Braemar Hotels & Resorts Reports First Quarter 2019 Results

Braemar Hotels & Resorts Reports First Quarter 2019 Results

Actual RevPAR for All Hotels Increased 14.3% in the 1st Quarter

Comparable RevPAR for All Hotels Increased 3.0% in the 1st Quarter

Net Loss Attributable to Common Stockholders was $3.5 Million in the 1st Quarter

Adjusted EBITDAre Increased 15.3% in the 1st Quarter

$6.0 Million in Business Interruption Income Booked in the 1st Quarter

Entered into $50 Million Enhanced Return Funding Program with Ashford Inc.

Completed Acquisition of the Ritz-Carlton Lake Tahoe

Completed Refinancing of 2-Hotel Portfolio

PR Newswire

DALLAS, May 1, 2019

DALLAS, May 1, 2019 /PRNewswire/ -- Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") today reported the following results and performance measures for the first quarter ended March 31, 2019.  The comparable performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA assume each of the hotel properties in the Company's hotel portfolio as of March 31, 2019 were owned as of the beginning of each of the periods presented.  Unless otherwise stated, all reported results compare the first quarter ended March 31, 2019, with the first quarter ended March 31, 2018 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

STRATEGIC OVERVIEW

  • Focused strategy of investing in luxury hotels and resorts
  • Targets conservative leverage levels of 45% Net Debt to Gross Assets
  • Highly-aligned management team and advisory structure
  • Dividend yield of approximately 4.6%

FINANCIAL AND OPERATING HIGHLIGHTS

  • Net loss attributable to common stockholders for the quarter was $3.5 million or $0.11 per diluted share.
  • Actual RevPAR for all hotels increased 14.3% to $239.17 during the quarter.
  • Comparable RevPAR for all hotels increased 3.0% to $242.75 during the quarter.
  • Comparable RevPAR for all hotels not under renovation increased 2.6% to $263.13 during the quarter.
  • Adjusted funds from operations (AFFO) was $0.44 per diluted share for the quarter.
  • Adjusted EBITDAre was $34.8 million for the quarter, representing a 15.3% increase over the prior-year quarter.
  • During the quarter, the Company entered into a $50 million Enhanced Return Funding Program agreement with Ashford Inc.
  • During the quarter, the Company completed the acquisition of the 170-room Ritz-Carlton Lake Tahoe in Truckee, California.
  • During the quarter, the Company refinanced a mortgage loan on 2 hotels with a new loan totaling $195 million.
  • The Company announced the planned opening of the Notary Hotel, an Autograph Collection property, in downtown Philadelphia.  The re-branded property, a conversion of the Courtyard Philadelphia Downtown, is expected to officially launch in early summer 2019. 
  • Capex invested during the quarter was $36.6 million.

UPDATE ON BUSINESS INTERRUPTION INCOME
During the first quarter 2019, the Company recognized $6.0 million of business interruption ("BI") income for the Ritz-Carlton St. Thomas related to lost profits for the period of December 2018 through February 2019 due to the impact of Hurricane Irma.

The Company will continue to work with its insurers on the claims at the Ritz-Carlton St. Thomas and expects to continue to receive additional BI income through at least the reopening of the property which is scheduled for October 2019.

ENHANCED RETURN FUNDING PROGRAM
On January 17, 2019, the Company announced that it had entered into an Enhanced Return Funding Program ("ERFP") with Ashford Inc. (NYSE American: AINC). Subject to the terms of the two-year programmatic agreement, Ashford Inc. has committed to effectively fund amounts equal to 10% of the purchase price of future Braemar hotel acquisitions, up to an amount of $50 million in aggregate funding. The Program has the potential to be upsized to $100 million based upon mutual agreement.

To date, the Company has completed one acquisition under the ERFP, which amounts to $10.3 million in committed funding, or approximately 21% committed utilization of the pledged $50 million of ERFP funding from Ashford Inc.

RITZ-CARLTON LAKE TAHOE ACQUISITION
On January 15, 2019, the Company completed the acquisition of the 170-room Ritz-Carlton Lake Tahoe in Truckee, California for total consideration of $120 million. 

The purchase of the Ritz-Carlton Lake Tahoe is the Company's first hotel acquisition to benefit from the ERFP. In connection with this acquisition and subject to the terms of the ERFP, Ashford Inc. has committed to providing Braemar with approximately $10.3 million of cash via the future purchase of hotel furniture, fixtures, and equipment at Braemar properties. Concurrent with the completion of the acquisition, the Company entered into a $54 million non-recourse mortgage loan. The loan is interest-only, has a five-year term, and bears interest at LIBOR + 2.10%.  The hotel will continue to be managed by Ritz-Carlton.

PLANNED OPENING OF THE NOTARY HOTEL
The Company recently announced the planned opening of The Notary Hotel, an Autograph Collection property, in Downtown Philadelphia in early summer 2019.  This is the new branding for the Company's Courtyard Philadelphia Downtown.  Listed on the National Register of Historic Places, the deluxe hotel has undergone a multi-million dollar renovation, fusing Philadelphia's unique soul with its historic legacy and now joins Marriott International's Autograph Collection, a diverse portfolio of independent hotels around the world that reflect unique vision, design and craft. 

CAPITAL STRUCTURE
At March 31, 2019, the Company had total assets of $1.8 billion. As of March 31, 2019, the Company had $1.1 billion of mortgage loans of which $49 million related to its joint venture partner's share of the mortgage loan on the Capital Hilton and Hilton La Jolla Torrey Pines.  The Company's total combined mortgage loans had a blended average interest rate of 4.8%. 

On January 22, 2019, the Company announced that it had refinanced its Aareal Capital mortgage loan with an existing outstanding balance totaling approximately $187 million and a final maturity date in November 2021.  The new loan totals $195 million and has a five-year term. The loan is interest only and provides for a floating interest rate of LIBOR + 1.70%.  The loan remains secured by the same two hotels: the Capital Hilton in Washington, D.C. and Hilton La Jolla Torrey Pines in La Jolla, CA.  Braemar has a 75% ownership interest in the properties.

PORTFOLIO REVPAR
As of March 31, 2019, the portfolio consisted of thirteen properties.  During the first quarter of 2019, ten of the Company's hotels were not under renovation.  The Company believes reporting its operating metrics for its hotels on a comparable total basis (all 13 hotels) and comparable not under renovation basis (10 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio.  Details of each category are provided in the tables attached to this release.

  • Comparable RevPAR increased 3.0% to $242.75 for all hotels on a 5.9% increase in ADR and a 2.8% decrease in occupancy
  • Comparable RevPAR increased 2.6% to $263.13 for hotels not under renovation on a 2.7% increase in ADR and relatively flat occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons.  Given the substantial seasonality in the Company's portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company's portfolio as of the end of the current period.  As the Company's portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin.  The details of the quarterly calculations for the previous four quarters for the thirteen hotels are provided in the table attached to this release.

COMMON STOCK DIVIDEND
On March 13, 2019, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.16 per diluted share for the Company's common stock for the first quarter ending March 31, 2019. The dividend, which equates to an annual rate of $0.64 per share, was paid on April 15, 2019, to shareholders of record as of March 29, 2019.

"We continue to diligently execute on our strategic objectives focusing on the luxury hotel segment," said Richard J. Stockton, Braemar's President and Chief Executive Officer. "By clearly aligning our platform with this segment, we believe Braemar is well-positioned to capitalize on strong consumer confidence trends and a healthy macroeconomic outlook. We have made great progress on our portfolio repositioning and remain on track with our conversion of the Courtyard Philadelphia Downtown to The Notary Hotel by the end of the second quarter.  Shortly thereafter, we expect to complete our Autograph Collection conversion of the Courtyard San Francisco Downtown by the end of the year. On the investments front, we are very pleased with our January purchase of the Ritz-Carlton Lake Tahoe, which delivered strong first quarter performance, resulting in impressive initial returns bolstered by the Enhanced Return Funding Program with Ashford Inc. Looking ahead, we remain committed to enhancing shareholder value with our continued focus on solid operational performance in 2019."

INVESTOR CONFERENCE CALL AND SIMULCAST
Braemar will conduct a conference call on Thursday, May 2, 2019, at 12:00 p.m. ET.  The number to call for this interactive teleconference is (323) 794-2597.  A replay of the conference call will be available through Thursday, March 9, 2019, by dialing (719) 457-0820 and entering the confirmation number, 6337154.

The Company will also provide an online simulcast and rebroadcast of its first quarter 2019 earnings release conference call.  The live broadcast of Braemar's quarterly conference call will be available online at the Company's web site, www.bhrreit.com on Thursday, May 2, 2019, beginning at 12:00 p.m. ET.  The online replay will follow shortly after the call and continue for approximately one year.

We use certain non-GAAP measures, in addition to the required GAAP presentations, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer real estate investment trusts more meaningful. Non-GAAP financial measures, which should not be relied upon as a substitute for GAAP measures, used in this press release are FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA.  Please refer to our most recently filed Annual Report on Form 10-K for a more detailed description of how these non-GAAP measures are calculated.  The reconciliations of non-GAAP measures to the closing GAAP measures are provided below and provide further details of our results for the period being reported.

*  *  *  *  *

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

Ashford has created an Ashford App for the hospitality REIT investor community.  The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford."

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the federal securities regulations.  Forward-looking statements in this press release may include, among others, statements about the implied share price for the Company's common stock.  When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements.  Such statements are subject to numerous assumptions and uncertainties, many of which are outside Braemar's control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation:  general conditions of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; our ability to successfully complete and integrate acquisitions, and manage our planned growth, and the degree and nature of our competition.  These and other risk factors are more fully discussed in Braemar's filings with the Securities and Exchange Commission. 

