Earnings call transcript Q1 2023

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Operator

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

First Quarter 2023 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. this being note Please Instructions] conference recorded. is [Operator

conference your Relations. host, will now Jennings, to the turn Investor I Jordan over Manager of

You may begin.

Jordan Jennings

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

as Richard results today Head over of Nixon, Chief Executive a notice President President and Executive as Officer; Officer; this the call on press distributed Stockton, Financial Chris On Deric release. Asset the yesterday and The Management. of well will be of call possibility and Eubanks, Chief were the the Internet Vice in conference basis listen-only

anticipated. this actual safe fully with could Such statements and differ materially forward-looking this are numerous the information risks, At and and regulations. are subject you Exchange contain the harbor statements federal to those made securities which upon factors certain assumptions uncertainties conference to pursuant provisions and forward-looking unknown company's results I'll Commission. being in filings to in of or the the time, or These known remind are cause that call Securities assumptions, are from discussed more based

in will by the statements to and sell www.sec.gov. this offer offered which to buy are or forward-looking Securities as at be prospectus, or call revise of an update securities. elicitation statement publicly included found an our contemplate not do of be can The company is made our during and made to any means registration date call offer this only call, this obligated of conference the not them. Statements

May or compared are this in information with reconciliations website XXXX, release ended the XX, at accompanying with on provided and also reconciliations company's and ended the discussed the otherwise in provided accessed stated, in X-K in www.bhrreit.com. been SEC March the used earnings call call be may are other company's to have which encouraged listeners terms unless release on the which all the the measures, certain XXXX. with release. earnings all March Form results provided on schedules, first X, quarter filed XX, Each together Also, non-GAAP this quarter of addition, first financial In tables reported review those XXXX, in

now call will Stockton. the Please ahead, Richard I go turn to over Richard.

Richard Stockton

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

We themes for few call. key have today's a

first with hotels, quarter, the this momentum over the year which of with of quarter. strong $X.X growth quarter growth million we're continued First, in comparable prior achieved the again our EBITDA hotel pleased urban

the the during we offering. for concluded stock first Second, capital quarter raising preferred our nontraded

As has enhanced position said, cycle. an offering attractive during in us the the to and go we offense allowed on time our capital

original this have said that underwriting. cycles. been refinancing are through have worth repeating, many and before, work very XXXX. Fourth, performing pleased management and to the this our three Braemark's team it's we're continue we've note finally, execute well acquired economic exceeded has for we Third, diligently And we to hotels program cycle our through

opportunities. remain We positioned on against well to and strategy long-term capitalize are growth our delivering appropriate

our delivered solid a to I'm despite quarter that report results macroeconomic environment. pleased Braemar to results. first Turning quarterly volatile

RevPAR all XXXX hotels quarter at increased the XXXX. compared quarter Also, performance the resort we've by for quarter in looking hotels. X% XXXX $XX.X at strong Our continued and was million continued momentum prior as strong and of the outlined of first first growth on properties to EBITDA the of from our approximately our for portfolio, urban RevPAR first calls, hotel comparable driven the

our Taking positioned look entry extremely demand. leisure our are resort attractive in XX portfolio. from persistent our are high of situated Many to of hotels benefit a leisure markets. remain barrier and well to well they best-in-class closer XX at luxury hotels considered destinations

we our solid luxury pleased that our very quarter consecutive to resort delivered quarter. outperform million to urban the of strong start our With hotel to For exhibited growth performance the EBITDA portfolio eighth combined quarter, to XXXX. report respect $XX are and continues for first a was assets, and

properties urban EBITDA. generated hotel In comparable fact, and all hotel $X we EBITDA million posted of six positive

by recent portfolio return very demand. driven our demonstrated our hotels are momentum continued corporate performance, quickly the solid our transient to phase and drive by as encouraged urban believe growth continues This in and help with strength of for portfolio. we Overall, We our urban will ramp-up hotels continue our in to cities. is quarter corporate to next be demand returns shape by as urban the our first of group

North, Next, we RevPAR and delivered Resort XX% over of growth prior period. remain our very year exceeded at recent Scottsdale True which Seasons has about the excited our the acquisition expectations of Four

hotels fits the fund As no great Strategically, owning early on high December to recall, by its demonstrated it's as common the with with and of quarter you resorts. acquisition. may strategy cash addition XXXX was performance, and in RevPAR equity first resort was acquired portfolio XXX-room perfectly a hand luxury our luxury issued our and to

based $XXX $X,XXX. an Season of of occupancy ADR RevPAR Four Scottsdale on and delivered XX% The

