BHR - Earnings call transcript Q3 2018 | Braemar Hotels & Resorts Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Braemar Hotels & Resorts' Third Quarter 2018 Conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jordan Jennings. Please go ahead.

Jordan Jennings

Good morning, and welcome to today's call to review results for Braemar Hotels & Resorts for the third quarter of 2018 and to update you on recent developments.

will Eubanks, Stockton, Jeremy Chief Operating today Executive and Welter, call Officer. Deric Officer; Financial the be President Richard Chief Chief On Officer; and conference of as internet the media. been yesterday press accessibility as covered results A distributed a notice in that The of basis well were this release call afternoon over by on listen-only financial the has the information are in me are forward-looking At that assumptions Regulations. Securities call you pursuant let made of the and and remind harbor this this based contain to or time, statements certain conference provisions upon Federal being safe the Such could are to cause and from uncertainties which to forward-looking results statements materially differ numerous or assumptions, actual those risks, subject unknown anticipated. known with and factors Commission. the Securities These fully company's more are Exchange discussed in filings the are them. included as the company statements in made date this publicly call to revise obligated conference this update call, only of forward-looking or is and the of The not

company's over review to at other this addition, Richard Stockton. the call measures, website Each accessed go encouraged in In tables non-GAAP in which www.bhrreit.com. SEC filed and which the Richard. CALL company's or terms to XXXX, provided of on provided accompanying schedules, information the be release, financial together XX, is now will with those may have the and reconciliations certain turn in listener on in the provided all reconciliations at earnings X-K with release. earnings ahead, I Please also been the used call Form are October are

Richard Stockton

you discuss Good our for morning. third to us results. Thank joining quarter

hotel We two realign strategy with the few last overall year, in took a of has to brand concrete to announced selling a the strategy expect industry our luxury properties, quarters. in that acquiring compared the The the forecasters XXXX Smith over Travel strong platform confidence the by growth portfolio Research entire revised X.X%, consumer year-to-date, macroeconomic investing to our to to By others. and outperform quarter into is last know, with aligning X.X% since of SCR healthy time, two lodging believe segment a you trends RevPAR trend outperformed for January to trends As continue an RevPAR steps agreement up the and focus of segment. industry the peers. other including entire of was luxury luxury this three growth Bolstered up Braemar outlook. properties announcing luxury third According these we industry. industry. segment, this X.X%, in to positioned continue to RevPAR In segment X.X% RevPAR well the remainder through compared our for clearly is capitalize and REIT and on and to XXXX. growth we

the increased ROE significant AFFO the We hotels over this following year of explained for rehabilitation not for grew hotels, reflecting of For is efforts under acquire actual hotels RevPAR X.X% was is during Thomas, prior increases difference RevPAR of These of X.X%. quarter, assets. the higher all Irma. share for quarter, portfolio a $X.XX. Much growth and and are adjusted is not and by under overall hotels growth $XX.X RevPAR year all significant RevPAR for which RevPAR of RevPAR actual comparable by Comparable our portfolio this reported Hurricane Ritz-Carlton EBITDA direct X% to repositioning dispose X.X% per lowest RevPAR result under million, St. renovation the the renovation XX.X%. the performance while of growth our quarter

portfolio to overall $XXX TTM highest the sector. in the of Our lodging be RevPAR continues REIT

Irma. St. Thomas recoveries insurance actively to related at quarter, the the we continue to During Hurricane manage Ritz-Carlton our

BI the impact insurance insurers the recoveries, are as P&L We through hotel, as well for the $X.X to the closely our both damage physical total to quarter. to which working million minimize during with property's recoveries seek to

