BHR - Earnings call transcript Q4 2024 | Braemar Hotels & Resorts Inc.

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Operator

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Braemar Hotels & Resorts, Inc. Fourth Quarter 2024 Results Conference Call.

Instructions] [Operator

like Hugbank's now the over conference I Financial to Officer. Deric Chief Please to would turn go ahead.

Deric Eubanks

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

as Chris accessibility distributed At will Management. President assumptions of made the Vice safe remind in and regulations. this of Asset me federal a today also President on information basis call Executive are Richard the yesterday a and Stockton, the call pursuant Chief you to were securities over Nixon, conference forward-looking in being and results or notice contain press this time, as the conference call the well The are provisions On this statements harbor of be Executive of Officer; and based listen-only Head release. that certain upon let and Internet

found or a during be which the Securities by means of is solicitation securities. are made this not are and offered and assumptions, registration at results call to to statements the only only this statements update Exchange buy actual www.sec.gov. to a from anticipated. those Commission. Securities statement prospectus, Statements Such not numerous materially of the as to company them. do fully date sell are in cause The call, known factors an discussed with the or be this These obligated uncertainties or risks, included to company's of in could differ conference forward-looking an can and subject call more unknown which revise publicly will filings any constitute made offer offer forward-looking and of

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

Richard Stockton

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

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

fourth RevPAR, of that quarter portfolio growth growth. X.X% and achieved pleased RevPAR to after the X I'm X.X% report revenue comparable declining in quarters First, total achieved comparable straight our

are remaining After on in have preferred continue approximately value plan June. we completing in creation that we of make we stock. $XX having Second, third, that loan on shareholder XXXX. our the progress matures the will our $XXX in with redeemed And to no refinancing of debt million active our refinancing, million discussions maturities nontraded lender final solid

X.X% an year quarters that report the comparable results. after Turning decreases, to RevPAR over portfolio solid our to I'm reflecting increase of excited several delivered RevPAR our quarter prior quarter results with of quarter. fourth of fourth $XXX,

prior which represents year hotel year quarter. and was over the period prior by comparable $XX.X X.X% total hotel Additionally, EBITDA revenue over the million, comparable increase increased X.X% a

This a driven events. in of by the group bookings growth underscoring group and continued resurgence X% was in increase strong revenue, part

and performance solid challenges Our improved certain in operating growth despite portfolio markets. temporary demonstrated

festive For with in extended Christmas revenue from Year's a with Despite instance, Monday festive influenced remained unseasonably to year and of shifts mild the calendar-driven the the booking also winter January. shift into weather a impacted period. on events increase New weekend from demand destinations, XXXX booking Eve these compared in X% seasonal portfolio just falling XX in patterns to Wednesday Wednesday, Likewise, of compressed window prior total resilient timing our XXXX in in the peak the key days demand first challenges, of hotel to X. while

are Nine the solid XX increase over prior a fourth combined comparable and $XX this quarter RevPAR period over million, EBITDA with X.X% performance delivered destinations, year luxury $XXX, and resort X.X% hotel increase year considered hotels a our of comparable prior resort period. of portfolio the of

quarter. the We urban in of growth by achieved also continue RevPAR performance our encouraged to X.X% of be hotels comparable fourth the which

and across properties impressive the forward year. booking is strength segments for an over at demand RevPAR was our January portfolio our seeing are and our We all urban prior strong. XX% pace

the While Hilton X%. over growth, our benefited from RevPAR still the inauguration, portfolio was Capital Hilton Capital excluding the

decline travel urban XXXX, by improving post-COVID strong rebound in segment. a of we hotels resort driven has It's noting and that enter are bookings we resort momentum unsustainably worth seeing and of restrictions by industry international ended. period result fundamentals, As RevPAR growth as in our high an the stimulus and sustained forward solid also our anticipated driven

to the segment constraints believe resort capital we steady restricted from forward, stemming aided moving return is growth environment. the ongoing supply by to expected However, markets

