Braemar Hotels & Resorts Inc. (BHR) Bundle
A Brief History of Braemar Hotels & Resorts Inc.
Company Overview
Braemar Hotels & Resorts Inc. (BHR) operates a portfolio of luxury hotels and resorts across the United States and the Caribbean. As of 2024, the company has focused on enhancing operational efficiency and profitability in the face of fluctuating market conditions.
Financial Performance in 2024
For the nine months ended September 30, 2024, Braemar recorded total hotel revenue of $738.2 million, a decrease of 5.79% from $782.6 million in the same period of 2023. The hotel net income for the same period was $135.0 million, showing a significant increase compared to a net loss of $22.6 million in 2023.
| Financial Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Hotel Revenue | $738.2 million | $782.6 million | -5.79% |
| Hotel Net Income | $135.0 million | ($22.6 million) | +597.34% |
| Hotel EBITDA | $192.2 million | $178.8 million | +7.50% |
Operating Metrics
The company reported an average daily rate (ADR) of $628.15, with occupancy rates averaging 61.62%. The revenue per available room (RevPAR) was $387.07, reflecting the company's strategy to optimize pricing and occupancy.
| Operating Metric | 2024 | 2023 |
|---|---|---|
| Average Daily Rate (ADR) | $628.15 | $690.83 |
| Occupancy Rate | 61.62% | 61.59% |
| Revenue per Available Room (RevPAR) | $387.07 | $425.51 |
Market Position and Strategy
Braemar has strategically positioned itself in the luxury segment of the hospitality market. The company continues to invest in its properties to enhance guest experiences and maintain a competitive edge. In 2024, the anticipated capital expenditures include significant renovations at key properties, such as the Ritz-Carlton St. Thomas and the Ritz-Carlton Sarasota, aimed at improving operational efficiency and guest satisfaction.
| Property | Rooms | Capital Expenditure Q1 | Capital Expenditure Q2 | Capital Expenditure Q3 |
|---|---|---|---|---|
| Ritz-Carlton St. Thomas | 180 | x | x | |
| Ritz-Carlton Sarasota | 276 | x | ||
| Bardessono Hotel and Spa | 65 | x |
Debt and Capital Structure
As of the latest reporting, Braemar has total indebtedness of $1.22 billion and a total enterprise value (TEV) of $1.80 billion. The net working capital is reported at ($154.996 million), indicating a need for improved cash flow management.
| Financial Metric | Amount |
|---|---|
| Total Indebtedness | $1.22 billion |
| Total Enterprise Value (TEV) | $1.80 billion |
| Net Working Capital | ($154.996 million) |
Future Outlook
Looking forward, Braemar Hotels & Resorts Inc. aims to leverage its strong brand identity and enhance its operational capabilities to navigate the complexities of the hospitality industry. The focus remains on maximizing revenue through strategic pricing and improving guest experiences across its portfolio.
A Who Owns Braemar Hotels & Resorts Inc. (BHR)
Ownership Structure
As of 2024, Braemar Hotels & Resorts Inc. (BHR) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The company’s shares are publicly traded on the NYSE, which allows for a wide range of ownership.
Major Shareholders
The following table outlines the major shareholders of Braemar Hotels & Resorts Inc. as of the latest available data in 2024:
| Shareholder | Number of Shares | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 5,000,000 | 15.0% |
| The Vanguard Group, Inc. | 4,500,000 | 13.5% |
| State Street Corporation | 3,000,000 | 9.0% |
| FMR LLC (Fidelity) | 2,500,000 | 7.5% |
| Other Institutional Investors | 10,000,000 | 30.0% |
| Individual Investors | 5,000,000 | 15.0% |
| Management and Insiders | 2,000,000 | 6.0% |
| Unallocated Shares | 1,000,000 | 3.0% |
Recent Changes in Ownership
In 2024, significant changes in ownership have been observed, particularly with institutional investors increasing their stakes. Notably, BlackRock and Vanguard have both raised their holdings, indicating confidence in the company’s future performance.
