BHR - Earnings call transcript Q4 2021 | Braemar Hotels & Resorts Inc.

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Operator

Greetings. And welcome to the Braemar Hotels & Resorts Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to Investor call Relations. like Jennings, to now of Manager would turn over the Jordan I Thank you.

begin. may You

Jordan Jennings

Good morning. quarter And for welcome you to today’s call developments. & XXXX to for on year recent Braemar to Resorts the full fourth and and update Hotels review results

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

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

Richard Stockton

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

five call. have for today’s key We themes

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

be corporate positive level. we the cash continue to Second, flow at

Fourth, bookings. to portfolio outperform recent good and in assets in maturities. our we Ritz-Carlton with is luxury shape pending well Americas. Creek Park continue iconic Rico acquisition Beaver a of the debt with most the Dorado, fifth, the Dorado our have announced forward we of strong of Beach, And balance no our Third, near-term one Reserve the to the Puerto positioned Hyatt is sheet very in refinancing

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

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

the increased approximately X.X% to fourth up XXXX over RevPAR quarter fourth and Our ADR XX% was compared when portfolio RevPAR to quarter compared XXXX.

XXXX achieved XXXX we portfolio the levels. full quarter, we year in our fact, so our We see are excited getting to RevPAR and about and to RevPAR or by highest also our our to levels opportunities history achieve XXXX. year fourth expect XXXX in RevPAR exceed expect EBITDA full year very close quarterly In this calendar deliver continued calendar and to meet enter encouraged hotel company’s growth the XXXX full to year year by

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

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

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

demand. year While the uptick rely be ultimately, to the industry-wide likely pullback Overall, have RevPAR resorts leisure demand particularly associated to strong, continues on weekends, of any on strongly group is with performance significant corporate started transient our and in demand, Omicron. despite corporate recovery

the For exceeding of equated ADR finished XXXX $XXX, RevPAR and occupancy which of by XX% levels an we January, month to at X.X%.

during exceed RevPAR performer, outperformance St. fourth For a versus Ritz-Carlton be occupancy, continues Thomas February, quarter. with $X.X we hotel in XXXX. standout million continued producing expect the to EBITDA XX% to

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

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

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

to office We continue accelerate expect as this during XXXX. trend reopenings

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

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

as strategy location amenities, asset on development. well of master properties Dorado property ultra Puerto both the XX well sought resort, and planned continuing of the estate Dorado North the a million, Ritz-Carlton community The States. Dorado in acquisition to world happy in after only X,XXX This class as also our iconic the with Beach, Ritz-Carlton are worldwide. the Reserve surrounding as the pending announcement Rico, premier residential guests Coast Puerto one within We within luxury is Rico real be most acre offers to the the numerous was five Ritz-Carlton the situated first of markets the the of Rico, luxury as Puerto Reserve United both Beach Resort, in The and Beach of room Reserve $XXX.X a Americas is an asset. for beachfront growth implement one Dorado,

$X,XXX, to luxury luxury addition will of with this a an the units fourth Management the about prospects are to we We stream resort be performance also addition, in to acquisition excited of We complete acquiring occupancy the that and income XX% the XX residential acquisition Rental adjacent our very be attributable and portfolio Program. this property the to during great the participate In RevPAR will ultra in believe hotel’s weeks. delivered a ADR coming of $X,XXX. as the plan quarter

the we ahead, on to meaningful opportunities in acquisition Looking a uptick continue market. see

our in to are transactions will be focus shareholder to and only on We accretive that continue investment approach extremely return. total disciplined

On attractive Resort the our terms. the provide to stock non-traded a end subsequent front, we Creek raise more completed Hyatt details moment. will markets via and continue on Beaver refinancing that & we preferred Spa the Deric Park quarter in of on very capital to capital

good shape. Importantly, sheet is our in balance

until have maturity maturity We next XXXX. attractive our not an schedule card with April

been active front. Investor also the have We Relations on

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

attended will continue We we Investor months York New communicate on to well our attractiveness Day in in couple also held In road get Braemar. ahead, the a to strategy the out of the investors of investment ago. to weeks an and with meet

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

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

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

Deric Eubanks

Richard. Thanks,

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

or to year $XX.X common full loss net diluted million share. the XXXX, reported of $X.XX For a stockholders attributable we per

diluted the For diluted compared negative quarter. we prior of of in per the share year reported AFFO $X.XX, share per $X.XX quarter, AFFO to

