BHR - Earnings call transcript Q3 2020 | Braemar Hotels & Resorts Inc.

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Operator

[00:00:06] Greetings and welcome to the Braemar Hotel and Resorts Inc. third quarter Twenty twenty results conference call. At this time, all participants are in listen only mode. The question and answer session will follow the formal presentation if anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

As a reminder, this conference is being recorded, I would not like to turn the conference over to your host, Mr. Braemar. or Jennings Jordan Miss ahead, Jennings. go Please

Jordan Jennings

update and [XX:XX:XX] Officer Chief will results of be call developments Derek to review Richard Walter, Stockton, Chief Chief today's Braemar Good Twenty the Hotel Executive today and quarter Bank's morning Jeremy for third and to the Financial Operating recent and and welcome Officer. resorts call on you president twenty on for Officer,

be securities. statement be will W. offer or registration August. solicitation sell which Securities provisions Only discussed of can accounting constitute call, well the as release. more call are only fully of of federal notice of Such over of update forward of are distributed to publicly accessibility this company were to conference made not to listen. looking during could to let's them. W.. regulations. looking made call At subject found remind an and anticipated. the press statements as the include in the on you before statements and do this statements this from yesterday forward a conference offer results this buy actual call upon and that W. prospectus, which uncertainties Statements filings or any differ not results, in unknown this made conference Securities with in only of risks, obligated information materially call or basis to by time, FEC a as harbor Exchange this factors, those and pursuant cause are and of an known Commission numerous Internet the certain Your at a offered means being securities date in assumptions based safe the contain and looking this are to is and or the revise These

the filed provided are accessed October financial schedules are certain tables which reconciliations release Va. XX, with in and the the on those other earnings retcon. Richard. X-K in company's be encouraged the measures, this SEC W. turn may provided of review earnings is please. all in Oh, with terms used have the to also call reconciliations Stofan, W. together to Form now ahead, the addition, over in morning. information or Go been company's website Each non-cash release, and company's the release. at W.. In XXXX, listener Good Richard provided which call on

Richard Stockton

hospitality third Francisco. will overview industry. San being quarter to will the Welcome review a we'll open, Clancy which provide of conference of Jeremey an [XX:XX:XX] our Afterward, social and hotel positive will call begin an Derek volatile and including our our in landscape throughout that, hotels an After rebranded financial the The on all open update and created unprecedented level [XX:XX:XX] update asset I pandemic quarter hotels our twenty Twenty on business both has of Hotel includes for by has providing provide and on recently covid-XX our EBITDA portfolio, the an created a disruption call. earnings economic achieving the and Q&A. results, activity. our now management our for

House a vaccination total, group in in Yountville, our am the considered ultimately implemented. few St. our stakeholders Carlton Tahoe, or our hotels Hoya, performance to staffing La home during of to of protect we our strong Hotel model the wide of driven as is Thomas. cash at hotels leisure July, top for of recent spoke, to stay upon declined pleased and recovery this The holding and level an destinations. markets the leisure and restrictions that rated and time A and the period vast portfolio Carlton, expenses second of Ritz well-positioned and percent we all while commitment an to of the eight drive portfolio. our our to other in in demand been an and that Lake around while reopening the the keep to had our herd of operating during ADR unprecedented nicely, occupancy report properties The result to and reducing immunity. we in adapted XX continued losses. and have milestone guests hotel quickly has priority, across a a then been safe measures which of at this have since of Pakhi Bartosz occupancy as widespread last percent important our are hotels, reopened hotel While adding affecting XX resort August Sono quarter, previously, for were are of almost orders operate to and and demand properties of team as near-term is properties of in majority result preserve suspended months. taken operations several up all objectives eight These inventory hotels reopened communities our We have forty our health Ritz time. Ritz minimize and our over resort benefit adjusted properties we challenges room at for likely hovered September, on And said Beavercreek bulk achieving include demands at I by I've been Pier well-being employees quarter. has effort Resort the preventative rely portion on leisure to and corporate performance Torrey them have guide the resurgence demand As of in a of Carlton, a lower the [XX:XX:XX] weekends, extremely us. EBITDA have any positive uptick the extraordinary hotels of we achieving to redclaw from significant significant In us. transient Hilton, Pines Sarasota, the reached by been leadership Many steadfast all portfolio entire our Thus, particularly portfolio our our