The forward-looking statements included in this press release are only made as of the date of this press release.  The Company can give no assurance that these forward-looking statements will be attained or that any deviation will not occur.  We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

 

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)



March 31,
 2019


December 31,
 2018

ASSETS




Investments in hotel properties, gross

$

1,719,275



$

1,562,806


Accumulated depreciation

(276,799)



(262,905)


Investments in hotel properties, net

1,442,476



1,299,901


Cash and cash equivalents

73,802



182,578


Restricted cash

86,309



75,910


Accounts receivable, net of allowance of $108 and $101, respectively

23,314



12,739


Inventories

2,358



1,862


Prepaid expenses

7,275



4,409


Investment in Ashford Inc., at fair value

10,821



10,114


Investment in OpenKey

1,872



1,766


Derivative assets

815



772


Other assets

10,314



13,831


Operating lease right-of-use assets

82,308



—


Intangible assets, net

5,303



27,678


Due from related party, net

350



—


Due from third-party hotel managers

14,402



4,927


Total assets

$

1,761,719



$

1,636,487






LIABILITIES AND EQUITY




Liabilities:




Indebtedness, net

$

1,046,749



$

985,873


Accounts payable and accrued expenses

76,777



64,116


Dividends and distributions payable

9,174



8,514


Due to Ashford Inc., net

5,114



4,001


Due to related party, net

—



224


Due to third-party hotel managers

2,415



1,633


Operating lease liabilities

60,617



—


Other liabilities

26,524



29,033


Total liabilities

1,227,370



1,093,394






5.50% Series B Cumulative Convertible Preferred Stock, $0.01 par value, 4,965,850 shares issued and outstanding at
   March 31, 2019 and December 31, 2018

106,123



106,123


Redeemable noncontrolling interests in operating partnership

51,010



44,885


Equity:




Preferred stock, $0.01 value, 50,000,000 shares authorized:




Series D Cumulative Preferred Stock, 1,600,000 shares issued and outstanding as of March 31, 2019 and December
   31, 2018

16



16


Common stock, $0.01 par value, 200,000,000 shares authorized, 32,841,263 and 32,511,660 shares issued and
   outstanding at March 31, 2019 and December 31, 2018, respectively

328



325


Additional paid-in capital

514,739



512,545


Accumulated deficit

(132,575)



(115,410)


Total stockholders' equity of the Company

382,508



397,476


Noncontrolling interest in consolidated entities

(5,292)



(5,391)


Total equity

377,216



392,085


Total liabilities and equity

$

1,761,719



$

1,636,487


 

 

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)



Three Months Ended


March 31,


2019


2018

REVENUE




Rooms

$

76,731



$

65,507


Food and beverage

32,114



23,500


Other

19,663



13,482


Total hotel revenue

128,508



102,489


Other

5



—


Total revenue

128,513



102,489


EXPENSES




Hotel operating expenses:




Rooms

16,982



14,918


Food and beverage

22,210



15,620


Other expenses

38,895



29,664


Management fees

4,416



3,617


Total hotel operating expenses

82,503



63,819


Property taxes, insurance and other

7,460



5,604


Depreciation and amortization

16,686



13,006


Impairment charges

—



12


Advisory services fee:




Base advisory fee

2,660



2,107


Reimbursable expenses

580



420


Incentive fee

1,314



170


Non-cash stock/unit-based compensation

1,470



2,547


Transaction costs

634



488


Corporate, general and administrative:




Non-cash stock/unit-based compensation

19



—


Other general and administrative

1,107



28


Total operating expenses

114,433



88,201


OPERATING INCOME (LOSS)

14,080



14,288


Equity in earnings (loss) of unconsolidated entity

(50)



(3)


Interest income

362



200


Other income (expense)

(117)



(63)


Interest expense

(13,013)



(9,191)


Amortization of loan costs

(1,180)



(988)


Write-off of loan costs and exit fees

(312)



(2)


Unrealized gain (loss) on investments

707



528


Unrealized gain (loss) on derivatives

(872)



73


INCOME (LOSS) BEFORE INCOME TAXES

(395)



4,842


Income tax (expense) benefit

(927)



(572)


NET INCOME (LOSS)

(1,322)



4,270


(Income) loss from consolidated entities attributable to noncontrolling interest

(99)



42


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

440



(292)


NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

(981)



4,020


Preferred dividends

(2,532)



(1,707)


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(3,513)



$

2,313






INCOME (LOSS) PER SHARE – BASIC AND DILUTED




Basic:




Net income (loss) attributable to common stockholders

$

(0.11)



$

0.07


Weighted average common shares outstanding – basic

32,115



31,680


Diluted:




Net income (loss) attributable to common stockholders

$

(0.11)



$

0.07


Weighted average common shares outstanding – diluted

32,115



31,683


Dividends declared per common share:

$

0.16



$

0.16


 

 

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

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

(in thousands)

(unaudited)



Three Months Ended


March 31,


2019


2018

Net income (loss)

$

(1,322)



$

4,270


Interest expense and amortization of loan costs

14,193



10,179


Depreciation and amortization

16,686



13,006


Income tax expense (benefit)

927



572


Equity in (earnings) loss of unconsolidated entity

50



3


Company's portion of EBITDA of OpenKey

(49)



(2)


EBITDA

30,485



28,028


Impairment charges on real estate

—



12


EBITDAre

30,485



28,040


Amortization of favorable (unfavorable) contract assets (liabilities)

119



43


Transaction and management conversion costs

634



503


Other (income) expense

117



63


Write-off of loan costs and exit fees

312



2


Unrealized (gain) loss on investments

(707)



(528)


Unrealized (gain) loss on derivatives

872



(73)


Non-cash stock/unit-based compensation

1,528



2,593


Legal, advisory and settlement costs

71



(1,141)


Advisory services incentive fee

1,314



170


Uninsured hurricane and wildfire related costs

—



467


Company's portion of adjustments to EBITDAre of OpenKey

11



—


Adjusted EBITDAre

$

34,756



$

30,139


 

 

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO

(in thousands, except per share amounts)

(unaudited)



Three Months Ended


March 31,


2019


2018

Net income (loss)

$

(1,322)



$

4,270


(Income) loss from consolidated entities attributable to noncontrolling interest

(99)



42


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

440



(292)


Preferred dividends

(2,532)



(1,707)


Net income (loss) attributable to common stockholders

(3,513)



2,313


Depreciation and amortization on real estate

15,904



12,258


Impairment charges on real estate

—



12


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

(440)



292


Equity in (earnings) loss of unconsolidated entity

50



3


Company's portion of FFO of OpenKey

(51)



(2)


FFO available to common stockholders and OP unitholders

11,950



14,876


Series B Cumulative Convertible Preferred Stock dividends

1,707



1,707


Transaction and management conversion costs

634



503


Other (income) expense

117



63


Interest expense accretion on refundable membership club deposits

225



—


Write-off of loan costs and exit fees

312



2


Amortization of loan costs

1,155



964


Unrealized (gain) loss on investments

(707)



(528)


Unrealized (gain) loss on derivatives

872



(73)


Non-cash stock/unit-based compensation

1,528



2,593


Legal, advisory and settlement costs

71



(1,141)


Advisory services incentive fee

1,314



170


Uninsured hurricane and wildfire related costs

—



467


Company's portion of adjustments to FFO of OpenKey

11



—


Adjusted FFO available to common stockholders and OP unitholders

$

19,189



$

19,603


Adjusted FFO per diluted share available to common stockholders and OP unitholders

$

0.44



$

0.46


Weighted average diluted shares

43,474



42,440


 

 

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

MARCH 31, 2019

(dollars in thousands)

(unaudited)


Lender


Hotels


Maturity


Interest Rate


Fixed-Rate
Debt


Floating-Rate
Debt


Total
Debt


Comparable TTM
Hotel EBITDA (7)


Comparable TTM EBITDA
Debt Yield

JPMorgan


Park Hyatt Beaver Creek


April 2019


LIBOR + 2.75%


$

—



$

67,500


(1)

$

67,500



$

8,808



13.0

%

BAML secured
revolving credit facility


Various


November 2019


Base Rate(3) + 1.25% to 2.50%
or LIBOR + 2.25% to 3.50%


—



—


(2)

—



N/A



N/A


Apollo


Ritz-Carlton St. Thomas


December 2019


LIBOR + 4.95%


—



42,000


(4)

42,000



11,415



27.2

%

Credit Agricole


Pier House


March 2020


LIBOR + 2.25%


—



70,000


(5)

70,000



11,195



16.0

%

BAML


See footnote


June 2020


LIBOR + 2.16%


—



435,000


(6)

435,000



49,892



11.5

%

BAML


Hotel Yountville


May 2022


LIBOR + 2.55%


—



51,000



51,000



5,670



11.1

%

BAML


Bardessono


August 2022


LIBOR + 2.55%


—



40,000



40,000



5,917



14.8

%

BAML


Ritz-Carlton Sarasota


April 2023


LIBOR + 2.65%


—



100,000



100,000



13,261



13.3

%

BAML


Ritz-Carlton Lake Tahoe


January 2024


LIBOR + 2.10%


—



54,000



54,000



9,585



17.8

%

Prudential


Capital Hilton and Hilton
Torrey Pines


February 2024


LIBOR + 1.70%


—



195,000



195,000



28,718



14.7

%

Total








$

—



$

1,054,500



$

1,054,500



$

144,461



13.7

%

Percentage








—

%


100.0

%


100.0

%





Weighted average
interest rate








—

%


4.80

%


4.80

%





 

All indebtedness is non-recourse with the exception of the secured revolving credit facility.  

(1)

This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in April 2019.

(2) 

This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2019.

(3) 

Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.

(4) 

This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the second was exercised in December 2018.

(5) 

This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the third was exercised in March 2019.

