Braemar Hotels & Resorts Q2 2025 Earnings: 1.5% RevPAR Growth and 3.7% EBITDA Growth

Braemar Hotels & Resorts has outlined an 8.6% group revenue pace growth for 2025, with a focus on luxury portfolio deleveraging. In Q2 2025, the portfolio achieved 1.5% growth in comparable RevPAR and 3.7% growth in comparable hotel EBITDA, with slightly stronger margins. The company is prioritizing luxury portfolio deleveraging to achieve growth.

Braemar Hotels & Resorts (BHR) has reported strong financial performance for the second quarter of 2025, with an earnings per share (EPS) of -$0.24, surpassing the forecasted -$0.40. Revenue reached $179.08 million, exceeding expectations of $172.56 million. Despite these positive results, the company’s stock fell by 5% to $2.20. The company’s focus on strategic growth and asset optimization, particularly in the luxury portfolio, remains a key priority.

Key Takeaways
- EPS and revenue both surpassed analyst forecasts, with a 40% EPS surprise.
- Stock price declined by 5% despite positive earnings results.
- Strong performance in the leisure and luxury resort segments.
- High net debt to gross assets ratio remains a concern.
- Continued focus on strategic growth and asset optimization.

Financial Highlights
- Revenue: $179.08 million, up from the forecast of $172.56 million.
- Earnings per share: -$0.24, better than the forecasted -$0.40.
- Adjusted EBITDA: $38.9 million.
- Total assets: $2.1 billion.
- Net debt to gross assets: 44.2%.

Market Reaction
Despite the positive earnings surprise, Braemar Hotels’ stock fell by 5% to $2.20. This decline suggests that investors may be concerned about the company’s financial leverage or broader market conditions. The stock remains closer to its 52-week low, indicating cautious market sentiment.

Outlook & Guidance
Braemar Hotels continues to focus on strategic growth, particularly in the group and corporate segments. The company plans to optimize its portfolio and explore potential asset sales in 2026. The group revenue pace for 2025 shows an increase of 8.6%, highlighting continued demand in key markets.

Executive Commentary
“We continue to see the benefits of various operating initiatives focused on productivity and cost efficiencies,” said Chris Nixon, EVP Asset Management. CEO Richard Stockton added, “We are well positioned with a solid balance sheet and promising outlook.”

Risks and Challenges
High net debt to gross assets ratio could impact financial flexibility. Market saturation in certain segments may limit growth potential. Macroeconomic pressures could affect consumer spending in the hospitality sector. Potential softness in the government segment, particularly at Capital Hilton. Ongoing renovation projects could lead to short-term operational disruptions.

Reference List
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-braemar-hotels-beats-q2-2025-forecasts-but-stock-dips-93CH-4166468