underutilized several market, XXXX, the experience across our fourth long-term enhancing Seasons revenue. value generating offerings driving we the transformed and incremental In guest retail portfolio. Four of expenditures. guests to the At back-of-house curated while Scottsdale, Resort at we capital access to delivered successfully with aimed on into a seamless gourmet high-impact projects Moving space quarter providing

market [indiscernible] dining and the commitment at our of experiences. made also to quarter culinary in completing programming food world-class Ritz-Carlton and resorts, the fine We venue Reserve fourth strides significant the beverage the reinforcing XXXX of positioning the renovation in Beach

and also boardroom the the Oceanside social events. and We ballroom corporate property destination remains refreshed at a it showing for and premier

of the successfully Caribbean completed resort's Ritz beachside status Thomas the a overlooking the diamond solidifies enhances we luxury St. the Great Additionally, as at Bay, experience sales, its Carlton the elevated and refreshed restaurant venue destination. renovation further

final maturity is in the $XX now continues a XXXX. The loan been loan spread extended the Lake to capital plus for of initial of markets and January secured date front a had end, On loan on have an its and and quarter The so company the successfully subsequent extended paydown Ritz-Carlton to loan XXXX maturity with the January has date million X.XX%. mortgage XXX-room the by Tahoe.

original to of pleased raise. redeemed our report also preferred approximately represents XX% we to stock, I'm have date, of that the $XX approximately nontraded capital million which

We these as seek expect share. shares our to to redeem deleverage and platform we per flow to improve cash continue our

those to moment recent for heartfelt our by all affected take a California want express South fires. support to I Finally, the

While our and corporate Los directly has to recovery and In in Angeles stepped assist not demand. our local securing were assets groups support swiftly long-term providing impacted, company in caused insurance-related a market the response, displaced guests event efforts. the stays to for fluctuations combination

as over but role softened Group a recently, daily business volatility leading that transient demand has a take and state impacted bookings. in continue to group spiked secured saw accommodations. play remain saw now or then, it hotels to to the frequent supporting cell also local Hills, return cancellations. market. ensuring our across residents rebuilding to days in the committed Since I'll rates long-term the you Beverly More through and more as financials a with bookings returned housing Deric detail. cameo our stable communities experienced process. call few has a February the were to temporary home We ace the been turn tracked efforts within cancellations, Initially, the property shifts

Deric Eubanks

Richard. Thanks,

per of a For or attributable the share diluted to million stockholders diluted $X.XX. common per quarter, share of we AFFO negative loss reported $XX.X and $X.XX net

full $XXX.X year, of for AFFO $XX.X million per quarter diluted our share was the venture share quarter full had of $X.X the We Hilton. of Capital reported on the loss which common At $X.XX loan million per the loans, EBITDAre for share and we or of of of end, diluted assets Adjusted joint For had $X.X was net $XX.X $X.XX. EBITDAre partner and adjusted billion stockholders $XX.X to attributable to we related the year million. total billion. million

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

approximately of is XX% current caps, Based our and floating. on level is rate of interest XX% debt SOFR and fixed effectively the effectively our corresponding approximately

of the from $X.XX At had and restricted the third-party that hotel yield end annualized by an based lender gross The assets. hotel dividend we stock We of a price. annual XX.X% reserve to cash of dividends, of equates we common share per on cash $X.XX the also or As and represents basis. end which operating quarter, accounts. available cash regard stock primarily held restricted the cash quarter, $XXX.X of fund This is costs. of again with cash is X share quarterly of With had net $XX.X million plus of $XX.X and comprised of approximately ended million. manager also vast to due million the quarter majority debt equivalents diluted we our an managers. per yesterday's on X.X% announced of to approximately brand This held to fourth managers,

review the policy on company's Directors quarter-to-quarter of to Our Board a basis. will dividend continue

debt the with discussions regarding Braemar assets weeks in leverage attractive, refinancing final positive only in XXXX especially lender those an We coming On financing. the like of active remaining the get announcement a hotel hope in the currently continue are the portfolio. that on for more have debt low to to We our loans maturity. note, high-quality markets capital regarding

credit resulted high, already has borrowers. over which attractive XXX a the from points SOFR decreased approximately environment in spreads XXX also past for approximately decrease year, has we've basis seen points much basis its more While