(6) 

This mortgage loan has five one-year extension options subject to satisfaction of certain conditions. This mortgage loan is secured by the Chicago Sofitel Magnificent Mile, Philadelphia Courtyard Downtown, San Francisco Courtyard Downtown and Seattle Marriott Waterfront.

(7) 

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 


BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

MARCH 31, 2019

(dollars in thousands)

(unaudited)


Lender


Hotels


2019


2020


2021


2022


2023


Thereafter


Total

BAML secured
revolving credit facility


Various


$

—



$

—



$

—



$

—



$

—



$

—



$

—


Credit Agricole


Pier House


—



70,000



—



—



—



—



70,000


Apollo


Ritz-Carlton St. Thomas


—



42,000



—



—



—



—



42,000


JPMorgan


Park Hyatt Beaver Creek


—



—



—



67,500



—



—



67,500


BAML


Hotel Yountville


—



—



—



51,000



—



—



51,000


BAML


Bardessono


—



—



—



40,000



—



—



40,000


BAML


Ritz-Carlton Sarasota


—



—



—



—



98,000



—



98,000


BAML


Ritz-Carlton Lake Tahoe


—



—



—



—



—



54,000



54,000


Prudential


Capital Hilton and Hilton
Torrey Pines


—



—



—



—



—



195,000



195,000


BAML Pool


See footnote


—



—



—



—



—



435,000



435,000


Principal due in future periods




$

—



$

112,000



$

—



$

158,500



$

98,000



$

684,000



$

1,052,500


Scheduled amortization
payments remaining




—



—



500



1,000



500



—



2,000


Total indebtedness




$

—



$

112,000



$

500



$

159,500



$

98,500



$

684,000



$

1,054,500


 

(1)

This mortgage loan is secured by the Chicago Sofitel Magnificent Mile, Philadelphia Courtyard Downtown, San Francisco Courtyard Downtown and Seattle Marriott Waterfront.

 

 


BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(unaudited)


ALL HOTELS:




Three Months Ended March 31,



Actual


Non-comparable Adjustments


Comparable


Actual


Non-comparable Adjustments


Comparable


Actual


Comparable



2019


2019


2019


2018


2018


2018


% Variance


% Variance


Rooms revenue (in thousands)

$

76,249



$

1,719



$

77,968



$

65,507



$

11,321



$

76,828



16.40

%


1.48

%


RevPAR

$

239.17



$

722.13



$

242.75



$

209.27



$

879.63



$

235.74



14.29

%


2.97

%


Occupancy

75.48

%


77.52

%


75.50

%


78.67

%


53.10

%


77.66

%


(4.05)

%


(2.78)

%


ADR

$

316.86



$

931.53



$

321.54



$

266.01



$

1,656.55



$

303.56



19.12

%


5.92

%

 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at March 31, 2019, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

 

 

ALL HOTELS


     NOT UNDER RENOVATION:

Three Months Ended March 31,



Actual


Non-comparable Adjustments


Comparable


Actual


Non-comparable Adjustments


Comparable


Actual


Comparable



2019


2019


2019


2018


2018


2018


% Variance


% Variance


Rooms revenue (in thousands)

$

60,564



$

1,719



$

62,283



$

49,373



$

11,321



$

60,694



22.67

%


2.62

%


RevPAR

$

258.47



$

722.13



$

263.13



$

220.58



$

879.63



$

256.42



17.18

%


2.62

%


Occupancy

76.63

%


77.52

%


76.64

%


78.03

%


53.10

%


76.67

%


(1.79)

%


(0.04)

%


ADR

$

337.28



$

931.53



$

343.32



$

282.70



$

1,656.55



$

334.43



19.31

%


2.66

%

 

NOTES:

(1)

The above comparable information assumes the ten hotel properties owned and included in the Company's operations at March 31, 2019, and not under renovation during the three months ended March 31, 2019, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

Excluded Hotels Under Renovation:


Philadelphia Courtyard Downtown, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

 


BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

HOTEL EBITDA

(dollars in thousands)

(unaudited)


ALL HOTELS:

Three Months Ended



March 31,



2019


2018


% Variance


Total hotel revenue

$

128,026



$

102,489



24.92

%


Non-comparable adjustments

2,671



24,816





Comparable total hotel revenue

$

130,697



$

127,305



2.66

%









Hotel EBITDA

$

39,689



$

33,605



18.10

%


Non-comparable adjustments

744



7,055





Comparable hotel EBITDA

$

40,433



$

40,660



(0.56)

%


Hotel EBITDA margin

31.00

%


32.79

%


(1.79)

%


Comparable hotel EBITDA margin

30.94

%


31.94

%


(1.00)

%









Hotel EBITDA adjustments attributable to consolidated noncontrolling interests

$

1,866



$

1,990



(6.23)

%


Hotel EBITDA attributable to the Company and OP unitholders

$

37,823



$

31,615



19.64

%


Comparable hotel EBITDA attributable to the Company and OP unitholders

$

38,567



$

38,670



(0.27)

%

 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at March 31, 2019, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

ALL HOTELS

Three Months Ended

     NOT UNDER RENOVATION:

March 31,



2019


2018


% Variance


Total hotel revenue

$

103,216



$

79,025



30.61

%


Non-comparable adjustments

2,671



24,816





Comparable total hotel revenue

$

105,887



$

103,841



1.97

%









Hotel EBITDA

$

30,570



$

24,544



24.55

%


Non-comparable adjustments

744



7,055





Comparable hotel EBITDA

$

31,314



$

31,599



(0.90)

%


Hotel EBITDA margin

29.62

%


31.06

%


(1.44)

%


Comparable hotel EBITDA margin

29.57

%


30.43

%


(0.86)

%









Hotel EBITDA adjustments attributable to consolidated noncontrolling interests

$

1,866



$

1,990



(6.23)

%


Hotel EBITDA attributable to the Company and OP unitholders

$

28,704



$

22,554



27.27

%


Comparable hotel EBITDA attributable to the Company and OP unitholders

$

29,448



$

29,609



(0.54)

%

 

NOTES:

(1)

The above comparable information assumes the ten hotel properties owned and included in the Company's operations at March 31, 2019, and not under renovation during the three months ended March 31, 2019, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(5)

Excluded Hotels Under Renovation:


Philadelphia Courtyard Downtown, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 


 

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)




Three Months Ended March 31,



Actual


Non-comparable Adjustments


Comparable


Actual


Non-comparable Adjustments


Comparable


Actual


Comparable



2019


2019


2019


2018


2018


2018


% Variance


% Variance

CAPITAL HILTON WASHINGTON D.C.

















Selected Financial Information:

















Rooms revenue

$

8,708



$

—



$

8,708



$

8,961



$

—



$

8,961



(2.82)

%


(2.82)

%


Total hotel revenue

$

13,651



$

—



$

13,651



$

13,584



$

—



$

13,584



0.49

%


0.49

%


Hotel EBITDA

$

2,997



$

—



$

2,997



$

3,102



$

—



$

3,102



(3.38)

%


(3.38)

%


Hotel EBITDA margin

21.95

%




21.95

%


22.84

%




22.84

%


(0.89)

%


(0.89)

%


Selected Operating Information:

















RevPAR

$

175.91



$

—



$

175.91



$

181.02



$

—



$

181.02



(2.82)

%


(2.82)

%


Occupancy

74.80

%


—

%


74.80

%


78.53

%


—

%


78.53

%


(4.75)

%


(4.75)

%


ADR

$

235.18



$

—



$

235.18



$

230.51



$

—



$

230.51



2.03

%


2.03

%


















LA JOLLA HILTON TORREY PINES

















Selected Financial Information:

















Rooms revenue

$

6,547



$

—



$

6,547



$

6,475



$

—



$

6,475



1.11

%


1.11

%


Total hotel revenue

$

12,336



$

—



$

12,336



$

13,012



$

—



$

13,012



(5.20)

%


(5.20)

%


Hotel EBITDA

$

4,466



$

—



$

4,466



$

4,859



$

—



$

4,859



(8.09)

%


(8.09)

%


Hotel EBITDA margin

36.20

%




36.20

%


37.34

%




37.34

%


(1.14)

%


(1.14)

%


Selected Operating Information:

















RevPAR

$

184.62



$

—



$

184.62



$

182.60



$

—



$

182.60



1.11

%


1.11

%


Occupancy

82.28

%


—

%


82.28

%


86.27

%


—

%


86.27

%


(4.63)

%


(4.63)

%


ADR

$

224.38



$

—



$

224.38



$

211.67



$

—



$

211.67



6.00

%


6.00

%


















CHICAGO SOFITEL MAGNIFICENT MILE

















Selected Financial Information:

















Rooms revenue

$

3,323



$

—



$

3,323



$

3,419



$

—



$

3,419



(2.81)

%


(2.81)

%


Total hotel revenue

$

4,757



$

—



$

4,757



$

4,880



$

—



$

4,880



(2.52)

%


(2.52)

%


Hotel EBITDA

$

(1,378)



$

—



$

(1,378)



$

(1,143)



$

—



$

(1,143)



(20.56)

%


(20.56)

%


Hotel EBITDA margin

(28.97)

%




(28.97)

%


(23.42)

%




(23.42)

%


(5.55)

%


(5.55)

%


Selected Operating Information:

















RevPAR

$

88.98



$

—



$

88.98



$

91.54



$

—



$

91.54



(2.80)

%


(2.80)

%


Occupancy

67.09

%


—

%


67.09

%


63.09

%


—

%


63.09

%


6.34

%


6.34

%


ADR

$

132.62



$

—



$

132.62



$

145.11



$

—



$

145.11



(8.61)

%


(8.61)

%


















BARDESSONO HOTEL AND SPA

















Selected Financial Information:

















Rooms revenue

$

2,239



$

—



$

2,239



$

2,348



$

—



$

2,348



(4.64)

%


(4.64)

%


Total hotel revenue

$

3,573



$

—



$

3,573



$

4,172



$

—



$

4,172



(14.36)