just played we the all had that out are of thesis We quarter. for as pleased properties as report EBITDA these positive to has expected, this eight

is it from process it the the thoughtful, and virus we early While and still our our now guest public, that the flexible be guests guests to enhance hotels hotels we and are the the still of of unpredictable, as resume deliberate With reopened our operations all feedback health and and excited hearing are is traveling impact the is clear again. reopening to safety continue being staff we in are to to safety. prioritize of

with Additionally, regarding covid-XX stringent instituted practice specific measures hygiene have check recommendations the from term, we standards to enhanced contain electrostatic portfolio. across protocols keyless consistent evolving Our an best protect and plans safety to near [XX:XX:XX] in in have guests. the sprayers ranging properties to expenses

reopening housekeeping turndown for to services properties also at process, some also continue clubs. overs. the grandstanders. exceed service suspending shuttle amenities lounges we're some we that and concierge's airport services navigate offering eliminating and kids We're parking and all stay clubs CPAs transportation, valet all services, We're van optional As service, and at

of term event continue given the anticipate. we Located courtyard's former impact We Clancy have to will corporate ramp challenges included downtown with and positioned group liquidity. We're forward from in create business and actions modern [XX:XX:XX] up while the Clancy. on management by we And months. Hotels been and level continued have the face dollars negative spend renovation transient construction opening ten San look rooms, the October. asset rebranding underwent International's autograph us taken joins It and San guest the cutting Francisco's XX capex that property Clancy's now uncertainties operations enhance renovation, of year. four and our low, moderately in the to realizing Francisco covid-XX of Marriott expenses proactive the go the and excess XX occupancy space our for aggressive square recent efforts and we hundred This throughout rebranding to that also reopening reducing in have early summer well excited to market, this rooms over in financial about We and meaning of property protect as million a the the at relentless several delayed features the it. XXXXX collection. and Our restrictions vibrant demand. a that for significantly the of pandemic the the planned while levels over result enhanced and performance expect long be corporate feet

of rate, by corporate We will have reduced previously approximately We discussed. DNA cash preserve advisory in the we economy clarity our XX under we direction the and the in. all estimate on reimbursable have run to expenses agreement as our continue that recovery percent, more until

million dollars. same dollar date October facility amendment sixty dollar twenty amendment during facility XX an We the five with pay credit the a loan down a maturity XX our to Twenty corporate also corporate of the two XXth, with on quarter. term million converted credit into million of closed The

level now We our with discussions also our and have no defaults borrowings. lenders finalized across property

forward. is environment this navigated through on going these Our challenging current We during obligations very successfully intention operating remain a to quarter.

is and will recovery industry. for set the Derek. to well our the up Our in good believe ultimate very balance shape now I in sheet turn I over call are we

Deric Eubanks

[XX:XX:XX] Thanks, Richard.

the income two had five one has for point insurance third and three insurance that and our with St. demonstrates the hundred a dollars risk financial Carlton interruption been our a management This that business Ritz of Thomas its claim positive carriers significant was claim team for resulted total During the three in dollars of relationship hotel our the twenty in million previously quarter, which statements. our to to outcome associates working million, great recognized settled with point our carriers. forty related we a related and

rate We dollars reported one Share fifty loans, We quarter share point to point assets AFFO negative dollars third million of million dollars venture adjusted point per net related interest of two for the billion for a average Our our was we gross forty of the ended fifteen two million end of and lender of Capital with of manager and cents and cents a our thirty sorry three point rate. eight one the dollars Twenty restricted four mortgage reported and had that total percent quarter, million Hilton. at the seven EBITDA loans equivalents vast cash we approximately entirely percent, five La quarter. attributable [XX:XX:XX] The seven point quarter. total loss Hoya. had assets. stockholders reserve third of is the the seven dollars five eighteen the dollars fifty Then had Pines. held the share or Hilton of partner. are one end cash point of diluted cash nine dollars which For comprised quarter the to four common loan [XX:XX:XX] of majority of quarter As loans net had joint million. debt billion. negative combined quarter. a one on from of per blended of floating twenty, Torrey cash to point eighty the restricted of accounts We diluted we