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

XX.X of asset discuss financial concludes turn currently activities our quarter. for I'd outstanding stands to stock diluted shares and Our share This comprised XX.X units. OP the Chris million is million now fully shares at million to management common over X.X like our review. of it which count to

Christopher Nixon

Thank you, Deric.

the discussing the group was portfolio, to compared to continues comparable fourth the revenue Group and reflecting a I'd year our time fourth $XXX, to For like across In portfolio year over rooms group for period. performance. prior quarter, accelerate X% increased pace by some our RevPAR increase recent our period. quarter, spend hotel the prior X%

group group growth was Ritz-Carlton record-breaking in up full both and X%. prior year revenue St. period October Thomas November. continued room XXX% Additionally, The its performance, over the reporting year XXXX over

flexible total XX% room group of periods. revenue identified Fourth quarter more group room over revenue of group period, quarter, October and November, year for revenue up Notably, in grew corporate short-term the advance. driven period. XX% XXX% in accounted for from the in the room months prior during strategies year XX% X A by by weddings contributed prior just November booking booking over

ahead Looking remains ahead, pace strong, prior rooms our group period. pacing XXXX the year X% to currently revenue

fourth in period. improved the Additionally, quarter, prior year the lead group over by volume XX%

The summer Ritz-Carlton driven space on function team Lake Tahoe its opportunities. of lead renovation sales new addition volume experienced the in strategic the of by leadership XX% year-over-year, group focused growth an the on last and

by As revenue over incremental million room result, rooms side revenue. slope generating a $X.X an period, prior this in the luxury year increased group resort XXX%

business strength we We quarter, million positive $XX during and of increase quarter. quarter a the continue our Turning the group and as second group opportunities XXXX fourth These future third secured volume. the million during revenue million for $XX the from outlook our to booking in across reinforce the $XX our results optimizing revenue during strategy highlight notable portfolio.

following hurricanes. our XX driving a We improvements highly controls, our expense growth, gross hotels. XXXX, on multiple teams operating have basis margin revenue Ritz-Carlton of across XXXX areas St. undergoing compared which margin reconstruction is point to excluding in the increase achieved Thomas, Alongside remained focused profit the

was compared operating iconic Caribbean capture amenity gains XXXX. Beach driver X,XXX adjustments, resort the Reserve increased property, XXXX growth the was after rate delivered strategic the key significant and property property segment. margins in basis luxury fee in of A focused on quarter, Dorado in the increasing revenue acquiring the operational manager by fueled efficiencies our This refinement Ritz-Carlton to its group targeted optimization the points to fourth $XXX financial initiatives. structure the and the shortly increasing $XXX from pricing profit Our gross over by fee

while Operational away maintaining year generated in room role in margin new driving contract service marketing over savings. from optimization, including residential The and the residential notable increase expansion. period. productivity X Housekeeping growth addition operations sold XX% a prior PBX over Consolidating in quality shift efficiencies and with units, labor, and a also played payroll $XXX,XXX residential service nights satisfaction. critical enhanced the program enhanced saw improved a room guest of rental

revenue parking a performance full year. Valet reinforcing beat to the in-house Reserve the drive profitability, have bringing Additionally, increase XXXX sustained meaningful rather in resulted parking operations $XX,XXX initiatives for in Ritz-Carlton our to improvement. in positioned These ability for