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

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

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

satisfaction like available certain The rate the floating is million, is expenditures have & for of XXXX we interest have $.X.X full launched year, and G&A and those in during service, non-traded only options the over cash to company’s one portfolio. As subject a was other quarter debt flow. after Series very completed Resort pleased preferred in dividends The report the initial our year and that EBITDA our advisory to raised $XX.X proceeds of loan quarter taking approximately of and loan Richard of for of there the mentioned, Hyatt attractive million I comparable provides costs, we debt am Park end, attractive account perpetual Creek also three totaled the the + stock. two-year net extension on July new million $XX.X year Beaver financing Spa conditions. terms. SOFR interest-only non-recourse The term Series illustrates maturity final we a from Subsequent to assets preferred addressed quality high that refinancing effort X.XX%. the corporate since with into generated costs, million fees E positive last M we our of for in and hotel financing capital $XX.X

future Series of sale forward primary M effort be to This and we the look from Series capital our the started getting proceeds and to reporting non-traded growth. perpetual facilitate quarters. of the our to our is preferred raising E capital just expect source in stock progress We

portion quarter $X.X key, we per acquisition be acquisition the As units Richard Rico. million to announced the inclusive Reserve will or Beach, $XXX.X in loan. of a will funded Beach, consideration of assumption $XXX be end Total is pending residential for rental of the mentioned, Dorado million Dorado in consideration find equity be funded of cash the No to X cash, subsequent will from acquisition Ritz-Carlton million $XX the The and Puerto available the the program. stock of the million the mortgage consideration. the with cash. of portion The of issued additional common approximately excess cash million shares

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

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

Chris Nixon

increased Comparable of fourth Deric. to asset XXXX quarter in fourth RevPAR the the With our by our This you, XXXX. Thank the for same relative This to quarter time XXX% portfolio RevPAR a efforts X%. thriving. our of quality portfolio outperformance comparable is management the exceeding the team. portfolio period and during testament is

achieved a a Yountville revenue during revenue driven by was year more XXXX, in producing Hotels increase fourth Hotel room Bardessono developed million $X increase. fourth during quarter than Yountville of Hotel luxury showed XXXX. our revenue the total representing the strong Our XX% the Spa million $XXX,XXX period fourth in fourth generated villas over the approximately quarter the during quarter total combined during the growth and full XXXX period RevPAR than recently comparable villas, This and comparable more over quarter the XX% XXXX. nearly in comparable $X also results revenue XXXX. of nearly $XXX,XXX in produce in

We upgraded types and more room premiums revenue of program. through to stringent this higher kind implementing blackouts seasonal by seasonal have increased topline and

record, The next XX% comparable driven XX%, $XX.X outperforming a the which by out quarter. with mix by implementing Sarasota $X million program, EBITDA, its in long-term selling Next, the over on total revenue club we that year the representing on are best highs and including These hotel’s membership in increase had hotel respectively. Ritz-Carlton optimizing in prior $XX the nearly labor acquisition total in results of identified initiatives both XX% than efficiencies. and million million highest quarter also the to $XX business hotel, record hotels annual and historical fourth long-term million revenue, represents revenue, nearly recorded hotel full The more fourth

and X.X% Lastly, quarter to most with taking to acquisition gain The the RevPAR investment over The on to underwriting. than like the the premium our in by I hotel period our Prior at would during significantly developed included rates plan already highlight Mr. more has dependency EBITDA on hotel, OTAs a capitalizing reducing fourth plan C, our asset runtimes. to XXXX. recent stabilized comparable management hotel on $X demand which realized team higher XX-point relative million. increase outperformed weekend

resulted points of labor Additionally, quarter above quarter. staffing more we increasing its by initiatives levels fourth in property quarter the fourth these margin only to C comparable with is productivity success, by improve by to XXXX outperform XXX urban ADR re-engineering than Both model. and XXXX. The basis improving XXXX have Mr. relative already our X% departmental expense nearly

value and portfolio investments, to that several invested our from last capital our XXXX, our in on Carlton seeing in add $XXX,XXX new competitive and have heavily able exciting to beach position, total, keys $XX In we spent the uniquely years across investment, over enhance at Sarasota to cost markets. are club per on XXXX. were Ritz Moving we cafe currently at million additional included the at number a advantage. These a projects These in portfolio XX demand complete restart The pent-up key. of approximately In capital to of our the a benefit the expenditures the portfolio. we we

continue in destinations, potential located call to we over the which RevPAR to portfolio. relative Philadelphia, to RevPAR I on the finish now a the Those in in the XXXX, would about are expressing exceeding Chicago, final X% this will XX fourth to future. eight turn this Richard believe we the whole increase already Seattle urban during quarter Francisco, hotels ahead all XXXX. as such is Eight D.C. to optimistic of lifted of remaining the the to of Washington, and remarks. by I portfolio comparable unlock our of we San hotels portfolio, outperform back how are XXXX will anticipate to allow like levels. significant amount to million expenditures. hotels $XX a $XX There million spending capital us approximately Looking to for future still additional and are Nearly runway

