Braemar Hotels & Resorts Inc. Q4 FY2024 earnings call

• Portfolio achieved 1.9% comparable RevPAR growth in Q4 2024 with 5.3% comparable total revenue growth. • Active discussions with lender on refinancing $193 million loan maturing in June; post-refinancing, no remaining final debt maturities in 2025. • Redeemed approximately $80 million of non-traded preferred stock. • In Q4 2024, completed high-impact projects like transforming back-of-house space at Four Seasons Resort Scottsdale, renovating fine dining venue at Ritz Carlton Reserve, Dorado Beach, and refreshing beachside restaurant at Ritz Carlton Saint Thomas. • Group rooms revenue increased 7% in Q4 2024 compared to prior year, with full-year 2024 group room revenue up 4%.

For the fourth quarter of 2024, the portfolio achieved a comparable RevPAR of $305, reflecting a 1.9% increase compared to the prior year quarter. Comparable total hotel revenue grew by 5.3% year-over-year, and comparable hotel EBITDA was $41.1 million, a 0.7% increase. The luxury resort portfolio had a comparable RevPAR of $515, up 1.3% year-over-year, with combined comparable hotel EBITDA of $31 million, a 4.1% increase. Urban hotels achieved a comparable RevPAR growth of 3.3% in the fourth quarter.

• Actively discussing refinancing of remaining 2025 debt maturity, hoping for announcement in coming weeks. • Hotel debt capital markets becoming more attractive, especially for high-quality assets like Braemar's portfolio. • Expect to continue redeeming non-traded preferred stock to deleverage and improve cash flow per share.

• Calendar-driven challenges like unseasonably mild winter weather and shifted festive events impacting demand. • Restrictive capital markets environment affecting resort segment supply. • Impact of Southern California fires on Los Angeles market demand, causing fluctuations and affecting group business.

Q: On transaction market broadly for high-quality assets?

A: Bid for hotels is strong, with many interested parties; positive reception for hotels for sale, attractive CMBS refinancing, and pro-business climate contributing to active transaction market