BHR - Earnings call transcript Q3 2021 | Braemar Hotels & Resorts Inc.

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Operator

Greetings. Welcome to the Braemar Hotels & Resorts, Inc.

Third Quarter 2021 Results Conference Call. At this time all participants are in a listen-only mode. A question and session will follow the formal presentation. that is note recorded. Please Instructions] this being conference [Operator to the Jordan I turn over your will now Relations. conference host, Investor Jennings of

may You begin.

Jordan Jennings

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

can of at or will solicitation Statements and by this Securities this The only anticipated. which be do call, call made of Richard of today results yesterday statements cause conference Welter, Chief At let date and the Chief harbor only provisions of Internet to this the Officer. President a an time, The Executive the could or those known offer Officer; not Officer; statements materially listen-only Securities call the call from numerous the the any is filings during fully factors federal Exchange release. that to certain revise www.sec.gov. this Stockton, made of Financial contain forward-looking Jeremy the are and Such uncertainties On securities to Deric made registration well in to more to and and or as being Commission. assumptions differ means and are of publicly subject notice update as which actual as discussed accessibility in based this with are will be unknown sell information a them. found over on and Eubanks, statements pursuant remind results Chief this statement assumptions, offered forward-looking included are or obligated conference me in risks, press conference call of a These safe call Operating not company’s constitute basis to prospectus, in forward-looking upon distributed regulations. you are be offer were a and the securities. an the buy company

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

Richard Stockton

I on on update to Jeremy overview will Welcome and of After and for an call open a Afterward an morning. our will that our we management business provide asset Good financial will our results, review begin quarter conference call. will provide activity. the of then Q&A. by earnings our providing update third our portfolio. Deric an

today’s have We themes for five call.

portfolio resort and quarter. luxury comparable million outperform $XX.X our continues to for the help First, drive of hotel EBITDA

Second for a row, were the the at positive level. we corporate cash flow third in quarter

Century Hills the and Hotel ideally in to shopping on end proximity debt very of maturities. our we portfolio our the to Fourth, positioned near-term with Mr. Angeles, California, Beverly demand in Rodeo well is located strong C a close balance luxury in with forward business shape And to acquisition outperform Third, hotel is continue high sheet from no good City. and bookings. Los fifth, Drive Culver City completed

quarter. hotel driven by our comparable $XX.X at occupancy quarter prior increase year over in the levels a properties and million was during ADR the of strong Our EBITDA resort XX.X%

portfolio hotels in all approximately quarter of increased XXXX third XXX% for for third of the quarter the RevPAR compared the Additionally, to XXXX.

quarter RevPAR. X.X% approximately decreased compared Our third when XXXX portfolio to RevPAR

so see levels. to very our are portfolio to XXXX encouraged close getting We our

our before quality, great portfolio a believe us. said certain levels factors peers given year back to we benchmark have of XXXX composition our will not but that XXXX before, made and for a get we portfolio also our As lot

under of major The at very had with XX%, margins of during at our The and strong Notary, three Several at XX% we hotels renovation, hotel Specifically, the House Ritz-Carlton Clancy including EBITDA our quarter achieved properties Resort XX%. St. Hotel Bardessono and Thomas. Yountville Pier The

comparable despite overall margin portfolio Our EBITDA two hotels negative XX.X% hotel was with including EBITDA.

this Overall, RevPAR continues likely is bookings recovery look transient and on continue best quarter, rate driven strong of over significant strong, XXX% Napa group corporate our the XXX% October and While Two occupancy particularly demand any our of in leisure Bardessono during by Valley perform be were rate assets at to well rely comparable at $XXX. ultimately Properties Yountville performance third with up gains and on to occupancy. strong weekends, quarter’s and to uptick demand. at approximately a both demand performing forward with the at Hotel for of XX% resorts RevPAR in

to In producing our addition performer EBITDA St. quarter. be continues to a hotel Valley the million in strong the standout performance Ritz-Carlton assets, $X.X during Thomas Napa The of

and For which from Torrey Lake phenomenal recent the markets in this and hotel These in include demand time. benefit destinations. to should Ritz-Carlton expenditures total, pent-up we the In Creek, the resurgence million our have Hotel positioned Hyatt St. The over Sarasota, months. leisure The capital Pier hotel $XX of Resort, House and for Ritz-Carlton Bardessono, result currently million leisure are are Ritz-Carlton it been hotels XX drive-to Thomas. Thomas Ritz-Carlton resort Yountville, million Tahoe, $XX La Beaver in considered of eight have owner-funded Park EBITDA, is well Pines, to Jolla of we of Hilton you approximately full when forecasted our $XX hotels Many acquired our that funded close only year, in St. that XXXX, have consider