As expect we quarter business not interruption XXXX. currently book it's important think interruption income do any quarter, fourth note that we in $X.X I in of look while to we the to the business reported income million into fourth in QX,

recoveries we next resume at However, Thomas reopening XXXX. least St. Ritz-Carlton at our October to do in expect year through plan the

and projects to a the on post pleased Courtyard given to continue autograph the properties be the their XX% December We RevPAR of while progress at conversion San at that RevPAR was more which be XX% and XXXX, combined Courtyard we're growth Jeremy excitement making on XXXX the The We're with Center our Philadelphia in and of San Courtyard excited under be about will growth expansion and respectively. by these end on with renovation also of the completed growth strong Hotel. the continues renovation. Collection Autograph our Both Moscone of and two on opening modest the track our outside performance remain program to upcoming track Courtyard with rebuilding property Francisco when minutes. and provide collection progress Philadelphia detail the our properties for in will June XXXX Convention quarter, with conversions Francisco even few hotels. to fuel completed We're only supply this

the by of stays four citywide comparable years, group the ahead is quarter, growth it in by XX.X% The XXXX hotel property year with been One rooms' new earlier guest in its X.X%. The and renovation was has during had this room best fewer strong key with group led of pacing Sofitel rate quarter's RevPAR changes performing completed of up the position assets Chicago night April. combination XXXX to on third combined calendar. strongest is growth the despite room management product this Chicago. driven

Sofitel House our RevPAR to mention want on another of quarter to addition top Pier asset comparable strong the of Chicago, growth. the In performing during occupancy the XX.X% briefly the grew that XX.X% I back the performance Resort

advancing revenue XXXX has line contributing X.X% Hotel impact throughout EBITDA Pier EBITDA of the maintained for EBITDA XX.X%. While property Hotel and margin bright. hotel hotel stands in a Both Hyatt ability Beaver roughly ahead their a increased much XX months the flat and of to having during Park the is The in quarter the the cut testament are had growth, pre-hurricane first the quarter. environment. with year-to-date are future strategy top hurricane static our nine already a profitability this looks inch XX% is growth X.X%. the now increased we quoted we're for its this Group XXXX. team hotel cost an growth of and the quarter the by revenue Creek numbers management by above the season. of results driven Total year-to-date. of strong House healthy prelude to the year-to-date and believe pace made mid-mountain first the pleased With quarter We asset which a year Beaver pace ski base and is optimistic Transient progress the in and our Creek to at great of in for September our revenue for

the fourth our at to we look growth as currently we RevPAR be what strong we actual expect reported as quarter quarter. As this

experienced past Over the have years two X% supply growth. annual our markets

creates markets the our call over we only and next approximately forward growth X% year. an to properties. As at enhancements This to two I attractive our have Deric. operational in the supply over the expected be backdrop realize is now underway years turn various one to we per look will

Deric Eubanks

Richard. Thanks,

mentioned income business of the in of Richard hotel recognized During the which St. to is of Ritz-Carlton statement. for revenue our months we other interest through recoveries Thomas, August. as $X.X June line related income interruption quarter, reflected million These the

we attributable reported to share net $X.XX reported have this some loss report the EBITDA year. $X.X changes $XX.X for be the we million, $X.XX. our the per to the our how metrics For AFFO quarter peers was which consistent we quarter report diluted with items. or reflected million stockholders growth share of diluted over made of these and Adjusted common quarter ROE a X% non-GAAP rate how to prior Beginning we per

You Torrey our which can release. joint million share total end At Capital of had details $X.X of of of billion, mortgage Hilton Pines. the Hilton partner these earnings we the loan loans, had on and $XX in quarter's million we venture of assets the $XXX related to see tables our

loans of these rate. a total interest Our floating combined and average rate loans blended at entirely are X.X%

our XX months trailing third place as had interest of have the coverage we rate and loans charge in assets the quarter end floating was of our rate debt-to-gross fixed All approximately caps approximately times. of ratio XX% net X.X

not March Our maturity of next until XXXX. loan is

million Our restricted of was CapEx million earmarked cash vast projects $XX majority The conversions. of cash our and cash. the end cash an is equivalents at of autograph restricted with additional that a for including quarter the $XXX

in of we've already the CapEx we set significant a plan XXXX. amount aside to spend So

million. working net also We $XXX quarter with ended capital the of

with X,XXX hotels consisted As XX, XXXX portfolio rooms. of our of XX September net

is annual Directors share to to share Our approximately million shared our or quarter preferred XXXX basis. per stock XX.X approximately of count based Board we shares a outstanding, million the of of in of shares price. financial count X.X In an with convertible share X% declared comprised With B include diluted $XX.X diluted dividend associated equates units. stands stock. yesterday's $X.XX yield diluted currently shares X.X per our million regard of third cash annualized This dividend, and fully on common $X.XX fully on results, at our stock million Series OP which an

