Braemar Hotels & Resorts Reports Q1 2025 Revenue Decline and Net Loss

Braemar Hotels & Resorts Inc. reported its financial results for the first quarter of 2025, revealing a total hotel revenue of $215.8 million, a decrease of 1.5% from $219.1 million in the same period last year. The decline in revenue was primarily attributed to a drop in rooms revenue, which fell by 1.8% to $136.1 million, largely due to the sale of the Hilton La Jolla Torrey Pines in July 2024. Food and beverage revenue also decreased by 3.3% to $51.8 million, while other hotel revenue increased by 3.6% to $27.9 million. The company reported a net income of $10.7 million, down 31.1% from $15.5 million in the prior year, resulting in a net loss attributable to common stockholders of $2.5 million, compared to a profit of $3.5 million in the previous year.

In terms of operational metrics, the company experienced a slight decrease in occupancy rates, which fell to 64.58% from 65.39% year-over-year. However, the average daily rate (ADR) improved significantly, rising to $611.38 from $551.46, contributing to a revenue per available room (RevPAR) increase to $394.81 from $360.59. The company’s total assets as of March 31, 2025, were reported at $2.1 billion, with total liabilities of $1.4 billion, resulting in stockholders' equity of $238.9 million.

Strategically, Braemar has made significant changes to its capital structure, including the refinancing of a $363 million mortgage loan secured by multiple properties, which now bears an interest rate of SOFR + 2.52%. The company also amended its mortgage loan for the Ritz-Carlton Lake Tahoe, extending its maturity and reducing the interest rate. Additionally, Braemar appointed Kellie Sirna to its board of directors, enhancing its governance structure. The company continues to manage its hotel properties through third-party management companies, with Remington Hospitality managing four of its 15 properties.

The company’s cash position has also changed, with cash and cash equivalents decreasing to $81.7 million from $135.5 million at the end of the previous fiscal year. Restricted cash increased to $54.5 million, primarily due to lender and manager-held reserves. Braemar's net debt to gross assets ratio stood at 42.3% as of March 31, 2025. The company anticipates meeting its short-term liquidity requirements through cash flow from operations and capital market activities, while also planning for capital expenditures to maintain and improve its hotel properties.

Looking ahead, Braemar Hotels & Resorts remains focused on enhancing its portfolio and operational efficiency. The company plans to continue its strategy of investing in high RevPAR luxury hotels and resorts, while navigating the challenges posed by market conditions and operational fluctuations. The board of directors has declared a quarterly cash dividend of $0.05 per share for the first half of 2025, reflecting the company's commitment to maintaining its REIT status while balancing capital needs and shareholder returns.