dollars debt also party represents in three from cash by costs. [XX:XX:XX] We available one million fund managers. of which This property also fourteen third is held operating had managers, point hotel to hotel our

allows Resort, Tahoe, Carlton, five six House have agreement Ritz Waterfront, restricted shortfalls we agreements the lender on loan are months, we forbearance loans, work fund defer of us and portfolio Sofitel, The up Hoya, to fund loans Chicago, [XX:XX:XX] to Hilton Balzano agreements To and the reserve company period the operating accounts lender Marriott, hotel to use to at we reserves mentioned, Carlton, a also our and us on sheet. epiphany and balance date, Capital exercise use agreements manage allow subject operating Sarasota, the agreement of utilize to shortfalls four the at with agreement these to health Hilton, the Clancy. the Hotel [XX:XX:XX] hotels, Richard mortgage order the including managers loans on utilize Lake to As typically fund which lenders loans signed property This in the year Pier hotels. notary our Zionsville, conditions. on interest and cash to the Pines. six and continue also Seattle health for La Ritz on the accounts, forbearance lender our the certain Torrey in have signed allow hotel includes Hotel, been operating provides and for manager In reserve manager our order also extensions. one held that The to This first the included shortfalls. an of to

is sheet good place, balance in With our these shape. agreements in

all of on on We going the loans to of obligations are our is current and out remain now falls forward. our intention these

advisory with been to of quarter, and operations, for close currently at downturn our sufficient with million EBITDA hotels hotel the per interest for hotels dollars and have to our has including to highlighted Alaska expense. and of we the dollars believe preferred positive our monthly million our zero off five at burn approximately yet on quarter. conservative And total cash open month, based covid Corporate fees of we operating cash As equivalents future reduced business. hotel Jenay, cash the dividends, liquidity eighty assumptions related end realistic we that all in our eight

three hundred eighty of hotels September XX As twenty net our twenty thousand four with portfolio XX, consisted rooms. of and seven

common six in of fully stands and one share concludes with Financial to financial for This now results. seven Series management six loaded of our it asset quarter. six to one currently point diluted the forty count million convertible associated We B turn our shares X.X to preferred our activities at shares include point in Jeremy discuss units Review. thirty Our million comprised like stock. I'd our outstanding, our fully million stock million share shares is which point approximately count over

Jeremy Welter

you, percent was through Hotel Derek. sixty Impressively, for redclaw flow five decreased Comparable the percent. quarter. six Thank third point our portfolio [XX:XX:XX] five EBITDA fifty during

the asset. down third we in third more which generated six XX Each down seeing we three percent. assets, urban hotels a hospitality the of million over in In Redpath positive assets Hotel take XX at resort our to are to As compared demand place, performance the had recovery with our for daily are percent, of are comparable, continues resort, industry significantly good quarter. a is aggregate, quarter tracking Generally, EBITDA EBITDA. dollars which they point each

has to great resort is our decrease the a recover to seven quarter that have hotel, quickest and well noted, up compared been example been hotels year Ritz the Comparable compared even up in quite of RedHat every Carlton, management period. of the team quarter the was for an performed third a transient the three this in prior to the prior percent increase pandemic, point largely has possible previously demand eliminated. which is As quarter. year the to ensure digging for XXX during Sarasota, asset function over This percent third expense

by eliminating temporarily sales to on and in related of and the turn course. service, approximately reducing down back percent XX cottier Some golf managing expenses those services include scaling and staffing

