Braemar Hotels & Resorts Reports $7M Net Income Turnaround, Plans Self-Management Transition

Braemar Hotels & Resorts Inc. reported its financial results for the quarter ended June 30, 2026, revealing a net income of $7.0 million, a significant turnaround from a net loss of $5.5 million in the same quarter of the previous year. Total hotel revenue for the quarter was $171.0 million, down 4.5% from $179.1 million in the prior year, primarily due to a decrease in rooms revenue, which fell by 7.0% to $102.2 million. The decline in revenue was attributed to the sale of three hotel properties, including the Park Hyatt Beaver Creek Resort & Spa, which was sold for $176 million in May 2026.

In terms of operational metrics, the company reported an occupancy rate of 70.84% for the quarter, slightly down from 71.85% a year earlier. However, the average daily rate (ADR) increased by 21.6% to $533.37, contributing to a revenue per available room (RevPAR) of $377.83, up from $315.11 in the previous year. The company’s total assets decreased to $1.66 billion as of June 30, 2026, from $1.86 billion at the end of 2025, largely due to the sale of hotel properties.

Strategically, Braemar is transitioning to a self-managed real estate investment trust (REIT) model, which involves terminating its advisory agreement with Ashford Inc. This move is expected to reduce general and administrative costs by over $25 million annually. The company has initiated steps to hire its own management team and reconstitute its board of directors, with plans to appoint five new independent directors. This transition aims to enhance governance and align management more closely with shareholder interests.

The company’s total liabilities decreased to $1.18 billion as of June 30, 2026, from $1.34 billion at the end of 2025, reflecting a reduction in indebtedness following the sale of properties. As of the latest reporting date, Braemar had approximately $98.2 million in cash and cash equivalents, down from $124.4 million at the end of the previous year. The company also reported redeemable preferred stock redemptions payable of $54.8 million, reflecting ongoing requests from investors.

Looking ahead, Braemar's management expressed optimism about the company's future, emphasizing the potential for increased profitability through the self-management transition and the strategic focus on maintaining a portfolio of high RevPAR luxury properties. The company plans to continue evaluating opportunities for growth and operational efficiency while navigating the challenges posed by market conditions and competition in the hospitality sector.