And markets we to trends. for it quarter. our activities very high asset front, continue over will financial assess capitalize we for favorable markets refinancing our now to I'd discuss On ours. This our management quality like attractive hotels additional the capital concludes to opportunities see as these on continue to for Jeremy review. the portfolio such turn financing to

Jeremy Welter

Comparable our third Thank quarter. X.X% you, RevPAR grew Derek. the during portfolio for

renovation by all X.X%. during grew for However not RevPAR quarter, under third the comparable hotels

comparable gains sets through RevPAR respectively. strong a hotel to by portfolio not only in of revenue, while at renovation decreased by basis $X.X X.X%, hotels' September, Hotel both EBITDA with X.X% million increase all submarket increasing percentage to was points. EBITDA comparable XXX our for total relative the increased and or XX.X%, grew Year-to-date and flow through hotels EBITDA Our for growth X.X%. RevPAR portfolio's points hotel by share despite hotel competitive XXX% points percentage margin under led comparable RevPAR chain X.X by X entire scales

However hotels submarket and represents relative scales percentage to X.X this competitive sets gains and our decrease chain point respectively. X.X

by of Tide quarter. performance Xth I'd to group Wednesday provide and detail top and the portfolio. Sarasota worse maintain first during the the in impact was quarter has take XX.X% note little performing on during been during to Richard Sarasota the the running impact respectively. Ritz-Carlton year-to-date, business. some quarter the Rosh and full assets the market, impacted Sunday the through on subsided. Coast to points in to occurring to Red by outperformed was more impacting regions. had comparable in hotel phenomenon year. Starting third we group Bradenton shifts positing percentage XXXX Also Despite XXX%. Hashanah known and one business One The a pattern impacted beaches compared to was Tuesday X a on impact discussed XXXX July addition EBITDA third of had business, Red submarket a Sarasota especially to began in the on have Relative as to Wednesday this Gulf and quarter able its a of Red hit greater stable a decrease. Tide last significantly In item the our comparable holiday at the Tuesday like now this July travel through the of big our RevPAR X.X the transient base. Tide RevPAR portfolio the through the Friday market which Sarasota, year of robust the was time Two than flow performance

the beach has city XX impacted has the approved club which in feet council project available our ocean. significantly increasing to Ritz-Carlton Sarasota increase XX depth a of beach of million expected to by beach between the acquisition. Finally would the and commence the usable our $X nature beach November, Mother approximately amount since

the the we once present are iconic of future this excited prospects behind asset However about us. issues remain

third and the DC one market nights relative another comparable ongoing renovations hotels the room hotel. Hilton, the third space by $X.X during XXX,XXX the Washington million DC strategically decreased group to XXXX and our nights. Capital Turning at at volumes Group room in quarter last hotel RevPAR driven the quarter the by by timed softness decreased meeting iconic year. of citywide decreased X.X% at to our business an estimated

was partner market a the calendar DC While softness ebbs in DC the citywide also flows driver decrease of primary and shift Rosh election with Hashanah years. the of was as impactful. The

impact Florence Hurricane revenue. to a addition, In had $XXX,XXX

up performance XX% EBITDA weak year-to-date quarter, posted Hotel Yountville and Bardessono in is for for during Yountville. hotels hotel our While the X%

that presidential to underway of a completed are and key positive that villa July Bardessono In we construction be XXXX. the we three the anticipate addition EBITDA at results, is excited to in

easy to The forward on wildfires by the to our continues. Thomas. and quarter, be fourth wake October started by would an update comparables funded California year's Looking proceeds like lobby to St. to in Northern the expect relatively Rebuilding the last XXXX. work completed rehabilitation the renovation insurance September Ritz-Carlton we now performance provide mid-January. at progress in I substantially of in

