after six quarters of declines • Urban properties’ RevPAR continue to march high
Slide 16: Portfolio RevPAR at All Time High
Portfolio RevPAR at All Time High Comparable Hotel Operating Results(1) 2024 Q4 2023 Q4(2) % Variance 2024(2) ADR $480 $478 0.4% Occupancy 63.5% 62.6% 1.5% RevPAR $305 $299 1.9% Total Hotel Revenue(3) $175,217 $166,470 5.3% Hotel EBITDA(3) $41,081 $40,812 0.7% Hotel EBITDA Margin 23.4% 24.5% (1.1%)
Slide 17: Occupancy Holding Steady; ADR on the Rise
Occupancy Holding Steady; ADR on the Rise HOTEL OCCUPANCY(1) 100% 78.9% 80% 64.7% 65.7% 67.0% 60% 51.9% 40% 30.3% 20% 0% 2019 2020 2021 2022 2023 2024 HOTEL ADR(1) $500 $482 $483 $473 $458 $400 $333 $296 $300 Hotel Yountville $200 $100 $- 2019 2020 2021 2022 2023 2024 (1) As reported in Earnings Rel
Slide 18: Total Revenue Flat, But Higher Expenses
Total Revenue Flat, But Higher Expenses Quarter Highlights • Adjusted funds from operations (AFFO) was $(0.06) per diluted share for the quarter. • Net loss attributable to common stockholders for the quarter was $(31.1) million or $(0.47) per diluted share. • Net debt to gross assets was 40.8% at t
Slide 19: Major 2024 Capital Expenditures
Major 2024 Capital Expenditures $74M on Capital Expenditures in 2024 Ritz-Carlton St. Thomas Ritz-Carlton Lake Tahoe Ritz-Carlton Sarasota • Restaurant renovation • Public space renovation • Spa renovation (Complete) (Complete) (Complete) Capital Hilton Bardessono Hotel Cameo Beverly Hills • Guestro
Slide 20: Major 2025 Planned Capital Expenditures
Major 2025 Planned Capital Expenditures $75M - $95M Range in Capital Expenditures Planned in 2025 Hotel Yountville Ritz-Carlton Lake Tahoe • Guestroom Renovation • Café Blue Renovation (Completion in Q4 ’25) (Completion in Q3 ’25) Park Hyatt Beaver Creek Cameo Beverly Hills • Guestroom Renovation •
Slide 21: BHR Adds New Director
BHR Adds New Director Certified Internal Auditor Appointed Rebecca Musser • Ms. Musser was appointed to the BHR Board of Directors and as chair of our Audit Committee on December 30, 2024. • Ms. Musser was first nominated in August 2024 as an Independent Director of Wheeler Real Estate Investment Tr
Slide 22: Liability Management
Ritz-Carlton Lake Tahoe Liability Management
Slide 23: Closed Major Refinancing to Extend Maturities and Reduce Interest Cost
Closed Major Refinancing to Extend Maturities and Reduce Interest Cost CMBS Loan Amount $293.2MM CMBS Refinancing(1)(2) Maturity June 2025 Amount $363M Interest Rate SOFR + 266 Maturity 2 + 3 One Year Extensions Collateral Notary, Clancy, Marriott Waterfront, & Sofitel Interest Rate SOFR + 252 Mortg
Slide 24: Appendix
Ritz-Carlton Sarasota Appendix
Slide 25: Indebtedness
Indebtedness Company Presentation | March 2025 25
Slide 26: Indebtedness
Indebtedness Company Presentation | March 2025 26
Slide 27: Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | March 2025 27
Slide 28: Hilton La Jolla Torrey Pines Reported Financials and Full Year Actuals
Hilton La Jolla Torrey Pines Reported Financials and Full Year Actuals TORREY PINES FULL YEAR FINANCIALS Company Presentation | March 2025 28
Slide 29: Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | March 2025 29
Slide 30: Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | March 2025 30
Slide 31: Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | March 2025 31
Slide 32: Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | March 2025 32
Slide 33: Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | March 2025 33
Slide 34: Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | March 2025 34
Slide 35: Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | March 2025 35
Slide 36: Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | March 2025 36
Slide 37: Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | March 2025 37
Slide 38: Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | March 2025 38
Slide 39: Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Note: As reported, used in Comparable Hotel EBITDA Slide 17 Company Presentation | March 2025 39
Slide 40: Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | March 2025 40
Slide 41: EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre Company Presentation | March 2025 41
Slide 42: EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre Company Presentation | March 2025 42
Slide 43: EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre Company Presentation | March 2025 43
Slide 44: EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre Company Presentation | March 2025 44
Slide 45: 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 46: 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 47: 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 48: 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
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