Braemar Hotels & Resorts Stock Earnings Reports

Key points for investors:

- Operational performance: Comparable RevPAR for the portfolio rose 1.4% in Q3 2025 (fourth consecutive quarter of RevPAR growth). Excluding three hotels undergoing major renovations, RevPAR growth was 3.4%. Resort assets were the primary driver: resort RevPAR grew 5.5% and resort hotel EBITDA rose ~58% year-over-year.

- Notable asset-level performance: Four Seasons Resort Scottsdale (True North) delivered ~25% RevPAR growth (Q3) and the Ritz-Carlton Lake Tahoe posted ~32% total revenue growth year-over-year following renovation. Ritz-Carlton Dorado Beach and Ritz-Carlton Reserve Toronto Beach were other standouts.

- Portfolio actions / liquidity & balance sheet: The company initiated a sale process in August (advised by Robert W. Baird), but provided no deal updates and said it will only disclose material developments once the Board approves a specific transaction. Management has sold the Marriott Seattle Waterfront (Aug) and entered into a definitive agreement to sell The Clancy (San Francisco) — the latter expected to close soon with a $3.5M nonrefundable deposit received and an ability for the buyer to extend closing for 30 days. Management has redeemed ~$125M (≈27%) of nontraded preferred stock to deleverage.

- Financing / leverage: Company refinanced remaining 2025 maturities earlier in the year and refinanced the Four Seasons Scottsdale mortgage in August. Total combined loans ~$1.2B at a blended rate of 6.9% (effective floating ~87% given caps). Net debt to gross assets was ~43.2% at quarter end. Cash + restricted cash ~ $164M.

- Financial results & payout: Net loss attributable to common stockholders of $8.2M (Q3), AFFO per diluted share was negative $0.19, and adjusted EBITDA was $16.4M. Management declared a quarterly common dividend of $0.05 per share (annualized ~$0.20) — noted as ~8% yield based on the prior-day share price.

- Capital deployment: 2025 capex guidance remains $75M–$85M. Major renovations are underway at Cameo Beverly Hills (conversion to LXR), Park Hyatt Beaver Creek, and Hotel Yountville (expected completion later this year) — these projects suppressed near-term results but are intended to drive higher long-term returns. Management highlighted selective ROI-focused capital allocation and routine maintenance spending in the low single-digit percentage of revenue range.

- Demand trends: Luxury leisure customers remain resilient with limited price sensitivity; ADR growth (+4.7% year-over-year in Q3) helped offset slight occupancy declines. Group revenue pace for full-year 2025 is up ~9.1% year-over-year.

- Risks / caveats: Sale process may or may not complete; management will not provide updates until a specific transaction is approved. Material near-term softness in some urban markets (e.g., Philadelphia) and temporary impacts from renovations weighed on Q3 results. Debt remains largely floating-rate, exposing results to interest rate moves outside of caps.