New have guest hotel portion With have hotel work been during our be the of XXX% kitchen and a exception on, commencing. buildings going roofs also the work done all flow is third completed the XXX% wall label six EBITDA all quarter permit year-to-date. main roofs completed out Prep of through of of with layout a been able shortly. having in have we realized installed will being roof, white and been with three operate the to which under and room framing with

of During optimizing the this by In track on grew team tremendous done summary, hotel of quarter, XXX%, the our while increased job now will complicated a keeping has investment. to asset. the margin on performance $X.X turn project hotel third capital while time, XXX.X%. EBITDA and I EBITDA or million

renovation mitigate be on forward amenity strategic to During specifically is will resort the spending impact competitiveness. in order the at of insurance. at to portfolio to $XX the for the of In have million under the maintain additional St. total continued net well Moscone while Thomas, estimate invest Francisco, projects renovation year, of we acceleration XXXX, to the San remains expenditures Courtyard capital approximately we of in as order in as million Center renovation. $XX while Ritz-Carlton capital the pulling enhancements predominantly This comprised our

will work to and to prepared and Additionally in the Downtown remarks, Courtyard Philadelphia this Collection. includes Courtyard Downtown work this related Q&A. Autograph we Francisco - our open San call for up concludes Marriott's conversions This now

Operator

you. Thank FBR. Bryan question B. from [Operator first Riley We'll Instructions] our take with Maher

Bryan Maher

morning guys. questions. good of Yes, Couple

be, St. proceeds? So first it were mentioned quarter, can out, the insurance Richard in still it have fourth Why just kind in timing being we that getting you as XXXX. of resumes go back is BI I it but to think Thomas might the that a no of relates

Deric Eubanks

pretty that is the quarter Hey, the Deric. property that relates seasonality weak property. It to for quarter It's Bryan. of fourth specifically and the historically a

lot So income of it's a whole to there with. begin not

Bryan Maher

you a with not can us to properties San in business that how Francisco? the on Francisco. the And detail the what two going then and pretty to or San in is impacting do of has and of am and we as But bit upgrading really is Philadelphia with give on think some from there it Philadelphia Francisco, I were light properties. was more RevPAR I surprise at of those by commencing of ramping of business construction strong standpoint an kind And in upgrading sure San how is little

Jeremy Welter

Sure, in June in to have start that's that's in and Also we you is mean, And we're should getting XX June, update. completed in construction we're in going in autograph. we'll ton. the April guest launch rooms October, Philadelphia, to that when an XXXX in be we between started days sometime going to I the start May. Jeremy, of on done per projected will this December run the underway will restaurant floors just XX just I be and and as lobby, or and January complete an two give and out can we'll to is

year. through So June next of in we'll maybe October of rooms out have service,

from but within guest have the five saw Francisco, is moving they to why Philadelphia. rooms. work the you as quarter, work to then days impact So of we quick, to are on rooms in much we the in we we turns a pretty just do strong as started third guests range XX days growth And that limited San this hitting our have quarter, not some which lot just in

so have but guest done And year you we it's a not hopefully under of of we're us, we favorable recall for to then comparability last and a tremendous So going displacement. rooms the from will were December timeframe. January be still renovation amount if kind standpoint with

So as in work we're the lobby, news And The really room and Francisco. San as we're commence to given moving the of the the repositioning that what part San exterior well. were going is February the then exterior strong and this Moscone working which that most good and restaurant doing in include the enhancements the going of major for lot San quickly on balance lobby is that demand we a of Francisco. the will inventory in see which pretty of XXXX, full in to have continue in restaurant Francisco, is year we're that to and the towards through basically about we'll

So I the good think for hotel. a that's thing

Bryan Maher

XX%, And from impact a in and that of of Yountville then that is should and you Napa it's were think on little XXXX? down Bardessono to year, going about me weak hold the what just how any kind from do X.X% what's last and on market lingering Hotel attribute over of wildfires we kind last there

