Earnings call transcript Q2 2023

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

Operator

Greetings and welcome to Braemar Hotels & Resorts Inc.

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

pleasure your my Manager, Jordan now Relations. Investor is to host introduce Jennings, It you. Thank Ms. begin. may you Jennings

Jordan Jennings

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

the Vice Richard President President of Management. Executive will and and Officer; and be Chief Deric Head Eubanks, Financial today Chris call Chief On Stockton, Officer; Nixon, Executive Asset

listen-only remind federal well as upon in release. this forward-looking securities conference a regulations. that harbor notice over pursuant accessibility distributed conference based are statements the and were safe this are a made being let At me or press as of you and information call of to yesterday certain on The the basis time, call a of assumptions Internet the results the contain provisions in this

numerous statements more filings differ risks, Securities actual Commission. could are cause subject forward-looking and with anticipated. Such factors uncertainties those to unknown or the Exchange and company's which discussed in from These to known results the assumptions materially fully are

in them. included and not this the to is call or made as are statements of this the company forward-looking These obligated update publicly call only date revise of conference

a Statements at statement sell any found an of an offer only and this securities. offered be do to prospectus can www.sec.gov. Securities offer made registration during or not means constitute by buy call which to solicitation as will be

may at on company's accessed earnings with which schedules, and in be SEC or used Form the provided accompanying terms certain are filed www.bhrreit.com. company's through website XXXX August financial Xnd, the have reconciliations addition, call release been X-K which and on are In also non-GAAP measures, in the this of tables

this in ended second provided release. in encouraged is those June reported review compared XXXX. provided ended June with unless with together listener the to quarter Each XXXX all XXth, results quarter Also, otherwise other discussed information call all second an earnings stated, the reconciliations release XXth, to

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

Richard Stockton

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

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

with million of and of urban nicely EBITDA First, pleased hotels continue hotel second delivered the we're which in continued $XX momentum to ramp comparable the our quarter. up

performance our the acquired the the continue addressing this And Second, solid as to progress recent closing $XXX our maturities corporate have continue our of announcement third, financing. to regarding which we with million very hotels we make are loan cycle, by of exceed happy original evidenced underwriting. we

we our ample remains solid Our on management of during the remainder working liability liquidity with through balance sheet program focused remain XXXX.

For delivered the volatile second performance environment. despite solid macroeconomic quarter, a Braemar

urban hotels. Our calls EBITDA outlined $XX.X performance growth momentum from resort the second strong driven continued we've quarter continued and was our XXXX hotel as properties by the our on of million at strong prior comparable

a report given of second that, totaled for quarter the the second in RevPAR for the XXXX. ADR. to XXXX to occupancy the this $XXX of RevPAR decrease the represents Turning I'm Having tougher all compared with pleased quarter comparisons, hotels year-over-year portfolio. said second X.X% quarter for of in solid approximately that to

in still are rate, XXXX some and resorts but far stabilization demand seeing both outperforming Our results. luxury are

closer at our Taking a assets. look

remains best-in-class well-positioned. Our luxury portfolio

in are are attractive hotels know to resort well leisure XX located many of high our markets. entry considered barrier hotels of our you As XX destinations.

million quarter. $XX combined EBITDA to of continues portfolio strong Our with see hotel luxury performance during the resort

hotel EBITDA. segment urban exhibited to growth consecutive This the of for and generated quarter. solid Turning remained ninth comparable our quarter performance second $XX assets, our million

corporate the We of returns to recent urban our driven momentum as return group very hotels, by in demand. ramp-up encouraged continues with remain cities. be continued This quickly by to transient our demand strength and corporate

urban by second hotels continue growth our driver we will performance, is coming in demonstrated And the the of be our our solid quarters. our believe to as shape. quarter portfolio Overall primary urban in portfolio for

program. And excited we Reservation agreement Beverly C into that Today Hilton Central to join guest are re-branding very Hotel also an System we Hilton to will Honors, Cameo to be announce, our the, Mr. entered loyalty Hills. and have

rooms, This lobby, million guest a as property will location and and updates great is bathrooms, to will asset part include renovation undergo a façade, this corridors, restaurant, The renovation with an $XX space. guest of the iconic conversion. meeting

a creating with before it the completion theme which style Hilton's renovation will LXR be that the will and commensurate brands, XXXX. upon of join end property for We distinctive is

