Braemar Hotels & Resorts declares quarterly dividend of $0.05 per share.
ByAinvest
Tuesday, Oct 14, 2025 4:14 pm ET1min read
BHR--
The declaration of the dividend comes amidst significant financial and operational developments for the company. Braemar Hotels & Resorts has entered into a definitive agreement to sell The Clancy, a 410-room hotel in San Francisco, for $115 million. The sale price reflects a capitalization rate of 5.0% based on the hotel's net operating income for the 12 months ending August 2025. The buyer has already provided a $3.5 million non-refundable earnest money deposit. The transaction is expected to close in November 2025, subject to customary conditions, with the buyer holding an option to extend the closing by 30 days for an additional $1 million non-refundable deposit [2].
The sale of The Clancy is part of Braemar Hotels & Resorts' strategic asset sales aimed at bolstering its financial health. The company operates in the luxury hotel segment, focusing on high revenue per available room (RevPAR) properties across key U.S. locations. However, financial metrics indicate challenges, with a negative net margin and a distressed Altman Z-Score [2].
The company's financial health analysis reveals several key metrics: Revenue of $716.64 million with a 3-year growth rate of 10.5%, a net margin of -0.07%, an operating margin of 5.66%, an EBITDA margin of 30.4%, and a debt-to-equity ratio of 5.47, suggesting a high level of leverage. The Altman Z-Score of 0.3 places the company in the distress zone, highlighting its struggle with profitability and financial stability [2].
Despite the challenges, the company's valuation metrics provide insight into potential upside. The P/S ratio of 0.25 and P/B ratio of 0.8 fall within historical ranges, while the analyst target price of $4 indicates potential for growth. The stock's RSI of 44.38 suggests it is neither overbought nor oversold, and institutional ownership stands at 46.75%, with insider ownership at 3.7% [2].
Upcoming catalysts include the potential completion of the sale of The Clancy and changes in market conditions. While Braemar Hotels & Resorts shows potential through strategic asset sales and a focus on high RevPAR properties, its financial metrics highlight significant challenges that investors should consider.
Braemar Hotels & Resorts declared a quarterly cash dividend of $0.05 per diluted share for Q4 2025, payable on January 15, 2026. The annual rate of $0.20 per share is the fourth consecutive year of dividend payments.
Braemar Hotels & Resorts Inc. (NYSE: BHR) has announced a quarterly cash dividend of $0.05 per diluted share for the fourth quarter of 2025. The dividend, payable on January 15, 2026, brings the annual rate to $0.20 per share, marking the fourth consecutive year of dividend payments [1].The declaration of the dividend comes amidst significant financial and operational developments for the company. Braemar Hotels & Resorts has entered into a definitive agreement to sell The Clancy, a 410-room hotel in San Francisco, for $115 million. The sale price reflects a capitalization rate of 5.0% based on the hotel's net operating income for the 12 months ending August 2025. The buyer has already provided a $3.5 million non-refundable earnest money deposit. The transaction is expected to close in November 2025, subject to customary conditions, with the buyer holding an option to extend the closing by 30 days for an additional $1 million non-refundable deposit [2].
The sale of The Clancy is part of Braemar Hotels & Resorts' strategic asset sales aimed at bolstering its financial health. The company operates in the luxury hotel segment, focusing on high revenue per available room (RevPAR) properties across key U.S. locations. However, financial metrics indicate challenges, with a negative net margin and a distressed Altman Z-Score [2].
The company's financial health analysis reveals several key metrics: Revenue of $716.64 million with a 3-year growth rate of 10.5%, a net margin of -0.07%, an operating margin of 5.66%, an EBITDA margin of 30.4%, and a debt-to-equity ratio of 5.47, suggesting a high level of leverage. The Altman Z-Score of 0.3 places the company in the distress zone, highlighting its struggle with profitability and financial stability [2].
Despite the challenges, the company's valuation metrics provide insight into potential upside. The P/S ratio of 0.25 and P/B ratio of 0.8 fall within historical ranges, while the analyst target price of $4 indicates potential for growth. The stock's RSI of 44.38 suggests it is neither overbought nor oversold, and institutional ownership stands at 46.75%, with insider ownership at 3.7% [2].
Upcoming catalysts include the potential completion of the sale of The Clancy and changes in market conditions. While Braemar Hotels & Resorts shows potential through strategic asset sales and a focus on high RevPAR properties, its financial metrics highlight significant challenges that investors should consider.
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