Braemar Hotels & Resorts Announces Preliminary First Quarter 2021 Results

Braemar Hotels & Resorts Inc. (NYSE: BHR)  announced last week its preliminary expectations for net loss attributable to common stockholders, Adjusted EBITDAre, and Adjusted FFO for the first quarter ended March 31, 2021.

The Company reported a preliminary estimated range of net loss attributable to common stockholders of approximately $(11.7) million to $(10.7) million or $(0.29) to $(0.27) per share, a preliminary estimated range of Adjusted EBITDAre of $16.1 million to $17.1 million, and a preliminary estimated range of Adjusted FFO available to common stockholders, OP unitholders and Series B Cumulative Convertible preferred stockholders on an “as converted” basis of $9.7 million to $10.7 million for the first quarter ended March 31, 2021. Final results for the first quarter ended March 31, 2021 will be released on May 5, 2021 as previously announced.

“We are excited to report these preliminary results for the first quarter, which exceeded even our own internal estimates,” said Richard J. Stockton, Braemar’s President and Chief Executive Officer. “These results were driven by strong leisure demand at our luxury resort properties, which were accompanied by impressive profit margins due to high average daily rates and strong flow-throughs,” he added.  Mr. Stockton continued, “These results have enabled us to reach positive corporate level cash flow well ahead of schedule. When our urban portfolio starts to meaningfully contribute to the portfolio results over the balance of this year, we expect continued improvement in cash flow.”

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, EBITDAre AND ADJUSTED EBITDAre

(in millions)

(unaudited)

Three Months Ended
March 31, 2021

Low End

High End

Net income (loss)

$

(11.5)

$

(10.5)

Interest expense and amortization of loan costs

6.8

6.8

Depreciation and amortization

18.4

18.4

Income tax expense (benefit)

0.1

0.1

Equity in (earnings) loss of unconsolidated entity

0.1

0.1

Company’s portion of EBITDA of OpenKey

(0.1)

(0.1)

EBITDA

13.8

14.8

(Gain) loss on insurance settlement and disposition of assets

(0.5)

(0.5)

EBITDAre

13.3

14.3

Amortization of favorable (unfavorable) contract assets (liabilities)

0.1

0.1

Transaction and conversion costs

0.3

0.3

Write-off of loan costs and exit fees

0.4

0.4

Unrealized (gain) loss on derivatives

Non-cash stock/unit-based compensation

1.4

1.4

Legal, advisory and settlement costs

0.2

0.2

Advisory services incentive fee

0.4

0.4

Company’s portion of adjustments to EBITDAre of OpenKey

Adjusted EBITDAre

$

16.1

$

17.1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO FFO AND ADJUSTED FFO

(in millions)

(unaudited)

Three Months Ended
March 31, 2021

Low End

High End

Net income (loss)

$

(11.5)

$

(10.5)

(Income) loss attributable to noncontrolling interest in consolidated entities

1.2

1.2

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

1.1

1.1

Preferred dividends

(2.4)

(2.4)

Gain (loss) on extinguishment of preferred stock

(0.1)

(0.1)

Net income (loss) attributable to common stockholders

(11.7)

(10.7)

Depreciation and amortization on real estate

17.7

17.7

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

(1.1)

(1.1)

Equity in (earnings) loss of unconsolidated entity

0.1

0.1

(Gain) loss on insurance settlement and disposition of assets

(0.5)

(0.5)

Company’s portion of FFO of OpenKey

(0.1)

(0.1)

FFO available to common stockholders and OP unitholders

4.4

5.4

Series B Cumulative Convertible Preferred Stock dividends

1.6

1.6

Gain (loss) on extinguishment of preferred stock

0.1

0.1

Transaction and conversion costs

0.3

0.3

Interest expense accretion on refundable membership club deposits

0.2

0.2

Write-off of loan costs and exit fees

0.4

0.4

Amortization of loan costs

0.7

0.7

Unrealized (gain) loss on derivatives

Non-cash stock/unit-based compensation

1.4

1.4

Legal, advisory and settlement costs

0.2

0.2

Advisory services incentive fee

0.4

0.4

Company’s portion of adjustments to FFO of OpenKey

Adjusted FFO available to common stockholders, OP unitholders and Series B Cumulative Convertible preferred stockholders on an “as converted” basis

$

9.7

$

10.7

Weighted average diluted shares

50.3

50.3

Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.