XX% remain $XXX. our at of $XXX very and we assured our recent North, Scottsdale has Four exceeded expectations Next, the occupancy ADR the an Resort and on which about acquisition Troon of quarter delivered of Seasons based RevPAR in

our XXX-room December resort the RevPAR acquired recall, XXXX. resorts. in high perfectly may a to performance, you Strategically, second early fits and great luxury hotels and our luxury with our owning by portfolio of demonstrated addition as As it's was quarter strategy

the We Braemar's six-acre acquisition, the perform to Dorado also Reserve, solution Beach, continue to nearly for part continues analyze optimal development other parcel acquired the of Ritz-Carlton we acquisition. well. as very the also XXXX

for Dorado Reserve, RevPAR occupancy quarter, X.X%. RevPAR second outstanding $X,XXX, XX% $X,XXX. the an of Beach of ADR Ritz-Carlton quarter was the on delivered and growth For based

segment, other trends located resort the Puerto being property to of an ability luxury shown This prevailing the tax favorable jurisdiction buck in in due to has Rico.

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

the the remains by one-year on approximately shape decided and Braemar's loan, down have extension sheet at our balance loan early we sheet our balance June, emphasize position, continue million. balance good $XXX option four-pack Looking we capital in by paying In flexibility. to

is the our also announce financing. recent by Mile Sofitel Seattle that Hotel, million discuss loan of corporate Notary secured That The to Marriott more Waterfront. Magnificent Deric in detail. pleased closing The Chicago The Clancy, and will We're $XXX

In results future groups. about XX% for XXXX our XXXX, is our pace XX% as corporate I'm up and by benefiting evidenced for optimistic social which group being summary, both and from

and we the of As on as perform travel XXXX are well the remainder footing long-term, the near-term to in into through move accelerate. to XXXX, we business and continue both solid group and

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

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

Deric Eubanks

Thanks, Richard.

share we For the of and EBITDAre net attributable common $X.XX reported for AFFO quarter was the quarter, million per $X.XX. to $XX $XX.X share diluted loss Adjusted per of million. diluted stockholders

which $X.X joint Jolla total loans share We of and the billion Hilton Capital Pines. of loan to At quarter our had $X.X end, had million venture Torrey partner's La Hilton billion. we of $XX related assets of the on

of loans our SOFR XX% interest Based approximately into current and total money Our on had rate average blended our and debt rate a caps. effectively is taking combined XX% caps, levels corresponding the interest of rate of the account floating. approximately effectively LIBOR interest in is and fixed X%,

gross of cash cash million with debt cash equivalents The cash We of assets. of of the majority accounts. restricted is the that we restricted had of and and end As million. ended manager-held and quarter approximately $XXX of second reserve the quarter XX.X% vast to comprised $XX.X net lender

yesterday's share per on diluted share also closing annualized This $X.XX approximately of common company's an approved pay basis. $X.XX million managers. due or cash The represents X.X% per yield primarily to annualized for regard share dividends At dividend had by The for the an stock also a from $X.XX also to available quarterly expects held equates operating Board share third-party the to based hotel our which on increase $XX.X the we an hotel per end announced XXXX significant XXXX. stock company's basis. dividend is policy of costs. in price. annual of in the one December fund of quarterly to per quarter, dividend a managers, This company or to we cash on in With brand $X.XX

in mortgage beyond its extended The loan Notary loan original and The down in an paid an Chicago properties: months. June by Clancy XX Magnificent mentioned loan initial $XXX million approximately Sofitel maturity the utilizing finalized million. to corporate Richard As four we we for $XXX Hotel Mile loan $XXX was balance secured June, In XXXX The additional million our hand extension conjunction of Marriott reduced Waterfront. extension early which the the cash on of Seattle with

