Braemar Hotels & Resorts Inc. reported its financial results for the first quarter of 2026, revealing a net income of $18.0 million, a significant increase from $10.7 million in the same period last year. This translates to a net income attributable to common stockholders of $4.9 million, or $0.07 per share, compared to a loss of $2.5 million, or $(0.04) per share, in the prior year. Total hotel revenue for the quarter was $209.0 million, down 3.2% from $215.8 million in the first quarter of 2025, primarily due to the sale of two hotel properties, the Marriott Seattle Waterfront and The Clancy, in 2025.
The company’s operating income rose to $39.6 million, up from $36.7 million a year earlier, driven by a reduction in total operating expenses, which decreased from $179.1 million to $169.4 million. Notably, hotel operating expenses fell by 4.3%, reflecting cost management efforts. The company also reported a decrease in interest expense, which dropped by 14.6% to $21.2 million, contributing to the improved profitability.
In terms of operational metrics, Braemar's portfolio consisted of 13 hotel properties with a total of 3,028 rooms across six states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The average daily rate (ADR) increased to $727.20, up from $611.38, while occupancy remained stable at approximately 64.5%. Revenue per available room (RevPAR) improved to $469.07, compared to $394.81 in the previous year, indicating a positive trend in pricing power despite a slight decline in overall room revenue.
Strategically, Braemar has extended its advisory agreement with Ashford Hospitality Advisors LLC for an additional ten years, effective January 2027. The company is also in the process of selling the Park Hyatt Beaver Creek Resort & Spa for $176 million, with a nonrefundable deposit of $6.5 million already received. This sale is expected to close in the second quarter of 2026. As of March 31, 2026, Braemar had cash and cash equivalents of $93.4 million and restricted cash of $55.4 million, positioning the company to meet its liquidity needs.
Looking ahead, Braemar's management remains cautious about market conditions and the potential impact of economic factors on its operations. The company is exploring strategic alternatives, including potential asset sales, to enhance shareholder value. The ongoing review of its dividend policy reflects the company's commitment to maintaining its REIT status while navigating the complexities of the current market environment.
About Braemar Hotels & Resorts Inc.
Braemar Hotels & Resorts Inc. is a REIT specializing in investments in high RevPAR luxury hotels and resorts primarily in the U.S. and its territories. Its portfolio includes premium-branded and independent properties managed by third-party operators under long-term contracts. The company focuses on asset management, capital allocation, and market selection to maximize returns, targeting upscale urban and resort locations with strong demand drivers and growth potential.
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