Our Beach from year, acquisition very other also perform Ritz-Carlton well. the continues last Rate to Reserve

of based ADR the quarter, Rotter Beach Ritz-Carlton to $X,XXX. delivered outstanding an and of Reserve XX% $X,XXX the occupancy RevPAR on For

Over cost cost. luxury to the these on Four trailing has achieved yield to these the and underwriting, Scottsdale X.X% ahead months, the looking the very excited of we the X.X% a pleased outpaced properties. prospects note our Ritz-Carlton year, on significantly have that the I'm Reserve Beach assets Dorado Seasons about for balance remain XX achieved an while yield

remains shape, and our sheet at balance we sheet Braemar's emphasize position, continue balance good Looking capital in flexibility. to

extensions refinancing loans additional six mortgage our month X with Ritz-Carlton additional Hotel don't final for were months loans XXXX. mortgage Barestone refinancing working program original refinancing Spa, August is their worked Both six any to or April, the schedule. further Towards of very our on this through we has first low anticipate a We're maturity also an the XXXX and quarter, in the by a also during Hotel extension enhance maturity with loan, a challenges Yountville. Sarasota we maturity This attractive the beyond loan our secured end, for which of extending it. finalized and extended we the with available. and leveraged In lender

Braemar. continue with on to we of Investor highlight investment in one-on-one and at June. And meetings. attending the our investor communicate get plan front, the we to conferences investors some you Relations the on We road, be to hope to to out see in of strategy an meeting NAREIT in active Next, continue also and attractiveness

is XXXX up to is solid XX% pace ahead, Looking start, a and off group year-over-year. are our we that encouraged

and perform to term is the luxury segment well resort leisure and properties the accelerate. urban term footing in group and focused travel which both us business portfolio, both unique and strong, demand on the and long continue near Our puts as with markets solid in to on remains

financing highest position attractive place. the what we solid we portfolio the with well and quality is liquidity in and debt have believe a in public positioned markets, sheet We hotel balance remain with

to call the our turn now through you Deric more over to financials will I take detail. in

Deric Eubanks

Thanks, Richard.

share of $X.XX of $X.X attributable we of common rate diluted which billion per the EBITDAre our Hilton for $X.XX. diluted Jolla year $X.X prior loans, was income growth quarter of loan the We net stockholders $XX.X Capital billion. total La million, quarter. had a partner's reported had or the At share related we Hilton to $X.X Torrey venture million AFFO Pines. on million quarter, quarter reflected assets which XX% $XX to end, over of per share and and joint Adjusted of the the of For

combined interest into in blended of Our average interest had loans X.X%, rate rate total money caps. a the account taking

and LIBOR Based XX% caps, fixed on the interest debt and is the corresponding XX% rate our of effectively approximately current floating. SOFR effectively and levels is company's approximately of

first to of approximately debt gross had net quarter, XX.X% As the of end assets. we the

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

approximately also on basis. yesterday's pay XXXX to The XXXX. share increase share for stock dividend per for $X.XX dividend a policy diluted With significant regard dividends, a to of in quarterly to basis. an company's yield common on to equates share $X.XX we per based quarterly stock Board or dividend the annualized on approved $X.XX the This cash per announced of December annualized in The share annual or an price. per $X.XX expects company X.X% an company's

in Reflecting stock long-term $XX our to our December, announced we million. a to repurchase a also up commitment and bring value, conviction strong create program and strategy of shareholder

During we of buyback the average per at the an $X.XX million price million shares quarter, first and program acquired share. $XX completed X.X

additional our On extended the loan for with months finalized April its an loan to additional million month six The quarter beyond of Sarasota. one markets $XX Ritz-Carlton capital in end, XXX extension original available. front, an mortgage for we the subsequent XXXX room extension six maturity was

a a with loan plus company reset strike X.XX% of Sarasota a rate date that June X, with SOFR X.X% expiration Ritz-Carlton SOFR cap rate X.XX% plus the on interest extended SOFR X, the has of at connection to In XXXX. will purchased then As of an XXXX. October extension,

the an We available. one May month extended mortgage additional beyond The $XX loan maturity months an of its for extension six XX-room with million original additional our loan in was Yountville. XXXX for also finalized Hotel six extension

has November As strike reset this hotel XXXX. rate plus X, SOFR will X.X% SOFR interest In of we SOFR of XX, a loan purchased XXXX. X.XX% with at X.XX% July conjunction plus on rate extended, a with expiration cap of date extension, a an the to that Yountville