rate XXXX of also purchased an interest this cap of a we part with through X.XX%. strike As extension, June rate

grid be debt a subject range of conditions. three The fit Ritz-Carlton loans related rate announced net financing from Earlier by of X.XX% to financing new anticipate X.XX%. pricing credit use of a our one million to will option has properties. is certain is term the financing $XX a million a and interest This proceeds those X.X%. the plus and to the to upon extension And plus corporate that hotels on we Bardessono new can with a the We for loan existing Spa $XXX revolving to borrowing mortgage a that to rate $XXX term X-year million provide initial financing based EBITDA satisfaction base Hotel And the and of X-year interest SOFR we payoff the Yountville. Hotel facility. this secured Sarasota week SOFR

debt Lake loan on in final next January matures which maturity the is Tahoe, Our Ritz-Carlton The XXXX.

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

fully million stands our common million review. currently at units. diluted million financial concludes This stock count is share Our shares X.X and shares which XX XX.X of outstanding OP comprised

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

Chris Nixon

Deric. you, Thank

hotel year $XXX. For our comparable RevPAR the portfolio over the decreased X% quarter quarter prior for to

XX%. Our revenue demand benefit with prior assets quarter growth total comparable to the year sustained by exceeding from urban continue hotel

was While high-quality reflects of a our resort RevPAR average stabilization we properties and seeing across scale chain total X% our for portfolio than higher the luxury portfolio. the national nature the are

spend demand driven capitalized our at newly and implemented like urban our successful would hotels. increased I team to the recovery drive through highlighting some performance group performance initiatives has how time to on acquired

ramping continue portfolio. up. capitalized the hotel guestrooms is opportunity on We we hotels the the Last urban see while still Waterfront renovate in to results at Seattle Marriott year to strong our the across

additional right water capture transient from our near reported eight during Marriott Waterfront premium to quarter During a market. demand second The Seattle positioning RevPAR including resulting and growth prior the these the hotel. are XX% guestrooms unique us renovated the that enhancements of has freshly Seattle the comparable cruise RevPAR to over entire XX% lines allowed additional the hotel's keys year in a quarter on the

reported which a that renovated iconic RevPAR year XX% our recently our prior is Philadelphia hotel the roughly growth is points in of Autograph comparable market the and Notary than market. Another quarter the XX hotel Philadelphia brand over percentage portfolio higher outperforming The

place the We have been and the increase reconcept restaurant working renovation. to services Autograph to on improved an emphasis and exposure room upbranding

further have visit platforms, third-party site our to of partnered To has with leads. business drive optimization revenue team conversion develop technology sales providers leaders virtual and best-in-class group group which increased rates

We the group for from XXXX. second room continue by a $XX see the quarter year exceeded bookings for group X%. quarter for acceleration the group revenue with room booking full in where started the strong quarter the to activity. segment We quarter This year group is million, prior

added in group we room quarter, second the XXXX. bookings $XX million for additional During over

in added just basis, we on the of year under more bookings. same As during stabilized a comparison, second a million XXXX, $X quarter

under the Our guestroom year when that is second $X.X renovation $X.X the compared approximately noteworthy, a hotel entire considering group quarter. the to finished throughout in increase with This million, revenue, a XX% Hilton, the prior in quarter. million is achievement the largest transformative hotel Capital quarter

who the this minimizes of attribute We which with a Premier, our success successful their has stealth partnership renovation and renovation through program, implementation handed displacement.

the more have It and acquisitions a of have how the creating Ritz-Carlton all-time detailed the of hotels upon during Scottsdale. hotel these overall contributed first five records successful including hotels, been, Dorado of terms performance, setting acquisition, half highlight Four to success and the hotel our worth team the Beach efforts is created two XXXX. and for plan, this of Each of to these our which Reserve, and has year-to-date our recent value. optimizing with RevPAR noting, takeover in strategic All most portfolio, Seasons opportunity year

have our the program, luxury and Ritz-Carlton, we marketing optimized Dorado strategy. increased our Beach, sales Cabana At villa enhanced rental digital