%


(14.36)

%


Hotel EBITDA

$

507



$

—



$

507



$

1,048



$

(2)



$

1,046



(51.62)

%


(51.53)

%


Hotel EBITDA margin

14.19

%




14.19

%


25.12

%




25.07

%


(10.93)

%


(10.88)

%


Selected Operating Information:

















RevPAR

$

401.33



$

—



$

401.33



$

420.83



$

—



$

420.83



(4.63)

%


(4.63)

%


Occupancy

68.73

%


—

%


68.73

%


71.36

%


—

%


71.36

%


(3.69)

%


(3.69)

%


ADR

$

583.94



$

—



$

583.94



$

589.71



$

—



$

589.71



(0.98)

%


(0.98)

%


















KEY WEST PIER HOUSE RESORT

















Selected Financial Information:

















Rooms revenue

$

6,033



$

—



$

6,033



$

5,473



$

—



$

5,473



10.23

%


10.23

%


Total hotel revenue

$

7,559



$

—



$

7,559



$

7,027



$

—



$

7,027



7.57

%


7.57

%


Hotel EBITDA

$

4,127



$

—



$

4,127



$

3,851



$

4



$

3,855



7.17

%


7.06

%


Hotel EBITDA margin

54.60

%




54.60

%


54.80

%




54.86

%


(0.20)

%


(0.26)

%


Selected Operating Information:

















RevPAR

$

472.07



$

—



$

472.07



$

428.24



$

—



$

428.24



10.23

%


10.23

%


Occupancy

87.79

%


—

%


87.79

%


85.85

%


—

%


85.85

%


2.26

%


2.26

%


ADR

$

537.70



$

—



$

537.70



$

498.80



$

—



$

498.80



7.80

%


7.80

%


















HOTEL YOUNTVILLE

















Selected Financial Information:

















Rooms revenue

$

1,891



$

—



$

1,891



$

2,116



$

—



$

2,116



(10.63)

%


(10.63)

%


Total hotel revenue

$

2,564



$

—



$

2,564



$

3,420



$

—



$

3,420



(25.03)

%


(25.03)

%


Hotel EBITDA

$

496



$

—



$

496



$

1,241



$

(1)



$

1,240



(60.03)

%


(60.00)

%


Hotel EBITDA margin

19.34

%




19.34

%


36.29

%




36.26

%


(16.95)

%


(16.92)

%


Selected Operating Information:

















RevPAR

$

262.63



$

—



$

262.63



$

293.88



$

—



$

293.88



(10.63)

%


(10.63)

%


Occupancy

65.01

%


—

%


65.01

%


71.36

%


—

%


71.36

%


(8.90)

%


(8.90)

%


ADR

$

403.95



$

—



$

403.95



$

411.82



$

—



$

411.82



(1.91)

%


(1.91)

%


















PARK HYATT BEAVER CREEK

















Selected Financial Information:

















Rooms revenue

$

9,597



$

—



$

9,597



$

9,797



$

—



$

9,797



(2.04)

%


(2.04)

%


Total hotel revenue

$

18,099



$

—



$

18,099



$

18,159



$

—



$

18,159



(0.33)

%


(0.33)

%


Hotel EBITDA

$

6,618



$

—



$

6,618



$

7,048



$

—



$

7,048



(6.10)

%


(6.10)

%


Hotel EBITDA margin

36.57

%




36.57

%


38.81

%




38.81

%


(2.24)

%


(2.24)

%


Selected Operating Information:

















RevPAR

$

561.25



$

—



$

561.25



$

572.93



$

—



$

572.93



(2.04)

%


(2.04)

%


Occupancy

79.84

%


—

%


79.84

%


78.47

%


—

%


78.47

%


1.75

%


1.75

%


ADR

$

702.95



$

—



$

702.95



$

730.15



$

—



$

730.15



(3.73)

%


(3.73)

%


















PHILADELPHIA COURTYARD DOWNTOWN

















Selected Financial Information:

















Rooms revenue

$

4,237



$

—



$

4,237



$

6,153



$

—



$

6,153



(31.14)

%


(31.14)

%


Total hotel revenue

$

5,274



$

—



$

5,274



$

7,623



$

—



$

7,623



(30.81)

%


(30.81)

%


Hotel EBITDA

$

641



$

—



$

641



$

2,598



$

—



$

2,598



(75.33)

%


(75.33)

%


Hotel EBITDA margin

12.15

%




12.15

%


34.08

%




34.08

%


(21.93)

%


(21.93)

%


Selected Operating Information:

















RevPAR

$

94.35



$

—



$

94.35



$

137.01



$

—



$

137.01



(31.14)

%


(31.14)

%


Occupancy

58.50

%


—

%


58.50

%


80.39

%


—

%


80.39

%


(27.23)

%


(27.23)

%


ADR

$

161.27



$

—



$

161.27



$

170.44



$

—



$

170.44



(5.38)

%


(5.38)

%


















SAN FRANCISCO COURTYARD DOWNTOWN

















Selected Financial Information:

















Rooms revenue

$

10,608



$

—



$

10,608



$

8,165



$

—



$

8,165



29.92

%


29.92

%


Total hotel revenue

$

12,041



$

—



$

12,041



$

9,280



$

—



$

9,280



29.75

%


29.75

%


Hotel EBITDA

$

3,966



$

—



$

3,966



$

3,075



$

—



$

3,075



28.98

%


28.98

%


Hotel EBITDA margin

32.94

%




32.94

%


33.14

%




33.14

%


(0.20)

%


(0.20)

%


Selected Operating Information:

















RevPAR

$

287.47



$

—



$

287.47



$

221.74



$

—



$

221.74



29.64

%


29.64

%


Occupancy

88.42

%


—

%


88.42

%


81.04

%


—

%


81.04

%


9.11

%


9.11

%


ADR

$

325.13



$

—



$

325.13



$

273.60



$

—



$

273.60



18.83

%


18.83

%


















SARASOTA RITZ-CARLTON

















Selected Financial Information:

















Rooms revenue

$

8,963



$

—



$

8,963



$

—



$

9,174



$

9,174



—

%


(2.30)

%


Total hotel revenue

$

20,355



$

—



$

20,355



$

—



$

19,428



$

19,428



—

%


4.77

%


Hotel EBITDA

$

5,930



$

—



$

5,930



$

—



$

5,377



$

5,377



—

%


10.28

%


Hotel EBITDA margin

29.13

%




29.13

%


—

%




27.68

%


29.13

%


1.45

%


Selected Operating Information:

















RevPAR

$

374.40



$

—



$

374.40



$

—



$

383.19



$

383.19



—

%


(2.29)

%


Occupancy

83.03

%


—

%


83.03

%


—

%


78.49

%


78.49

%


—

%


5.78

%


ADR

$

450.91



$

—



$

450.91



$

—



$

488.19



$

488.19



—

%


(7.64)

%

LAKE TAHOE RITZ-CARLTON

















Selected Financial Information:

















Rooms revenue

$

8,147



$

1,719



$

9,866



$

—



$

7,429



$

7,429



—

%


32.80

%


Total hotel revenue

$

13,009



$

2,671



$

15,680



$

—



$

12,728



$

12,728



—

%


23.19

%


Hotel EBITDA

$

4,542



$

744



$

5,286



$

—



$

3,723



$

3,723



—

%


41.98

%


Hotel EBITDA margin

34.91

%




33.71

%


—

%




29.25

%


34.91

%


4.46

%


Selected Operating Information:

















RevPAR

$

630.60



$

—



$

644.84



$

—



$

—



$

485.58



—

%


32.80

%


Occupancy

80.82

%


—

%


80.31

%


—

%


—

%


73.64

%


—

%


9.06

%


ADR

$

780.25



$

—



$

802.96



$

—



$

—



$

659.39



—

%


21.77

%


















SEATTLE MARRIOTT WATERFRONT

















Selected Financial Information:

















Rooms revenue

$

5,116



$

—



$

5,116



$

5,502



$

—



$

5,502



(7.02)

%


(7.02)

%


Total hotel revenue

$

7,313



$

—



$

7,313



$

7,431



$

—



$

7,431



(1.59)

%


(1.59)

%


Hotel EBITDA

$

2,265



$

—



$

2,265



$

2,492



$

—



$

2,492



(9.11)

%


(9.11)

%


Hotel EBITDA margin

30.97

%




30.97

%


33.54

%




33.54

%


(2.57)

%


(2.57)

%


Selected Operating Information:

















RevPAR

$

157.46



$

—



$

157.46



$

169.34



$

—



$

169.34



(7.02)

%


(7.02)

%


Occupancy

75.70

%


—

%


75.70

%


76.61

%


—

%


76.61

%


(1.19)

%


(1.19)

%


ADR

$

208.00



$

—



$

208.00



$

221.04



$

—



$

221.04



(5.90)

%


(5.90)

%


















ST. THOMAS RITZ-CARLTON

















Selected Financial Information:

















Rooms revenue

$

840



$

—



$

840



$

1,816



$

—



$

1,816



(53.74)

%


(53.74)

%


Total hotel revenue

$

7,495



$

—



$

7,495



$

6,561



$

—



$

6,561



14.24

%


14.24

%


Hotel EBITDA

$

4,512



$

—



$

4,512



$

3,388



$

—



$

3,388



33.18

%


33.18

%


Hotel EBITDA margin

60.20

%




60.20

%


51.64

%




51.64

%


8.56

%


8.56

%


Selected Operating Information:

















RevPAR

$

313.24



$

—



$

313.24



$

243.25



$

—



$

243.25



28.77

%


28.77

%


Occupancy

81.06

%


—

%


81.06

%


75.81

%


—

%


75.81

%


6.93

%


6.93

%


ADR

$

386.44



$

—



$

386.44



$

320.87



$

—



$

320.87



20.44

%


20.44

%


















TAMPA RENAISSANCE

















Selected Financial Information:

















