Braemar Hotels & Resorts Announces Preliminary Second Quarter 2021 Results

Braemar Hotels & Resorts Announces Preliminary Second Quarter 2021 Results



The Company reported a preliminary estimated range of net loss attributable to common stockholders of approximately $(16.3) million to $(14.9) million or $(0.34) to $(0.31) per share.



Braemar Hotels;

Braemar Hotels & Resorts Inc. (NYSE: BHR) announced its preliminary expectations for net loss attributable to common stockholders, Adjusted EBITDAre, and Adjusted FFO for the second quarter ended June 30, 2021.

The Company reported a preliminary estimated range of net loss attributable to common stockholders of approximately $(16.3) million to $(14.9) million or $(0.34) to $(0.31) per share, a preliminary estimated range of Adjusted EBITDAre of $18.9 million to $20.3 million, and a preliminary estimated range of Adjusted FFO available to common stockholders, OP unitholders, Series B Cumulative Convertible preferred stockholders and convertible note holders on an “as converted” basis of $12.3 million to $13.7 million for the second quarter ended June 30, 2021. Final results for the second quarter ended June 30, 2021 will be released on July 29, 2021 as previously announced.

“We are pleased with our second quarter results, which continue to be driven by the strong leisure demand at our properties, particularly at our luxury resorts,” said Richard J. Stockton, Braemar’s President and Chief Executive Officer. “These results were again propelled by impressive profit margins for the quarter due to high average daily rates and strong flow-throughs,” he added.  Mr. Stockton continued, “For the second quarter in a row, we achieved positive corporate level cash flow.  With two out of our five urban properties generating positive Hotel EBITDA in the second quarter, and with one being only slightly negative, it’s clear that the recovery is well underway for this demand segment as we move into the second half of the year.”  He concluded by saying, “Our bookings for the third quarter and beyond are also showing further strength in our expected results.” 

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

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

(in millions)

(unaudited)

Three Months Ended

June 30, 2021

Six Months Ended

June 30, 2021

Low End

High End

Low End

High End

Net income (loss)

$

(12.1)

$

(10.7)

$

(23.1)

$

(21.7)

Interest expense and amortization of loan costs

7.2

7.2

14.0

14.0

Depreciation and amortization

18.2

18.2

36.6

36.6

Income tax expense (benefit)

0.1

0.1

0.2

0.2

Equity in (earnings) loss of unconsolidated entity

0.1

0.1

0.1

0.1

Company’s portion of EBITDA of OpenKey

(0.1)

(0.1)

(0.1)

(0.1)

EBITDA

13.4

14.8

27.7

29.1

(Gain) loss on insurance settlement and disposition of assets

(0.2)

(0.2)

(0.7)

(0.7)

EBITDAre

13.2

14.6

27.0

28.4

Amortization of favorable (unfavorable) contract assets (liabilities)

0.1

0.1

0.3

0.3

Transaction and conversion costs

0.8

0.8

1.2

1.2

Write-off of loan costs and exit fees

1.2

1.2

1.5

1.5

Unrealized (gain) loss on derivatives

0.1

0.1

0.1

0.1

Non-cash stock/unit-based compensation

2.8

2.8

4.2

4.2

Legal, advisory and settlement costs

(0.6)

(0.6)

(0.4)

(0.4)

Advisory services incentive fee

1.3

1.3

1.6

1.6

Company’s portion of adjustments to EBITDAre of OpenKey

Adjusted EBITDAre

$

18.9

$

20.3

$

35.5

$

36.9

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

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

(in millions)

(unaudited)

Three Months Ended

June 30, 2021

Six Months Ended

June 30, 2021

Low End

High End

Low End

High End

Net income (loss)

$

(12.1)

$

(10.7)

$

(23.1)

$

(21.7)

(Income) loss attributable to noncontrolling interest in consolidated entities

0.8

0.8

2.1

2.1

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

1.3

1.3

2.4

2.4

Preferred dividends

(1.9)

(1.9)

(4.3)

(4.3)

Gain (loss) on extinguishment of preferred stock

(4.4)

(4.4)

(4.5)

(4.5)

Net income (loss) attributable to common stockholders

(16.3)

(14.9)

(27.4)

(26.0)

Depreciation and amortization on real estate

17.6

17.6

35.2

35.2

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

(1.3)

(1.3)

(2.4)

(2.4)

Equity in (earnings) loss of unconsolidated entity

0.1

0.1

0.1

0.1

(Gain) loss on insurance settlement and disposition of assets

(0.2)

(0.2)

(0.7)

(0.7)

Company’s portion of FFO of OpenKey

(0.1)

(0.1)

(0.1)

(0.1)

FFO available to common stockholders and OP unitholders

(0.2)

1.2

4.7

6.1

Series B Cumulative Convertible Preferred Stock dividends

1.1

1.1

2.6

2.6

(Gain) loss on extinguishment of preferred stock

4.4

4.4

4.5

4.5

Transaction and conversion costs

0.8

0.8

1.2

1.2

Interest expense on convertible notes

0.6

0.6

0.6

0.6

Interest expense accretion on refundable membership club deposits

0.2

0.2

0.4

0.4

Write-off of loan costs and exit fees

1.2

1.2

1.5

1.5

Amortization of loan costs

0.6

0.6

1.3

1.3

Unrealized (gain) loss on derivatives

0.1

0.1

0.1

0.1

Non-cash stock/unit-based compensation

2.8

2.8

4.2

4.2

Legal, advisory and settlement costs

(0.6)

(0.6)

(0.4)

(0.4)

Advisory services incentive fee

1.3

1.3

1.6

1.6

Company’s portion of adjustments to FFO of OpenKey

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

$

12.3

$

13.7

$

22.3

$

23.7

Weighted average diluted shares

63.6

63.6

60.3

60.3

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

Logos, product and company names mentioned are the property of their respective owners.

© 2021 Hotel News Resource



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