Braemar Hotels & Resorts (BHR) Q1 2026 earnings summary

Executive summary

• Achieved highest quarterly AFFO per share in five years at $0.52, up 30% year-over-year, and comparable hotel EBITDA rose 13.7% to $75.5 million, with margin expanding 259 basis points to 35.7%.

• Net income attributable to the company rose to $17.7 million for Q1 2026, up from $11.0 million in Q1 2025, driven by higher ADR and improved margins at comparable properties, despite lower total revenue due to asset sales.

• Portfolio RevPAR increased 5.7% year-over-year, with resorts up 8.0% and urban properties down 5.6%.

• Resorts contributed the majority of hotel EBITDA, with Ritz-Carlton properties and Bardessono leading performance.

• The company completed the sale of two hotel properties in 2025 and entered into a definitive agreement to sell Park Hyatt Beaver Creek Resort & Spa for $176 million in April 2026.

Financial highlights

• Total hotel revenue for Q1 2026 ranged from $209.0 million to $211.6 million, with year-over-year changes impacted by asset sales.

• ADR increased 5.7% to $745; occupancy remained flat at 64.5%.

• Hotel EBITDA margin improved to 35.7% from 33.1% a year ago.

• Net debt to gross assets stood at 43.4% at quarter-end.

• Capex for the quarter totaled $12.1 million.

Outlook and guidance

• Industry trends favor luxury and upper upscale hotels, with forecasted RevPAR growth of 3.2% for luxury and 2.7% for upper upscale segments in 2026.

• Management expects continued margin improvement and strong resort performance, with stabilized occupancies and ongoing strategic alternatives, including the announced sale of Park Hyatt Beaver Creek Resort & Spa.

• Management believes cash flow from operations and existing cash balances will be adequate to meet anticipated requirements for the next 12 months.