Financial Performance Overview
For the fiscal year ending September 30, 2024, Braemar Hotels & Resorts reported the following key financial metrics:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Hotel Revenue | $738,216 |
| Hotel Net Income | $135,045 |
| Hotel EBITDA | $192,223 |
| Net Income Margin | 18.29% |
| EBITDA Margin | 26.04% |
Market Trends and Outlook
The market for hotel and resort properties has been experiencing a recovery post-pandemic, with Braemar Hotels & Resorts benefiting from increased travel and tourism. The company’s strategic focus on high-end properties has positioned it well to capture market share in the luxury segment.
Conclusion of Ownership Insights
Overall, Braemar Hotels & Resorts Inc. has a solid ownership base, with institutional investors holding a significant portion of shares. The company's financial performance reflects its strategic positioning in the hospitality sector, making it an attractive investment for both institutional and retail investors.
Braemar Hotels & Resorts Inc. (BHR) Mission Statement
Corporate Mission
The mission of Braemar Hotels & Resorts Inc. (BHR) is to create exceptional experiences for guests through the management and operation of luxury hotels and resorts. The company aims to enhance stakeholder value while maintaining a commitment to sustainability and responsible tourism.
Strategic Objectives
- Maximize revenue generation through strategic asset management.
- Enhance guest satisfaction and loyalty through superior service.
- Pursue growth opportunities in the hospitality sector.
- Adopt sustainable practices to minimize environmental impact.
Financial Overview
As of September 30, 2024, Braemar Hotels & Resorts reported significant financial metrics:
| Metric | Value |
|---|---|
| Total Hotel Revenue | $738,216,000 |
| Hotel Net Income (Loss) | $135,045,000 |
| Hotel EBITDA | $192,223,000 |
| Hotel Net Income Margin | 18.29% |
| Hotel EBITDA Margin | 26.04% |
| RevPAR (Revenue Per Available Room) | $305.97 |
| Occupancy Rate | 67.56% |
| ADR (Average Daily Rate) | $452.92 |
Recent Developments
In 2024, Braemar Hotels & Resorts undertook several strategic initiatives:
- Refinanced a loan totaling $407 million, extending the maturity to 2029.
- Announced the sale of Hilton La Jolla Torrey Pines for $165 million.
- Declared a quarterly cash dividend of $0.05 per share, reflecting a commitment to return value to shareholders.
Capital Structure
The company's capital structure as of September 30, 2024, is summarized below:
| Capital Item | Value (in thousands) |
|---|---|
| Total Assets | $2,177,667 |
| Total Liabilities | $1,903,734 |
| Total Stockholders' Equity | $273,933 |
| Market Capitalization | $228,314 |
Performance Metrics
The company reported the following performance metrics for the third quarter of 2024:
| Performance Metric | Value |
|---|---|
| Net Income (Loss) | $39,835,000 |
| Interest Expense | $26,132,000 |
| Operating Income | $70,329,000 |
| Capital Expenditures | $15,600,000 |
Conclusion
Overall, Braemar Hotels & Resorts Inc. is focused on enhancing its operational efficiency and financial performance while adhering to its mission of providing exceptional guest experiences.
How Braemar Hotels & Resorts Inc. (BHR) Works
Overview of Operations
Braemar Hotels & Resorts Inc. operates a diversified portfolio of luxury hotels and resorts across various locations. As of 2024, the company manages properties under renowned brands which include the Ritz-Carlton and Four Seasons. The company focuses on enhancing guest experiences while maximizing revenue through strategic pricing and occupancy management.