Beverly segment urban the that advancing the C Mr. I’m report Hilton, The million this Capital $XX.X and Hotel, The Waterfront, Marriott pleased EBITDA by quarter. of Sofitel include Hills the are of a These Chicago. combined We delivered also properties our properties. Notary recovery Clancy, Seattle encouraged hotel for

hotel significant segment. to turnaround. a extent the corporate is EBITDA. posted that quarter the It four For demand the amongst six lesser demonstrates cities, our to quickly third transient a returning of This these is leisure properties positive both and

expect We continue and reopenings accelerate of into the during to XXXX. this XXXX remainder as office trend

Additionally, positive the at we were for the corporate level consecutive third again cash flow quarter.

good sheet puts our we in While a was entered financially. as XXXX, balance much this shape in position us stronger

strategy simple in corporate attractive and We’re strategy acquisition $XXX,XXX over a acquisition also high-end portfolio. of in the premier also art retailers, luxury world-renowned Hills luxury and our happy XX.X fits California irreplaceable diversifies of It’s for XX hotels million. An to and resume of hotel. ship and perfectly vibrant an Angeles. our wider further the array key office with with growth various Mr. cultural owner in This attractions. high of generators, feet with unrivaled the impressive Beverly property location of for an square Los luxury property owning space, RevPAR C per leisure is in our demand Los XXX-room a substantial It demand million price of restaurants shopping supporting fee middle of including Angeles,

the of part being condominium extended we for luxury As which to transaction, rentals. the stay offered also hotel, five residences currently are acquired adjacent

a the about growth addition property hotel help the drive period. expectations going post has of Remington management is will great our with performance portfolio acquisition, very the operating third to year this this exceeded believe we property quarter and superior at performance forward. prior RevPAR Additionally, acquisition excited at prospects We believe as XXX% which assume over of are the our during the hotel’s the

return. and investment see Looking ahead, approach extremely to continue continue acquisition in accretive on our shareholder the to we disciplined uptick in transactions opportunities are on a only be meaningful that We’ll total market. to focus

capital front, subsequent & we the Hotel our one extensions for mortgage year and Yountville. finalized Bardessono Resort loans quarter markets On on end, to the Spa

shape. is our in Importantly, balance sheet good

front. an year debt investor the and also on maturities no balance one the with active have attractive only maturing this schedule in for been XXXX. maturity We loan relations We’ve of

conferences Over numerous the participated several in few attended months, past investor meetings. we’ve investor and

We also attended ago. held York, couple Day Investor weeks in of a New well

Looking with strategy communicate on the of meet get investors attractiveness an to the continue investment to road out ahead we XXXX, Braemar. in to to our and will

both luxury with to on markets, as portfolio business many focused and unique in long-term and our properties us travel near-term the ahead, positions the well the group Looking leisure to resumes. perform segment drive and

represents continue in a space. compelling that Braemar opportunity a to lodging REIT believe We

assets markets and public call with to differentiated level. We And is positive majority now desirable financing with a story the position debt I attractive will quality generating balance cash corporate over liquidity solid the sheet portfolio is the our very resort in that locations, in of are a in and the what believe Deric. turn portfolio a the place. at we highest

