Braemar Hotels & Resorts Q2 2025: Contradictions in Group Bookings, Asset Sales, and Market Strategy

Group booking trends, asset sale strategy, focus on group bookings, asset sale strategy, and transaction market and property sales are the key contradictions discussed in Braemar Hotels & Resorts' latest 2025Q2 earnings call.



Revenue and Profit Growth in the Hospitality Industry:
- Braemar Hotels reported comparable RevPAR of $318 and comparable hotel EBITDA of $47.8 million, marking a 1.5% RevPAR increase and 3.7% EBITDA growth over the prior year quarter.
- Growth was driven by improved performance in both urban and resort hotel segments, with luxury resort properties like the Ritz-Carlton Lake Tahoe and Ritz-Carlton Reserve Dorado Beach outperforming.

Liquidity and Asset Management Strategies:
- The company addressed its final 2025 debt maturity, agreeing to sell the Marriott Seattle Waterfront for $145 million, representing an 8.1% capitalization rate on net operating income.
- These actions reflect a strategic focus on deleveraging the portfolio and sharpening concentration on the luxury hotel sector, while maintaining a strong booking pace.

Group Business and Revenue Management:
- Braemar's group revenue finished 2.3% above the prior year period, with group pace for 2025 up 8.6% and 2026 showing a 3.6% growth.
- The company is focusing on expanding group business, particularly during slower demand months, to generate high-margin ancillary revenue and insulate from external headwinds.