first of full and over half a and of completed dive, comparable XX% for also food services increases deep all have XX%, the and resulted have and beverage respectively. We menu spa and These outlets. food in revenue benchmarking efforts last spa the beverage year-to-date, revenue year,

for benefited well and Four Scottsdale use ancillary best analysis similar optimization as revenue The space. from Seasons, has revenue-generating initiatives, as

dive vendors, takeover an team As revenue boutique, at underutilized half space residential year-to-date retail identified to market satisfy first a and a We last did year. our initiatives plan, in part of a local, by deep salon, partnered recognized XX%, opportunities with with the in the successful, nail for the services. luxury to We opportunity build propelling hair spa. we the into accumulate have out inventory local comparable spa spa, where of been our platform. and the over These demand

Moving on to capital investment.

last in invested our in that edge, a competitive competitive have several believe heavily our have those enhance the years advantage. We to portfolio, resulted our over portfolio. for investments We

spa retail and outlet at at the Ritz-Carlton Hilton, the the renovating Tahoe Sarasota. well Ritz-Carlton Lake lobby as the Ritz-Carlton as Lake Capital are Tahoe the at We guestrooms, currently the

plan guestroom Bardessono to renovations at Hotel year, & Yountville. Later Hotel this start and we Spa

begin spa We Hyatt to at and Lake Park Ritz-Carlton at Creek, space renovating also meeting Tahoe. the the Beaver plan

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

Lastly, this I portfolio. we emphasize optimistic would of future like are about to the how

earlier, our assets are accelerate, to continues I no slowing a to break quarter. mentioned demand. of Group with our business of continue urban experiencing and records number As strong signs each assets

additions. new launching which already property renovations, and developing our land further are include We whole initiatives key enhance to underutilized portfolio, transformative

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

Richard Stockton

positioned continue the market. with We're progress in in In our moving trends look pleased the of seeing Chris. the well a the sheet to urban in with you, forward, recovery the Thank portfolio quarters ahead. updating REIT summary, solid be properties. hotels, quality we forward emphasized very to our and balance our by traded publicly continued highest we're you on We

This Q&A. we the for up concludes our remarks, prepared will and call now open

Operator

you. Thank

with The Riley line We first Please the conducting Securities. of a B. ahead. comes from [Operator will Maher session. Instructions] go be now question-and-answer question Bryan

Bryan Maher

Thank morning. you. Good

that Maybe quarters, you does between and Just that with be give would wide a in kind the of couple urban? opportunities And with of to it range questions over you it a are next you do recycling where start any When relates pretty past off this outcomes RevPAR have or resort urban, split target for thoughts the of now? happy you the morning. to at capital Richard. it think in lies? of portfolio me the couple it as look Is follow-up or your you resort

Richard Stockton

the something. joining call. the -- say, and you Yes. investment if capital little sales I'd recycling, Thanks buying for Bryan. about Thanks a think same you're thinking market about

a time I think it's not in for me just to assets sell great general.

I the consider. that difficult interest much liquidity cycle rate so that's a at a just point hiking -- that constructing think Fed we're to with thing it's

due to months. the that's think evolve I several over next

we think necessarily resort eye it, And but so upper on if were call I'd more I we'll on an that. versus luxury wouldn't to versus say, keeping And making a urban, be upscale. do about

luxury urban the legacy upscale are, I upper assets. We guess, considered assets who aligned save very do clearly is with one strategy segment. some Our have

more resort of of thereafter bit well rather sides both better that four for as over urban the balance followed. there and and you worked than would be it'll do quality will accelerated of years urban. resorts I I a it's that if choosing then the I and first those sides having and said lines like portfolio game us last play the between So upgrade along

I that's well. pretty -- so And think served us that's

Bryan Maher

for market of explore Okay. And does on but you've keep there, we the about and it we other debt opportunities kept with you just do come asset growth up the calls. you net it rent And possibly in that real without pretty clean outright weird when then think later, acquisitions now you, in think goal you with taking maybe clean or would taking purchases? live it the down purchases,

Richard Stockton

position through strengths great our our question ability lies of have And of would level the one a asset think I influence just management right mezz I ownership. frankly our within equity to versus capability.

through think, And to ownership. top can equity expense on that way to significant side the both the things. we line I the and value best we effectuate is believe of bring

haven't into of drive management preferred the that get data. an we most us to that but agreement, critical we any unique really at also there investment equity where of in a to the be asset we would looked I type entered could be suppose that type So mezz out of order assurance separately asset.