quarter, and August we dollars [XX:XX:XX] again thousand it strong Another having the was hundred occupancy have one the has that demand in home demand of at portfolio reopening about taken percent resort pent The closed Carlton, Thomas. in measures asset that hotel up After Hoya, Well, and Hilton, House our the XXth, leisure been strong, control XX it St. to with occupancy. Tahoe Pier percent in was was Pines of occupancy. collectively out This Ritz Baabda La the realization California The for XX stay hotel June, seeing growth growth demand resort Yeoville the XX properties, percent EBITDA Sono achieved round produce is the Ritz hotel to possible July, Lake positive expense Carlton hotel ran reopened quarter. for because Hotel, detained Torrey order review days. of and the second been was even the when able September for XX issued. seeing

said, specifically in portfolio the well. had quarter. some or October, to the about we part we've Lastly, occupancy And impact of hotels one returning one Yarraville and relatively XX some for rebound. in Pakhi on percent have wildfires revenue. dollars our Yeoville, million the about performed California due fires resumed the the to assets have fires Despite quality Beavercreek the Hotel have had assets September cancelation fires air point caused revenue the early some with seen occurring canceled and experienced XXXXXX These now of displacement, subsiding That normal.

year a quarter strategic complete little this mentioned, XX completion joining repositioning than autograph the As San of Francisco collection. dollars. of entire to into the million than The half a Richard Merit's renovation a an more Clanchy investment downtown and with courtyard longer welcomed of took our the

completely and lobby doing which seating, of of open flows so, As we cafe. a lounge part more reconfigure with create renovated a constructed arrival, and and conversion, the sense hotel's bar to entrance inviting newly new the into the we and restaurant centralized

of we suite Barcelona California's the now turn These heavily get Thomas. Francisco the guest spending a than our As competitive House have of this capital during completed the lifted, usual In well positioning. Ritz restrictions [XX:XX:XX] conversion expenditures the to less the courtyard, as covid-XX XXXX, capital during twenty I up. These in investment ramp three are dollars the twenty West. downtown expect Carlton presidential to on of Value-Add Resort to our Clancy, rebuild as of significantly. San the we in included courtyard We've on completion allowed downtown conversion the expect we to projects and investments the at the Key our experience spend the approximately capital completing Philadelphia Twenty renovation portfolio us will property to pandemic by expenditures XX the villa curtailing Pier hotel, to in initiatives in rapid with the despite total, invested rooms to notary twenty. at considerably of hotel, the capital St. enhance expenditures million

is point Overall, to our the XXXX. period. this up point the six percent portfolio Ritz Year well Tahoe percent Sarasota maintained Carlton, to year our year. portfolio up up is worth Pakhi Lake something Clancy And ADR percent. date, has prior is Lastly, Beavercreek which is percent. four up one compared is percent, Carlton, pointing out this how ADR ten XX up in over five four is year about

higher, In turn Carlton forecasted come our remarks. to and premium back. has with I the rates Ritz fact, to assets October the now record. St. illustrates we moving over XX caliber This for the see Thomas its our continue generate call rate is demand will highest of percent final levels, portfolio that to the forward on as back Richard potential

Richard Stockton

cannot of nicely focus recovery you, of the on encouraged crisis. the quarter summary, this steady but challenges us our We've our was navigate the to ahead. Thank our the sets pandemic, portfolio look we as taken financial slow In up are of we results. we actions reopening entire decisive hotels. the Jeremy. of for while And trajectory in a near-term This [XX:XX:XX] predict during

on We have back in our positive I'm financial flow. move proud concludes Year. the place assets and through our to flexibility efforts and New the look to updating our for future twenty to into up get and the to prepared maintain Q&A. Twenty as progress appropriate remarks to position us will we of remainder now runway We This we forward you open protect for success. of call the cash our

Operator

It Thank conducting [XX:XX:XX] you. question be and is answer a time we'll session.

a you'd to question Confirmation line please. for is on one telephone that Press May The date your the your you, in. like to ask star question, If keypad. two.

we If equipment, you'd for up necessary remove may your before the moment, from while pick speaker using One be like authorities. it to hands pressing question questions. the for queue your please, poll to participants

Tyler First please sir. question capital ahead, markets, Batory. from is go Janie,

Tyler Batory

our Hi, questions. for morning, good for is Thanks on taking Tyler. [XX:XX:XX] this Jonathan

Labor and cases? color recent shifts Day if for provide October, recent could I any the you've weeks seen you those in in noticeable post wondering know, on guys in has the you there was spike one trends demand with First any that been me.