Richard Stockton

summary, resort future at strong our we path to you, driven Thank In recovery hotels leisure for our at with Chris. our properties. continued see We strength by be the trends seeing luxury clear financial a are pleased we demand continue in results.

moving and positioned open now solid we This with Q&A. up forward well unique for on sheet the a our our are forward call portfolio. the and We look progress We remarks updating in you prepared ahead. concludes diversified will to quarters

Operator

Thank you. Our Bryan questions of [Operator Riley B. Securities. Please Instructions] your with come Maher with from first proceed questions. line the

Bryan Maher

think that for those clearly inability commentary. XXXX in we was both mean, the back you of of I about abroad could who Thanks it, morning. and we and go unfold there properties. for all beyond. How half a revenge of do XXXX? traveler ADR XXXX when lot lot your Richard, and to Good think a ADR as affluent travel afford kind driving the hit of

Chris Nixon

that. a thanks things. for Bryan, of Yeah. say I’d couple Yeah.

achieving setting actually our at ADR just are of that some are We properties records.

I the in of the for We concern. great, concern can is -- did it think in that’s some $XXX. ways a ways ADR we up. year We and an keep some

to couple happen. a are think I things of going

of resorts for groups traveling zero I and attending the now sum leisure are are a are spending business to purposes. as and instead they kind in business for that on more schedules it’s so going have travel game, flexibility And conferences. them their think be time traveling meetings people and the traveling and back, are in comes and our road of purposes,

the demand. urban And extent out leisure we backfills portfolio. that’s is air and what’s bubble that of our of it the left to about with great So balance gets any -- there

upside there’s we EBITDA have properties properties resort our urban hits of there. a and ton as that much Our really contributed historically as

things I that’s see So how I evolving. --

of So think it’s I resilient, because that.

the have precipitously. rates think to that going achieve I been leisure able to we fall aren’t

for paying they I your are to affluent so level. going our to at used those that rates continue are going hotels do $X,XXX night to and room, continue think once to earmark a a traveler gets to

in So dramatic pullback I way. about concerned a any am not

Bryan Maher

Is it about rate Is from upticks its or the to could way day, safe to a grow total that from the the the can that or properties? travel fair business ADR end levels. leisure affluent say maybe urban at occupancy the current And think on it? to at of hold decent back travel RevPAR that a portfolio own come

Chris Nixon

That’s am what it. Yeah. about how I That’s saying. I think

Richard Stockton

Yeah, Bryan, positive. Chris. we any The in only of All signs thing I’d not seeing terms that, ADR. are add, very slowdown indicators seeing what very, are is of are from leisure we a forward

you We is and when residential things of expect high those drive the across see Bardessono, portfolio built capitalize villas that ADRs. leisure it are at did Those corporate resurgence urban can demand largely the we number done our happens, pullback, will across out a see sustain and increase participation. leisure have in hotels to pegged. in got rental we looking try units But portfolio. our travel programs that. key If that luxury and rates the the to we we a very have a of there to on We I where we think Sarasota additions to think offset that

Bryan Maher

at on to on two think financing know Can all? should if going of think, properties the of a maybe and properties, your some of year? financing on let done was have that’s assumption cash to just that And is you recent to debt, see acquisitions, appetite, would a how I moving Richard, spend kind on should you I expect acquisitions most per a that if head year. of dollar combination two And you creative hand, that of is in we that, correct like think that changed me, which you forward? maybe on I amount your there kind that lastly we about am think you us this And some wrong, think Okay. shares,

Richard Stockton

to a things for Thanks and the seeing. lot Sure. environment continues very that, terms Yeah. sale. a are be the flow that for available interesting very we and of deal firstly, Well, pipeline acquisitions active properties are There Bryan. of

I done one we think said, they urban resort That properties. are acquisition, predominantly resort acquisition. have one

portfolio We will our view terms in continue in to of be composition. balanced

to quantums, in last of year, approximately I year. range terms I’d value to continue year. asset gross to our announced think, In a three about yeah, per do we about like million acquisitions that one the two is $XXX