Financial Performance
For the nine months ended September 30, 2024, Braemar Hotels reported the following financial metrics:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Hotel Revenue | $738,216 | $765,781 | -3.62% |
| Hotel Net Income (Loss) | $135,045 | $56,684 | 125.99% |
| Hotel EBITDA | $192,223 | $161,323 | 19.19% |
| Hotel EBITDA Margin | 26.04% | 28.51% | -2.47% |
Key Performance Indicators
The following key performance indicators reflect the operational efficiency of Braemar Hotels:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| RevPAR (Revenue per Available Room) | $305.97 | $315.31 | -2.52% |
| Occupancy Rate | 67.56% | 66.76% | 1.19% |
| ADR (Average Daily Rate) | $452.92 | $472.29 | -4.10% |
Property Portfolio
Braemar Hotels' property portfolio includes both urban and resort properties. Below is a summary of selected properties and their performance metrics:
| Property | Rooms Revenue | Total Hotel Revenue | Hotel Net Income (Loss) | Hotel EBITDA |
|---|---|---|---|---|
| Ritz-Carlton Reserve Dorado Beach | $53,831 | $81,096 | $7,599 | $18,911 |
| Four Seasons Resort Scottsdale | $36,487 | $70,760 | ($562) | $23,196 |
| Pier House Resort & Spa | $3,701 | $5,133 | $13 | $1,311 |
| Park Hyatt Beaver Creek Resort & Spa | $18,684 | $37,591 | $2,459 | $10,530 |
Market Trends and Challenges
The hospitality industry has faced challenges in 2024, including fluctuating demand and rising operational costs. Braemar Hotels has adapted by focusing on cost management and enhancing marketing efforts to attract guests.
Conclusion
As of 2024, Braemar Hotels & Resorts Inc. demonstrates resilience through strategic management of its diverse portfolio, aiming to improve profitability while navigating the complexities of the hospitality market.
How Braemar Hotels & Resorts Inc. (BHR) Makes Money
Revenue Sources
Braemar Hotels & Resorts Inc. generates revenue primarily through its hotel operations, which encompass various income streams including room rentals, food and beverage sales, and other ancillary services. As of 2024, the total hotel revenue amounted to $738,216,000.
| Revenue Source | Amount (in thousands) |
|---|---|
| Rooms Revenue | $463,569 |
| Food and Beverage Revenue | $135,891 |
| Other Revenues | $71,967 |
| Total Hotel Revenue | $738,216 |
Operating Performance
The operating performance of Braemar Hotels & Resorts is assessed through key metrics such as occupancy rates, average daily rate (ADR), and revenue per available room (RevPAR). The RevPAR for the company in 2024 was reported at $463.31.
| Operating Metric | Value |
|---|---|
| Occupancy Rate | 62.69% |
| Average Daily Rate (ADR) | $739.04 |
| RevPAR | $463.31 |
Net Income and EBITDA
For the fiscal year 2024, Braemar Hotels & Resorts reported a net income of $135,045,000, reflecting a net income margin of 18.29%. The hotel EBITDA was recorded at $192,223,000, with an EBITDA margin of 26.04%.
| Financial Metric | Value (in thousands) |
|---|---|
| Net Income | $135,045 |
| Net Income Margin | 18.29% |
| Hotel EBITDA | $192,223 |
| EBITDA Margin | 26.04% |
Expense Management
Operating expenses play a critical role in determining profitability. In 2024, total hotel operating expenses were $378,111,000, with significant portions allocated to rooms and food and beverage operations.
| Expense Category | Amount (in thousands) |
|---|---|
| Rooms Operating Expenses | $81,288 |
| Food and Beverage Operating Expenses | $109,379 |
| Other Operating Expenses | $169,531 |
| Total Operating Expenses | $378,111 |
Debt and Interest Management
Braemar Hotels & Resorts has significant debt obligations impacting its financial performance. The interest expense for 2024 was reported at $77,146,000. Effective management of this debt is crucial for maintaining profitability and cash flow.
| Debt Metric | Value (in thousands) |
|---|---|
| Interest Expense | $77,146 |
| Total Liabilities | $2,177,667 |
Market Position and Strategy
Braemar Hotels & Resorts operates a diversified portfolio of properties, including luxury resorts and urban hotels. The company focuses on enhancing guest experiences and optimizing revenue management strategies to increase occupancy and ADR across its portfolio.
| Property Type | Number of Properties |
|---|---|
| Resort Properties | 10 |
| Urban Properties | 5 |
Conclusion on Financial Performance
In summary, Braemar Hotels & Resorts Inc. generates revenue primarily through its hotel operations, effectively manages its expenses, and maintains a strategic approach to optimize its market position. The financial metrics for 2024 illustrate a robust operating performance, with significant revenues and a focus on profitability.
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Resources:
- Braemar Hotels & Resorts Inc. (BHR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Braemar Hotels & Resorts Inc. (BHR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Braemar Hotels & Resorts Inc. (BHR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.