Richard Stockton

school it's demand, portfolio what percent And is that tracking few with as is generate I seems we're able travel not ahead that will our off. up things well. September, Labor leisure in tell back case. and and held say a occupancy all belief to [XX:XX:XX] seeing, commonly Yes, points We ADR much, sure. kids to that a the there you and several as October [XX:XX:XX] of people to Day, as went particularly weren't to post fall would be

different in The inauguration. is as is So, October look Seasonally November first quarter. for then we part our up forward and January also of well. quarter as couple you from first is up very bookings quarter. One and I always even So shaping the is is and and best building of December nicely December. very a to know, occupancy the trends going benefiting strong [XX:XX:XX] very get we're shaping our nicely. and into is Rate is January January the our at

percent But in some so, know, then So almost achieve order portfolio for of books some wide certainly are up heading from I and take in more in level that to know, XX as resorts So we snowbirds to order do I then is already benefiting time. little the that corporate you snow from the think can are we benefiting that'll need south But probably things we Hilton. percent right on you also for us trends to, have, traveling be that a or occupancy are to favorable. the you what have direction. are resorts breakeven, look for get the you a which the know, sun. XX [XX:XX:XX] so, occupancy bit tell Capitol

Tyler Batory

you some overall Jeremy great. markets? quarter quite [XX:XX:XX] in And I environment and us. appreciate know, know was was comments Thank that revenue your color on management and could the strategy, had percent, seeing the then, you which seven in AVR some but are to provide That's just you guys your his guys in surprising remarks, I up you additional good rate in know, color you,

Jeremy Welter

question I assets, Yeah, not travel want why holding for. reason you're and not to a or our to is willing we mean, you And it's to [XX:XX:XX] is with the the of I our what know, can types on, travel, because that. believe And portfolio a of, to right? travel going destinations folks of sensitivity pay to not you I you firm do not? are know, can it's we're quality price the is going are if that it's

But, But and, rate quickly can. demand, you that think know, really I push our and the And because think occupancy. as of coming hurt it's discipline know, we we've as firm that's where managers been teams want. you across we've on. our to I you still that a And holding our pushing instilled see not just do up can. don't level so and and as hold as revenue much not Right. know, back we we there's we And just and

Tyler Batory

[XX:XX:XX] Ok, thank last That's And you. very helpful. me. then one for

know, about to come I and may can fighting answer nature expectations, St. island difficult closure, what switching island? talk given of versus seen there you You gears know you've the just Thomas, be this but to the and given has know, in how you the performance

Richard Stockton

you reopened Yeah, island is is [XX:XX:XX] well, as know, the now.

scale renovation In we've a able it fact, personally think, more tell positive. visited You has feel And of turned comments our segments. looks ago. I on which product the pent I'll I the we're little weeks of are frankly, Americans, And leisure [XX:XX:XX] with space capitalizing all in extremely supply you absolutely there a very and I other available a we're property in premium chain you XX and levels. less The international traveling little to that, versus you, And ADR know, out that's is fact greatly. undertaken And guests, really less new know, percent well. up demand, stunning. a it's that And destinations than couple there and versus that and bit if market. that know, this travel October, better reviews for little the with the up that over And with comfortable at think the are benefiting extremely, in and frankly, supply there luxury maybe that product, you the the know elastic, that. restricted result resort look

