Braemar Hotels & Resorts (BHR) Q4 2024 earnings summary

Executive summary

• Achieved 1.9% comparable RevPAR growth in Q4 2024 after six quarters of decline, with ADR up 0.4% to $480 and occupancy up 1.5% to 63.5%.

• Strong group revenue growth (7% in Q4), with urban hotels showing 3.3% RevPAR growth and January 2025 portfolio RevPAR up 13% year-over-year.

• Completed major renovations and capital projects at key properties, enhancing guest experience and driving incremental revenue.

• Redeemed $80 million of non-traded preferred stock, representing 17% of the original capital raise, as part of shareholder value creation.

• Strong liquidity with $135.5 million in cash and $49.6 million in restricted cash at year-end.

Financial highlights

• Q4 2024 net loss attributable to common stockholders was $31.1 million ($0.47 per diluted share); AFFO per diluted share was negative $0.06.

• Full year 2024 net loss attributable to common stockholders was $50.9 million ($0.77 per diluted share); AFFO per diluted share was $0.21.

• Adjusted EBITDA was $30.2 million for Q4 and $157.6 million for the full year.

• Capex was $15.8 million in Q4 and $70.6 million for the year.

• Quarterly dividend maintained at $0.05 per share (annualized yield of 7.7%).

Outlook and guidance

• Strong forward booking pace for 2025, with group rooms revenue pacing 8% ahead of prior year.

• Management expects continued momentum in 2025, citing strong forward bookings, improving industry fundamentals, and supply constraints.

• Portfolio is positioned to benefit from potential interest rate cuts, which would lower debt costs and improve cash flow.

• Expect continued steady growth in resort segment due to low supply growth and high barriers to entry.

• Capital expenditures projected at $75–$95 million for 2025, focused on luxury enhancements.