Braemar Hotels & Resorts Reports Q2 2025 Financial Results with Revenue Decline and Improved Operating Income

Braemar Hotels & Resorts Inc. reported its financial results for the quarter ended June 30, 2025, revealing a total hotel revenue of $179.1 million, a decrease of 4.5% from $187.6 million in the same quarter of the previous year. The decline in revenue was primarily attributed to a 5.5% drop in rooms revenue, which fell to $109.8 million from $116.2 million, largely due to the sale of the Hilton La Jolla Torrey Pines in July 2024. Despite the revenue decline, the company achieved an operating income of $17.9 million, up 47% from $12.2 million in the prior year, reflecting improved operational efficiency.

In terms of profitability, Braemar reported a net loss attributable to the company of $5.5 million for the quarter, a significant improvement compared to a loss of $11.6 million in the same period last year. The company’s net income for the six months ended June 30, 2025, was $3.8 million, compared to $1.7 million in the prior year, indicating a positive trend in profitability. The weighted average common shares outstanding for the quarter were 67.3 million, resulting in a loss per share of $0.24, an improvement from a loss of $0.33 per share in the previous year.

Operationally, Braemar's portfolio consisted of 15 hotel properties across seven states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, totaling 3,807 rooms. The company reported an occupancy rate of 71.85% for the quarter, slightly down from 72.82% a year earlier, while the average daily rate (ADR) increased to $438.58 from $415.24. The revenue per available room (RevPAR) also improved to $315.11, up from $302.37, indicating a positive trend in pricing power despite the occupancy decline.

Strategically, Braemar has made significant changes to its portfolio, including the transition of the Sofitel Chicago Magnificent Mile to a franchise structure managed by Remington Hospitality. The company also completed the acquisition of an eight-acre parcel of land for $12.6 million in April 2025, which is expected to enhance its operational footprint. Additionally, Braemar amended its mortgage loan secured by The Ritz-Carlton Lake Tahoe, extending the maturity date to July 2026, which is expected to improve liquidity.

Looking ahead, Braemar anticipates continued challenges in the hospitality sector due to macroeconomic conditions and market volatility. However, the company remains focused on optimizing its operational efficiency and enhancing its portfolio through strategic acquisitions and management transitions. The board of directors has declared a quarterly cash dividend of $0.05 per share for the third quarter of 2025, maintaining its commitment to return value to shareholders while navigating the evolving market landscape.