Rooms revenue

$

—



$

—



$

—



$

5,282



$

(5,282)



$

—



(100.00)

%


—

%


Total hotel revenue

$

—



$

—



$

—



$

7,340



$

(7,340)



$

—



(100.00)

%


—

%


Hotel EBITDA

$

—



$

—



$

—



$

2,046



$

(2,046)



$

—



(100.00)

%


—

%


Hotel EBITDA margin

—

%




—

%


27.87

%




—

%


(27.87)

%


—

%


Selected Operating Information:

















RevPAR

$

—



$

—



$

—



$

200.31



$

(200.31)



$

—



(100.00)

%


—

%


Occupancy

—

%


—

%


—

%


88.07

%


(88.07)

%


—

%


(100.00)

%


—

%


ADR

$

—



$

—



$

—



$

227.44



$

(227.44)



$

—



(100.00)

%


—

%


















BRAEMAR PROPERTIES TOTAL

















Selected Financial Information:

















Rooms revenue

$

76,249



$

1,719



$

77,968



$

65,507



$

11,321



$

76,828



16.40

%


1.48

%


Total hotel revenue

$

128,026



$

2,671



$

130,697



$

102,489



$

24,816



$

127,305



24.92

%


2.66

%


Hotel EBITDA

$

39,689



$

744



$

40,433



$

33,605



$

7,055



$

40,660



18.10

%


(0.56)

%


Hotel EBITDA margin

31.00

%




30.94

%


32.79

%




31.94

%


(1.79)

%


(1.00)

%


Selected Operating Information:

















RevPAR

$

239.17



$

722.27



$

242.75



$

209.27



$

879.63



$

235.74



14.29

%


2.97

%


Occupancy

75.48

%


77.52

%


75.50

%


78.67

%


53.10

%


77.66

%


(4.05)

%


(2.78)

%


ADR

$

316.86



$

931.71



$

321.54



$

266.01



$

1,656.55



$

303.56



19.12

%


5.92

%

 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at March 31, 2019, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 


BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)




TTM Ended March 31,



Actual


Non-comparable Adjustments


Comparable



2019


2019


2019

CAPITAL HILTON WASHINGTON D.C.







Selected Financial Information:







Rooms revenue

$

38,938



$

—



$

38,938



Total hotel revenue

$

55,148



$

—



$

55,148



Hotel EBITDA

$

13,643



$

—



$

13,643



Hotel EBITDA margin

24.74

%




24.74

%


Selected Operating Information:







RevPAR

$

193.96



$

—



$

193.96



Occupancy

82.61

%


—

%


82.61

%


ADR

$

234.80



$

—



$

234.80









LA JOLLA HILTON TORREY PINES







Selected Financial Information:







Rooms revenue

$

26,376



$

—



$

26,376



Total hotel revenue

$

45,795



$

—



$

45,795



Hotel EBITDA

$

15,075



$

—



$

15,075



Hotel EBITDA margin

32.92

%




32.92

%


Selected Operating Information:







RevPAR

$

183.41



$

—



$

183.41



Occupancy

84.35

%


—

%


84.35

%


ADR

$

217.43



$

—



$

217.43









CHICAGO SOFITEL MAGNIFICENT MILE







Selected Financial Information:







Rooms revenue

$

25,813



$

—



$

25,813



Total hotel revenue

$

35,275



$

—



$

35,275



Hotel EBITDA

$

7,428



$

—



$

7,428



Hotel EBITDA margin

21.06

%




21.06

%


Selected Operating Information:







RevPAR

$

170.41



$

—



$

170.41



Occupancy

80.13

%


—

%


80.13

%


ADR

$

212.66



$

—



$

212.66









BARDESSONO HOTEL AND SPA







Selected Financial Information:







Rooms revenue

$

13,737



$

—



$

13,737



Total hotel revenue

$

19,094



$

—



$

19,094



Hotel EBITDA

$

5,923



$

(6)



$

5,917



Hotel EBITDA margin

31.02

%




30.99

%


Selected Operating Information:







RevPAR

$

607.03



$

—



$

607.03



Occupancy

76.12

%


—

%


76.12

%


ADR

$

797.42



$

—



$

797.42









KEY WEST PIER HOUSE RESORT







Selected Financial Information:







Rooms revenue

$

18,682



$

—



$

18,682



Total hotel revenue

$

24,141



$

—



$

24,141



Hotel EBITDA

$

11,183



$

12



$

11,195



Hotel EBITDA margin

46.32

%




46.37

%


Selected Operating Information:







RevPAR

$

360.44



$

—



$

360.44



Occupancy

81.47

%


—

%


81.47

%


ADR

$

442.40



$

—



$

442.40









HOTEL YOUNTVILLE







Selected Financial Information:







Rooms revenue

$

11,954



$

—



$

11,954



Total hotel revenue

$

14,714



$

—



$

14,714



Hotel EBITDA

$

5,673



$

(3)



$

5,670



Hotel EBITDA margin

38.56

%




38.53

%


Selected Operating Information:







RevPAR

$

409.38



$

—



$

409.38



Occupancy

73.13

%


—

%


73.13

%


ADR

$

559.79



$

—



$

559.79









PARK HYATT BEAVER CREEK







Selected Financial Information:







Rooms revenue

$

18,149



$

—



$

18,149



Total hotel revenue

$

40,232



$

—



$

40,232



Hotel EBITDA

$

8,808



$

—



$

8,808



Hotel EBITDA margin

21.89

%




21.89

%


Selected Operating Information:







RevPAR

$

261.70



$

—



$

261.70



Occupancy

62.07

%


—

%


62.07

%


ADR

$

421.60



$

—



$

421.60









PHILADELPHIA COURTYARD DOWNTOWN







Selected Financial Information:







Rooms revenue

$

26,191



$

—



$

26,191



Total hotel revenue

$

32,634



$

—



$

32,634



Hotel EBITDA

$

12,081



$

—



$

12,081



Hotel EBITDA margin

37.02

%




37.02

%


Selected Operating Information:







RevPAR

$

143.80



$

—



$

143.80



Occupancy

77.53

%


—

%


77.53

%


ADR

$

185.48



$

—



$

185.48









SAN FRANCISCO COURTYARD DOWNTOWN







Selected Financial Information:







Rooms revenue

$

39,475



$

—



$

39,475



Total hotel revenue

$

44,694



$

—



$

44,694



Hotel EBITDA

$

14,725



$

—



$

14,725



Hotel EBITDA margin

32.95

%




32.95

%


Selected Operating Information:







RevPAR

$

263.78



$

—



$

263.78



Occupancy

88.47

%


—

%


88.47

%


ADR

$

298.14



$

—



$

298.14









SARASOTA RITZ-CARLTON







Selected Financial Information:







Rooms revenue

$

26,236



$

278



$

26,514



Total hotel revenue

$

62,587



$

644



$

63,231



Hotel EBITDA

$

13,072



$

189



$

13,261



Hotel EBITDA margin

20.89

%




20.97

%


Selected Operating Information:







RevPAR

$

272.46



$

348.08



$

273.09



Occupancy

74.35

%


89.97

%


74.48

%


ADR

$

366.47



$

386.86



$

366.68


LAKE TAHOE RITZ-CARLTON







Selected Financial Information:







Rooms revenue

$

8,147



$

15,488



$

23,635



Total hotel revenue

$

13,009



$

30,378



$

43,387



Hotel EBITDA

$

4,542



$

5,043



$

9,585



Hotel EBITDA margin

34.91

%




22.09

%


Selected Operating Information:







RevPAR

$

630.60



$

315.25



$

380.91



Occupancy

80.82

%


64.99

%


68.29

%


ADR

$

780.25



$

485.08



$

557.82









SEATTLE MARRIOTT WATERFRONT







Selected Financial Information:







Rooms revenue

$

31,302



$

—



$

31,302



Total hotel revenue

$

39,773



$

—



$

39,773



Hotel EBITDA

$

15,658



$

—



$

15,658



Hotel EBITDA margin

39.37

%




39.37

%


Selected Operating Information:







RevPAR

$

237.56



$

—



$

237.56



Occupancy

84.58

%


—

%


84.58

%


ADR

$

280.88



$

—



$

280.88









ST. THOMAS RITZ-CARLTON







Selected Financial Information:







Rooms revenue

$

5,628



$

—



$

5,628



Total hotel revenue

$

22,568



$

—



$

22,568



Hotel EBITDA

$

11,415



$

—



$

11,415



Hotel EBITDA margin

50.58

%




50.58

%


Selected Operating Information:







RevPAR

$

228.25



$

—



$

228.25



Occupancy

80.43

%


—

%


80.43

%


ADR

$

283.79



$

—



$

283.79









TAMPA RENAISSANCE







Selected Financial Information:







Rooms revenue

$

2,889



$

(2,889)



$

—



Total hotel revenue

$

7,271



$

(7,271)



$

—



Hotel EBITDA

$

4,479



$

(4,479)



$

—



Hotel EBITDA margin

61.60

%




—

%


Selected Operating Information:







RevPAR

$

161.68



$

(161.68)



$

—



Occupancy

81.93

%


81.93

%


—

%


ADR

$

197.34



$

(197.34)



$

—









BRAEMAR PROPERTIES TOTAL







Selected Financial Information:







Rooms revenue

$

293,517



$

12,877



$

306,394



Total hotel revenue

$

456,935



$

23,751



$

480,686



Hotel EBITDA

$

143,705



$

756



$

144,461



Hotel EBITDA margin

31.45

%




30.05

%


Selected Operating Information:







RevPAR

$

228.54



$

401.69



$

232.75



Occupancy

80.50

%


56.17

%


79.91

%


ADR

$

283.88



$

715.19



$

291.27


 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at March 31, 2019, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)