Deric Eubanks

Richard. Thanks

diluted loss For million the attributed we or quarter common a reported of to $X.X of stockholders per net third share. $X.XX XXXX,

of cash AFFO positive AFFO For for diluted had loans La $XX.X the quarter. the Adjusted we share partner year quarter and end, We diluted the At prior negative per million on billion of Jolla which the in $X.X for reported Torrey Pines. flow the Capitol $X.XX quarter of the billion. joint to the of venture assets $X.X to total share Hilton per related quarter. and million of of $X.XX had share our we level were corporate EBITDAre we $XX compared was loan at Hilton quarter

a loans average of had interest X.X%. Our total blended combined rate

cash brand $XX.X end to hotel primarily reserve The of and of all represents which and of quarter, our of we majority vast assets. restricted is of had third of the managers, net-debt-to-gross that million held operating cash cash At due lender is had million costs. $XX.X We with managerheld and XX% also ended accounts. one cash also quarter we approximately comprised hotel million. by As of managers. available the third quarter the end party equivalents the fund restricted cash This $XXX.X from the of in

dividends our G&A expenditures EBITDA taking million over cash. positive $XX.X advisory mentioned, debt generated into Richard and $XX we costs, the million other during corporate capital As costs, account corporate and after service, preferred have in hotel quarter year-to-date, comparable fees, was

extensions the XXXX. on of for were in in to of additional beyond doing Hotel loan. Yountville Resort for subsequent the finalized extended & end, the pleased August, these maturity maturity their initial very able maturity and to our been final extend XXXX a to loans Additionally, the so. in and Bardessono to same a an the terms we year have to We original one loans of year mortgage be loans Spa quarter for May, Each final

and debt balance XXXX $XX.X We for of million. maturing balance a have XXXX no in one loan with maturities of only the

million report have our from proceeds preferred raised non-traded Series maturities, our E hand. to increased that lowering Series our I’m in perpetual approximately approximately cash issued and on our $XX proceeds. million net During raising common the sheet, our improved share quarter, and extensions balance by raise liquidity in have extending This capital under our net ATM we also and million and M approximately $X.X leverage we loan pleased stock. $X.X

for a to a As FINRA series. has licensed with as established respect on manager by of company, of these broker [indiscernible] securities, preferred and dealer in division dealer been to the behalf as order act

the We use of getting continued expect is facilitate look Series This growth. any non-traded Series the from progress started for and reporting to raising stock and M sales forward in purposes E general capital company’s corporate proceeds preferred future our we quarters. perpetual to these just to or effort

quarter, price units. adjacent strike million As the of Mr. consideration The $XX.X during OP $XX $XX.X funded Richard million million million approximately X.X and consisted and mentioned, we Hills. million loan. five was units, Total Beverly a allocated hotel with hotel price also the was the million $XX acquired for for at condominium cash, C $X XXX,XXX IN an at a of warrants of property $XX.X a mortgage new of the acquisition

As of September XX, XXXX.

portfolio X,XXX hotels of rooms. with net Our XX consisted

and stock senior it our activities fully discuss asset share shares approximately associated to associated of the common at diluted financial XX.X million include like currently our Our in fully million turn fully to is results, quarter. management we million with in preferred stands shares million over This count X.X convertible notes. X.X million convertible In our our of OP review. our $XX.X share B stock now XX.X for diluted our count comprised outstanding, units. shares shares financial share count approximately and which Jeremy our concludes to series diluted with I’d

Jeremy Welter

strong you, during our third the quarter. a Thank through for profit Deric generate remarkable RevPAR portfolio increased flow And of comparable we XX%. a were XXX% to house able

XXXX and for upper For to chain the upscale comparable compared U.S. recorded and the period, third its respectively. XX% quarter scales XX% Braemar XX% luxury of RevPAR

XXXX quarter every one our and We period during year. our each In consistent outperformed this outperformance have by basis we the believe margin this the our points. in due GOP in is market in third asset team’s metric fact, comparable management to XX% quarter of Notably than more drive market portfolios of is our XXX portfolios hotels. exceeding the for every outperformance a at

Over the to have performance have properties, this our before. to more each ever color touch margin which like points hotels. have and few increased at on the had XX contributed we we to visibility we premium. commitment of by last I’d have months, this some high providing specific than GOP a data of at Both

the million bill luxury quarter. nearly First, in that revenue XXXX generated total quarter Bardessono during produce over third the newly $X to quarter, by built in is is for Hotel which bill is comparable record largely pace Spa The any the approximately a of million a list. results They’re were These driven X.X XXXX other increase. than and XX% more over period year. generated $XXX,XXX the for on

to SMB on many XXXX increased Additionally, third in third relative restrictions the restaurants. hotel the quarter place put $XXX,XXX revenue by by capitalizing approximately by local has quarter

