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1. Company Snapshot

1.a. Company Description

Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.

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1.b. Last Insights on BHR

Braemar Hotels & Resorts Inc.'s recent performance was positively driven by strategic portfolio optimization, including the sale of the Marriott Seattle Waterfront for $145 million, which demonstrates the company's efforts to reposition its assets. Additionally, the company successfully refinanced the existing mortgage loan secured by the Four Seasons Resort Scottsdale at Troon North, reducing its borrowing costs. The initiation of a sale process and expansion of its board of directors also signal a shift in strategy. A quarterly cash dividend of $0.05 per diluted share was declared.

1.c. Company Highlights

2. Braemar Hotels & Resorts: A Mixed Bag in Q3 2025

Braemar Hotels & Resorts Inc. reported a net loss attributable to common stockholders of $8.2 million or $0.12 per diluted share, with AFFO per diluted share coming in at negative $0.19, missing estimates of -$0.11. Adjusted EBITDA for the quarter was $16.4 million. Revenue growth was driven by a 1.4% increase in comparable RevPAR and a 15.1% increase in comparable hotel EBITDA, with the resort portfolio showing particularly strong growth.

Publication Date: Nov -23

📋 Highlights
  • Comparable RevPAR and EBITDA Growth:: 1.4% increase in comparable RevPAR and 15.1% rise in comparable hotel EBITDA, driven by strong resort portfolio performance (5.5% RevPAR growth, 58% EBITDA increase).
  • High-Performing Properties:: Four Seasons Resort Scottsdale (+25% RevPAR) and Ritz-Carlton Lake Tahoe (+32% total revenue) contributed significantly to portfolio growth.
  • Liquidity and Asset Sales:: $145 million from Marriott Seattle Waterfront sale and planned $115 million Clancy sale, alongside $125 million in preferred stock redemptions (27% of original raise), bolstering liquidity.
  • Renovation Impact and Operational Efficiency:: Portfolio RevPAR growth of 3.4% excluding renovations, with cost controls (labor/expense management) driving EBITDA and margin expansion despite challenges.
  • Leisure Segment Resilience:: Strong ADR and ancillary revenue growth, with luxury consumers showing low price sensitivity, supporting robust leisure demand and portfolio performance.

Operational Highlights

The company's resort portfolio was a standout, with a 5.5% increase in comparable RevPAR and a 58% increase in comparable hotel EBITDA, driven by properties such as the Four Seasons Resort Scottsdale and the Ritz-Carlton Lake Tahoe. The company has significant renovations underway at three hotels, which impacted portfolio results, but excluding these hotels, RevPAR growth was 3.4%. The company remains well-positioned from a liquidity perspective, having addressed its final 2025 debt maturity and completing the sale of the Marriott Seattle Waterfront for $145 million.

Valuation and Outlook

With a P/S Ratio of 0.27 and an EV/EBITDA of 0.56, the company's valuation appears reasonable, but the negative EPS and AFFO per share are concerns. Analysts estimate next year's revenue growth at -0.7%. The company's efforts to deleverage its platform and improve cash flow per share, including redeeming preferred shares, are positive steps. The current dividend yield of 7.14% may be attractive to income investors, but the negative ROE of -1.74% is a concern.

Liquidity and Capital Allocation

The company has made significant progress in addressing its debt maturity and has completed the sale of several assets, including the Marriott Seattle Waterfront and the planned sale of the Clancy in San Francisco for $115 million. The company's cash and cash equivalents stood at $116.3 million, and its total assets were $2 billion. The company's efforts to prioritize mechanical and maintenance projects and deploy capital to high-priority ones are also positive.

Market Trends and Portfolio Performance

The company's portfolio grew RevPAR, EBITDA, and EBITDA margin despite headwinds, driven by efficient operations and controlled labor and expenses. The luxury consumer exhibited less price sensitivity, and the leisure segment showed resilient demand and strong performance. The government shutdown had a muted impact on the company's asset in Washington, D.C., due to the hotel's diversified business mix.

3. NewsRoom

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When The Stimulus Stops

Nov -09

Source: seekingalpha.com

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Braemar: Speculative Upside For Patient Investors (Rating Upgrade)

Nov -09

Source: seekingalpha.com

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BRAEMAR HOTELS & RESORTS ANNOUNCES SALE OF THE CLANCY

Nov -07

Source: prnewswire.com

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Braemar Hotels & Resorts Inc. (BHR) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Braemar Hotels & Resorts (BHR) Reports Q3 Loss, Misses Revenue Estimates

Nov -05

Source: zacks.com

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BRAEMAR HOTELS & RESORTS (NYSE:BHR) Trading Up 2.5% – What’s Next?

