Braemar Hotels & Resorts Inc Stock Price, News & Analysis

Braemar Hotels & Resorts (NYSE: BHR) has finalized an extension of its $51.0 million mortgage loan for the Hotel Yountville, extending the maturity for an additional 6 months, with a potential further 6-month extension. The loan will have an interest rate of SOFR + 2.55%, increasing to SOFR + 3.50% on July 1, 2023. Coinciding with this extension, Braemar purchased a SOFR interest rate cap at a strike of 5.25% expiring on November 10, 2023. The company is also negotiating an extension or refinancing for another mortgage due in August 2023. CEO Richard J. Stockton expressed optimism about the refinancing program and future announcements related to their liability management efforts.

Braemar Hotels & Resorts (NYSE: BHR) announced an extension of its $98 million mortgage loan for The Ritz-Carlton Sarasota, extending the maturity by 6 months with a potential further 6-month extension. The interest rate will be SOFR + 2.65% until June 1, 2023, when it increases to SOFR + 3.50%. Additionally, Braemar purchased a SOFR interest rate cap at a 5.25% strike, expiring on October 4, 2023. The company is also seeking extensions or refinancing for loans on Hotel Yountville and Bardessono, maturing in May and August 2023, respectively. CEO Richard J. Stockton expressed satisfaction with the favorable loan terms and indicated further announcements on liability management are forthcoming.

Braemar Hotels & Resorts (NYSE: BHR) announced a quarterly cash dividend of $0.05 per diluted share for Q2 ending June 30, 2023, payable on July 17, 2023. This equates to an annual rate of $0.20 per share. Additionally, dividends for preferred stocks include $0.3438 for Series B Cumulative Preferred, $0.5156 for Series D Cumulative Preferred, and $0.4844 for Series E Redeemable Preferred, all payable on July 17, 2023. The monthly dividend structure continues for Series M Redeemable Preferred Stock at rates of $0.5188 and $0.5125. As of March 31, 2023, there were approximately 16.5 million Series E shares and 1.96 million Series M shares outstanding.

Braemar Hotels & Resorts Inc. (NYSE: BHR) has announced plans to release its first quarter earnings results for the period ending March 31, 2023. The earnings release will occur after market close on May 2, 2023. Following this, a conference call is scheduled for May 3, 2023, at 11:00 a.m. ET, accessible via phone or online stream. The replay will be available until May 10, 2023. Braemar operates as a real estate investment trust (REIT), focusing on luxury hotels and resorts, a sector poised for potential growth as travel resumes.

On March 14, 2023, Braemar Hotels & Resorts (NYSE: BHR) addressed concerns regarding its cash holdings amid recent banking industry events. The Company stated that approximately 60% of its cash is invested in short-term U.S. Treasury Securities with maturities under 90 days. Additionally, 18% is held in fully insured Insured Cash Sweep accounts at commercial banks. About 16% is related to property-level operating cash with Global Systemically Important Banks. The remaining 6% is deposited with other commercial banks. The statement aims to provide transparency and reassurance to shareholders about the Company's liquidity position.

Ashford Securities LLC, a subsidiary of Ashford Inc. (NYSE: AINC), has successfully closed its offering of Series E & M Redeemable Preferred Stock for Braemar Hotels & Resorts Inc. (NYSE: BHR), raising $460 million. C. Jay Steigerwald III, President of Ashford Securities, praised the team's efforts in creating a strong platform for investment. This capital will support further fundraising for Ashford Hospitality Trust, Inc. (NYSE: AHT) through upcoming Series J & K offerings. Ashford Securities aims to continue leveraging its relationships with broker-dealers and RIAs to enhance capital acquisition in the real estate and hospitality sectors.

Braemar Hotels & Resorts Inc. announced the federal tax reporting information for 2022 distributions on its common and preferred shares on January 26, 2023. The common stock (BHR) distributions totaled $0.03 per share, classified entirely as ordinary taxable dividends. For Series B (BHRPrB), distributions were $1.3752 per share, while Series D (BHRPrD) totaled $2.0624 per share, all qualified as ordinary taxable dividends. Series E had distributions of $1.9732 and Series M was noted at $2.0601. Investors are advised to consult tax advisors regarding the implications of these distributions.

Braemar Hotels & Resorts (BHR) declared a $0.05 quarterly cash dividend for Q1 2023, totaling $0.20 annually, payable on April 17, 2023, to shareholders recorded by March 31, 2023. Additionally, dividends for preferred stock include $0.3438 for Series B, $0.5156 for Series D, and various amounts for Series E and M, all payable on April 17, 2023. As of December 31, 2022, there were over 12.6M Series E and 1.4M Series M shares outstanding.