BRAEMAR HOTELS & RESORTS REPORTS THIRD QUARTER 2026 RESULTS
Braemar Hotels & Resorts Inc. (BHR) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 NEWS RELEASE Contact: Justin Coe Joe Calabrese Chief Accounting Officer Financial Relations Board (888) 517-7456 (212) 827-3772 BRAEMAR HOTELS & RESORTS REPORTS THIRD QUARTER 2026 RESULTS DALLAS, November 4, 2026 – Braemar Hotels & Resorts Inc. (NYSE: BHR) (“Braemar”
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on RevPAR, occupancy, and EBITDA, offering traders new information to reassess valuation.
Market read
Quarterly earnings of a mid‑cap hospitality REIT, with notable growth metrics but a large net loss, may drive short‑term price movement.
What to watch
Refinancing of the Ritz‑Carlton Lake Tahoe loan reduces near‑term debt pressure and may improve liquidity.
Braemar Hotels & Resorts Reports Third Quarter 2026 Results
Comparable hotel operating results improved, led by 14.4% comparable RevPAR growth and 20.7% comparable Hotel EBITDA growth, but a $480.0 million termination fee drove a $240.9 million net loss attributable to common stockholders and Adjusted EBITDAre declined to $3.9 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total hotel revenueGAAP | $101.6M | – | – |
| Q3 2026 rooms revenueGAAP | $63.15M | – | – |
| Q3 2026 food and beverage revenueGAAP | $25.98M | – | – |
| Q3 2026 other revenueGAAP | $12.45M | – | – |
| Q3 2026 comparable total hotel revenuenon-GAAP | $95.2M | – | 9.9% |
| Q3 2026 comparable RevPARother | $284 | – | 14.4% |
| Q3 2026 comparable ADRother | $419 | – | 8.6% |
| Q3 2026 comparable occupancyother | 67.9% | – | 5.3% |
| Q3 2026 comparable Hotel EBITDAnon-GAAP | $12.9M | – | 20.7% |
| Q3 2026 comparable Hotel EBITDA marginnon-GAAP | 13.6% | – | expanded 122 basis points |
| Q3 2026 operating income (loss)GAAP | −$243.8M | – | – |
| Q3 2026 net income (loss)GAAP | −$249.4M | – | – |
| Q3 2026 net income (loss) attributable to common stockholdersGAAP | −$240.9M | – | – |
| Q3 2026 diluted net income (loss) attributable to common stockholders per shareGAAP | $(3.51) | – | – |
| Q3 2026 Adjusted EBITDArenon-GAAP | $3.9M | – | – |
| Q3 2026 Adjusted FFO available to common stockholders and OP unitholdersnon-GAAP | −$18.67M | – | – |
| Q3 2026 Adjusted FFO per diluted share available to common stockholders and OP unitholdersnon-GAAP | $(0.25) | – | – |
| Nine months 2026 total hotel revenueGAAP | $481.6M | – | – |
| Nine months 2026 operating income (loss)GAAP | −$173.6M | – | – |
| Nine months 2026 net income (loss) attributable to common stockholdersGAAP | −$236.7M | – | – |
| Nine months 2026 diluted net income (loss) attributable to common stockholders per shareGAAP | $(3.45) | – | – |
| Nine months 2026 comparable RevPARother | $366 | – | 10.0% |
| Nine months 2026 comparable Hotel EBITDAnon-GAAP | $93M | – | 14.9% |
| Nine months 2026 comparable Hotel EBITDA marginnon-GAAP | 26.0% | – | expanded 158 basis points |
| Nine months 2026 Adjusted EBITDArenon-GAAP | $108.2M | – | – |
| Nine months 2026 Adjusted FFO per diluted share available to common stockholders and OP unitholdersnon-GAAP | $0.40 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Urban Properties Total, Q3 2026 comparableComparable RevPAR increased 23.3% to $211, comparable Hotel EBITDA increased 63.2% to $10.1 million, and comparable Hotel EBITDA margin expanded 706 basis points to 24.3%. | $41.79M | – | 15.69% |
| Resort Properties Total, Q3 2026 comparableComparable RevPAR increased 5.9% to $457, while comparable ADR increased 8.4% to $889. | $53.45M | – | 5.69% |
| Sofitel Chicago Magnificent Mile, Q3 2026RevPAR was $276, up approximately 18.0% over the prior year quarter; Hotel EBITDA was approximately $4.7 million, up 75.2%, and Hotel EBITDA margin expanded 1,159 basis points to 34.9%. | $13.57M | – | 17.08% |
| The Notary Hotel, Q3 2026RevPAR was $176, up approximately 33.9% over the prior year quarter, and Hotel EBITDA was approximately $3.9 million, up 72.5%. | $10.94M | – | 34.92% |
| Cameo Beverly Hills, Q3 2026Following conversion to Hilton's LXR Hotels & Resorts collection, RevPAR growth was 82.8% over the prior year quarter. | $3.98M | – | 68.08% |
| The Ritz-Carlton Reserve Dorado Beach, Q3 2026RevPAR was $1,025, an increase of approximately 14.4% over the prior year quarter. | $16.30M | – | 11.06% |
Capital returns
- During the quarter, the Company redeemed approximately $5.0 million of its non-traded preferred stock in cash.