Actual


Non-comparable Adjustments


Comparable


Actual


Non-comparable Adjustments


Comparable


Actual


Non-comparable Adjustments


Comparable


Actual


Non-comparable Adjustments


Comparable


2019


2019


2019


2018


2018


2018


2018


2018


2018


2018


2018


2018


1st Quarter


1st Quarter


1st Quarter


4th Quarter


4th Quarter


4th Quarter


3rd Quarter


3rd Quarter


3rd Quarter


2nd Quarter


2nd Quarter


2nd Quarter

Total Hotel Revenue

$

128,026



$

2,671



$

130,697



$

98,945



$

10,535



$

109,480



$

108,846



$

10,944



$

119,790



$

121,118



$

(399)



$

120,719


Hotel EBITDA

$

39,689



$

744



$

40,433



$

26,950



$

2,301



$

29,251



$

33,345



$

2,213



$

35,558



$

43,721



$

(4,502)



$

39,219


Hotel EBITDA Margin

31.00

%




30.94

%


27.24

%




26.72

%


30.64

%




29.68

%


36.10

%




32.49

%

























EBITDA % of Total TTM

27.6

%




28.1

%


18.8

%




20.2

%


23.2

%




24.6

%


30.4

%




27.1

%

























JV Interests in EBITDA

$

1,866



$

—



$

1,866



$

1,519



$

—



$

1,519



$

1,429



$

—



$

1,429



$

2,366



$

—



$

2,366



























Actual


Non-comparable Adjustments


Comparable




















2019


2019


2019




















TTM


TTM


TTM



















Total Hotel Revenue

$

456,935



$

23,751



$

480,686




















Hotel EBITDA

$

143,705



$

756



$

144,461




















Hotel EBITDA Margin

31.45

%




30.05

%











































EBITDA % of Total TTM

100.0

%




100.0

%











































JV Interests in EBITDA

$

7,180



$

—



$

7,180




















 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at March 31, 2019, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 


BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

TOTAL ENTERPRISE VALUE

MARCH 31, 2019

(in thousands, except share price)

(unaudited)



March 31, 2019

Common stock shares outstanding

32,841


Partnership units outstanding (common stock equivalents)

4,863


Combined common stock shares and partnership units outstanding

37,704


Common stock price

$

12.21


Market capitalization

$

460,366


5.50% Series B cumulative convertible preferred stock

$

124,146


Series D cumulative preferred stock

$

40,000


Indebtedness

$

1,054,500


Joint venture partner's share of consolidated indebtedness

$

(48,750)


Net working capital (see below)

$

(104,970)


Total enterprise value (TEV)

$

1,525,292




Ashford Inc. Investment:


Common stock owned

195


Common stock price

$

55.53


Market value of Ashford Inc. investment

$

10,822




Cash and cash equivalents

$

69,071


Restricted cash

$

84,530


Accounts receivable, net

$

21,469


Prepaid expenses

$

6,879


Due from third-party hotel managers, net

$

12,168


Market value of Ashford Inc. investment

$

10,822


Total current assets

$

204,939




Accounts payable, net & accrued expenses

$

86,062


Dividends and distributions payable

$

9,174


Due to affiliates, net

$

4,733


Total current liabilities

$

99,969




Net working capital*

$

104,970



* Includes the Company's pro rata share of net working capital in joint ventures.


 

 

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

ANTICIPATED CAPITAL EXPENDITURES CALENDAR (a)




2019



1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


Rooms

Actual

Estimated

Estimated

Estimated

Park Hyatt Beaver Creek

190


x

x


Philadelphia Courtyard Downtown

499

x

x



San Francisco Courtyard Downtown

410

x

x

x

x

St. Thomas Ritz-Carlton

180

x

x

x

x

Total


3

4

3

2

 

(a) 

Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2019 are included in this table.

 

 

Exhibit 1


BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)




2019


2018


2018


2018


March 31, 2019


1st Quarter


4th Quarter


3rd Quarter


2nd Quarter


TTM

Net income (loss)

$

16,470



$

6,525



$

14,567



$

38,623



$

76,185


Non-property adjustments

—



(26)



—



(15,423)



(15,449)


Interest income

(62)



(61)



(57)



(39)



(219)


Interest expense

4,856



4,342



4,100



4,335



17,633


Amortization of loan costs

345



284



279



277



1,185


Depreciation and amortization

16,686



15,092



14,474



14,811



61,063


Income tax expense (benefit)

115



(353)



(44)



382



100


Non-hotel EBITDA ownership expense

1,279



1,147



26



755



3,207


Hotel EBITDA including amounts attributable to noncontrolling interest

39,689



26,950



33,345



43,721



143,705


Non-comparable adjustments

744



2,301



2,213



(4,502)



756


Comparable hotel EBITDA

$

40,433



$

29,251



$

35,558



$

39,219



$

144,461


 

 

Exhibit 1


BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA 

(in thousands)

(unaudited)



Three Months Ended March 31, 2019


Capital Hilton Washington D.C.


La Jolla Hilton Torrey Pines


Chicago Sofitel Magnificent Mile


Bardessono Hotel & Spa


Key West Pier House Resort


Hotel Yountville


Park Hyatt Beaver Creek


Philadelphia Courtyard Downtown


Plano Marriott Legacy Town Center


San Francisco Courtyard Downtown


Sarasota Ritz-Carlton


Lake Tahoe Ritz-Carlton


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Braemar Hotels & Resorts Inc.

Net income (loss)

$      1,060


$      3,021


$   (3,422)


$        (931)


$      3,556


$       (880)


$      4,533


$    (1,232)


$            —


$      1,648


$    1,968


$      2,697


$       1,253


$      3,199


$            —


$    16,470


$   (17,792)


$    (1,322)

Non-property adjustments

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—

Interest income

(10)


(19)


—


—


—


—


—


(2)


—


(3)


(16)


—


(12)


—


—


(62)


62


—

Interest expense

—


—


—


505


—


644


885


—


—


—


1,514


525


—


783


—


4,856


8,157


13,013

Amortization of loan cost

—


—


—


34


—


36


138


—


—


—


78


32


—


27


—


345


835


1,180

Depreciation and amortization

1,939


1,396


1,694


796


556


683


1,009


1,867


—


2,313


2,354


942


1,001


136


—


16,686


—


16,686

Income tax expense (benefit)

—


45


—


—


—


—


—


2


—


—


—


—


—


68


—


115


812


927

Non-hotel EBITDA ownership expense

8


23


350


103


15


13


53


6


—


8


32


346


23


299


—


1,279


(1,279)


—

Hotel EBITDA including amounts attributable
to noncontrolling interest

2,997


4,466


(1,378)


507


4,127


496


6,618


641


—


3,966


5,930


4,542


2,265


4,512


—


39,689


(9,205)


30,484

Less: EBITDA adjustments attributable to
consolidated noncontrolling interest

(749)


(1,117)


—


—


—


—


—


—


—


—


—


—


—


—


—


(1,866)


1,866


—

Equity in earnings (loss) of unconsolidated
entities

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


50


50

Company's portion of EBITDA of OpenKey

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


(49)


(49)

Hotel EBITDA attributable to the Company and
OP unitholders

$     2,248


$     3,349


$     (1,378)


$          507


$       4,127


$         496


$      6,618


$          641


$            —


$     3,966


$    5,930


$      4,542


$      2,265


$       4,512


$            —


$   37,823


$    (7,338)


$   30,485

Non-comparable adjustments

—


—


—


—


—


—


—


—


—


—


—


744


—


—


—


744





Comparable hotel EBITDA

$      2,997


$     4,466


$     (1,378)


$          507


$       4,127


$         496


$      6,618


$          641


$            —


$     3,966


$    5,930


$      5,286


$      2,265


$       4,512


$            —


$   40,433





ALL HOTELS NOT UNDER
  RENOVATION:




































Hotel EBITDA including amounts attributable
to noncontrolling interest

$      2,997


$     4,466


$     (1,378)


$          507


$       4,127


$         496


$      6,618


$            —


$            —


$            —


$    5,930


$      4,542


$      2,265


$            —


$            —


$    30,570





Non-comparable adjustments

—


—


—


—


—


—


—


—


—


—


—


744


—


—


—


744





Comparable hotel EBITDA

$      2,997


$     4,466


$     (1,378)


$          507


$       4,127


$         496


$      6,618


$            —


$            —


$            —


$    5,930


$      5,286


$      2,265


$            —


$            —


$     31,314









































HOTEL EBITDA BY LOAN POOL





(in thousands)





(unaudited)









































Credit Agricole (Pier House)

$            —


$            —


$            —


$            —


$       4,127


$            —


$            —


$            —


$            —


$            —


$          —


$            —


$            —


$            —


$            —


$       4,127





BAML (Bardessono)

—


—


—


507


—


—


—


—


—


—


—


—


—


—


—


507





BAML (Hotel Yountville)

—


—


—


—


—


496


—


—


—


—


—


—


—


—


—


496





Apollo (Ritz-Carlton St. Thomas)

—


—


—


—


—


—


—


—


—


—


—


—


—


4,512


—


4,512





Prudential (Capital Hilton and Hilton Torrey
Pines)

2,997


4,466


—


—


—


—


—


—


—


—


—


—


—


—


—


7,463





BAML Pool (see footnote 5)

—


—


(1,378)


—


—


—


—


641


—


3,966


—


—


2,265


—


—


5,494





JP Morgan (Park Hyatt Beaver Creek)

—


—


—


—


—


—


6,618


—


—


—


—


—


—


—


—


6,618





BAML (Ritz-Carlton Sarasota)

—


—


—


—


—


—


—


—


—


—


5,930


—


—


—


—


5,930





BAML (Ritz-Carlton Lake Tahoe)

—


—


—


—


—


—


—


—


—


—


—


5,286


—


—


—


5,286





Total

$      2,997


$     4,466


$     (1,378)


$          507


$       4,127


$         496


$      6,618


$          641


$            —


$     3,966


$    5,930


5,286


$      2,265


$       4,512


$            —


$   40,433





 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at March 31, 2019, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

Excluded Hotels Under Renovation: Philadelphia Courtyard Downtown, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

(5)

This mortgage loan is secured by the Chicago Sofitel Magnificent Mile, Philadelphia Courtyard Downtown, San Francisco Courtyard Downtown and Seattle Marriott Waterfront.