Bryan Maher

Got it. me. for Thank you. all That's

Operator

Thank you.

Next question of ahead. Deutsche comes Bank. from Chris the line go Woronka Please with

Chris Woronka

Cameo year? we maybe on morning year or I'm then conversion. color more good planned the a Is any get there guys. next Hey, Hilton anticipated there Richard And disruption little this or were I sure do residential, the not think, five you the anything press comments there's you on with. might four Thanks. units Any mentioned that? with if what that considering release

Richard Stockton

for C. to thanks question. in. to name, Yes, all love for Beverly We're industry have I new what and dialing in film types branding. legacy speaks for Chris, Mr. super the Cameo LA about of well planned love history the we speaks I the that of It Hills. as Thanks excited celebrity. the it

for And great positioning so that's a property. that

We have do didn't we will things central that from. for that entered something I part being partnership with of benefit system. hotel reservation this think Hilton, just It's into which great the

a lot think a I result. be business able more to as group we'll drive

positive lot a right. property of this we're So putting and money into all that's really

in renovation we're the program. to going we want you best that? do a to be So extensive one the there And second. it talk I'll Chris Chris have in of an some to will will But side assets get that think disruption, I be But about other let comment this of market. two-year

Chris Nixon

Chris, to hotel. opportunity rebrand really the excited this we're Yes.

touching property. said of Richard I think every going the we're conversion we're the nearly -- to as with part

the asset. putting disruption be going of amount And into is money so with some we're there that with to the

as the really an in excited incredible said out we're have Richard other the market. Hills to I end brand-new Beverly coming product think

property We're really We there's getting immense distribution upside on excited about platform. the think for the Hilton there.

is help to us on really weekends. loyalty Honors the program Joining going

now help on from us drive right high weekends. program distribution So at to the weekend pretty going network increased the and occupancy hotel demand that rates. And just runs the is

Where we've corporate presence to weekday think customers tap got their and business. great be into corporate occupancy and to to their able we in opportunity and for the going got has with going weekdays that's Hilton accounts market And this we're corporate production. hotels drive a

in not we've to with to engine renovation seen the on very the or displacement. most from the outlook whether and the be and is us aligned about long-term their being offsets been renovation strategic disruption distribution of system. with distribution Hilton so kind the And the the we're still brand But minimize interim schedule Hilton this potential hotel for excited

Chris Woronka

Okay. Very the on that. helpful. color for Thanks

guess, for, question for I Another Richard.

you With the dollar a something know credit $XX I guess million amount a stock it's though dividend think think necessarily year do I you but than -- thoughts on not any it's right absolute capital doesn't even amount small I you're the it's And suggesting less might dividend small getting but you just don't either to per itself table on put know it for addition in it? possibly enough do buyback -- back updated as that is allocation?

Richard Stockton

the X.X%, continue the to way flow to highest is have But I I Look available cash agree it's the yield as Yes. pay. Sure. we in the Sure. believe high. dividend that too sector and liquidity now second

strategy. our So that's definitely

now. that yes, right buyback, In I the that's -- terms our capital know of of don't right use

liability working through strategies been management various year. this have We

savings you buyback source because is think -- the Think the right to is also debt about big less savings, we're the priced better. where debt kind right? have that's on you're for less extent I of a today liquidity taking that as of debt

now. definitely rather year next I shares management. I that think less capital is probably think our than a if about that's about happening I debt said thinking we'd on refinancings take how allocation. for We've as But as look year. And unvalued. are can a pursue This us got So buyback liability we're right I refinancing do

don't right I if would of a dividend calculate extraordinary be Our NAV, wide now. it know is try to that. discount but you emblematic to

keep So hopefully keep we're will And our going time. be for and appropriately working reflected delivering results. on over to portfolio multiple head now the in down that

Chris Woronka

Okay. Very good. Thanks, guys.