Beaver the hotel. the have the This a or a that period million third with acquiring Hyatt put shortly result Creek, we the place XXXX. EBITDA phenomenal hotel in which in increasing comparable we property had after XX% Park team Next, achievement of $X.X quarter over is

the XXXX. period of the of specifically, room hosting did and fantastic, the benefited third in relative was than XXXX been One sales. has period third the we hires same quarter the group to room more hotel the X,XXX She recent comparable XXXX during nearly our weddings outperformed nights quarter of Director from we in during by more nights

XXXX hotel. we a of hotel previous being the when largely include million, $X Lastly, over is the XX the the month The XXXX, full by the third record. selling in best third record labor quarter mix third have we once drive million has is which These again, other million the identified business incremental on amazingly revenue, areas annual XX% hotel yield. broken EBITDA represents on nearly the the quarter Ritz-Carlton, These rebalancing greater with improving record hotel membership and reductions $XX.X $X.X that gains Sarasota any quarter we which EBITDA year opportunity than which out nearly trailing long-term for are mix acquired hotel’s program, to record,

and Carlton of Marriott XXXX. the to optimistic last invested to the capital we several In enhance demand the expenditure club pent-up Lake total, capital to go position, to on grab at that full at renovation of portfolio Torrey These several are The heavily million projects construction of luxury portfolio Hilton finish Pines include have at retail from La Moving our years investment, Ritz in benefit and expressing at and add Seattle. our in The we the of forward in investments, These seeing XX how across room looking advantage. uniquely the space Tahoe, Through competitive our the a are over Sarasota, currently market future the markets. we a are our about portfolio. guest keys Jolla adding $XX remainder cafe new XXXX, a by The we restarting to million value to at new Ritz-Carlton, I’d $XX this anticipate like portfolio. beach we

exceeding As is to a performance but mentioned widen. is earlier, seven rebound that seven continue being hotels our as portfolio carried as XXXX by should the premium comparable that during GOP hotels other only XXXX margin already periods,

in we for light to back realized upbringing Hotel In to of of Bardessono lead I is notary the a it. final upbringing remarks. Richard conditions, time to turn This now that the excited not luxury recent the addition, Spa, name growth and few. marketing villas and for over the the of call we are will of The have portfolio potential current initiatives completed Clancy fully or recent strategic have the and

Richard Stockton

we Jeremy. pleased recovery In you, trends. the Thank be to summary, with continue

at We our are by resort properties. seeing at hotels demand luxury our driven strong leisure

stages we strength financial see of a While recovery, steady a clear early are our path still the results. in for we in the future

maintain flexibility crisis, term portfolio. protect forward, and of positioned a unique and solid I’m our We for challenges prepared sheet and the through and as Q have near open We forward navigate balance of to assets actions to taken this are us and well of proud our financial we to the our remainder into the efforts decisive diversified the you This success. concludes position call and we remarks, up XXXX to on progress move our now A. will we updating future XXXX. look moving for

Operator

Thank you. Riley comes from [Operator Bryan Maher Instructions] Our question line first the B. of Securities. with

You your may question. proceed with

Bryan Maher

outlook guys you can with as of properties in quarter to winter of season might level couple Lake we the Good Maybe season/ski those for Do next early - or Tahoe. morning the questions at indications and two? the have strength Beaver start guys. A at you Hyatt Creek any for Ritz-Carlton see me.

Richard Stockton

Yes, question. mean, tell – and the our approximately of across Yes, so that we the is December the those we’re do ADR you Bryan. looking portfolio Thanks can driven for I ski and resorts. strength bookings I approximately they’re – by for at $XXX entire

so really things looking strong. actually yes, are So,

Deric Eubanks

add right Bryan, in to be than QX would relative now, Yes, as down sit we’re less forecasting I we XXXX. that it this quarter was what to

– So to improvements continue the quarter. the we we see strong had in portfolio actually we spite performance in in this of

Bryan Maher

deploying you the on around to little you a kind Okay. inbound I from organically. acquisitions? than admit quarter, my of Can next Can commentary on capital versus the getting X.XX have little some do about And you thought sales you equity money other access know, common the that the de decent EBITDA. times it email your you versus calculation, a that investors raising of recent talk given sources thoughts hotel new issuances then the us less lever into and were and talk which a market about share roughly bit to share year’s have have preferred started share, to non-traded could it’s relates to the liquidity, fact process by there, you XX as trends in given your that our

Deric Eubanks

take I’ll sure. that. Yes,

and with you’re right agree no, I So you.

