BHR · Braemar Hotels & Resorts Inc.

Braemar Hotels & Resorts reported solid first quarter 2026 results, with comparable RevPAR increasing 5.7% to $481, driven entirely by a 5.7% rise in average daily rate (ADR) to $745, as occupancy remained flat at 64.5%. Total hotel revenue was $209.0 million, down 3.2% from $215.8 million in the prior year quarter, primarily due to a decline in rooms revenue. However, operating income improved to $39.6 million from $36.7 million, reflecting effective cost management. Net income attributable to common stockholders was $4.9 million, or $0.07 per diluted share, compared to a net loss in the prior year period. On a non-GAAP basis, Adjusted EBITDAre was $66.5 million, and Comparable Hotel EBITDA grew 13.7% to $75.5 million, with an 84% flow-through of incremental revenue. The company highlighted strong performance at The Bardessono Hotel and Spa (RevPAR growth ~20%) and The Ritz-Carlton, St. Thomas (RevPAR growth ~14.4%). Management noted that while occupancies have stabilized, the company continues to achieve significant rate growth amid muted supply. Subsequent to quarter end, Braemar entered a definitive agreement to sell the 193-room Park Hyatt Beaver Creek Resort & Spa for $176 million ($912,000 per key), representing a 4.6% capitalization rate on trailing 12-month net operating income. The company ended the quarter with $93.4 million in cash and $1.1 billion in loans, with a net debt to gross assets ratio of 43.4%. No common dividend was declared for 2026 due to the ongoing sale process. The company's CEO expressed confidence in the strategic alternatives process.