Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Q3 2023 Earnings Presentation
43 slides from Braemar Hotels & Resorts's earnings presentation, Nov 9, 2023
Slide 1: 3rd Quarter 2023 Earnings Update
3rd Quarter 2023 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 26 years of hospitality 22 years of hospitality 13 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 $202.8M NYSE: $1.8B EQUITY MARKET CAP(1) BHR ENTERPRISE VALUE(1) HIGHEST RevPAR LODGING REIT % of TTM Total Hotel Total Assets(2) Number of Hotels TTM H
Slide 5: BHR Positioned Ideally for Outperformance
BHR Positioned Ideally for Outperformance All Time High Industry Performance Continuing Optimal Portfolio Composition Recent Results & Developments Liquidity & Liability Management The Notary Hotel Company Presentation | November 2023 5
Slide 6: All Time High Industry Performance Continuing
Ritz-Carlton Lake Tahoe All Time High Industry Performance 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 140 140 140 123.7 118.5 119.5 120 120 120 114.4 113.5 107.9 100 95.1 96.5 96.6 100 100 94.6 87.3 82.6 80 80 80 60 60 60 40 40 40 20 20 20 0 0 0 2021 2022 2023 2024F 2021 2022 2023 2024F 2021 20
Slide 8: Nominal ADR & RevPAR at Near-All-Time Highs
$110 $130 $100 $120 $140 $160 $180 $10 $30 $50 $70 $90 $60 $80 Source: STR Jan-19 Jan-19 $68 $125 Mar-19 Mar-19 May-19 May-19 Jul-19 Jul-19 Sep-19 Sep-19 Nov-19 Nov-19 Jan-20 Jan-20 Mar-20 Mar-20 May-20 May-20 Jul-20 Jul-20 Sep-20 Sep-20 Nov-20 Nov-20 Jan-21 Jan-21 Real RevPAR Real ADR Mar-21 Mar-21
Slide 9: 2024 RevPAR Forecast
2024 RevPAR Forecast 2024 Forecasted Growth YoY 6% 5.2% 5% 4.6% 4.0% 4.0% 4% 3.4% 3.0% 2.9% 3% 2.8% 2.2% 2% 1.6% 1.0% 0.9% 1% 0.7% 0.5% 0.1% 0% -0.6% -0.5% -0.7% -1% Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Source: Lodging Analytics Research & Consulting Company Presentation | No
Slide 10: Optimal Portfolio Composition
Ritz-Carlton St. Thomas 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 Q3’ 2023 TTM EBITDA(2) Ritz-Carlton Sarasota $23,407 Ritz-Carlton St. Thomas $23,338 Four Seasons Scottsdale $22,263 Ritz-Carlton Reserve Dorado Beach $20,184 Hilton Torrey Pines $16,894 Pier House $15,151 Park Hyatt Beaver Cree
Slide 12: Urban Property Occupancy Now Exceeding Resorts
Urban Property Occupancy Now Exceeding Resorts ADR(1) Stabilizing – Q3 2019 to Q3 2023 Occupancy(1) Down Slightly – Q3 2019 to Q3 2023 700 100% Pandemic 90% 600 +46.0% 80% -15.2% 500 70% -15.0% -13.6% 60% 400 +29.4% 50% 300 +9.9% 40% 200 30% 20% 100 10% - 0% Q3'19 Q3'20 Q3'21 Q3'22 Q3'23 Q3'19 Q3'20
Slide 13: Portfolio Resorts Normalizing After Record 2022
Portfolio Resorts Normalizing After Record 2022 RevPAR(1) Up – Q3 2019 to Q3 2023 450 Key Observations 400 350 Urban properties +26.2% nearing full recovery 300 +10.0% 250 Resort properties still significantly 200 -6.9% up versus 2019 150 100 Average RevPAR still above 2019 levels 50 - Q3'19 Q3'20 Q
Slide 14: High Exposure to Luxury Hotels and Resorts
High Exposure to Luxury Hotels and Resorts Ritz-Carlton Drives Q3 TTM Hotel EBITDA(1) Luxury Hotels Drive Q3 TTM Hotel EBITDA(1) $105,000 Luxury $160,000 $149,733 $90,000 Ritz-Carlton $140,000 $76,821 $120,000 $75,000 $100,000 $60,000 Marriott/ Upper Autograph $80,000 Upscale $45,000 Hilton $30,965
Slide 15: Recent Results & Developments
Bardessono Hotel and Spa Recent Results & Developments Solid Q3 Results Signal Potential For Steady Recovery
Slide 16: Q3 EBITDA Results Supported By Strong Urban Contribution
Q3 EBITDA Results Supported By Strong Urban Contribution Pier House Resort & Spa (1) In thousands (2) Please refer to slides 26-36 for a reconciliation to the most directly comparable non-GAAP financial metric Company Presentation | November 2023 16