So are deals. I for a I fundamentally. right? think a picky, the see of at And we look lot very, -- don’t being that driven now, very by We use lot we changing that’s that fact

of expect We based disciplined or acquisitions identifying our been we forward. are that that have being in two how said, past just continue But not we where many attractive very them the on successful And underwrite in they deals. are great and are to offered. going I one

right terms or acquire In a give very OP the think in a upper of do I the us we way is negotiation. utilizing hand shares consideration, the units amount to the of in way attractive

very two had wanted now roll where have who had they sellers Braemar portfolio to eager the street very from upside that have we on that. the property their into realize were to And We the best deals and shareholders. we announced become much

just acquisition translated the price been into and the to price at to that able that. had have the we we do careful, share have the where deal time right I very given to of Now be believe was

be helps us not will we highest it is So, as that. a some I price. the comfortable way and way cases, at a with at maybe look sellers creative in very we even get to strict think in buyer, But continue that the

cost a I debt of when also it’s particularly It’s something assumption attractive. or we helpful can of the that seller. lender to use find whether appropriate, offers the it’s debt helpful think to the that we is us

always say, to are pretty too. But markets at will healthy. we look that will I financing continue So the

of approximated on we the that asset Creek Hyatt finance at refinancing saw that Beaver levels our You Park acquisition in where XXXX.

who from at are, So probably, there is our available banks lenders that this relationship point. even preferred

to assume it find that. necessarily on we acquisition think need So, if We financing, need we don’t it. can we

assess where situation metrics, will some number different every and can across creative done. a of we deals we be try to those get So

Bryan Maher

for Okay. the and RevPAR one. not try going have room plus modeling How classified, The And off sizes ADR, on -- you there I is mean, Can just of income to I me just Dorado on we and last had about how opportunity you ADR a command -- we can under the a room this to be give little in should that the revenue and from the huge, stream is are for XX charts. year lot about us $X,XXX residences? be be for think be that, under us color mean, purpose and the purposes? luxury revenue where’s do other how think that going to modeling quick

Richard Stockton

Yeah.

you size night So, on $X,XXX of The a average rooms ADR able head. to first, over the are the X,XXX is room the hit we size square suites. The reason achieve the are feet. because nail is

indoor twice Your They luxury have size. outdoor They showers, So more plunge the are typical room well than standard as almost right? a X,XXX is you feet, have square showers. as king pools.

drive they large a to square that feet. really just $XX,XXX product rate, night villas, feet And are upwards rental and you very that, They So It’s X,XXX from of it. when incorporate square the to right? plus ADR. command able program luxury the room that’s the range a villas driving you X,XXX in are

of into that’s with rooms that revenue the rental and rental into What doing net So we management revenue program our it. program, calculation incorporating RevPAR. are incorporating what’s doing is the

are we that. how treating that’s So

Bryan Maher

very much. Thank you Yeah.

Operator

Thank you.

your line Michael the proceed Bellisario from comes question Baird. of next questions. Our with with Please

Michael Bellisario

Thanks. morning, everyone. Good

Richard Stockton

Hi.

Michael Bellisario

pool there coming put hotel. And t follow a the guys around that have provided, on just rental economics. NOI quick what from you sort Any stabilize relative of can percentage up the multiple is to the versus you

Richard Stockton

don’t I -- have little program a you a that’s tricky rental because a doing theoretical will we think more we are it’s segment not of publishing, get that frankly. have to anything It’s you to we allocations actually. and be exercise, do when NOI, reporting are so Well, that because to

Michael Bellisario

incremental then here Puerto help how are ask. investing that on the understand enough just U.S.? there evaluate in I’d Rico, risks we And stateside you in while can Fair Okay. you versus us dollars

Richard Stockton

I about taxes it’s up laws. it’s Yeah. great no are U.S. was Everything U.S. a question. friction very concerned. that when is, as the far thing U/S/ investing opportunity you Sure. in So territory, the came is That’s attractive as a Rico currency, are mean, Puerto familiar. right? There are

very the favorable tax on by it’s island. investing exemptions you get In fact, are There the opposite.

when think -- we that Caribbean, one Thomas, us in given in is the easier experience the that So it to our St. weather-related again. weather. program on sort talked have about that Thomas there. concerned is experience think in time our best-in-class us time from a Certainly, I I and protects management any people And St. risk a is about lot property. I and our made risks go are the event for of of

to work and there is assess capital can’t. that I for us market put simply of that risks to a way just I a us think allows in in that something that companies lot other advantage is think So key a our

for of the favorable financial St. pleased policy very We for have there. through umbrella more a with we shareholders Thomas and rebuild us came that be on the couldn’t results really

due how beyond don’t risks that. it. of are has airlift that’s The I XX attracting mainland that tax professionals know So we to assessing other the been a is Puerto times major is there. incentives Thomas. Rico from in the It’s what offered St. literally lot it

much as trend. well. storms, very related were doing to the are XXXX or downturn favorable better storm doing much some they that’s So better, but XXXX certainly a there Economically

discover It’s as That love outperform. people Puerto we go it. Rico. asset there. absolutely you I’d beautiful and will So I to place. encourage a think The stunning to continue beaches are