Jeremy Welter

Yes, supply market, the look XX that excess months. last experienced in you yes also in going wider and in November over and to Napa a fires. But if X% growth the have the the of to there market strong continue has lost Valley we've in Valley been quarter, from then it's this I is going headwinds Yountville of amount Napa October market are decent absorbed we've think you get in what

challenging the it's of headwinds the some with market. been I the So supply wildfire new for combined think

at share well has in and to hotels. the up holding hotels done you our aggregate it look they've if gained in between relative the Yountville market Now

so optimistic pretty got and given December we've And very fires November, benefits of forward last favorable and year severely impacted that some because go basis on we're October comparability the year. just a of last

Bryan Maher

Thanks, that's helpful.

Operator

We'll next question you. Michael take our Baird. Bellisario Thank from with

Michael Bellisario

Good morning, everyone.

Richard Stockton

Good morning.

Michael Bellisario

you on versus renovation related there made? can a the sense how maybe the just Chicago, give changes performance On is much us you personnel

Jeremy Welter

a we Yes, the my of went look to of of direct being a it's a in I the think one and hotel to turnaround XXXX. problem fix great effort from portfolio one when the This of view this dogs darlings this multi-pronged hotel. solved the story of result is in

it place manager, director putting right management it getting very renovation How regional competitive sales to general market. of included engagement and in very the you're much Accor in difficult rooms also attributable Chicago is a all area to say. is component is new of luxury So included worked. that more from That it's each

the hands see manager But fantastic room in room us. So we have pace product, lot the stiff quality we've some other and encourage he it. general product, room is very put very with happy an it fantastic is which to delivered for been nights you there terms a on of I a job on go of how improved doing competitors reaccelerated and and really I has

I think

Richard Stockton

if recall the the with think more Fairmont ops also property. Fairmont we is Fairmont you corporate and I site Accor and and benefited what regionals was by just North this engaged is America than over the team much acquired Accor

them we've this performance with have enough stepping their us benefits property have with just think very involved property. can't trying for teams to gotten been their I heavily been some and and they a we the of in from and thank having Fairmont I affiliation the engagement improve so help and involvement And

Michael Bellisario

this think a of performance on this this or about to property about of we up up the we recovery year terms more two as in And catch one-year is of a a for it? think this as is hotel ramp three

Jeremy Welter

and is share from market for for but company. may Group based year that's team, continue our for and management so to be XXXX, this favorable expectation an hotel we with next the expectation pretty expectation the is that the for outlook that's myself my gain

that's see perspective. three like would And working two to market we're what a we years. next the over improvement So continued from towards share to

Michael Bellisario

yet? to close we that, hit Sarasota, And then are into And switching have gone and just P&L? gears where guys how then that it. not, GOP you if that hitting to would guarantee Got the

Deric Eubanks

right above not But don't In where terms would But expect be expect sure. to hit we the XXXX it P&L, the to we I'm now, number. hit it. of

not guarantee. into now, that so we're don't have And tap right - to expect to

Michael Bellisario

kind your And if guys portfolio strategy you assets of and last XX on a risk asking and know differently a you and the of last scale but the think about are isolated are from context beta to months. How thinking of way concentration in and and weather geographic impacts? about little I at higher of all coastal more kind just Okay. acquisitions composition concentration being markets in just some roundabout weather of diversification? me, getting the that's then and one bigger, susceptible risk me to to on just that a XX over as impacts few

Jeremy Welter

In largest our terms under EBITDA asset XX% contribution. of diversification comprises

amount But diversification in some the of there's portfolio. improved. be yes, can So it certainly

available are properties of looking expectations high at quite in in returns terms for us will say I work that making to seller challenging. and We be the is acquire, market to continue the

us. to find of So we lot be, deals order creative to for in - that one really, looking have at a will we're

acquiring properties. easy new terms So of there it's out in not

will mining that hear, a near-term. that of radar. in And our deliver you're with other the existing strive may is So But buyers full on the a that whether we'll certain then for value. value have property do we bidders. we that more have us something than hand, other portfolio plate diversification to to that's management projects other underway or we on I and accomplishing the that accomplish ways with we'll value saying our But find and angle lot that to be continue about look it And can can't, very it acquire overtime. delivers

necessarily feel as well. the urgency So I don't

will something be it's think can results. come But I meanwhile overtime. that delivering

