BRAEMAR HOTELS & RESORTS Q4 Earnings Call Highlights

27 Feb 2026, 23:50 by Danessa Lincoln · The Markets Daily

BRAEMAR HOTELS & RESORTS (NYSE:BHR) management reviewed fourth-quarter and full-year 2025 results on its earnings call, highlighting revenue growth driven by resort properties, the impact of major renovations at several hotels, and ongoing strategic activity including a company sale process and a completed asset sale.

Company sale process and asset sale activity

President and CEO Richard Stockton reiterated that in August the company announced the initiation of a sale process and engaged Robert W. Baird & Co. as financial advisor. Stockton said the sale process has been initiated, but there is no deadline or definitive timetable and “no assurance” it will result in a sale of the company or its assets. He added that, as part of evaluating options to create shareholder value, the company also appointed real estate broker co-advisors to evaluate potential individual asset sales alongside the broader sale process.

During the fourth quarter, Braemar sold The Clancy in San Francisco, a 410-room hotel, for $115 million, or $280,000 per key. Management said the sale represented a 5.2% capitalization rate on trailing 12-month net operating income ending September 30, 2025. In conjunction with the transaction, the company paid down about $65 million of debt and retained approximately $44 million in net proceeds after transfer taxes and transaction costs.

Fourth-quarter performance: Resorts offset renovation headwinds

Stockton said comparable fourth-quarter RevPAR was flat, but comparable total revenue increased 1.8%. He pointed to continued strength from the company’s resort-heavy portfolio, noting that nine of its 13 hotels are considered resort destinations. The resort portfolio posted comparable fourth-quarter RevPAR of $536, up 4.1% from the prior year period, and comparable Hotel EBITDA of $32.5 million, up 6%.

Management emphasized that renovation work at three hotels during the quarter “significantly impacted” consolidated results. Stockton said that excluding hotels under renovation during the quarter, RevPAR growth would have been 2.6% and comparable Hotel EBITDA would have increased 6.4%.

Chris Nixon, executive vice president and head of asset management, said comparable hotel RevPAR was flat in the quarter but average daily rate (ADR) improved 5.4% year over year. Nixon also cited weather-related disruption, including below-normal snowfall and delayed mountain openings at Park Hyatt Beaver Creek and The Ritz-Carlton, Lake Tahoe. He said that excluding renovation-impacted and weather-impacted properties, RevPAR increased 4.6% and Total RevPAR increased 6.3% for the fourth quarter.

Management cited several property-level results as notable contributors:

The Ritz-Carlton, Sarasota: Stockton said comparable RevPAR increased about 26%. Nixon said RevPAR rose 25.5% and Hotel EBITDA improved 48%, driven by strength in group and transient segments, including group room revenue up 46.6% and transient room revenue up 17.6%.
Four Seasons Resort Scottsdale at Troon North: Stockton said RevPAR increased about 12%. Nixon reported RevPAR up 12.2% and Hotel EBITDA growth of 21.6% for the quarter.
Bardessono Hotel and Spa: Stockton said it delivered comparable RevPAR growth of about 12%.
Dorado Beach, a Ritz-Carlton Reserve: Stockton said the property produced comparable RevPAR of $1,806, up 10% year over year. Nixon said RevPAR increased 10.2% in the quarter and described full-year 2025 as record-setting, with occupancy exceeding 63% and total revenue surpassing $91 million, up 10.8% year over year.

Renovation-related softness at Cameo Beverly Hills, Hotel Yountville, and Park Hyatt Beaver Creek was cited as a drag on overall portfolio performance in the quarter.

Full-year 2025 results and revenue mix

For full-year 2025, Stockton said comparable total revenue grew 2.8% and comparable Hotel EBITDA grew 3.1%, which he characterized as strong given what he described as a “difficult operating environment” for the hospitality industry. Nixon added that for the full year, portfolio RevPAR increased 1% and Hotel EBITDA increased 3.1%, attributing the outsized EBITDA growth to higher other revenue, which increased 10.1% on a per occupied room basis. Nixon said the team has been focusing on higher-margin ancillary revenue streams.

