Braemar Hotels Q3 RevPAR rises 14.4%, posts net loss

Overview

• US luxury hotel REIT's Q3 comparable RevPAR rose 14.4% year-over-year

• Company posted net loss of $240.9 mln, mainly due to $480 mln termination fee

Outlook

• Company expects to complete transition to self-managed REIT in mid-November

• Company plans to update shareholders on value creation initiatives in coming weeks

Result Drivers

• REVPAR AND OCCUPANCY GAINS - Co said Q3 comparable RevPAR rose 14.4% year-over-year, driven by an 8.6% increase in average daily rate and a 5.3% rise in occupancy

• URBAN PROPERTY PERFORMANCE - Urban hotels saw Q3 comparable RevPAR rise 23.3% and hotel EBITDA increase 63.2%, with margin expansion of 706 basis points

• RECENT HOTEL CONVERSIONS - Cameo Beverly Hills delivered RevPAR growth of 82.8% following conversion to Hilton’s LXR collection; Notary Hotel and Sofitel Chicago also reported double-digit RevPAR and EBITDA gains

Company press release: Full Story

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Braemar Hotels & Resorts Inc is $2.00, about 35.1% above its November 3 closing price of $1.48

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• Nov 3 - Summit Hotel Properties Q3 revenue beats estimates on business travel recovery, strong group demand

• Nov 3 - DiamondRock Hospitality Q3 net income, adjusted FFO rise

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)