Operator

you. Thank

Please Next question comes ahead. with & Batory Oppenheimer Tyler from the Co. line go of

Tyler Batory

for to your Thank think want number a morning. here. you. focus portfolio. the there's Good I of within I resort second on And in a currents leisure cross properties travel

have some performing that resort than others. assets better You are

something more markets? was just some hotels more I terms speak chain of to In leisure on bit going especially you these or some these where of assets pertains of luxury the And behavior tougher is a mean, much significantly, to scale travel? that that guest versus it down can RevPAR as of how little for significant comps

Chris Nixon

question, Yeah. Tyler. Thanks the for

at broad I of say, seeing resorts, down of are So, kind at hotels. our we're you've look historicals. at got kind we would but where a our we to Broadly, versus stabilization resort of year-over-year were

were up resorts for RevPAR XX% Our in XXXX.

a pullback we're seeing of broadly, And kind so with the we're slight still hotels. these happy of performance very very,

in to when I got going properties. resort alluded you hotels portfolio think XX you've then of the nuances And some to be a within there's that,

where some properties impacted within biggest the the into of declines, the airlift seeing are the markets. by So resorts year-over-year we're

West in year and are to airlift we've Key and a Thomas to reduction down West. down at St. last Thomas seen both at XX% year. Key about XX% about So St. are last Seats in in

So ramping their kind airlines patterns travel kind we're of to that. as airlines up markets -- other are shift seeing accommodate destinations of and

a had resort group rebooked a then were QX. QX. are Omicron lot We're year-over-year they the they in our where impacted that QX also of hotels cancellations impact seeing number in by of into And

And creating was Omicron Hyatt standpoint. payables due from a in tougher Creek that Beaver by affected terms significant bookings. of so to group group some declines that's Park

So that's it into well. playing as

it's have still QX. incredible records. insulated just setting And Dorado had been time softness. Beach number we QX Reserve some resorts within of hotels Ritz-Carlton said, are all a that by that with think I an

that really the select assets performance we're so still And of set to happy with continue records.

So It's market it's specific. nuanced. very

highlighting are of leisure that. either some some market-specific or seeing stabilization. But things softening we're whole that there the on really think -- offsetting I kind leisure

Tyler Batory

of quarter, expense inflation? rate run in mean, when out be forward? just terms look then for this about in to these the year, margin I the you of prior line declines terms mean, I some of kind the comps. in of and reasonable the you portfolio QX or understanding question, comparison And very similar anything And challenging or going thinking Okay. the at are of a versus ordinary cost

Chris Nixon

There in year-over-year is Yeah. some anomalies the comparables.

Our Sofitel Hotel year in $X.X in assessment a QX savings last realized Chicago tax of million.

but so into currently that's playing And still XXXX valuation, the We appeal that's it. on an pending. filed

we're year so some savings at hopeful we'll And point in realize the remainder the another of there.

look I well kind down. margins, think very of as it's And ADR. and additional you flows the close to us most our tied at rate closely all for way

you ADR portfolio of And resort for the hotels and at resort so some a at average and urban XXX revenue rate. dynamics where that's when our got in the there declined you've look

which hotels, rate. growing $XXX occupancy urban and are in Our average ADR

And so for what is just those happened dynamics is QX. going the to in impact portfolio, ADR which whole

we to expect stabilize resort We properties be expect a more to somewhat consistent. continue and and ramp the little to urban

long that the in margin. help believe we so term would And

Tyler Batory

That's all for me. Very good Thank you. detail.

Operator

Baird. [Operator go you. comes with Next Thank Please from Bellisario ahead. question line Michael of the Instructions]

Michael Bellisario

guys. morning, Good

Richard Stockton

Hey, Mike.