Lake food combined Following growth Ritz-Carlton over quarter increase the driven its Strong transformative fourth space, Tahoe and This and full-scale engineering and was renovation the performance largely hotel the with transient XX% revenue strong relocating year by quarter. luxury total prior in delivered renovation, analysis. contributed compelling a restaurants a adding the and bar, with targeted and to revenue, revenue, Cabanas pool. living XX% snowfall, prior growth. the event plan pricing and a revenue overlooking rooms adjustments, included year the group marketing demand, and hotel's menu grew The respectively. October, including early result a focused strategic center sellouts This XX% the group business, upgrading full successful over which on expanding in packages fitness significant period, meeting X and and promotional beverage of group room outdoor was increased consortia

control operational in focused highly management enhancements exceptional From improvements, the occupied labor portfolio of efficiencies on and strategic remains our our per coming team underscores standpoint, positioning cost and effectiveness managing an success our expense for quarter asset room. year. continued the controllable This

at the Yountville, this Looking initiate further Napa Beverly a X In the hotel. LXR renovations we Valley. Hilton ahead experience XXXX, from quarter, renovations its our Ritz-Carlton, strategic will Cameo to add plan into support we of Later St. year, transformation begin the luxury and will Hills Thomas, enhance first renovations key to enhancing cabanas, we launch luxury At in luxury Hotel beachside guest several of positioning elevating incremental offerings. we to the heart the will the beachfront driving luxury revenue. to

guest Creek, the a comprehensive We room renovation Alpine Beaver resorts will at ParkEyes experience. also begin world-class further refining

$XX to invested we million back XXXX, portfolio. and we Richard million to and For expect approximately now enhance call million expenditures our elevate over between I the spend remarks. and for turn capital luxury in will $XX $XX XXXX as to continue in final

Richard Stockton

our In properties. Chris. continued to with I'd reiterate we be pleased our you, particular, the performance strong Thank the In performance to like that of continue of summary, hotels. urban

look balance you. updating remarks, open in and positioned to progress We quarters you the call sheet concludes on our with remain also well This Thank Q&A. a the our and solid We ahead. promising outlook. forward now prepared we for will

Operator

[Operator Instructions]

our question come the of And Baird. line from Bellisario Michael with first will

Michael Bellisario

Thanks. Good morning, everyone. Good morning.

question, just million to going at any, where Tahoe. I million development that, you're us $XX in how have if think, CapEx. first you much, Can just relative then And the on range to remind you in to just you're provided. Just $XX spending 'XX that with guys

Richard Stockton

Yes.

to Tahoe? part second related is to question mmillion million of the -- the the how the is $XX So much $XX of question

Michael Bellisario

Yes.

Richard Stockton

right? Is Yes. that finished. Well, Tahoe, it's

-- got well, project. with one small we've So

forward, going that's small next And $X Cafe remaining we're to bar. year, be October. area June did the restaurants and the refreshing spaces, So the year, did outlet have guestrooms between the relocating renovating XXXX that F&B the included we'll the We called last and off-season and project. kind in and public going for Blue of million. under living last a the which room we

XXXX. we with And that slow Plaster As and that the a to for project through. pursuing opens anticipate we're where get County. questions to once very and project entitlements, the on not let branded continues the expenditure we in in given very, comments. a we're know. any kind process. process entitlement window be still on I is residences was I those development, there going It's grading of entitlements sit that sure And everybody be we'll would

Michael Bellisario

balancing versus That's time? plan, point assume just it. shareholder fair restricted thinking you're repurchasing how helpful. stock. you And value this the at Got maybe If about common in from then common on your repurchases to are it's preferred still not,

Richard Stockton

that's correct. No,

at restricted. and as We stock when we'll are -- look it's We common available.

know to exactly might be. difficult it's So that when

Operator

with comes of question line from Jenkins next Jonathan Oppenheimer. the Our

Jonathan Jenkins

on headwinds. me, that maybe And could how demand from Can correctly, be think that additional some provide what sustainable hoping seems to drill despite strength I if understood broad-based. is which you inflection on you one color of the pretty shift in January RevPAR First down kind longer term? driving and calendar

Christopher Nixon

Yes. Thanks question, the for Jonathan.

