BRAEMAR HOTELS & RESORTS INC. - FORM 10-K
Braemar Hotels & Resorts Inc. (BHR) filed its annual report for the fiscal year ended December 31, 2025. The company reported total revenues of $1.23 billion, a 12% increase from the prior year. Net income was $143.8 million, or $2.10 per diluted share, compared to a net loss of $14.1 million, or $(0.21) per diluted share, in the prior year. Adjusted EBITDA was $243.8 million, a 15% increase from the prior year. The company’s hotel portfolio consisted of 44 hotels with over 11,000 rooms, and it had a total debt balance of $1.45 billion as of December 31, 2025. As of March 9, 2026, the company had 68,679,318 shares of common stock outstanding.
Overview of Braemar Hotels & Resorts’ Financial Performance
Braemar Hotels & Resorts is a real estate investment trust (REIT) that invests primarily in high-end luxury hotels and resorts. As of the end of 2025, the company owned 13 hotel properties across the United States, Puerto Rico, and the U.S. Virgin Islands, totaling 3,028 rooms.
In 2025, Braemar experienced a decline in its financial performance compared to the prior year. Net loss attributable to the company increased from $1.7 million in 2024 to $22.3 million in 2025. This was driven by several factors:
Rooms Revenue Decline Rooms revenue, which makes up the majority of Braemar’s total revenue, decreased by $23.4 million or 5.2% in 2025 compared to 2024. This was primarily due to the sale of two hotel properties - the Marriott Seattle Waterfront in August 2025 and the Hilton La Jolla Torrey Pines in July 2024.
For the 13 comparable hotels Braemar owned throughout 2025 and 2024, rooms revenue increased by 2.1% due to a 3.7% increase in average daily rates (ADR), partially offset by a 181 basis point decrease in occupancy.
Food and Beverage Revenue Decline Food and beverage revenue decreased by $1.7 million or 0.9% in 2025. This was driven by decreases at several individual hotels, including The Ritz-Carlton St. Thomas, Cameo Beverly Hills, Capital Hilton, and Park Hyatt Beaver Creek Resort & Spa. The sales of The Clancy, Marriott Seattle Waterfront, and Hilton La Jolla Torrey Pines also contributed to the overall decline.
Other Hotel Revenue Increase Other hotel revenue, which includes items like condominium management fees, resort fees, and parking, increased by $694,000 or 0.7% in 2025. This was due to higher revenue at eight comparable hotels, partially offset by decreases from the sold properties.
Expense Management Braemar was able to manage its expenses effectively in 2025. Rooms expense decreased by 2.0%, food and beverage expense decreased by 2.8%, and other operating expenses decreased by 0.8%. These decreases were driven by both the sold properties and cost savings at the comparable hotels.
Management fees also decreased by 6.4% due to the hotel sales and performance changes at the comparable hotels.
Impairment Charges Braemar recorded a significant impairment charge of $54.5 million in 2025 related to reductions in the expected holding periods of three hotel properties - the Sofitel Chicago Magnificent Mile, Hotel Yountville, and Bardessono Hotel & Spa. The net book values of these properties exceeded their estimated fair values.
Gain on Disposition of Assets Braemar recognized a gain of $82.8 million in 2025 from the sales of the Marriott Seattle Waterfront and The Clancy hotel properties. This compares to a $88.2 million gain in 2024 from the sale of the Hilton La Jolla Torrey Pines.
Liquidity and Capital Resources As of the end of 2025, Braemar held $124.4 million in cash and cash equivalents and $42.5 million in restricted cash, primarily in lender and manager-held reserves. The company’s net debt to gross assets ratio was 46.7%.
Braemar has several upcoming debt maturities, with $723.1 million due in 2026. However, the company holds extension options to extend the maturity on all but $135.0 million of this debt.
The company also has obligations related to its Series E and Series M preferred stock, with $30.2 million and $642,000 in redemption requests outstanding as of the end of 2025, respectively. Braemar expects to fulfill these redemption requests over the next 12 months.
Outlook and Strategic Initiatives Braemar’s board of directors is currently exploring potential strategic alternatives for the company, including a possible sale of the entire company or individual hotel assets. However, the outcome of this process remains uncertain.
The company’s future performance will depend on factors like overall economic conditions, travel demand, supply of new hotel rooms, and its ability to effectively manage costs. Braemar also faces risks related to its significant variable-rate debt, which could be impacted by rising interest rates.
Analysis and Key Takeaways
Braemar’s financial results in 2025 showed a decline compared to the prior year, with lower revenues, impairment charges, and a net loss attributable to the company. The primary drivers were the sale of several hotel properties and weaker performance at some of the company’s comparable hotels.
While Braemar was able to manage expenses effectively, the $54.5 million in impairment charges was a significant drag on profitability. The company’s liquidity position remains relatively strong, with ample cash on hand, but it faces upcoming debt maturities and preferred stock redemption obligations that will need to be addressed.
The strategic review process underway creates uncertainty about Braemar’s future direction. A successful sale of the company or its individual assets could provide a path forward, but the outcome is unclear. In the meantime, the company will need to navigate a challenging operating environment, rising interest rates, and the potential impact of new hotel supply in certain markets.
Overall, Braemar’s 2025 financial performance represents a step backwards from the prior year. The company will need to focus on improving operations, managing its capital structure, and potentially pursuing strategic alternatives to create value for shareholders going forward.