- Redeemable preferred stock redemptions payable totaled $63.5 million as of September 30, 2026.
- Series B 5.5% Cumulative Convertible Preferred Stock dividend: $0.3438 per share, payable January 15, 2027 to stockholders of record as of December 30, 2026.
- Series D 8.25% Cumulative Preferred Stock dividend: $0.5156 per share, payable January 15, 2027 to stockholders of record as of December 31, 2026.
- Series E Redeemable Preferred Stock dividend: $0.15625 per share, payable on November 16, 2026, December 15, 2026 and January 15, 2027.
- Series M Redeemable Preferred Stock dividend: $0.17708 to $0.18125 per share depending on CUSIP, payable on November 16, 2026, December 15, 2026 and January 15, 2027.
What drove it
- Comparable RevPAR increased 14.4% to $284, supported by comparable ADR growth of 8.6% to $419 and comparable occupancy growth of 5.3% to 67.9%.
- Comparable total hotel revenue increased 9.9% to $95.2 million.
- Comparable Hotel EBITDA increased 20.7% to $12.9 million and comparable Hotel EBITDA margin expanded 122 basis points to 13.6%.
- Urban comparable RevPAR increased 23.3% to $211 and urban comparable Hotel EBITDA increased 63.2% to $10.1 million.
- Cameo Beverly Hills delivered RevPAR growth of 82.8% following its conversion to Hilton's LXR Hotels & Resorts collection.
- The Company sold the Ritz-Carlton Sarasota, Hotel Yountville and Bardessono Hotel and Spa on July 14, 2026 for a total purchase price of $437.5 million in cash, and Pier House Resort & Spa on August 12, 2026 for $190.0 million.
- Subsequent to quarter end, the Company sold Four Seasons Resort Scottsdale at Troon North on October 28, 2026 for $372 million.
Concerns
- Net loss attributable to common stockholders was $240.9 million, compared with a net loss of $8.2 million in the prior year quarter, primarily due to the $480.0 million termination fee payable to the external advisor recorded during the quarter.
- Adjusted EBITDAre declined to $3.9 million from $16.4 million in the prior year quarter; the prior-year period included hotels that have since been sold.
- Adjusted FFO per diluted share was $(0.25), compared with $(0.19) in the prior year quarter.
- The Ritz-Carlton St. Thomas generated Q3 Hotel EBITDA of $(913) thousand, compared with $(458) thousand in the prior-year quarter.
- Four Seasons Resort Scottsdale generated Q3 Hotel EBITDA of $(1,089) thousand, compared with $956 thousand in the prior-year quarter, before its October 2026 sale.
- All debt was effectively floating rate at quarter end.
What to watch
- Completion of the transition to a self-managed REIT, which the Company stated remains on track for mid-November.
- Use of proceeds and operating implications from the Four Seasons Resort Scottsdale sale, which closed October 28, 2026.
- Execution under the new Ritz-Carlton Lake Tahoe financing, including the additional $15.0 million that may be drawn subject to conditions.
- Operating recovery at Cameo Beverly Hills and the conversion of RevPAR growth into positive Hotel EBITDA.
- Performance of Ritz-Carlton St. Thomas, Four Seasons Resort Scottsdale prior to sale, and Ritz-Carlton Lake Tahoe given their Q3 Hotel EBITDA results.
- Future dividend declarations, as the Board reviews dividend policy quarter-to-quarter.
Balance sheet and cash flow
- Cash and cash equivalents were $78.9 million and restricted cash was $39.6 million at quarter end.
- Due from third-party hotel managers was $16.5 million at quarter end.
- Total assets were $1.2 billion as of September 30, 2026.
- All of the Company's $624.4 million of indebtedness was non-recourse.
- Net debt to gross assets was 33.3% at the end of the third quarter.
- The trailing twelve-month Comparable Hotel EBITDA debt yield was 19.0%.
- The combined loans had a blended average interest rate of 7.25%.
- The Company had no fixed-rate debt outstanding, and all debt was effectively floating rate at quarter end.
- Capex invested during the quarter was $5.0 million.
- On October 30, 2026, the Company refinanced the Ritz-Carlton Lake Tahoe mortgage loan with a new $60.0 million loan and an additional $15.0 million available to be drawn in the future subject to certain conditions.
- The new Ritz-Carlton Lake Tahoe loan has a three-year initial term with two one-year extension options and bears interest at SOFR + 2.65%.
- With this financing in place, the Company's next hard debt maturity is not until December 2028.
Analysis
Braemar's comparable hotel operations improved materially in the third quarter. Comparable RevPAR rose 14.4% to $284, driven by comparable ADR growth of 8.6% to $419 and comparable occupancy growth of 5.3% to 67.9%. Comparable total hotel revenue increased 9.9% to $95.2 million, while comparable Hotel EBITDA grew 20.7% to $12.9 million and the comparable Hotel EBITDA margin expanded 122 basis points to 13.6%. The reported GAAP hotel revenue base declined to $101,578 thousand from $143,556 thousand, reflecting portfolio changes and non-comparable adjustments rather than the performance of the current comparable portfolio.