It's So we've period of festive effect on been Richard performance. of in our do of resort very, remarks, had XXXX. year. is period is having hotels amount which that on period our QX his of festive period in the calendar but XXXX given properties very January festive QX a a happy the where opening negative with cited positive number effect demand in the have. highest we of the That a revenue shifts significant

We're from of done number pricing. things which forward then And some all this we're done the made number Tahoe, hotels program We've we're of the the hotels of very significant to units from things -- coming capital position revenue of very benefiting seeing that. And for management Lake our transform a some pace well period. so standpoint, in we've renovation get into rental the out some kind done portfolio the we've of of generated in investments revenue and renovations rooms terms also to a and higher-end that during to the encouraged done has a of work of we've some positive yielding across by that we've property.

the but So outlook ahead. very by we're it's encouraged look broad-based, as we

Jonathan Jenkins

markets. average just outperform? When for in of there, line, return, then steady are kind you a a broad that about return you can your Or is similar strokes? long-term you How that about mentioned that the thinking source? remarks, think you growth about resort on maybe the Chris. appreciate And Richard, prepared I in of in color

Richard Stockton

Look, only adding environment think in supply rooms over question. the So country. X% Good performance the we're growth the inventory, a you're year. upside be Yes. there's about here period historically with X to because the hotel years, new we're should I rooms typically, million low in, the net right? few a in -- skewed there's next rooms new

new call inventory existing then removed construction expected X that X% from be is stock. And rooms year. year. so over next about certain the Right years, a That's the have completed of pipeline now, that you each X% for to are hotels

projection forward So the is like more X.X%.

we're to of X%. years over RevPAR the an supply drive is mean That look setup compared a growth X.X% next historical growth. So X at incredible to

further when I segment think at resort of can you destination located, locations accentuated only where it's but to many the segment has a you higher entry, are their typically because look the there's resort build because because also resorts resort. where so barriers

we're when I perform performance. resort of the it's at next years. think up think well I to upside So you to set really historical I as performance to relative that skewed in the look said, couple And

Jonathan Jenkins

I then for And last one I leave great. Deric don't That's maybe out. want me, to could. if

maybe high-quality in Has about pricing? sellers given or of So for about, can in talked move of been expectations there as transaction to volume or and you but assets Richard, talk of you the terms any that Deric own kind broadly question the that between rates market the moves Deric? gap a and you related other any buyers closing

Richard Stockton

Yes.

little Pines think I more There's I were spending Deric my We tend bid a active we're sale hotels ] this and parties. to relatively only interested time very literally topic. think our So of reception, a upper X right? with in getting this XXX the a for strong. market agreements Look, hotels. in Elior hotels one We upscale last very, be And of and year right for now I particular on bit signed. year, upwards are the X positive because here I'll of on launched being that confidentiality there step lot is recently for [

as means think certainly at on certainty bit has quite are I -- the refinancing certainly got spreads $XXX for there out XX we're which rate more I that ready said debt of million continued in the -- you CMBS is to right certainty are CMBS remarks, you've cuts a there finding new in. least on attractive. come rate buyers have now, my to We're little have slowed. the But loan well-capitalized So the -- environment, sorry, bid interest pace transact

fuel So to that's transactions helping all the market.

a have right, I has which think ultimately potential lot some there confidence. people over of climate some are I thinking I of But in lot few given can of there result it are next a politically, And introduce pro-business Certainly, of very welcoming strong country think environment there's that change, you kind also think really buyers amount environment there for a change uncertainty. out years. out economic that that -- a a change, the the and

are transaction to think So be year. so yes, last volumes higher construct, I going than

to If you But our a go for percentages brokers. assets. bid certainly want there's exact

that think as in will I compression and some interesting well some result rate cap trades.

So watch this space.

Operator

And back session. question-and-answer over that now the closing remarks. I for management turn to call concludes our will

Richard Stockton

again Thanks and with our we for earnings forward you joining speaking to year-end call, quarter. next look

Operator

This call Thank joining. concludes you today. for all our

now disconnect. may You

Braemar Hotels & Resorts (BHR) 27 Feb 252024 Q4 Earnings call transcript