I value. stopped Investor below I think We shares that quarter. we are intrinsic third We’ve during now did sell most at doing recent Day. significantly trading highlighted our so. the

our a of of strength Yes, the So off. reflection portfolio. the that’s ATM is I think continued

corporate flow. We book positive continue to cash

is coming is intention. and down that leverage Our the really

We’re assets. XX% debt gross at net now to

that continue going down. We’re to work to

way this I at to to committed equities to do right trading. market, think the given not that that’s common something where but it you’re the do we’re the we’ve is point,

with concur sentiment. I So, that

Bryan Maher

just believe that do Mr. plan Great. for XXXX you you on that some sell you C, last said Is might event? when you think for money And there. guys spending the me about residences? included I And that CapEx talked you five a XXXX? Is on then those in that luxury

Jeremy Welter

this Yes, Jeremy. Bryan, is

do of go We in we’re that of kind repositioning. renovation internally CapEx what Mr. We going in process anticipate doing mean, to it don’t and I and And going capitalization that with property. much reconcepting and plan we our And complete involve that Cs. are not long-term as a of renovations, I a just lead just we’re for XXXX spending to do will given do see finalizing of design until of us times space. the through the public full XXXX.

Richard Stockton

capital residential with timing actually in units, of in terms figuring out the Yes, that the we’re expenditure plan. parallel

a they’re considered right So, as matter, branded residences. technical now,

to remains feed time in or those would right disposition to So, but those able one in not – sort we way. drip to so of any out units. CapEx imminent with at going there’s be XXXX how seen, a we in one event units we’ll and what involve once of strategy a But handle certainly whether any be sell to figure nothing branding likely decide of there, the we’re do

take will little answer. is the a So time it

Bryan Maher

very you Thank much. Yes.

Operator

the line Tyler of Our Janney. with next from comes Batory question

your with proceed may You question.

Jonathan Jenkins

Thanks taking is This morning. our good for Jonathan Hi, Tyler. on questions. for

provide think First raise strong luxury you I outperformance continued one strategy on and peers. me, revenue quite wondering but the you can continue that. just across going that what’s forward Richard And to the ADR was your portfolio the broader versus if broadly, talk be December, for you about to any and color said drive could management

Jeremy Welter

lot This program. is who with secrets, going to that the I’m revenue guy best can all in got, on team a of not you the believe, detail go tell Jeremy. I optimization our industry. I our in we

assets very data because even is It’s of story unique. has for and put everyone, on. better approach own Our can’t of It’s own talk together its portfolio driven. And and hands broadly lack maybe analogy. I its every very the across [indiscernible] very optimize one our a

a great very think but team. within of I deals we one that been are have involved. – is And impressed job. with the so done our unique And they the team, heavily team It it our has

our probably I say, to and gaining rate, with very, very think quite a we’re team results that REIT been achievement not when just quarter. the optimize the optimization Braemar’s works look relative but management this that pleased with index conjunction needless other we have or revenues, asset an at separate team revenue all you performance to in portfolio. impressive RevPAR any of the It’s to team reports pushing

Jonathan Jenkins

on start guys if when I the then meaningfully any for could follow for front, color demand of up group detail. and appreciate curious, there’s And can provide contributing? you on any commented Richard, that that on noticeable what Labor are you post the pickup any return. transient need to kind Okay. and been I’m marks, that prepared seeing business all expectations Day, you

Richard Stockton

think, urban improve sure. leisure demands corporate right? still, a month-over-month it’s Yes, seen. is hasn’t days continuing that But a I to and significant lot think properties transient there I of are Yes, demand been The that week-over-week. really early still. we’ve

not just seeing of mean, we’re seeing yet. I wouldn’t stages I – early but it, meaningful say it’s we’re yet. it seeing So, we’re