Nixon said group room revenue increased 7.1% for full-year 2025 and was up 0.4% in the fourth quarter. He highlighted Four Seasons Scottsdale’s fourth-quarter group room revenue growth of 17.7%, including more than 600 incremental group room nights and a $50 improvement in group ADR. Nixon said a key group buyout helped backfill a historically softer demand period and generated $2.4 million in high-margin ancillary revenue, contributing to a 22.2% increase in catering revenue at the property and a 12.4% increase in total food and beverage revenue during the quarter. Across the portfolio, catering revenue increased 10.1% on a per group room night basis in the fourth quarter, and Nixon said the company has become more selective in group business to prioritize higher-spend programs.

Capital projects, rebranding, and 2026 capital outlook

Management highlighted the completion of several renovations and repositioning efforts. Nixon said the company completed the conversion of Cameo Beverly Hills to an LXR Hotels & Resorts property, including a comprehensive renovation of guest rooms and public spaces. He also cited completed guest room renovations at Park Hyatt Beaver Creek and Hotel Yountville, as well as projects at Dorado Beach (a refresh of Spa Botánico), Four Seasons Scottsdale (conversion of underutilized retail space into a café and gelato shop), and The Ritz-Carlton, Lake Tahoe (re-concepting the café into an elevated quick-serve outlet).

In total, Nixon said the company invested approximately $78 million in capital expenditures in 2025 and anticipates spending between $25 million and $35 million in 2026.

Financial results, balance sheet, and dividend updates

Chief Financial Officer Deric Eubanks reported a net loss attributable to common stockholders of $46 million for the quarter, or $0.67 per diluted share, with AFFO per diluted share of negative $0.02. For the full year, he reported a net loss attributable to common stockholders of $72.7 million, or $1.07 per diluted share, and AFFO per diluted share of $0.28. Adjusted EBITDAre was $28.8 million for the quarter and $147 million for the full year.

At quarter end, Eubanks said the company had total assets of $1.9 billion and $1.1 billion of loans. Total combined loans carried a blended average interest rate of 6.7% factoring in in-the-money interest rate caps. Based on then-current SOFR and the caps, he said approximately 14% of debt was effectively fixed and about 86% effectively floating. Net debt to gross assets was approximately 46.7% at the end of the fourth quarter.

Liquidity included $124.4 million of cash and cash equivalents and $42.5 million in restricted cash, which Eubanks said is largely lender and manager-held reserve accounts. The company also had $17.1 million due from third-party hotel managers, which he said primarily represented cash held by a brand manager and available to fund hotel operating costs.

On preferred dividends, Eubanks said that in February 2026 the company updated its preferred dividend declaration process to align dividend cycles across different preferred series in conjunction with the sale process. He said Series B and Series D, which are pari passu with Series E and Series M with respect to distributions, will move from being declared at the start of the quarter to being reserved monthly alongside the Series E and M monthly declarations, while maintaining the actual quarterly payment timing for Series B and D. Regarding common dividends, Eubanks said the board has not declared a 2026 policy due to the ongoing sale process and the potential for proceeds to be distributed after obligations are satisfied.

Eubanks said that as of December 31, 2025, the portfolio consisted of 13 hotels with 3,028 rooms. Fully diluted share count was 73.3 million, comprised of 68.2 million common shares and 5.1 million OP units.

Stockton also noted that the company had redeemed approximately $149 million of non-traded preferred stock to date, representing about 32% of the original capital raise, and said the company expects to continue redeeming shares as it seeks to deleverage and improve cash flow per share.

About BRAEMAR HOTELS & RESORTS (NYSE:BHR)

Braemar Hotels & Resorts, Inc (NYSE:BHR) is a publicly traded equity real estate investment trust (REIT) focused on acquiring, owning and operating upper-upscale and luxury hotels and resorts. The company invests in a combination of direct fee interests and equity stakes in well-known branded properties, structuring its investments through long-term leases, ground leases and joint ventures. Braemar’s business model generates stable cash flows through base rent, percentage rent tied to property revenues and reimbursements for property operating expenses and capital improvements.

The company’s portfolio is strategically concentrated in primary urban and resort markets across the United States, including key destinations in California, Florida and the Northeast corridor.