In This Article:
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Braemar Hotels & Resorts Inc (NYSE:BHR) achieved a 1.9% comparable RevPAR growth in the fourth quarter, marking a positive turnaround after six consecutive quarters of decline.
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The company reported a 5.3% increase in comparable total hotel revenue, driven by a strong 7% increase in group revenue.
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Braemar Hotels & Resorts Inc (NYSE:BHR) successfully refinanced a $293 million loan, eliminating any final debt maturities for 2025.
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The luxury resort portfolio delivered solid performance with a 1.3% increase in comparable RevPAR and a 4.1% increase in combined comparable hotel EBITDA.
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The company made significant capital improvements, including renovations at the Four Seasons Resort Scottsdale and Ritz-Carlton properties, enhancing guest experiences and driving long-term value.
Negative Points
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Braemar Hotels & Resorts Inc (NYSE:BHR) reported a net loss attributable to common stockholders of $31.1 million for the quarter.
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The company faced temporary challenges due to unseasonably mild winter weather and shifts in festive event timings, impacting demand in key seasonal destinations.
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The Los Angeles market experienced fluctuations in demand due to the South California fires, affecting group business and leading to cancellations.
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Approximately 77% of the company's debt is effectively floating, which could pose risks in a volatile interest rate environment.
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Despite improvements, the company continues to face challenges in the transaction market, with ongoing efforts to close the gap between buyers and sellers' expectations.
Q & A Highlights
Q: Can you provide an update on the capital expenditures for the development in Tahoe and any spending planned for 2025? A: Richard Stockton, CEO: The development in Tahoe is mostly complete, with only a small project remaining. We plan to renovate a small F&B outlet called Cafe Blue for under $2 million. As for the branded residences development, we are still pursuing entitlements with Plaster County, and no expenditure is anticipated for 2025 due to the slow process.
Q: Are you still restricted from repurchasing common stock, and how are you balancing common versus preferred repurchases? A: Richard Stockton, CEO: Yes, we are restricted from repurchasing common stock. We will consider common stock repurchases when they become available, but it's difficult to predict when that might be.