 

 

Exhibit 1


BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands) 

(unaudited)



Three Months Ended December 31, 2018


Capital Hilton Washington D.C.


La Jolla Hilton Torrey Pines


Chicago Sofitel Magnificent Mile


Bardessono Hotel & Spa


Key West Pier House Resort


Hotel Yountville


Park Hyatt Beaver Creek


Philadelphia Courtyard Downtown


Plano Marriott Legacy Town Center


San Francisco Courtyard Downtown


Sarasota Ritz-Carlton


Lake Tahoe Ritz-Carlton


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Braemar Hotels & Resorts Inc.

Net income (loss)

$           712


$       2,419


$          827


$             45


$      2,493


$               5


$        (943)


$        1,821


$               9


$        (200)


$     (394)


$             —


$        1,807


$     (2,120)


$            44


$       6,525


$  (20,438)


$    (13,913)

Non-property adjustments

—


—


—


—


—


—


—


—


(9)


—


—


—


—


—


(17)


(26)


26


—

Interest income

(10)


(16)


—


—


—


—


—


(5)


—


(4)


(15)


—


(11)


—


—


(61)


61


—

Interest expense

—


—


—


496


—


632


871


—


—


—


1,565


—


—


778


—


4,342


8,267


12,609

Amortization of loan cost

—


—


—


34


—


36


137


—


—


—


77


—


—


—


—


284


819


1,103

Depreciation and amortization

1,883


1,423


1,724


751


536


686


933


1,505


—


2,238


2,253


—


1,024


136


—


15,092


—


15,092

Income tax expense (benefit)

—


(382)


—


—


—


—


—


84


—


—


—


—


—


(55)


—


(353)


271


(82)

Non-hotel EBITDA ownership expense

57


(9)


28


219


(344)


13


17


(187)


—


453


151


—


(5)


754


—


1,147


(1,147)


—

Hotel EBITDA including amounts attributable
to noncontrolling interest

2,642


3,435


2,579


1,545


2,685


1,372


1,015


3,218


—


2,487


3,637


—


2,815


(507)


27


26,950


(12,141)


14,809

Less: EBITDA adjustments attributable to
consolidated noncontrolling interest

(660)


(859)


—


—


—


—


—


—


—


—


—


—


—


—


—


(1,519)


1,519


—

Equity in earnings (loss) of unconsolidated
entities

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


88


88

Company's portion of EBITDA of OpenKey

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


(77)


(77)

Hotel EBITDA attributable to the Company and
OP unitholders

$       1,982


$       2,576


$       2,579


$        1,545


$       2,685


$        1,372


$         1,015


$       3,218


$             —


$       2,487


$    3,637


$             —


$        2,815


$         (507)


$             27


$     25,431


$     (10,611)


$     14,820

Non-comparable adjustments

—


—


—


(2)


4


(1)


—


—


—


—


—


2,327


—


—


(27)


2,301





Comparable hotel EBITDA

$      2,642


$       3,435


$       2,579


$        1,543


$      2,689


$         1,371


$         1,015


$       3,218


$             —


$       2,487


$    3,637


$       2,327


$        2,815


$         (507)


$             —


$     29,251









































HOTEL EBITDA BY LOAN POOL 





(in thousands) 





(unaudited)









































Credit Agricole (Pier House)

$             —


$             —


$             —


$             —


$      2,689


$             —


$             —


$             —


$             —


$             —


$          —


$             —


$             —


$             —


$             —


$      2,689





BAML (Bardessono)

—


—


—


1,543


—


—


—


—


—


—


—


—


—


—


—


1,543





BAML (Hotel Yountville)

—


—


—


—


—


1,371


—


—


—


—


—


—


—


—


—


1,371





Apollo (Ritz-Carlton St. Thomas)

—


—


—


—


—


—


—


—


—


—


—


—


—


(507)


—


(507)





Prudential (Capital Hilton and Hilton Torrey Pines)

2,642


3,435


—


—


—


—


—


—


—


—


—


—


—


—


—


6,077





BAML Pool (see footnote 4)

—


—


2,579


—


—


—


—


3,218


—


2,487


—


—


2,815


—


—


11,099





JP Morgan (Park Hyatt Beaver Creek)

—


—


—


—


—


—


1,015


—


—


—


—


—


—


—


—


1,015





BAML (Ritz-Carlton Sarasota)

—


—


—


—


—


—


—


—


—


—


3,637


—


—


—


—


3,637





BAML (Ritz-Carlton Lake Tahoe)

—


—


—


—


—


—


—


—


—


—


—


2,327


—


—


—


2,327





Total

$      2,642


$       3,435


$       2,579


$        1,543


$      2,689


$         1,371


$         1,015


$       3,218


$             —


$       2,487


$    3,637


$       2,327


$        2,815


$         (507)


$             —


$     29,251





NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at March 31, 2019, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

This mortgage loan is secured by the Chicago Sofitel Magnificent Mile, Philadelphia Courtyard Downtown, San Francisco Courtyard Downtown and Seattle Marriott Waterfront.

 

 

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES 

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA 

(in thousands) 

(unaudited)



Three Months Ended September 30, 2018


Capital Hilton Washington D.C.


La Jolla Hilton Torrey Pines


Chicago Sofitel Magnificent Mile


Bardessono Hotel & Spa


Key West Pier House Resort


Hotel Yountville


Park Hyatt Beaver Creek


Philadelphia Courtyard Downtown


Plano Marriott Legacy Town Center


San Francisco Courtyard Downtown


Sarasota Ritz-Carlton


Lake Tahoe Ritz-Carlton


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Braemar Hotels & Resorts Inc.

Net income (loss)

$         245


$       2,351


$       1,021


$       1,078


$        1,217


$         924


$         (28)


$      2,186


$            —


$     2,463


$  (3,506)


$            —


$       4,721


$      1,896


$             (1)


$     14,567


$   (15,193)


$       (626)

Non-property adjustments

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—

Interest income

(8)


(15)


—


—


—


—


—


(5)


—


(2)


(16)


—


(11)


—


—


(57)


57


—

Interest expense

—


—


—


468


—


605


834


—


—


—


1,437


—


—


756


—


4,100


7,890


11,990

Amortization of loan cost

—


—


—


33


—


35


135


—


—


—


76


—


—


—


—


279


815


1,094

Depreciation and amortization

1,828


1,401


1,625


691


485


671


916


1,429


—


1,917


2,344


—


1,031


136


—


14,474


—


14,474

Income tax expense (benefit)

(200)


108


—


—


—


—


—


6


—


—


—


—


—


42


—


(44)


784


740

Non-hotel EBITDA ownership expense

1


6


5


(131)


10


(210)


(12)


9


—


4


147


—


16


179


2


26


(26)


—

Hotel EBITDA including amounts attributable
to noncontrolling interest

1,866


3,851


2,651


2,139


1,712


2,025


1,845


3,625


—


4,382


482


—


5,757


3,009


1


33,345


(5,673)


27,672

Less: EBITDA adjustments attributable to
consolidated noncontrolling interest

(467)


(962)


—


—


—


—


—


—


—


—


—


—


—


—


—


(1,429)


1,429


—

Equity in earnings (loss) of unconsolidated
entities

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


81


81

Company's portion of EBITDA of OpenKey

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


(79)


(79)

Hotel EBITDA attributable to the Company and
OP unitholders

$      1,399


$     2,889


$       2,651


$      2,139


$        1,712


$      2,025


$       1,845


$      3,625


$            —


$     4,382


$       482


$            —


$       5,757


$     3,009


$               1


$     31,916


$   (4,242)


$    27,674

Non-comparable adjustments

—


—


—


(2)


4


(1)


—


—


—


—


(134)


2,347


—


—


(1)


2,213





Comparable hotel EBITDA

$      1,866


$       3,851


$       2,651


$       2,137


$        1,716


$     2,024


$       1,845


$      3,625


$            —


$     4,382


$       348


$      2,347


$       5,757


$     3,009


$            —


$    35,558









































HOTEL EBITDA BY LOAN POOL 





(in thousands) 





(unaudited)









































Credit Agricole (Pier House)

$            —


$            —


$            —


$            —


$        1,716


$            —


$            —


$            —


$            —


$            —


$          —


$            —


$            —


$            —


$            —


$        1,716





BAML (Bardessono)

—


—


—


2,137


—


—


—


—


—


—


—


—


—


—


—


2,137





BAML (Hotel Yountville)

—


—


—


—


—


2,024


—


—


—


—


—


—


—


—


—


2,024





Apollo (Ritz-Carlton St. Thomas)

—


—


—


—


—


—


—


—


—


—


—


—


—


3,009


—


3,009





Prudential (Capital Hilton and Hilton Torrey
Pines)

1,866


3,851


—


—


—


—


—


—


—


—


—


—


—


—


—


5,717





BAML Pool (see footnote 4)

—


—


2,651


—


—


—


—


3,625


—


4,382


—


—


5,757


—


—


16,415





JP Morgan (Park Hyatt Beaver Creek)

—


—


—


—


—


—


1,845


—


—


—


—


—


—


—


—


1,845





BAML (Ritz-Carlton Sarasota)

—


—


—


—


—


—


—


—


—


—


348


—


—


—


—


348





BAML (Ritz-Carlton Lake Tahoe)

—


—


—


—


—


—


—


—


—


—


—


2,347


—


—


—


2,347





Total

$      1,866


$       3,851


$       2,651


$       2,137


$        1,716


$     2,024


$       1,845


$      3,625


$            —


$     4,382


$       348


$      2,347


$       5,757


$     3,009


$            —


$    35,558





 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at March 31, 2019, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

This mortgage loan is secured by the Chicago Sofitel Magnificent Mile, Philadelphia Courtyard Downtown, San Francisco Courtyard Downtown and Seattle Marriott Waterfront.

