NYSE:BHR

Stock Analysis Report

Braemar Hotels & Resorts

Executive Summary

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.

Risks

  • Braemar Hotels & Resorts has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Braemar Hotels & Resorts's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.5%

NYSE:BHR

1.4%

US REITs

2.1%

US Market


1 Year Return

-20.5%

NYSE:BHR

10.4%

US REITs

-0.04%

US Market

BHR underperformed the REITs industry which returned 9.9% over the past year.

BHR underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

BHRIndustryMarket
7 Day-5.5%1.4%2.1%
30 Day-6.6%3.6%-3.2%
90 Day-27.4%3.7%2.8%
1 Year-15.3%-20.5%15.4%10.4%2.2%-0.04%
3 Year-32.3%-43.2%25.8%9.4%41.5%32.3%
5 Year-32.4%-46.0%60.2%26.1%55.0%37.8%

Price Volatility Vs. Market

How volatile is Braemar Hotels & Resorts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Braemar Hotels & Resorts undervalued based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Braemar Hotels & Resorts's share price is below the future cash flow value, and at a moderate discount (> 20%).

Braemar Hotels & Resorts's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Braemar Hotels & Resorts is loss making, we can't compare its value to the US REITs industry average.

Braemar Hotels & Resorts is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Braemar Hotels & Resorts, we can't assess if its growth is good value.


Price Based on Value of Assets

Braemar Hotels & Resorts is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Braemar Hotels & Resorts expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Braemar Hotels & Resorts's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Braemar Hotels & Resorts is not considered high growth as it is expected to be loss making for the next 1-3 years.

Braemar Hotels & Resorts's revenue growth is positive but not above the United States of America market average.

Unable to compare Braemar Hotels & Resorts's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Braemar Hotels & Resorts's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Braemar Hotels & Resorts will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Braemar Hotels & Resorts performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Braemar Hotels & Resorts does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Braemar Hotels & Resorts's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Braemar Hotels & Resorts's 1-year growth to the US REITs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Braemar Hotels & Resorts has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Braemar Hotels & Resorts used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Braemar Hotels & Resorts improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Braemar Hotels & Resorts's financial position?


Financial Position Analysis

Braemar Hotels & Resorts is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Braemar Hotels & Resorts's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Braemar Hotels & Resorts's level of debt (200.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (172.3% vs 200.7% today).

Debt is not well covered by operating cash flow (6.2%, less than 20% of total debt).

Braemar Hotels & Resorts is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is Braemar Hotels & Resorts's current dividend yield, its reliability and sustainability?

7.31%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Braemar Hotels & Resorts's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Braemar Hotels & Resorts's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Braemar Hotels & Resorts has been paying a dividend for less than 10 years.

Dividend payments have increased, but Braemar Hotels & Resorts only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (99.2x coverage).


Next Steps

Management

What is the CEO of Braemar Hotels & Resorts's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Richard Stockton (48yo)

2.8yrs

Tenure

US$1,729,331

Compensation

Mr. Richard J. Stockton is an Independent Trustee and Lead Independent Trustee at Spirit MTA REIT since May 30, 2018. Mr. Stockton has been the Chief Executive Officer of Braemar Hotels & Resorts Inc. (for ...


CEO Compensation Analysis

Richard's remuneration is higher than average for companies of similar size in United States of America.

Richard's compensation has increased whilst company is loss making.


Management Age and Tenure

4.3yrs

Average Tenure

48yo

Average Age

The tenure for the Braemar Hotels & Resorts management team is about average.


Board Age and Tenure

5.8yrs

Average Tenure

53yo

Average Age

The tenure for the Braemar Hotels & Resorts board of directors is about average.


Insider Trading

More shares have been bought than sold by Braemar Hotels & Resorts individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$9,95616 Aug 19
Mary Evans
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,125
Max PriceUS$8.85
BuyUS$18,18014 Aug 19
Curtis McWilliams
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,000
Max PriceUS$9.09
BuyUS$10,30808 Aug 19
Abteen Vaziri
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,200
Max PriceUS$8.59
BuyUS$202,00006 Aug 19
Mark Nunneley
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares25,000
Max PriceUS$8.08
SellUS$5,949,27603 Oct 18
Sessa Capital
EntityCompany
Shares513,664
Max PriceUS$11.76

Ownership Breakdown


Management Team

  • Mark Nunneley (62yo)

    Chief Accounting Officer

    • Tenure: 6.3yrs
  • Monty Bennett (53yo)

    Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: US$1.73m
  • Rob Haiman (50yo)

    Executive VP

    • Tenure: 0.0yrs
  • Jeremy Welter (42yo)

    Chief Operating Officer

    • Tenure: 1.4yrs
    • Compensation: US$729.74k
  • Jim Plohg

    Associate General Counsel

    • Tenure: 0.0yrs
  • Deric Eubanks (43yo)

    CFO & Treasurer

    • Tenure: 5.2yrs
    • Compensation: US$729.74k
  • J. Hays (41yo)

    Chief Strategy Officer

    • Tenure: 4.3yrs
    • Compensation: US$729.74k
  • Richard Stockton (48yo)

    President & CEO

    • Tenure: 2.8yrs
    • Compensation: US$1.73m
  • Jordan Jennings

    Manager

    • Tenure: 0.0yrs

Board Members

  • Monty Bennett (53yo)

    Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: US$1.73m
  • Curtis McWilliams (63yo)

    Lead Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$177.82k
  • Ken Fearn (53yo)

    Independent Director

    • Tenure: 3.0yrs
    • Compensation: US$148.82k
  • Abteen Vaziri (40yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$132.82k
  • Stefani Carter (41yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$157.82k
  • Matthew Rinaldi (44yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$155.82k
  • Mary Evans (64yo)

    Director

    • Tenure: 0.6yrs

Company Information

Braemar Hotels & Resorts, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Braemar Hotels & Resorts, Inc.
  • Ticker: BHR
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: US$287.899m
  • Shares outstanding: 32.90m
  • Website: https://www.bhrreit.com

Location

  • Braemar Hotels & Resorts, Inc.
  • 14185 Dallas Parkway
  • Suite 1100
  • Dallas
  • Texas
  • 75254
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHRNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2013
BHR.PRBNYSE (New York Stock Exchange)5.5 CUM CV PFD BUSUSDMay 2016
BHR.PRDNYSE (New York Stock Exchange)Pfd Ser DUSUSDNov 2018

Biography

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BH ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 00:26
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.