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

which count units. currently comprised of is million XX.X common outstanding, OP XX stands million X.X shares fully and shares of million share at stock Our diluted

activities like to review. asset This turn to concludes to our the it over quarter. I'd Chris our discuss financial now management for

Christopher Nixon

Deric. you, Thank

quarter, recovery chain comparable increased to high demand our on the our at quality For average approximately and RevPAR newly RevPAR is built scale urban nature to than our of hotels. the national spend quarter over the has some the result implemented portfolio team a how This around X% XX% I for reflects prior capitalized the the luxury $XXX. year for initiatives foundation and successful higher portfolio. time acquired group our like highlighting would

urban Our to the into demand markets. their benefit from continue assets of acceleration

for revenue year's reported year We RevPAR a and quarter; group RevPAR our comparable couple the For hotel growth two, our first successful exceeded first noteworthy the program, renovation quarter XX%. urban to hotel a surpassed which the largest is prior business. the displacement throughout with led the which transformative on comparable of one, XX%. Hilton, and XXX% partnership room building stealth first revenue was strategy, growth total reasons: market of guest This by attribute quarter the Premier which softness who most under This in our in their the of success by minimizes assets identified focused proactively is the increase handling and the optimization Capital our prior achievement the and hotel, a quarter. of is of hotel over overall renovation implementation the renovation of market foundation

revenue foundation group of ahead room first return relative is room for major prior first of quarter as year's as Comparable X% quarter XX%. rate to events our develop prior at the and the quarter. to by business well the up the of hotels year's first the conferences our emphasis propelled That group group

quarter, the prior revenue signs saw first quarter. We first where future was group volume all XX% booking on dates books excellent our to the from up placed in also relative for year's the

quarter. group That same In group and comparison, booked pickup, X%. books is stage based last total group defined quarter, beginning the the XX% room within stays which the At the approximately million ended $XX.X during in pickup group we for the revenue the million. a quarter was only room was room increase quarter revenue same is for had booked of year quarter strong. the in Our as within $XX revenue on with the approximately on

seeing our to booking While strategy. bookings, in our progress we we short-term maximize are group we plan to throughout current are excited about leverage long-term pricing environment the utilize the

Scottsdale. Dorado records noting just acquisitions, Beach overall of All portfolio of hotel in It the the the during first first the Seasons contributed EBITDA, success and to efforts our have XXXX. of first four Reserve worth performance, hotels of successful these was in more setting quarter the Four terms with is and how our all-time two in quarter Ritz-Carlton hotel the most including recent quarter

each to a team hotel improve process, plans top including During bottom and opportunities for the both detailed line. strategic our takeover acquisition created

For our needle on cabana Ritz-Carlton focused an optimizing increasing ancillary program, the Reserve including team F&B and implementing move our the immediately, sales marketing outlets, the digital that enhancing Dorado our items Beach, would rental efforts pricing in upsell program. and

Seasons which $X.X revenue room Scottsdale source experienced than four resulted as successful from XXX% as a is year-over-year weekend, a Our in That Four a benefited of in initiatives demand period. Bowl million day through period. revenue Super more well over in room similar for that increase

seeing our to invested benefit our in enhance These portfolio in pent competitive advantage. demand years to heavily currently over uniquely our to a on investment, we the have capital last our we markets. Moving up position are investments that portfolio several

guestrooms year, Hotel at Hotel Hilton. renovating plan & Ritz-Carlton the Capital and start Yountville to at previously the the we guestroom we As renovations are this Lake Tahoe. Spa, mentioned, Later currently Bardessono

plan We Ritz-Carlton Lake space to the Tahoe. Ritz-Carlton outlet as and areas the at meeting Lake as Park at Beaver well also the adding begin a Ritz-Carlton renovating retail the lobby Creek, spa Tahoe at Hyatt Sarasota

spending anticipate between $XX and capital million on we XXXX, million expenditures. For $XX

by I how we would to emphasizing optimistic future portfolio. this the about are finish like of

of records. earlier, mentioned break demand. I show a to immense experiencing and assets Group As our continues comparable our number are urban EBITDA growth hotel to continue assets strong business

initiatives already enhance are portfolio. our We new launching further to

Hyatt the B additions, renovations, acquisition January keys these lands of X Park property include underutilized such in full of at as and Some Recreek transformative of developing key XXXX. recent