Urban hotels were the principal source of comparable momentum. Urban comparable RevPAR increased 23.3% to $211, comparable revenue increased 15.69% to $41,790 thousand, and comparable Hotel EBITDA increased 63.2% to $10.1 million. Sofitel Chicago Magnificent Mile and The Notary Hotel delivered strong RevPAR and EBITDA growth, while Cameo Beverly Hills posted 82.8% RevPAR growth after its LXR Hotels & Resorts conversion. Resort comparable revenue increased 5.69% to $53,446 thousand, with RevPAR up 5.9% to $457 and ADR up 8.4% to $889. However, the quarter included negative Hotel EBITDA at Ritz-Carlton St. Thomas and Four Seasons Resort Scottsdale.
The GAAP income statement was dominated by the $480.0 million termination fee payable to the external advisor. This charge contributed to operating loss of $(243,812) thousand, net loss of $(249,384) thousand and net loss attributable to common stockholders of $(240,867) thousand, or $(3.51) per diluted share. Adjusted EBITDAre was $3.9 million versus $16.4 million in the prior-year quarter, and Adjusted FFO per diluted share was $(0.25) versus $(0.19). The release notes that the third quarter is traditionally the Company's lowest-earning quarter because of portfolio seasonality.
Portfolio repositioning continued through asset sales. The Company sold Ritz-Carlton Sarasota, Hotel Yountville and Bardessono Hotel and Spa for a total purchase price of $437.5 million in cash, and Pier House Resort & Spa for $190.0 million. It subsequently sold Four Seasons Resort Scottsdale for $372 million. Management identified the Scottsdale sale as the final sale needed to complete the transition to self-management and pay remaining external-advisor fees, and stated that the transition remains on track for mid-November.
Liquidity included $78.9 million of cash and cash equivalents, $39.6 million of restricted cash and $16.5 million due from third-party hotel managers. The Company reported $624.4 million of non-recourse indebtedness, net debt to gross assets of 33.3%, and a trailing twelve-month Comparable Hotel EBITDA debt yield of 19.0%. The entire debt structure was effectively floating rate at quarter end, with a 7.25% blended average interest rate. The October 30 refinancing of the Ritz-Carlton Lake Tahoe loan replaced the prior $43.4 million balance with a $60.0 million loan and provides additional future draw capacity of $15.0 million subject to conditions; the Company stated that its next hard debt maturity is not until December 2028.
Management, verbatim
Our luxury portfolio delivered another quarter of double-digit RevPAR and Hotel EBITDA growth. Comparable RevPAR surged 14.4%—our strongest growth since the post-pandemic recovery in 2022 and another near-record result for the quarter—and comparable Hotel EBITDA increased 20.7%.
Richard J. Stockton, President and Chief Executive Officer
Growth was broad-based, with comparable ADR up 8.6% and comparable occupancy up 5.3%. We converted that top-line strength into strong profitability, with comparable Hotel EBITDA margin expanding 122 basis points, showcasing the earnings power of our resilient portfolio.
Richard J. Stockton, President and Chief Executive Officer
With the closing of the sale of Four Seasons Resort Scottsdale, the final sale needed to complete our transition to self-management and pay the remaining fees owed to our external advisor, we remain on track to complete our transition to a self-managed REIT in mid-November.
Richard J. Stockton, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue, RevPAR, EBITDA, AFFO, occupancy, ADR, expense, tax-rate, or capital-expenditure guidance was not provided.
- Previous-period outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- Gross profit and gross margin were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Common-stock repurchases were not reported.
- A common-stock dividend declaration for a future period was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Braemar Hotels & Resorts (NYSE:BHR) reported its Q3 2026 results, the first filing of these numbers, including operational metrics and a major asset sale.
Ticker impact
Braemar Hotels & Resorts Inc. filed its Q3 2026 earnings on Form 8‑K, disclosing RevPAR growth, EBITDA increase and a large net loss.
mixed pressure; upside potential if investors focus on RevPAR growth, downside if net loss and fee dominate sentiment
Quarter shows double‑digit RevPAR gains and EBITDA expansion, but the $240.9 M net loss and termination fee may weigh on the stock. Traders may weigh the growth versus loss for short‑term positioning.
Market effects
Highlights resilience in upscale hotel segment, may boost peer hotel REITs if growth trends continue.
Positive for U.S. hospitality stocks, especially those with self‑managed luxury portfolios.
Limited to hospitality sector; no broader macro impact.
Counterpoint
The net loss and large termination fee could signal deeper cash‑flow strain, suggesting a short bias despite RevPAR gains.
Key entities
- companyBraemar Hotels & Resorts Inc.
Operator of upscale hotel portfolio, listed on NYSE under BHR.
- assetFour Seasons Resort Scottsdale
Hotel sold in October 2026, affecting RevPAR calculations.