Jeremy Welter

having for the the second believe, I'd it down to with we what to close bucks. to that prior [XX:XX:XX] of Yeah. And XXs I XXX shut is time, in add running, were to high rate

that were resort second time. the had disappointed we to obviously we So a very down close

know, if got back accomplishment. mean, just So generate were closing lot you of a you out, associated train EBITDA I bring retrain it early, in about, fact know, then think with that and the to you noise them. the the was positive just hotel And cost as there's huge able we to the a and hotel numbers. you again, reopening pointed to them people we

know, U.S. like nice they resorts were And as the any typically fresh was think you visitors is So that, I know, we else. of, were all so feel as U.S. try. risk And time it somewhere to light of almost a that add you that, EBITDA of closed because comfortable that generate that have, the to Thomas more hotel and you because product, tons St. a us a also a result in Caribbean. positive We resort huge traveling that. and give not because opportunity was this them. destination. of may resort to product, it new folks chose even had in in would only of that before And as Carlton Caribbean to locations for to you we another travelers the lot know, maybe lot have great, which a to I'd resort, was know, people gone to even because all of other in first And California,

do those to recapturing first is that of, guests we so time sustainable go going be And believe you that in forward know, on terms basis. a

So what of of the out I'd coming be COGAT. surprised if outperform property does anticipated and have we this it would of reopening well recovery not out

Tyler Batory

I [XX:XX:XX] and That's me. all you Thank that's for appreciate great. all color very much. that

Richard Stockton

you. Thank [XX:XX:XX]

Operator

sir. go [XX:XX:XX] is And the Riley next Maher, ahead, Brian Please Securities. from the question

Bryan Maher

[XX:XX:XX] Good morning, guys.

a as the running Did hundred same that it hear of I time appreciate. eight commentary, an rate? which night clarity on was high say you I point a in Just dollar XXs occupancy

Jeremy Welter

my was team. right we in was Yeah, and it it with down. that it conversations was before shut phone [XX:XX:XX] were so because out recollection we Yeah, just of the

it So performing very it it was well. was it was very, was

Richard Stockton

Yeah. [XX:XX:XX] been So July, wrong. is that would which have

Bryan Maher

shut that triggered could happen that the down in again, exactly what is your likelihood view? And [XX:XX:XX] that what and

Jeremy Welter

us know, you you kind we mainly think know, because maintaining it. social distancing. of was, a Virgin call to I was you Yeah, not, locals It governor of forced [XX:XX:XX] and he, travelers do Islands. he the that was to the actually It know, know, had you I with the not

a So is severe restaurants four or general, because, know, also Ritz did of three you the of and that that just that a in apply the just beach just be conditions lot don't it terms period or the he the know, was and pretty of on you a part and materials. weeks. have shutdown But you over bars you imagine, heat know, SMB can the can sanitary as they cleaning you Adam the of, to, then they you like like outlets a Carlton know,

so wares in as And a the things to that they plastic went like and island. requirement

just there's of so the the a curtail And that the to, was government of the know, thing But testing. took virus. is, to try other you to spread initiatives was lot

he you threshold that of a testing had [XX:XX:XX] part rate. tested a that that think more the positivity lower rate of going in positivity a to was know, so a on requirement with a on reopen. And And result being to testing, do spread wide I is people

to it's it a that the I down in think you'll see to so higher going hurdle be to read have them to future. that And shut for to

Bryan Maher

[XX:XX:XX] Got it.

Jeremy Welter

you done it's and the to go you like you you, go no in island job, and great There's [XX:XX:XX] when visit I'll and through. tell a preparation

test. travelers the airport really checks job temperature negative more have island. you visit got they've and quickly. And that, of, safe helps know, you to get a the good to You've done at people think a I And the very to know, feel

resulted, the know, well. fact know, that government know, the probably bend they travel think I But island the you the taking can you safer actions the and it [XX:XX:XX] they I way have governor, I we had didn't to to the anything, the shut the down. folks like you feeling to that to to place if that think So, as

Bryan Maher

on [XX:XX:XX] to Plan and Got urban to at these tough B some it notary, And for the can and you recovery. as process, it. hotels, the shifting then with deal and Seattle that is make declines. to thought just know, assets? you you're Braemar pretty the Thanks. that the Or kind the gears Marriott, those Silvertown, your cost as much What's payments Capital Hilton, you of you out about Chicago is there of wait aggressive know, the the know, thinking a are