With these confident to will operate. are underway, portfolio continue initiatives we the new that

Richard Stockton

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

quality are hotel our with call for positioned solid in you We portfolio ahead. This well the and publicly Q&A. quarters to very forward we'll forward open concludes highest We the in progress moving balance now our traded sheet remarks market. updating a look on and the REIT the prepared

Operator

first of Thank Our will question-and-answer with session. [Operator you. this Instructions] at question a be line proceed from your Bellisario question. we conducting And Baird. Michael comes with time, Please the

Michael Bellisario

everyone. morning, Good Thanks.

Richard Stockton

Good morning.

Michael Bellisario

package conversations then in What lenders they derail asking loans and you maybe turmoil up? one plus Before Just those that all first the were for had topic with about third And fulsome coming What process? your for? banking Deric. and recent the or so you talk Can more the secondarily, occurred I looking extensions? maybe the the two assume extension what you far are for refinancing for where generally? the are you that's for

Deric Eubanks

in the banking we Actually, into we've Mike. Thanks, the spillover of headlines, haven't bringing issues crisis about world. or that our Yes. that been

that we're of situation doing three in lender. our seeing And a the there are unique of so, refinancing in maturities what this mortgages with We're year front. all kind same bit level you're impact what on property had a no on the final

perspective. did extensions, we process And more flexibility, financing fulsome a there base, facility use from short-term an have which is assets hopefully on us a undrawn where working as those could borrowing we in flexibility but credit of so, we're corporate we and lot that more some of a did the gives level get also what

attractive that is the more at is today. one market, mortgage none than think markets of that little I the And currently hotel a hotel area while that up a look, straight debt -- attractive are moment,

the happen. type a at time that be we'd we what that, flexibility to that where It on up to would us point. And corporate extensions so that to But fulsome those ideally, when seen and give I'll work more need some call that's like where end remains financing.

that pleased extensions we're Those in those spreads So can completed. today's to loans and replicated market. mortgage really get assets the are be at

So get we the we happy got to done that were done. it it way

Richard Stockton

we've BAML, large country. important the only point with a bank with our right, that, systematically largest second just the money is which of dealt the is loans banks. center Most And in as add I'd historically, banks, Yes. really are

completely and back this medium-sized been from in banks. and we've insulated from regional the small lending volatility So pull

do balance what really a be and shouldn't feel we forward confident about big going we So to lift. our sheet have

Michael Bellisario

Got of of it's transaction first the on it. sort And to maybe partially front, answered question, sort my my already, then follow-up you Richard. related but it

seeing Just you avenues do more what have are of one independent then until are you a as reason those with is to cautious or maybe do to more on clarity two pause of the little going you're any sheet opportunities separate maybe there? upcoming bit emerge there refinancings? you side Or view that another? the things And balance any on be

Richard Stockton

said, No, We of do debt. hard want to And the it's Deric nail dialogue you're now you liabilities restructure a knowing cost because just are the precisely to, settles, until they think on on to without acquisitions where done. unlikely hit long if several I our play opportunities minimize game, to And right? out. that going having years months, active even as acquisitions we around game -- any That still not the take said, head. many times we're is be so

right, X decide the are right? don't assets assets. we're So You number unique much commodities, going which These typically this aren't of just looking we're month, more luxury the hotels. to buy in at, that

market still to So that comment a we're say no on finding are off right? bit sellers to pricing, little looking. we're unrealistic still that make as the to I acquisition frankly will

-- giggle, five Because and and just it's is realistic. got desk I've caps right? not four my I coming this across

out there, looking. we're we're So

sellers to assets capital are settle about average have also get in for wait and this of maybe worth. new to We their realistic some for more of to kind weighted what cost

Michael Bellisario

very much. Thank Helpful. you

Operator

proceed Deutsche question. Chris your next line comes with Please Woronka Our Bank. of with the question from

Chris Woronka

Thanks taking guys. morning, good the for Hey, question.

first, I the regardless is of guess, portfolio? I situation debt how kind still hotels. play So and Chicago two the in mean, these the do might Richard, autographs the of long-term to view you out core