Operator

Toeman Peter Thank you. question our Edison. [Operator Instructions] We'll of from next take

Peter Toeman

up which successive quarter. you wanted obviously here just I has every gone Hi. the about ask interest expense, to

commented of the that balance natural this, market, I luxury sort hotel you rise to you compensate. about your the that when room will in there's think says nights previously

XXXX, that's expectations So you and your I'm about your going with experience sort wondering, still of how into just if that? sort feel of

Deric Eubanks

Peter, you've our Yes, floating financing prefer and to view said, natural hedge flows the we that debt, would our we Yes, is cash on Deric. strategy it rate a say view it's going are with rates to that interest our with going move business our and rates going and going going economy are the And is rates are if up. economy. the are up, profits up, I move the that our to as as

we natural XX just XXX as curve, knew realized so LIBOR shows the maybe And that up think a XX XX I hedge. bps next forward I the going or to another months. over

continue then that. that so you that our we profits would believe to up - go if expense with And interest our would see go But up. happens

we And other financing. overtime, interest lot fixing at in less with of believe There's curve. that. of as that much our also long there's value We lot end of will end a benefits refinance also a that floating the being see prepayment penalties, do see pay in rate opportunistically. to of general versus the less, the we the So fewer we to the expense curve things ability short ability the assets

I said, that comfortable interest like strategy. very the the point But expense financing At that's - go we we rate up. of we're have. cycle, this with seeing are in that's just part strategy our So the

Jeremy Welter

more rate we XX% expense. comparison, our got last I weighted Because or over look XX balance make year-over-year that debt. sheet you we've interest the has average would year And the the the at also of held interest expanded as the the weighted not interest have average And rate. if declined point probably months. if amount to particularly not interest

Deric Eubanks

things we've good a I to trying spread. loans the we've our and mean been of is that's lower refinance point. one done Yes,

going the while are locked in a rates So up got we've spreads.

to LIBOR and through And a lower that. we maybe cost refinance able can the lower our spread. it's So

So watch well. that's that pretty something we as closely

Peter Toeman

Thanks.

Operator

take Deutsche from We'll Thank next our Chris question Woronka you. Bank. of

Chris Woronka

Can just Hey, seeing on impressive guys. that a peers But in there. situation And tax taxes number that cycle? we're at morning where in property specifically. from reset Sofitel there. pretty Because is been those a Chicago tax turnaround on the congratulations in property question are had again some a heard of bit we've your there has out good on property comment - of on you the

Jeremy Welter

I can Jeremy. recorded We $XXX,XXX. of a we pretty took it. Yes, comment on the big is This in that quarter about hit

tax hit, we that property the we our books significantly. that through of did we spite sure. EBITDA the for on and still pretty have EBITDA grew we the did is impact But assessment an in once the for So recorded on flow What property get even had either in litigating of reflective to disappointment, we the be successful something the we appealing we're or to that anticipate was it going a numbers though down. still and that it big strong get performance certainly it's in number But but despite that.

Chris Woronka

Creek. Okay, great. Beaver then on the And

year. maybe this was a you structure hopefully snow there. flex year us But Jeremy you through Have last such can a the year early comes remind to guys from a snow great rough off still So the cost start standpoint.

what have year. figure the year there you if like to is look Just this more if out trying - through might directly normal a a flow

Jeremy Welter

had for just a we the still this for through mean quarter. quarter, but optimization recent initiatives. through going revenue achieved that change minimal I total just was on all But flow we're of strong our in

actually So opportunities. mine keys the on one certainly average asset fair found calls. adding which mentioned for a the of amount them where previous value you've of costs value We're are we've add

it's But size we there some the cost other which of because be that a so from doing have good owner you'll quarter we then through and not hotel. But But is had EBITDA overall that's the the pretty of kind to as the primarily have snow see season to think And given will ROI So do quarter that we're going we [ph] should we growth have this I believe initiatives within attractive CapEx. keys. we're next of some that given invest also quarter RevPAR add escrows opportunity the a there and that expense we the in structure weakness returns our right a going is funded if have hope lot that we still just spend year perspective. hotel. we poor stronger last and