Michael Bellisario

in go of secured can't docs. probably we loan But are we do corporate place? restrictive for nitty-gritty facility the get exactly what just in -- into new what's Can this the maybe of Can you when covenants big financing and go Deric. is can facility? picture Maybe we to that the this now what the

Deric Eubanks

address Yeah, to Mike, happy that.

while. financing that term having wanted today. that's have something to in debt It's the of for had a been corporate thinking a capital to available use that get to about a -- the revolver the we've assets cheapest We borrowing could was of we source market loan. and secured So base

of what additional into to three by that to we time. three a the our secured borrowing have we base ability so we maturities, And base, that corporate over assets did, as the term that's debt those add refinance loan near-term took assets borrowing

ended participating the bank it were market to banks time and up Obviously but very run how the a in out turned happy the a that line. with challenging very, we syndication, banks in

So on board. we're happy to have those all

can In availability restrictive that of and terms some base borrowing amount FCCR. of cap that leverage corporate But covenants are I the covenants of terms we there's performance in on of mean debt covenants, assets. that recourse there the and the There's -- covenant the typical it to gives relate for max any state nothing we're very of the fact attractive line debt there's financing a the And current package think I us have very in in given was at in place happy us markets. concern the all. hotel have to and

Michael Bellisario

what you add it. along there then just early Helpful. than debt the to the thinking is the XXXX. upcoming correct? what's have current Got And guys in on facility, I borrowing at according you but maturities around same think lines, principal hard that those Obviously, corporate greater can can them you the the get base amount the if I'm

Deric Eubanks

assets the based assets those have performance are XXXX did maturities. all refinanceable on we and of loans place. higher than loans what's in put available debt today's of a those and are easily Thankfully, do Spreads decent Thankfully, when we -- number Yeah. market. the in

have pretty possibly debt in on refinancing are been we attractive place a as of starting can. with long those to we patient just we've terms So and that existing few we keep talk the those. as lenders But in of

refinance it us. one I somewhere the pay maturity it And proceeds final the a each ultimately, our are. in lines or a a where there leverage or of all earnings It's how the see that And more sheet loans to you C. say be of loans it. It's bit little see off for is some the asset. yield refinancing release loan. of could on that be can XXXX debt that can else you refinancing small we the of excess challenging challenging a Mr. relatively use debt the could use probably pay just given for We those of late would the and low performance we to each off, be would would work show That's more

Michael Bellisario

for the year one could talk little pace you be And then about portfolio too and that second then Maybe, the just resort patterns pace into just some provide around helpful. bit for if me and And half it. windows color for could for XXXX? of would urban the booking maybe a you and/or group Got between you. booking Chris. last Thank and

Chris Nixon

Yeah. Thanks Michael.

we're the the -- and that segment. from continued full So pacing is with acceleration finished happy pace year up the outlook QX group really, really cited X% year-on-year We and just from prior is QX benefit flat positioned, comparables QX the then look you ahead ahead year. year-over-year. when how But each XX%. at We XX% is quarter did some Omicron is and

half for year. So of back we're positioned well the the

up year-on-year. is XXXX XX% then And

again, a that rate. really any also insulate that softness. So, from drive confident base And with we're will strong we'll group us continued

that's the up it so rate a thing. Pace driven. is of lot is And and

So single years. both digit high we've got growth in rate

In the terms remains resorts urban to for shorter, we're it historics both window seeing booking increase. much relative and but booking of windows,

beyond And the increase seeing six group segment. stuff that now We're year a out. the four we're so seeing months booking it six out to weeks in

leisure from short-term little softening seeing we're standpoint, And bit. resorts, a at a the demand is

So done resorts. as we've in the -- in historically we're pickup getting month month much the our not for

rate, So extending booking window softer a got leisure then which and short-term at of happy you've bit pretty in is rapid little experiencing with. we're very a group the

Michael Bellisario

Thanks for that.

Operator

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

Richard Stockton

everyone speaking joining with call. second a day. Have us for you good to and our QX forward look call, again on earnings Thanks on our we

Operator

teleconference. This Thank you. concludes today's

time. you Thank participation. disconnect for your lines at may this your You

Braemar Hotels & Resorts (BHR) 2 Aug 232023 Q2 Earnings call transcript