Richard Stockton

that's think Yes, good a I No, Good absolutely. question. Chris. morning,

on felt a have of more with a we to Sofitel, that settled us of of more in of favorable management in improvement seen performance of the had I lasted couple assets. case was think those that and asset manager We that years. to and there's that little each room place dispute In the there of the it run a bit team. a much

still to get its and to time potential. up long-term we're really that giving play So asset out that

autographs, case very a bit personal the the were In of courtyards about those time I got ago. for the two very excited just renovations. properties it's very, And maybe since they significantly think the to realize in potential four has I have still assets. of enhanced do been but some little me, quality those those I we believe years

Christopher Nixon

hotels, Yes. upper at and I time converted we The renovated would the have ending. I to realized upside the the don't we've add those XXXX end that. and into XXXX, those yet -- of just that we from hotels not

about so very excited that. we're And

think we is as look strategies outperforming we we've significantly market, that attribute well of the as the largely I that there. Hotel in Notary our Philadelphia, hotel and as implemented the the some at to brand

worst then and at it's market. year-over-year into successful growth. through kind with canceled significant back. American in think signs very encouraging the very strong you now two and of when last market, San Francisco, [indiscernible] upswing and the They very see I come back we've a JPMorgan to look Citywides Oncology starting Clancy on of trajectory, the high Citywides, that lived was And year coming has We're from had Social

we look on. when We've realized hotel, haven't a upside the meeting opportunities. brand that that we fitness space some hotel we new center. added some at to value-add It's found got And so, the

runway of we're the both haven't significant them So we ahead and that feel properties of that we realized yet. excited, have

Chris Woronka

I And estate quick you Great. I know a Appreciate Richard opportunities. excess can don't Chris, or Okay. then, lot all I give guess, the real us guys a know, of, detail. have you --

you still sell and in where in something look give potential them and development us or like and you do some Sarasota. about those of to the and could things maybe talked Scottsdale you think about so? what Hills quick are you look You've I a talking on even one on we're to Can or I Beverly do next might guess always to or year

Richard Stockton

yes, Yes, sure.

different we of portfolio, in in have available are then some the things you’ve midterm couple have and condominiums is, that have we of So kind One Beverly Hills. for we what three parcels asked. do rental a at development

So with those the -- start I'll condominiums first.

that were condominiums XX-day minimum restricted have We a at five stay.

whether on little we're time or are rates, still a Unfortunately, an probably or in would those damper is to bit one of mortgage of good residential it So owner-occupier. a very market. putting a more period we to evaluating of not sell be a high which the

until But are -- bit next, for that So monetized. it little in to looking to ultimately, however, we reverses trajectory which Fed could make that a forward many sense of the all pivot, wait months. the be inevitable will they

terms In the parcels, of there's three. development

have Tahoe. So the at Ritz-Carlton X.X acres Lake we

we're We XX running there. the hoping center sales a and up be are entitlements to And presell season. well ski have to year able of townhomes end the into Plaster by getting the to advanced those to with on County build

project region, construction ground when and window the when grading. is idea window, a moving for there's to for in And be then construction that break the that window next very favorably. would May along The opens so,

about that one. So excited

first -- development of parcel. In terms that's the

in the terms second parcel the approvals. we half us development a on that's planning we're this just of be year. in But Sarasota, end ground that -- to you'll time XX is of break the in for probably or lot pretty homes. we'll develop for residences, requisite of XXXX that, getting take something XXXX. Second in of that branded concept are Things the see Ritz-Carlton a advanced working plan through and And budgets probably where finalizing single-family

We available suited. hotel And the early with lastly, Four build Seasons would acre the to a six under us we do at hotel to commercial parcel is believe keys. that the then the zoning Scottsdale. allow stages us assessing almost of additional And there, have that

be option also And an facilities. spa some And to strong could pretty there's wellness build and additional there. suites and a then market for so additional activities that

something that's on. so, And else that working we're

seller a That around did Four involved as in that. well. from heavily the We been has Seasons inherit very plan

And well. don't say timing at certain little as That's got initiative a on where kind that is point, behind are. But a this momentum a we have final so, conceptual less given the plan that I'd that we've we little yet. of

Chris Woronka

good, Yes. Very helpful. very Richard. Thanks,

Operator

next Maher Our comes with Please B. your from Riley Bryan question of the line with proceed question. Securities.