Richard Stockton

relevant [XX:XX:XX] being although know that to because we have speak the those could we because they assets leisure as And lose still are group transit. being were on they weekends. demands, less to right it Yeah, you there any our you're reopen of, well, when is corporate business struggling that much money are now [XX:XX:XX] We close. we as generating have some decision was applies, open know, don't you are particularly don't assets losing, but

some at look you which if well. almost weekend other the And benefiting know, as you that for that's like the the is quarter, Chicago there had properties percent some XX something of primarily [XX:XX:XX] suburbs. so of from Sofitel, occupancy a the from And in the vacations are

are. clearly you So

[XX:XX:XX] to airline basic groups. smaller know, to firm you is Our crews book, a And, and to move able be path on slowly, couple some we'll and assets, you know, benefit providing you some those terms business think people from and more to now and as in hold continue well. them business travel also that's power begin of some I of profitability will time. up know, We over for

So.

Jeremy Welter

But I they're [XX:XX:XX] great, that the sustainable you I'd We at of you markets visit those otherwise probably one mitigate you, we've locations incredibly know, term you property taken. incredibly, that know, have we're And as you a short as perform well, they're to assets. each incredible taken individually, generators possible look our expect demand a when downside. you properties And into, courtyard converted a over period. at incredible wouldn't encourage still just long, time plants, to a market. taken segments those this They're repositioning, look of to know, in that given we wouldn't But trying and to amount tremendous stronger Yeah, go we've within do it and to location hotel markets. Francisco an as incredible Bryan, otherwise have because, San to the rotated within market. keep

Richard Stockton

also You of funding I the And by properties. our losses. think talked you It cases is. it's [XX:XX:XX] [XX:XX:XX] of in all know, urban about the

we us helpful And be to Finnie to will get to to expecting that's Great. fact, to other we're sufficient In that's operating that so access losses. right that's very And there [XX:XX:XX] the have reserves side. now. fund

Bryan Maher

feel San stop time compelled be to sure next in I And to nice. Thanks. out [XX:XX:XX] the to reach Francisco, I'll

Richard Stockton

fantastic. It came out beautiful. really [XX:XX:XX] It's

I you So to encourage it.

Operator

a Sariel ahead, have sir. We Please [XX:XX:XX] Michael from Baird. question go

Michael Bellisario

everyone. [XX:XX:XX] morning, Good

Richard Stockton

Morning, Morning. [XX:XX:XX]

Michael Bellisario

your [XX:XX:XX] growing eventually. you're Richard your today Quest, acquisitions, but a early, out portfolio, to know and soon. I little you appetite herself a you're portfolio on a probably positioning it's path to grow question for what cash could hoping on position I you. the you're the was for thoughts a maybe clearly being in there seeing share better how But

Richard Stockton

fair [XX:XX:XX] Yeah, question. it's a

to [XX:XX:XX] We that all some are discounts percent. know more of very is And some seen think and you There starting what interesting are the basis cases, at which significant that know, we're pearcy trends. hotels even kind on even few. would tracking a ago, transactions there are am I it seeing, about than the are than trading in a some have XX you I year

generally people down. are think that believe I values

it our And don't if as are preserving maybe we yet, being but paramount seeing scales change a flow interest. our but it it, arisen for properties in haven't now, of the liquidity as of I the right know negative so luxury cash piqued are is is too the and We're in Braemar concerned far is lower appetite that's rate of we circumstances not in that early, And the segment. function just that's importance. seeing

to corporate factors too that to There's precisely. that's is a us going see don't view back at many won't Yes, unknown. level? that you is positive cash get opportunistically happen cash know until So we our flow we make an using least on that when our just

on the a flow before a we ever So new black to a would corporate monthly acquisition. be level, we have consider cash on in level solidly

how that's think So we that's about new acquisitions.

betting so for that's But what's things and aware So kind out of trading. for the market. moment, we're anything, there we're the on sure. studying of how not are we're We're

Michael Bellisario

you. [XX:XX:XX] That's Thank helpful.