Oct -21

Source: defenseworld.net

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BRAEMAR HOTELS & RESORTS DECLARES DIVIDENDS FOR THE FOURTH QUARTER OF 2025

Oct -14

Source: prnewswire.com

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Blindspots And Trade Shocks

Oct -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Rooms

Expected Growth: 1.0%

Braemar Hotels & Resorts Inc.'s 1.0% rooms growth driven by strategic hotel acquisitions, increasing RevPAR (Revenue per Available Room) due to effective pricing strategies, and expansion into high-demand markets, such as urban areas and tourist destinations, resulting in increased occupancy rates and revenue growth.

Food and Beverage

Expected Growth: 1.0%

Braemar Hotels & Resorts Inc.'s Food and Beverage segment growth of 1.0 is driven by increasing RevPAR, strategic hotel acquisitions, and effective cost management. Additionally, the company's focus on upscale and luxury properties, which typically have higher F&B revenue per available room, contributes to the segment's growth.

Other Hotel Revenue

Expected Growth: 1.0%

Braemar Hotels & Resorts Inc.'s 1.0% growth in Other Hotel Revenue is driven by increased demand for amenities and services, such as spa, golf, and food & beverage offerings, as well as strategic partnerships and loyalty programs, resulting in higher ancillary revenue per available room.

7. Detailed Products

Luxury Hotels

Braemar Hotels & Resorts Inc. owns and operates luxury hotels that offer upscale accommodations, fine dining, and exceptional service.

Resort Properties

The company's resort properties offer a range of amenities, including golf courses, spas, and recreational activities, catering to families, couples, and solo travelers.

Urban Hotels

Braemar Hotels & Resorts Inc.'s urban hotels provide modern amenities, convenient locations, and exceptional service, ideal for business and leisure travelers.

Golf Resorts

The company's golf resorts offer world-class golf courses, luxurious accommodations, and exceptional service, catering to golf enthusiasts and those seeking a relaxing getaway.

Spa and Wellness Resorts

Braemar Hotels & Resorts Inc.'s spa and wellness resorts offer luxurious spa facilities, fitness centers, and healthy dining options, ideal for those seeking relaxation and rejuvenation.

8. Braemar Hotels & Resorts Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Braemar Hotels & Resorts Inc. operates in a highly competitive industry, with many substitutes available to customers. However, the company's focus on luxury and upscale hotels helps to differentiate it from competitors.

Bargaining Power Of Customers

Customers have a high bargaining power due to the availability of substitutes and the ease of switching between hotels. Braemar Hotels & Resorts Inc. must focus on providing excellent customer service to retain customers.

Bargaining Power Of Suppliers

Suppliers have a low bargaining power due to the company's large scale of operations and its ability to negotiate better prices. Braemar Hotels & Resorts Inc. has a strong negotiating position with its suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry in the hotel industry. However, Braemar Hotels & Resorts Inc. must continue to innovate and improve its services to stay ahead of potential new entrants.

Intensity Of Rivalry

The hotel industry is highly competitive, with many established players competing for market share. Braemar Hotels & Resorts Inc. must focus on differentiating itself through its luxury and upscale offerings to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.38%
Debt Cost 7.03%
Equity Weight 40.62%
Equity Cost 14.06%
WACC 9.89%
Leverage 146.21%

11. Quality Control: Braemar Hotels & Resorts Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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RLJ Lodging

A-Score: 6.1/10

Value: 8.3

Growth: 4.7

Quality: 6.1

Yield: 8.0

Momentum: 2.5

Volatility: 7.0

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DiamondRock Hospitality

A-Score: 5.7/10

Value: 5.3

Growth: 5.0

Quality: 4.9

Yield: 7.0

Momentum: 3.5

Volatility: 8.3

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Chatham Lodging

A-Score: 5.5/10

Value: 6.2

Growth: 5.3

Quality: 4.7

Yield: 6.0

Momentum: 2.5

Volatility: 8.0

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Braemar Hotels & Resorts

A-Score: 5.1/10

Value: 9.1

Growth: 3.0

Quality: 3.7

Yield: 9.0

Momentum: 3.0

Volatility: 2.7

1-Year Total Return ->

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SVC

A-Score: 4.9/10

Value: 9.8

Growth: 3.2

Quality: 5.2

Yield: 6.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Sotherly Hotels

A-Score: 2.6/10

Value: 7.2

Growth: 4.0

Quality: 3.2

Yield: 0.0

Momentum: 1.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.65$

Current Price

2.65$

Potential

-0.00%

Expected Cash-Flows