Slide 17: Difficult YoY Comparisons Shape Q3 Results
Difficult YoY Comparisons Shape Q3 Results Comparable Hotel Operating Results(1) 2023 Q3 2022 Q3 % Variance 2022 ADR $384 $408 (6%) Occupancy 68% 69% (1%)(2) RevPAR $263 $283 (7%) Total Hotel Revenue(3) $160,967 $169,297 (5%) Hotel EBITDA(3) $34,867 $40,095 (13%) Hotel EBITDA Margin 22% 24% (2%)(2)
Slide 18: TTM Occupancy & ADR Remain Resilient
TTM Occupancy & ADR Remain Resilient HOTEL OCCUPANCY(1) 100% 78.9% 80% 64.7% 67.1% 60% 51.9% 40% 30.3% 20% 0% 2019 2020 2021 2022 TTM Q3'23 HOTEL ADR(1) $500 $458 $482 $462 $400 $333 $296 $300 $200 Cameo Beverly Hills $100 $- 2019 2020 2021 2022 TTM Q3'23 (1) As reported in Earnings Releases: 2019 a
Slide 19: ADR Decrease Impacts Metrics: Quarter Highlights
ADR Decrease Impacts Metrics Quarter Highlights • Comparable RevPAR for all hotels decreased 7.1% over the prior year quarter to $263. Comparable ADR decreased 5.8% over the prior year quarter to $384 and Comparable Occupancy decreased 1.4% over the prior year quarter to 68.4%. • Adjusted funds from
Slide 20: Liquidity & Liability Management
Park Hyatt Beaver Creek Liquidity & Liability Management Maintain Liquidity, Monitor Leverage, Navigate Recovery
Slide 21: Liability Management Strategy
Liability Management Strategy Liquidity Position (1) Pro Forma Maturity Schedule (2)(3) $400.0 CASH & CASH EQUIVALENTS $149.5M $300.0 RESTRICTED CASH $57.3M $195.0 (in millions) $14.2M DUE FROM 3RD PARTY $200.0 MANAGERS $293.2 $266.5 $4.0M $80.0 $100.0 REVOLVER CAPACITY $139.7 $136.0 $42.5 $225.0M $
Slide 22: BHR Positioned Ideally for Outperformance
BHR Positioned Ideally for Outperformance All Time High Industry Performance Continuing Optimal Portfolio Composition Recent Results & Developments Liquidity & Liability Management Four Seasons Scottsdale Company Presentation | November 2023 22
Slide 23: Appendix
Ritz-Carlton Sarasota Appendix
Slide 24: Indebtedness
Indebtedness Company Presentation | November 2023 24
Slide 25: Indebtedness
Indebtedness Company Presentation | November 2023 25
Slide 26: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA by Hotel Company Presentation | November 2023 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 | November 2023 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 | November 2023 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 | November 2023 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 | November 2023 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 | November 2023 31
Slide 32: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | November 2023 32
Slide 33: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | November 2023 33
Slide 34: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | November 2023 34
Slide 35: 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 | November 2023 35
Slide 36: Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA
Reconciliation of Net Income (Loss) to Comparable Hotel EBITDA Company Presentation | November 2023 36
Slide 37: 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 | November 2023 37
Slide 38: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre Company Presentation | November 2023 38
Slide 39: Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre
Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre Company Presentation | November 2023 39
Slide 40: 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 41: 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
Slide 42: 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 43: 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
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