Bryan Maher

Kind morning. the cost of think kind you've Good hearing there what a floating of everybody's to is rate that when when circling floating Ashford refinancing How the back on of making buying think have shift holistic And that versus rate to at these rate Yes. got debt solution caps to of in you the past debt you to towards from moving we move done -- nonrecourse fixed you. debt? decision strategy did a about forever those fulsome keep the approach. has here favored Trust you caps and comment rate similar the extensions more the versus mortgage to Braemar of about more debt keep do and how debt, on on what a fixed

Deric Eubanks

It's Deric. Bryan. Thanks, Yes.

we term off Braemar prior of shift. ultimately then a loan we the at and I down senior first wouldn't facility a into and strategy mean, and a pandemic corporate your that notes shift, significant credit with drew issued. on question strategy I So we we it but say even converted paid to the we in had it terms it's

we So of it's were back of kind going kind pre-COVID. where to

So shift. there's significant a not strategy

still as the I of think as corporate well Braemar. utilize property level level mortgage debt debt we'll mix at

leverage Braemar referenced. bit which than Trust, lower has you As little a you Ashford know, strategy

a So in Braemar. utilize mix it utilize terms little we think sense of we of makes the that more at a financing bit to

rate So account in floating the at terms and take of the rate and cost caps we're do when into financing. we fixed that the financing looking how caps of versus

of where rates those quite do You're now, place a for in this right rates had we're rate time but floating rate multiple we right, Obviously, up, in floating if bit have go There's do you've go down. and we period caps seen up in, been reasons and caps borrower, financing. that. why we've go you've have preference rates a a kicked

of it fixed business natural debt flexibility rate that we And And our to debt. we the economy. versus view go that a hotels and like up profitability floating also rate with tend hedge to the provides as down the

tended lot there's why on we reasons financing. So focus floating to rate a of

see have I mix. now. continue a to you'll us We've think a got mix right

I a continue going think we'll mix forward. have to

significantly the I XXX% So be rates we'll the other. couple look if dropping it the rates, And think don't interest shows years. of forward you way or at curve one pretty over next of

So now really to debt. time wouldn't be lock in rate fixed an ideal

that the Although we do I just really market of some up coming the And the moment little think that, because of a rate having loan say both. kind I attractive. floating us said bit maturities see we you'll have at not do wouldn't also of wouldn't go with is a fixed rate

there's into so, factors decisions. making And go just of those play that lot when a we're

changes. with a be something And caps of kind little from very that to cost is are that's cap we It the more expensive. very, Obviously, expensive. cheap where right tended the now being very very, They volatile. is being can go to of bit that very

kind of comment So my that's there.

Bryan Maher

Okay.

issuance tsunami Just kind But to laughing caps, at five the said a to of we year. extent a want to to to I go the that and shifting financing acquisition properties I be kind money, And correct type are start the that what X.X% should preferred and to Is had able standpoint there gateway getting amount find don't you to a new is that just non-traded something and value large see kind ability later say like gears can't Richard, get larger financing a four reopen this tap would or X% we -- into from of the difficulty these of to heard, or that of but some prognosticators of you front. about to turn? agree.

Richard Stockton

would it It relatively for ability kind Bryan, be that matter within always we've is a question. done be There non-traded already Yes, new to that probably months. to for few the it would offering. quickly file equity able a before, happen a given thanks of of preferred

understand the out At we to you want broker-dealer is it, issue than a the we bit do community able be friends is if sensitive markets, little retail in below that that a our cost think inaugural referenced, to where is may and the less do market that. we institutional to that were cost rates would it I at our so what came we this to from maybe do

thing capital very other now, is a is, for structure. equity it eye on in is And at of Personally, That right close with capital structure that enough? least said, XX% our something keeping believe preferred we're I like the now. our

you rest opportunities So be to definitely we there good the I that want market on are eye access that to opportunities hear can avail future. keep the pivot that an there. We'll of assured, And in that. if some quickly ourselves may we

Bryan Maher

Okay. Thank you.

Operator

comes question the proceed your next of Our from line with question. Instructions] Batory with [Operator Tyler Oppenheimer. Please

Tyler Batory

as demand high-end concern just compared and out talk seeing up, there leisure in the questions. for power Good how April what perhaps to margin? pricing or you portfolio Thanks A on the There's customer out softer my there. perhaps about Hi. the trends shaping market morning. about you're slowing, couple especially taking in Can is well.