 

 

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA 

(in thousands) 

(unaudited)



Three Months Ended June 30, 2018


Capital Hilton Washington D.C.


La Jolla Hilton Torrey Pines


Chicago Sofitel Magnificent Mile


Bardessono Hotel & Spa


Key West Pier House Resort


Hotel Yountville


Park Hyatt Beaver Creek


Philadelphia Courtyard Downtown


Plano Marriott Legacy Town Center


San Francisco Courtyard Downtown


Sarasota Ritz-Carlton


Lake Tahoe Ritz-Carlton


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Braemar Hotels & Resorts Inc.

Net income (loss)

$       4,054


$       1,843


$        1,180


$           146


$       2,186


$          245


$     (2,507)


$        3,176


$             —


$       1,906


$      (719)


$             —


$        3,777


$       3,523


$      19,813


$    38,623


$   (25,769)


$     12,854

Non-property adjustments

—


—


229


—


60


—


—


—


—


—


—


—


—


—


(15,712)


(15,423)


15,423


—

Interest income

(7)


(10)


—


—


—


—


—


(3)


—


(1)


(11)


—


(7)


—


—


(39)


39


—

Interest expense

—


—


520


443


—


576


796


—


—


—


1,270


—


—


730


—


4,335


7,268


11,603

Amortization of loan cost

—


—


—


33


—


35


134


—


—


—


75


—


—


—


—


277


798


1,075

Depreciation and amortization

1,832


1,421


1,593


665


458


667


852


1,474


—


1,974


2,294


—


1,046


177


358


14,811


—


14,811

Income tax expense (benefit)

299


69


—


—


—


—


—


4


—


—


—


—


—


10


—


382


820


1,202

Non-hotel EBITDA ownership expense

(40)


—


54


445


(45)


257


55


(54)


—


11


114


—


5


(39)


(8)


755


(755)


—

Hotel EBITDA including amounts attributable
to noncontrolling interest

6,138


3,323


3,576


1,732


2,659


1,780


(670)


4,597


—


3,890


3,023


—


4,821


4,401


4,451


43,721


(2,176)


41,545

Less: EBITDA adjustments attributable to
consolidated noncontrolling interest

(1,535)


(831)


—


—


—


—


—


—


—


—


—


—


—


—


—


(2,366)


2,366


—

Equity in earnings (loss) of unconsolidated
entities

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


62


62

Company's portion of EBITDA of OpenKey

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


(62)


(62)

Hotel EBITDA attributable to the Company and
OP unitholders

$      4,603


$      2,492


$       3,576


$        1,732


$       2,659


$        1,780


$        (670)


$       4,597


$             —


$      3,890


$   3,023


$             —


$       4,821


$       4,401


$        4,451


$      41,355


$           190


$      41,545

Non-comparable adjustments

—


—


—


(2)


4


(1)


—


—


—


—


323


(375)


—


—


(4,451)


(4,502)





Comparable hotel EBITDA

$       6,138


$      3,323


$       3,576


$        1,730


$      2,663


$        1,779


$        (670)


$       4,597


$             —


$      3,890


$   3,346


$         (375)


$       4,821


$       4,401


$             —


$     39,219









































HOTEL EBITDA BY LOAN POOL 





(in thousands) 





(unaudited)









































Credit Agricole (Pier House)

$             —


$             —


$             —


$             —


$      2,663


$             —


$             —


$             —


$             —


$             —


$          —


$             —


$             —


$             —


$             —


$      2,663





BAML (Bardessono)

—


—


—


1,730


—


—


—


—


—


—


—


—


—


—


—


1,730





BAML (Hotel Yountville)

—


—


—


—


—


1,779


—


—


—


—


—


—


—


—


—


1,779





Apollo (Ritz-Carlton St. Thomas)

—


—


—


—


—


—


—


—


—


—


—


—


—


4,401


—


4,401





Prudential (Capital Hilton and Hilton Torrey
Pines)

6,138


3,323


—


—


—


—


—


—


—


—


—


—


—


—


—


9,461





BAML Pool (see footnote 4)

—


—


3,576


—


—


—


—


4,597


—


3,890


—


—


4,821


—


—


16,884





JP Morgan (Park Hyatt Beaver Creek)

—


—


—


—


—


—


(670)


—


—


—


—


—


—


—


—


(670)





BAML (Ritz-Carlton Sarasota)

—


—


—


—


—


—


—


—


—


—


3,346


—


—


—


—


3,346





BAML (Ritz-Carlton Lake Tahoe)

—


—


—


—


—


—


—


—


—


—


—


(375)


—


—


—


(375)





Total

$       6,138


$      3,323


$       3,576


$        1,730


$      2,663


$        1,779


$        (670)


$       4,597


$             —


$      3,890


$   3,346


$         (375)


$       4,821


$       4,401


$             —


$     39,219





 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at March 31, 2019, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

This mortgage loan is secured by the Chicago Sofitel Magnificent Mile, Philadelphia Courtyard Downtown, San Francisco Courtyard Downtown and Seattle Marriott Waterfront.

 

 

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES 

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA 

(in thousands) 

(unaudited)



Three Months Ended March 31, 2018


Capital Hilton Washington D.C.


La Jolla Hilton Torrey Pines


Chicago Sofitel Magnificent Mile


Bardessono Hotel & Spa


Key West Pier House Resort


Hotel Yountville


Park Hyatt Beaver Creek


Philadelphia Courtyard Downtown


Plano Marriott Legacy Town Center


San Francisco Courtyard Downtown


Sarasota Ritz-Carlton


Lake Tahoe Ritz-Carlton


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Braemar Hotels & Resorts Inc.

Net income (loss)

$      1,334


$      3,273


$    (3,350)


$        (210)


$      3,076


$          (37)


$      5,330


$          991


$            74


$       1,354


$          —


$            —


$       1,457


$     2,324


$        1,145


$     16,761


$   (12,491)


$      4,270

Non-property adjustments

—


—


—


—


—


—


—


—


—


—


—


—


—


—


12


12


(12)


—

Interest income

(5)


(7)


—


—


—


—


—


(1)


—


—


—


—


(3)


(1)


(1)


(18)


18


—

Interest expense

—


—


779


415


—


507


734


—


—


—


—


—


—


688


—


3,123


6,068


9,191

Amortization of loan cost

—


—


—


32


—


35


132


—


—


—


—


—


—


—


—


199


789


988

Depreciation and amortization

1,769


1,438


1,426


647


765


664


836


1,543


—


1,674


—


—


1,049


259


936


13,006


—


13,006

Income tax expense (benefit)

—


124


—


—


—


—


—


2


—


—


—


—


—


28


—


154


418


572

Non-hotel EBITDA ownership expense

4


31


2


164


10


72


16


63


(74)


47


—


—


(11)


90


(46)


368


(368)


—

Hotel EBITDA including amounts attributable
to noncontrolling interest

3,102


4,859


(1,143)


1,048


3,851


1,241


7,048


2,598


—


3,075


—


—


2,492


3,388


2,046


33,605


(5,578)


28,027

Less: EBITDA adjustments attributable to
consolidated noncontrolling interest

(775)


(1,215)


—


—


—


—


—


—


—


—


—


—


—


—


—


(1,990)


1,990


—

Equity in earnings (loss) of unconsolidated
entities

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


3


3

Company's portion of EBITDA of OpenKey

—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


—


(2)


(2)

Hotel EBITDA attributable to the Company and
OP unitholders

$      2,327


$     3,644


$     (1,143)


$      1,048


$       3,851


$       1,241


$      7,048


$      2,598


$            —


$      3,075


$          —


$            —


$     2,492


$     3,388


$     2,046


$     31,615


$    (3,587)


$   28,028

Non-comparable adjustments

—


—


—


(2)


4


(1)


—


—


—


—


5,377


3,723


—


—


(2,046)


7,055





Comparable hotel EBITDA

$      3,102


$      4,859


$     (1,143)


$      1,046


$      3,855


$      1,240


$      7,048


$      2,598


$            —


$      3,075


$     5,377


$      3,723


$     2,492


$     3,388


$            —


$   40,660





ALL HOTELS NOT UNDER
  RENOVATION:




































Hotel EBITDA including amounts attributable
to noncontrolling interest

$      3,102


$      4,859


$     (1,143)


$      1,048


$       3,851


$       1,241


$      7,048


$            —


$            —


$            —


$          —


$            —


$     2,492


$            —


$     2,046


$   24,544





Non-comparable adjustments

—


—


—


(2)


4


(1)


—


—


—


—


5,377


3,723


—


—


(2,046)


7,055





Comparable hotel EBITDA

$      3,102


$      4,859


$     (1,143)


$      1,046


$      3,855


$      1,240


$      7,048


$            —


$            —


$            —


$     5,377


$      3,723


$     2,492


$            —


$            —


$    31,599





 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at March 31, 2019, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

The above information does not include the operations of ten condominium units not owned by the Lake Tahoe Ritz-Carlton.

(4)

Excluded Hotels Under Renovation:


Philadelphia Courtyard Downtown, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

 

Cision View original content:http://www.prnewswire.com/news-releases/braemar-hotels--resorts-reports-first-quarter-2019-results-300842162.html

SOURCE Braemar Hotels & Resorts Inc.

Copyright CNW Group 2019