Record Q2 RevPAR and $437.5M Hotel Sale Bolster Braemar's Defense in Proxy Fight
BHR is trading near its 52-week low of $1.88 (12% above the low).
Summary
Record Q2 RevPAR of $396 and 14.2% Hotel EBITDA growth, alongside over $800 million in hotel sales critical to its self-management transition, strengthen Braemar's hand in a heated proxy fight.
Key Events · Earnings and Guidance · BHR
-
Record Q2 RevPAR and Hotel EBITDA
Comparable RevPAR reached $396, up 12.3% year-over-year, the highest second quarter in company history. Comparable Hotel EBITDA grew 14.2% to $48.4 million, with ADR up 13.1% to $545.
-
Strategic Asset Sales Progress
Closed the $176 million sale of Park Hyatt Beaver Creek in May. Subsequent to quarter end, completed the $437.5 million sale of three hotels on July 14, and entered a definitive agreement to sell Pier House Resort for $190 million, expected to close mid-August.
-
Proxy Fight Backdrop
The strong results and sale execution come as activist Al Shams Investments wages a proxy contest to replace directors and halt the company's strategic pivot to a self-managed REIT.
-
Balance Sheet and Capital Actions
Ended the quarter with $93.9 million in cash and $52.6 million in restricted cash. Redeemed $16.3 million of non-traded preferred stock and extended the $43.4 million Ritz-Carlton Lake Tahoe mortgage to October 2026.
Analysis · BHR · Real Estate & Construction
Braemar delivered its highest second-quarter RevPAR ever at $396, up 12.3%, with comparable Hotel EBITDA rising 14.2% to $48.4 million. The luxury portfolio's pricing power drove a 13.1% ADR increase, offsetting flat occupancy. The company also closed or announced over $800 million in asset sales, including the $437.5 million sale of three hotels completed in July and a $190 million agreement for Pier House Resort. These transactions are central to the planned management spin-out and transition to a self-managed REIT, a strategic pivot unfolding against an ongoing proxy contest from activist Al Shams Investments. The strong operating results and sale progress provide the board with tangible evidence of value creation as it defends against the activist campaign.
At the time of this filing, BHR was trading at $2.11 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $140.8M. The 52-week trading range was $1.88 to $3.19. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.