Operator

star to [XX:XX:XX] wish keypad, telephone on ask you a one reminder, a question, your As if that's star one.

from Deutsche Wonca, We Christopher have a ahead. go Bank. Please question

Chris Woronka

Morning. [XX:XX:XX] Yeah. Morning. Morning. guys. Hey,

some you certain that lot you've what and mix You what reserve because some to initiatives point EBITDA. of level I occupancy point, those greater of back mentioned you mean, of that generate a you positive of to at of some things property demand. you just have like suspect is of certain like maintain lounges know, and a of more level, a had to I or kind And, at that. on taken rate pull know, aggressive a things closures know, margins you've

Jeremy Welter

decline. we and I had can the been is and the I lounges, premium to know, And we we're way with I slight and lounge what mean, partnership is we operate accomplish of rate. down a RedHat, a Marriott you demand, in because you had at the know, extended Carlton, can [XX:XX:XX] We rebuilt up, the with significantly model. so kept our those and you broken that phenomenal. being operating the think I Ritz a Ritz that hotels we've open, with get mean, the we've time look period for of able at Carlton Yeah, open access albeit the sell to cuts the where quarter and results Sarasota and guess. profitability in third think But lot are the an are sustainable reopen we've I cost them, [XX:XX:XX] you of

also see, that's for out be incredible know, that going those floaters results of year But we've know, we'll going some in declines property not to Now, for experienced. you our the think you you're just coming to this. for know, of hopefully, because what think that, next you know, I impressive. have, what tax see some you And you not you I portfolio will know,

be on as front that we'll very And so well. aggressive

the think mix, And down because ADR come to and may you know, business. the group it's in more pretty margins. margins. going you just we're doesn't extended an that, drive So period we're yeah, the higher at high know, mean where I maintain that, time able lower terms that them, we'll still to offer that But have rate we'll rated some still of

Richard Stockton

outlet daily add amenities occupancy a or on know, are [XX:XX:XX] essentially near of up a resort they may I justify you to the And it not strong beverage say, urban basis. is necessary beverage there's weekends available, operations. the certain, that ground fitness. the of but at clubs, you occupancy full I the that there If to resort to but the cetera. on and XX call a food you of move our been some made think most kind you Yeah, and the if But is not particular a have on up club hotels, the to know, know, to to you visit open sufficient so I'd [XX:XX:XX] open, I or and and day, know, a and almost the food portfolio, that, et think, occupancy, some any know, would large, by outlets anywhere exceptions. aren't open need and The [XX:XX:XX] they significantly think least percent to, to properties

based but to business the going and that what's to some in case seen as you'll to day you'd my [XX:XX:XX] level the urban that's see the And of as you by expect, drive. opening But, operating know, going that's case, we day. travel. be portfolio remains you achieve said be And So on, occupancy. of that's by you much again, vaccinations so, cases it so. it's comments, resort know, in [XX:XX:XX] when I So less resurgence

Chris Woronka

give going that what's where or go you were? update where Ok, of [XX:XX:XX] thanks, had with that's do numbers, you what on? process on the a had disjointed. of helpful, you us what really Can Chicago, covid kind that pretty to going you know Are negotiating guys tell know, you and what and stands you this know out an you coming now so I back on

Richard Stockton

ongoing legal on [XX:XX:XX] it Yes, more to subject today. I'm so an give that's any not dispute, able color the of

Chris Woronka

[XX:XX:XX] Ok, very good, thanks, guys.

Operator

remarks. the closing I'd turn Ladies to call and question back answer [XX:XX:XX] like this today's management to and for gentlemen, over session. concludes

Jeremy Welter

joining on [XX:XX:XX] speaking to Ok, call. for we look you, call. third us our And again forward you our everybody, on with next thank earnings quarter

Operator

at may this This concludes you participation. time. your your conference, thank And disconnect [XX:XX:XX] lines you today's for

Braemar Hotels & Resorts (BHR) 29 Oct 202020 Q3 Earnings call transcript