Chris Woronka

St. differently there to probably it anything is guys be great. to operational. ask back is won't Thomas. Are for that's but of for on when just there before a Okay, And there underwriting the while. to I rates kind storms. perform much there some chance internally than going And competition kind it reopen mean drive that I else. I doesn't gets a did think number, you of fully or

So you to underwriting dramatically differently just was internally and in it directionally say XXXX? it than are

Jeremy Welter

hotel, I Yes, that team that way the I pleased worked with Ritz that our with the very when mean, I was team. we think acquired

as in closing, that virus with. and contract. Zica of As we on if call a basically we're we we headwinds but had hit soon so The under deal you it, process have closed to

position a our forwarding supply. tremendously able on share the Trust up terms we U.S. given we decent bought initiatives a review And really dive, management team do add-back that to go is that were layers to that we're I with of there the I we're penetration. business that we downside get to think also amount of and you a the group right gained justify hotel. market the And offset actually mix a then some assume the good So Virgin incremental had and we model at the we zero we tremendous was tremendous the as mean of lot through demand this and Marriot And and is the it in there opportunity a side, driving expense at open, staffing for basically we the less demand, we'll did from mentioned for good kind we when staffing every opportunity of us there is deep I of of Fast every think and amount hotel going here, pent Islands, margin like is as for position. position into XXXX Zica.

plan one the I but for number [ph] competitor, Keno in what it won't there quite don't Our future time. know some Bay for around the be bring

growth are one in really we've to of other of all St. products of like best so some there markets we'll of Caribbean So they that have hotel the benefited strong and in because service have open Caribbean with the seen the Thomas our out disproportionately speak. the is we'll in

back you'll of a think flex. switch Virgin U.S. to that see the they are adding Island I demand, lot and So

in quarter to ramps be the and because open first the November season for quarter quickly So, going up we'll first in how XXXX. we're the season, of that hit in

optimistic I of at in insurance it, they interruption period think well are fairly extended be am business fairly carriers about like it as look it'll optimistic on the too. I we as an quickly, fact

I it's and do So to still you'll XXXX - fourth the days of once you I but and first XXXX think quarter within that think - of get then and but early find level relative XXXX product was with I we're additions see what that operating the a out it that the to and the very property doing and pre-Irma. high at that's of (inaudible) any don't market. supply quarter

Chris Woronka

thanks it, guys. good, very Got

Operator

Thank take question our from FBR. B. you, Bryan next with we'll Maher Riley

Bryan Maher

asked at spread bid there can update and potential to thought something acquisitions us similar is on just earlier sellers or wide program? Yes, Ashford's doing up Trust potentially want, what on questioning you ERFP and an give what the Braemar any more following on some

Richard Stockton

agreement Yes, certainly where Braemar doing ERFP attractive Trust. something reach that. we something on Inc. Ashford for do Ashford benefit from, that like an program preposition would with It's

can able the something I to you hopefully thing possibility to So, thinking a announce in the and we're be future tell of that that. regard it's about

Bryan Maher

is who initiative? it is that And it on Inc. the drives who ship more pushes Braemar, more that, Ashford or

Richard Stockton

so party is arrangement, related of companies. to Yes, it the boards be the through two needs of the respective directors independent nature by of it the led that transaction,

Bryan Maher

Thanks.

Operator

our This you. questions for to remarks. for I'll closing back day, management turn it the Thank concludes

Richard Stockton

on third to speaking joining and you. quarter Thank forward for earnings you call. look we our next on again you the us with call, Thank

Operator

Thank and you. Ladies today's gentlemen this conference. concludes

may You now disconnect.

Braemar Hotels & Resorts (BHR) 1 Nov 182018 Q3 Earnings call transcript