Deric Eubanks

at think a in prepared relative is really performance the we Rich assets these about that I about because management excited I do, collectively of give proud to that the capital want to to very, lot with XXXX, I from the the portfolio. knowing since something credit, a And about. Braemar, he’s us ones job I is covering that’s have acquiring portfolio. incredible he’s repositioning of half now. And done it have that driving think a And very recovery very am he’s reflects really impressive And of think we the perspective given the we’ve assets come great the are rebound are put the the a work is since carrying great a but been remarks those assets. to also seven that yet that is portfolio, it’s a he’s where acquired here do are I one in right on done of about, so we’ve we board across we’re from perspective things a team, job handful and and asset think of that of some to talked or portfolio assets performance the got lot I excited best assets in that be of joined some the of the I terms

Unidentified Analyst

some assets resort Great. what color between there. occupancy, differences if if assets Thank might resort you could urban the noticeable to for that turning all know been given on and there? And any the And running difficult seeing to I labor was provide there’s out, the the anything on be higher assets. wondering but have you parse you’re the color labor, in markets? then I

Richard Stockton

demand we occupancies. issues Yes. biggest not are signing every I’d to we’re of property said, where margins a service because if resorts, rates wages to having rise. luxury the we the have think that labor, pay are deliver retention result. able from of, terms Look achieve do labor But a be just bonuses, high for we’re That and, challenges don’t it’s here on to labor are to benefiting as say are to hourly we’re we still there’s improved operationally. higher bonuses, continues about – and running one We the I able in that facing point the the therefore

that is now. of the market right a function So

bang Fortunately XX% the XXXX GOP of quarter if on less GOP year, of third margin at are right? the compared the line So, it’s rise, and this at you us with million for ADRs year. this only our for also third to in quarter $X.X look

benefit, a but performing to other moving teams, of that And So kind the right leaner portfolio’s being service. is to are labor it. while able offsetting there are parts we level having of continue challenge, deliver the from

Deric Eubanks

Yes, these a mind labor that coming short through thing out really shortages, coming down team’s put the one a the think increases sign. we’ve I’d headwinds. of the we’ve I unfortunate, believe by much It’s that is because is just it. had and other term keep property problem. teams this is week in term job pandemic pace It’s the so say done short that’s that to wage week the we mitigate but good healthy month, a of so by And month already

Unidentified Analyst

Okay, the you all color. That’s for all great. Thank for me.

Operator

Chris next question with Instructions] Deutsche [Operator Our Bank. Woronka comes from

question. your You with proceed may

Chris Woronka

for where the of guys buy has Hey you at trying kind hotel cycle? pretty good would to us that the bit in sense think of Can kind Richard, what acquisition bring in opportunities. maybe you you morning things you need sense it this to it a place get something just a that’s in yield just that give for, guys. point I earlier mentioned a there’s do would you’re terms seeing and of of or a prefer little hair meaningful uptick something I’m on back. to in

Richard Stockton

our Yes. We of opportunities. rate. And that. disciplined And like with unlevered was But saw at resort in I terms pricing. urban in our first X% we’re more about very acquisition an do being yield also we’re like to on place think we’d looking asset cap

in are place we yield. looking for So,

the unlevered on a we a those number XX% a to I greater and continuing XXXX that quickly opportunities ones or of pass that see, are We over. focus IRR. in are weren’t profitable

from move track as That’s think our been well. So, we serves helps best. that records. strategy And think we have want assets delivery our that with proven start. the We that us

the the what decent find, and I in see source And as that’s denominated when Caribbean kind as a more were of you, seeing to U.S. kind mean, I that’s, doing dramatic to almost could U.S. markets you’ll we’re look opportunities there there June opportunities of continuing be and a we’re we past, to there. of shift the able So lucky in no the us, of of number said kind X was really since out got facing, some of Mr. a some and who institutional long C they then looking going year, the that up. things in we’re given hotel But at have necessarily owners and debt hotel last to cases deal, not in coming their but list over are maturity sellers of be year who half, not owners experience we’ve are by driven motivated sellers forward. prefer a decided cases

opportunity well. creating as And so us for that’s

continued to active us past. be to we’ve So things see done and similar acquiring the we’re you’ll in what