And seeing just in rest of QX? of time? what terms you're interested for the kind So real of bookings seeing what you're just also

Christopher Nixon

seeing largely QX I'll pulling Tyler. we this. Thanks your of continuing. is the We're question, forward and trends This that in experienced Yes. kind Chris. take for

to continuing performed well. year. They're are urban well relative very Our pacing hotels last to very

pulling Our stabilize. forward. those lot continue see of resorts a trends kind And we of to

group pace very I think Richard cited entire year. the in is for comments, strong his

of great And by out seeing short-term strength that. group our encouraged We're bookings. we're so,

the is continued seeing ahead we're sign. the for fact prior well strength of that a and that, year, great full pace So year short-term is

BT improving. no of is signs showing That's down. slowing

think March some I to portfolio XXXX. of very This look be as we play. the a had comparables and of at April QX, will strong

March And out April. incredible a a saw is travel surge coming there of Omicron, the pent-up portfolio folks and where huge to bookings lot in we Just hotels And of first. was last year this to demand. wanted for in

tax into We April will anomalies. significant of realized comparables. the to going play tax that also last a There's kind assessment some year be in

ahead comparables in of as business seeing, of we're and So trends we've with But the into some the they're favorable. we very, said, that kind still QX. tough got look very terms

margin very, in we're in a to from luxury up pre-COVID. And standpoint, margin our is portfolio. XX% with that performance expectations comes with consumer. ADR From resorts, the our high happy very

portfolio So whole more a we're a pleased as that efficient as operations. very run continue we to

going departmental be prior were For on able to that PLR the And expenses our believe there first we're X% of to forward. a a is pull lot down year. we efficiencies to there quarter, basis

and So continue what whole, group Urban continuation improve. continue of segment's just transient be seen, and stabilize resorts to to we've a again, of business will on continue the the kind will strong, to

Richard Stockton

Yes. Chris. to that, I add would just

our us things when meaning recovery, unique the feel recovered composition -- we're portfolio of we this comps. a than fantastic terms about in make at I does year. of that's But it we because And quickly difficult And least had One year feel year. last that we for right, should penalizing like we're do it's ahead much to ourselves year more our outstanding is, say such we an a tough make for peers. that be had that, they then we

like at like look in is it's cash things our yield information to we I how flow on and very continues And generation why our strong. assets that's that cost, what started presentation, strong. company publishing yielding, the it be and right, looking So very,

-- to a great properties of resort flow. demand growing very urban strong cash what the us excess segment, I resort of call in So of that we generate have and kind position lots puts and a would base plateauing

Tyler Batory

given margin in on of margins mean, you Okay. when there. level XXXX how that QX things. of an the come you labor versus in did be budgets your it's the at perhaps perhaps there we versus just in of interested commentary some do were side so specifically of Or EBITDA expectations? year, in, of follow-up in around your ballpark some at the look base I little could I'm properties? bit performance strong, at reasonable on full have XXXX? you the the XXXX, earlier did your kind A think And do rates the extra overall, same look benefit a

Christopher Nixon

Tyler. question, great a That's Yes.

there. of was year our margins you points ADR composition and basis XX% revenue So and to play rooms were X% grew the last at some year prior the to F&B down our at XX prior are down dynamics revenues, EBITDA at at we year. that then revenues look of when And grew had the X% that year. that prior

And lower significantly than so rooms. a run F&B typically revenues margin

a then that. couple were And big there a there of had we tax so win dynamics were standpoint. from a that property impacting And

Sofitel was our XXXX XXXX, in of Chicago, February realized they tax a $X million. over at that reduction So

helped that our in so and margins. And played certainly

some we tax we're But be it, operations. across productivity a on to as mentioned, relates as efficient as margin as hotels. improved seeing more I EBITDA look whole, it We're the reduction of to in going XXXX. we running QX at There's noise, our realized significant

will that look play. RevPAR aggregate are of the stabilizing. think we our the be lower what's A EBITDA carry hotels RevPAR urban a at prior When highest margins happening significantly, lot year, I of growing to hotels and at in portfolio are our

