Yahoo Finance Braemar Hotels & Resorts Inc. Reports Q1 2024 Earnings: A Detailed Financial Overview
Net Income: Reported at $3.5 million for the quarter, surpassing the estimated net loss of $5.64 million.
Revenue: Total hotel revenue reached $219.08 million, exceeding the estimated $210.68 million.
Earnings Per Share (EPS): Achieved $0.05 per diluted share, outperforming the estimated EPS of -$0.09.
Adjusted EBITDAre: Amounted to $66.2 million for the quarter, indicating robust operational performance.
Comparable Hotel EBITDA: Stood at $71.0 million, reflecting stable earnings from hotel operations.
Dividend: Announced a quarterly cash dividend of $0.05 per diluted share, aligning with ongoing shareholder returns.
Liquidity Position: Ended the quarter with $137.1 million in cash and cash equivalents, alongside $82.4 million in restricted cash.
On May 8, 2024, Braemar Hotels & Resorts Inc (NYSE:BHR) disclosed its financial results for the first quarter of 2024 through an 8-K filing. The company, a real estate investment trust (REIT) that focuses on luxury hotels and resorts, presented a mixed financial picture with several strategic developments aimed at enhancing shareholder value.
Company Overview
Braemar Hotels & Resorts Inc operates primarily in the luxury segment of the hospitality market, owning properties in key U.S. states and territories. The company's portfolio includes high-end brands such as Marriott, Hilton, and Ritz-Carlton, among others. Revenue streams are generated from rooms, food and beverage, and other hotel services.
Financial Performance
The first quarter of 2024 saw Braemar reporting a net income of $3.5 million, or $0.05 per diluted share, a figure that aligns closely with analyst expectations of a $0.09 loss per share. Total revenue for the quarter stood at $219.08 million, significantly surpassing the estimated $210.68 million. This performance indicates a resilient operational strategy despite minor declines in Comparable Revenue Per Available Room (RevPAR) by 0.2% and Average Daily Rate (ADR) by 1.0%, while occupancy saw a slight increase of 0.8%.
Strategic Financial Management
Braemar's strategic financial activities included extending mortgage loans on key properties like the Pier House Resort & Spa and the Ritz-Carlton St. Thomas. Notably, the company also announced the sale of the Hilton La Jolla Torrey Pines for $165 million, a move expected to optimize its asset portfolio and improve liquidity. Additionally, the company has paid off a $30 million mortgage loan on the Cameo Beverly Hills and announced plans for a $50 million share buyback and preferred share redemption program.
Liquidity and Capital Expenditures
As of March 31, 2024, Braemar reported having $137.1 million in cash and cash equivalents, with an additional $82.4 million in restricted cash. The quarter also saw capital expenditures of $23.3 million, directed towards maintaining and enhancing property values.
Debt Management
The company's net debt to gross assets ratio was 39.6%, reflecting a balanced approach to leverage and financial stability. The total combined loans had a blended average interest rate of 7.8%, with 77% of the debt effectively fixed, mitigating risks associated with interest rate fluctuations.
Dividend Declaration
Reflecting confidence in its financial stability, Braemar declared a quarterly cash dividend of $0.05 per diluted share for Q2 2024, payable on July 15, 2024, to shareholders of record as of June 28, 2024.
Outlook and Forward-Looking Statements
Richard J. Stockton, President and CEO of Braemar, expressed optimism about the company's positioning for both short-term and long-term performance. The planned strategic sales and proactive debt management are expected to bolster financial flexibility and shareholder returns.
In summary, Braemar Hotels & Resorts Inc's first quarter of 2024 illustrates a strategic approach to navigating the complexities of the luxury hotel market, with focused efforts on optimizing its portfolio and maintaining robust financial health. Investors and stakeholders may look forward to potential benefits from the company's strategic initiatives and stable dividend payouts.
Explore the complete 8-K earnings release (here) from Braemar Hotels & Resorts Inc for further details.
This article first appeared on GuruFocus.