Jeremy Welter

would with assets okay that past change and record some in that we’ve of yield with for that add had pretty under I – the ownership I but in think Braemar. we the post track know significantly we’ve umbrella improving on it. I complicated yield, place Yes. assets a of, we’re look

that asset. to good once can walk can at one things of creates do Braemar. of because lot been so have traditionally those through of amount not the assets do a focus is that times we’ve a we buy we And we on we if, of just that, lot if uncover able the are opportunities specifically that And owners, sellers a we hotel that

Richard Stockton

be we away. has was nights. resilient it resilient thing. had people membership very weren’t add more would of face turned Sarasota, acquiring in that some negative program think, that been I we And – asset, a even in that scared look RitzCarlton at necessarily Like kind out talk when program as just that as to membership room that’s They and complex the about not aggressive downturn sure to going we you Jeremy, that at it I was And were experienced. the than that The of

And generating nearly all memberships and The at RitzCarlton to win so, downturn great million has the we’re annual that’s able that been sell which been revenue Sarasota, to we’ve out a for experienced, continue $X through just us. in grow we the

we land development. on at that So progressing it’s in terms property as we’re have things well out further that, that of like

it value. can it And or So, it like opportunity. so you opportunity and turn ultimately call you complexity, call it and we call into can to –

Jeremy Welter

away We that proud resorts before open very open. it of period. are through. you it deal with look well, still they did being the our But the on it with buyers were when other [indiscernible] from the place rebuilt incredibly But is us. Caribbean point as ours lot want their open incredible if lot to at asset it nicer have and hurricane isn’t were I then able Yes. and a at that ownership we result that want of bought able isn’t of we by in had I’m when really an book to know, from more was results We’ve what got time quarter relative analysis go how course, in get to we it isn’t of for And yield in what a pre-Irma. great able the resort But up was The Frenchman XXXX, BIs had been it. we much and just lot to away risk. did stay to Virgin when walked pretty the to XXXX And a Ritz-Carlton under St. we bought the understood, be get wanted were ended further, reef, during you fourth get as the of ownership still one And Because you hit it of and a was that of groups. we still devastating benefit the able look comfortable a to we’ve were an team And to we rest Islands you final I in well. than attractive we property through. Thomas in we’ve open that

Chris Woronka

success prove versus least those out way flip public bit is color kind any lot in just kind And of add in private value and, to a had Is or question of a there’s to you’ve a we at or pricing in two and St. is especially maybe that powder I all just Ritz appreciate market. any huge the add, little market dry guess of thought guys. there the there that with, liquidity And assets JV know gap Yes, JV, to Thomas. Sarasota, one thought, with

Jeremy Welter

acquisition. us. over the JV we at might with that Pines we Hilton it’s is potentially that with teaming any you use point. at Capital wanted been of for an looking And and have don’t Torrey us. great future on our that And partners I’ll that we’d we’re don’t that Ashford. actually, for know the assets, experience. one JV up have the is partner a we for It’s an interesting opportunity other existing capital that great know I And been and a things that some, partner where has have a other infrastructure assets they but tell I JV

leverage So an pipeline. and a our give them more investment further to diversity hopefully create we can, capital acquisition

as So value once the we would be we continue add buyer well. ultimately the

Richard Stockton

of of pandemic, or Yes, that’s a pre had for, acquisitions. structure or, and we GPLP kind right. strategy JV a doing for Jeremy,

that’s lodging as more to raised you recovery managers that’s so by on not even I deep necessarily advantage capital as, there’s in of think as today. space. hospitality but that I enormous applicable have amount capitalize the know, have been we

growth as So further a we forward. going that would means of certainly consider

Chris Woronka

Thanks details Okay, very helpful. for all guys.

Operator

this end the the remarks. and like now we closing I for any call turn reached management have back to the At to session, would of question-and-answer over time,

Richard Stockton

again Thank speaking us call. with earnings on quarter for third joining to forward Look our you call. our you next on

Operator

This concludes today’s conference.

Thank great a may You your your Have you time. lines for disconnect at day. this participation.

Braemar Hotels & Resorts (BHR) 28 Oct 212021 Q3 Earnings call transcript