And of RevPAR so the portfolio. in as portfolio a for based could weighted of composition decline within a the as in on shifting changes the could be are weightings impact a decline ADR those kind whole, the that be

with But of this of And margin XXXX, compare particular levels year-over-year. we portfolio that's challenges as EBITDA some margin kind rooms pre-COVID the ahead. to significantly and in and we're looking

our But the and our as I go kind be of quarter-to-quarter. going with the noise labor we're kind hotels. the happy we to do on running of hotels models, there's we're and efficiencies So of think whole, very how staffing some

Richard Stockton

impact subscribe We and belief basis on I COVID business people found permanent think I do moving margin XXX points hear add labor Tyler, the how XXX that's have the your the that. we comment Yes. that to to model, of would all of we about forward. labor to on structure that. of And And improvement.

pre-pandemic. say in pockets savings. there where contract fully are I mean staffed would full running XX% FTEs at which to of cost over more be basically really be result time, but labor might we number some people, a I'd did And we that some up. than that's going lower to converting little We're additional we add can

terms from shareholders. we've And COVID, it of to come of in term, in better place. longer I lessons a think benefit I it's think So, out going

Tyler Batory

variety urban few I it's it that that [indiscernible] A Okay. is Francisco the that is to kind -- estate kind see interested mean follow-up travel? And terms in layoffs, issues, being Is et be then real wide different your you're a for San of there that. of headlines in other broadly, tech regional urban nice of perspective driven outlook questions. mid-week? improvement, Francisco, The cetera. to in on specifically San out by leisure? of seem corporate Is banking

your of kind perspective and there? of year and Francisco San curious what outlook on couple the Just the years this next is

Christopher Nixon

some shed can I Tyler, that. Yes, on color

market So market. hotels, we're up significant. with seeing from portfolio, XX% broadly our transient. -- I of I are size across our by is But recovery urban it mean, are really biggest segments. the We the corporate the were the mean, and year-on-year, and all and segments really coming portfolio improvements group And that's

production revenue month under one market that the was and of Notary of because our got they they Cap strong, hotel, them. to in to market, broader In March significant Hotel out Hilton the the the the corporate group was renovation actually was highest And able the Philadelphia, and outperformed Comcast. accounts were due in strong second of history largest land production.

base built out softness. groups and market some of a went in-house proactively kind Our self-contained group to of really overcome sourced that team and strong

of it lot We're because so at strong in market specific. Chicago a doing Hotel. demand. really away We've our from got seen we've is group Sofitel some And wholesale kind remixing of business

We're us mix hotel up nights from room of corporate that XX,XXX at seeing some business. Group away consortium. strong It's think I year-on-year. is allowing to the lower

all is really it segments. So

while XXXX, of our XX% were over up last were they down hotel, Francisco, XX% we year. Clancy San in Specifically, to

market to of travel growth out corporate continues seeing in some But specifically year-on-year. we're again, strong the production, the recovery signs We're I that we our mentioned seeing QX. very in financial citywide great those firms signs We're terms remain Tech seeing of in so what we're production some kind And lag. definitely fairly strong of consulting was effects large and Francisco. also -- of services. from optimistic seeing there lagging. layoffs single accounts. terms in the hotel are from is of San But in

Tyler Batory

fit that you're so Okay. how share in, you topic, on or stock increasing And how the in some any of use then back extending capital? bought QX think authorization. mean, the I you the kind future? repurchase, thinking repurchases thoughts I in I here, that that last about mean, do

Richard Stockton

assessing question. a decision. We're Yes, It's Tyler, Board always evaluating. it. always We're good clearly

we'll -- look it. about So tell can is, you I to that's at all continue

very we're investment. a now. is I think that disappointed We to stock very on we're right multiple getting say the that. It attractive see suffice with our

As look, our of if new the we buyback. increasing buybacks, or said a in we're it's we'll do priorities, share we're this -- it's fighting launch not reducing because and we kind a whether past, But evaluate leverage conflicting we continue question, to market right, cap. and fair

Tyler Batory

Okay. Thank me. That’s you much from for detail. all the very

Operator

I'll remarks. closing session. have we the the the end now of over reached question-and- And for turn management call to back

Richard Stockton

with many Have New June. us the NAREIT call to in on quarter good and look We of speaking forward a earnings day. in hope joining first at Conference York on for next everyone, our you to see Thanks, call. our you

Operator

may Thank you and disconnect lines your for conference, time. you at today's concludes This this participation. your

Braemar Hotels & Resorts (BHR) 3 May 232023 Q1 Earnings call transcript