Braemar Hotels & Resorts (BHR) 7 Nov 24 2024 Q3 Earnings call transcript

In the latest earnings call, Braemar Hotels & Resorts, Inc. showcased a robust performance in the third quarter of 2024, highlighting significant growth opportunities and strategic moves that position the company for continued success.

Urban Hotels Lead the Charge

The company's urban hotels were a standout, with impressive comparable RevPAR growth of 6% over the prior year quarter. This performance underscores the strength and resilience of Braemar's urban portfolio, which has been a consistent driver of growth for the company. The urban assets, which include properties such as the Capital Hilton and the Ritz-Carlton Lake Tahoe, reported a strong quarter with RevPAR of $213 and comparable hotel EBITDA of $16.4 million. The strength across all demand segments at these urban properties bodes well for Braemar's future performance.

Debt Management and Shareholder Value Creation

Braemar's debt management strategy was another highlight of the earnings call. The company has successfully addressed all 2024 debt maturities, with no remaining final debt maturities for the year. This proactive approach to debt management not only strengthens Braemar's financial position but also enhances its ability to navigate future market conditions. Furthermore, the company's shareholder value creation plan, which includes the recent sale of Hilton La Jolla Torrey Pines and the redemption of approximately $50 million of nontraded preferred stock, demonstrates a clear focus on maximizing shareholder value.

Strategic Investments and Renovations

Braemar's strategic investments and renovations have been instrumental in driving growth and enhancing the guest experience. Notable examples include the transformative renovations at the Ritz-Carlton Lake Tahoe and the implementation of a comprehensive strategy to increase group business and capture market share at the Marriott Seattle Waterfront Hotel. These initiatives have contributed to a strong third quarter performance and set the stage for future growth.

Looking Ahead

Looking forward, Braemar's outlook remains positive. The company's strong urban portfolio, proactive debt management, and strategic investments position it well for continued growth. The positive trends in corporate demand and the continued strength of the urban hotels are particularly noteworthy. The company's focus on driving group business and optimizing revenue through targeted initiatives such as lead generation and marketing efforts is a testament to its strategic acumen.

Conclusion

Braemar Hotels & Resorts' third quarter performance underscores its position as a leading player in the hotel industry. The company's strong urban portfolio, strategic debt management, and proactive shareholder value creation plan are key drivers of its success. With a clear focus on growth and a strategic approach to navigating market conditions, Braemar is well-positioned to capitalize on opportunities and continue delivering value to its shareholders.