Michael Bellisario

on you opportunities, Mexico, how Caribbean one of the would then big would the that are And be to you not America, last you, locations, what what looking helpful. just look That’s at investment side just at other other is be? map investment Central interest is

Richard Stockton

That’s good very more does America. currency reluctant am markets, question. those take Caribbean, There a to be Yeah. in on Central the right, risk. seem Mexico, I market to coming to

terms East actually to, the to dollar, and certain taxation. most And they Caribbean we Panama are and just then in thing So pegged dollar. markets U.S. to dollar related luckily might that to be U.S. is There any how Caribbean if use said, the pegged American Mexico look Central some of like, that carefully markets is U.S. as dollar. that at destinations pegged of there’s friction well the are the operate. other which the All

be continue of nationalization out the look limited and that. we we certainly risk So that has Certainly, of friction. tax but it haven’t call But limited the currency risk risk. to geopolitical described, will or I box -- then really to limited areas at ruled check has what would you to

we Thomas extraordinarily with feel in Puerto So comfortable Rico. St.

haven’t anything territory been yet, continue recently look some available attractive up and for have things a that done in there sale. because non-U.S. are We will come we but have to

Michael Bellisario

last Got you issuance, just opening to $XXX are to, the you up that maybe there? your trajectory, That’s now the about then and getting what’s million one for you of stated helpful. getting it. trajectory kind I And more how think of target, at offering then of on brokers think, me the probably least preferred do expected timeline

Deric Eubanks

one. that Mike. Deric. will Yeah. take This Hey, is I

with sign correct. additional are The up agreements You continues offering dealer additional to brokers.

offering is of weeks. target we sort trajectory of every to closes would terms -- to that a know that level. continual Hard two we So we continue in of and that it’s open when But to up. ramp hit do expect we guidance raised

we up. expect to that ramp progress would So continue to

Michael Bellisario

Great. Thank you.

Deric Eubanks

Yeah.

Operator

questions. next Batory [Operator line the Instructions] proceed Please you. of Janney. comes with question from Tyler Our with your Thank

Tyler Batory

you direction also of you. follow-up business dividends about dividend, sense? historical A ratios as morning. versus clearly, are payout here. common are thinking you thinking me, for How make Thank and you does potential potentially balancing Good about attractive the well? the a when your that moving questions right in the acquisition opportunities few versus How some see

Richard Stockton

that. there Board yield the Yeah. for do can to dividend see liquidity happening are out flow, thanks to sort continue assess reinstated. Tyler, there question. of and at you in is I the some also I focused to funds are analyze that believe continue like we will with cash program and mean, would tell that least sector All we peers. We that our some what’s and

We very financially. well are doing

dividends. our peers of You see activity in terms amongst some reinstating

that’s So news at that this all I about on have the time.

Tyler Batory

Great. Great.

million of expected mean spend. CapEx in that, you a $XX I XXXX. roughly you get terms did in if for I number missed mean XXXX? the spent I apologies spend In

Richard Stockton

We did. did. $XX $XX We of a range gave to million We million.

Tyler Batory

Okay. Is really deferred that’s or of CapEx you future? in maintenance XXXX a how normalized thinking XXXX and have kind in guess, would I there are their any, CapEx into that’s spent money about the shifted

Deric Eubanks

a about is of deferred this into year third that Tyler, year. next from Yeah.

Richard Stockton

Yeah.

I know, kind well you revenues maintenance reserves, standard of to at reserve ongoing as excess rates spend you industry of mean, typically terms about hotel Board an for it’s Obviously, across In the that. in of of look X% if CapEx.

don’t spend are are So for CapEx by X% we FFO funding. guidance got we going into that that some set we there owner percent just of roughly But for forward. out target know reserves. to of revenue are XXXX. ongoing of revenues prepared would And of with anticipate to I that kind know terms reserving supplementing normal of if course, some But achieve you we give have guidance to going in we

Tyler Batory

all for That’s will leave it Okay. you. there. Thank me. I

Operator

I at to are like this turn call back management time. Thank further for no the There any closing to questions you. over would comments.

Richard Stockton

fourth call. our you with speaking everyone thanks us We to call. earnings next joining look Well, right. quarter All again forward for Good-bye. on on the

Operator

We This teleconference. does conclude your today’s participation. appreciate

this day. You the time. may rest of disconnect your lines at your Enjoy

Braemar Hotels & Resorts (BHR) 25 Feb 222021 Q4 Earnings call transcript