Braemar Hotels & Resorts Inc (BHR) 2024 Q2 法說會逐字稿

Hello. And thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Braemar Hotels & Resorts Inc. second-quarter 2024 results conference call. (Operator Instructions).

你好。感謝您的支持。我叫雷吉娜，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Braemar Hotels & Resorts Inc. 2024 年第二季業績電話會議。（操作員說明）。

I would now like to turn the conference over to Deric Eubanks, Chief Financial Officer. Please go ahead.

我現在想將會議交給財務長 Deric Eubanks。請繼續。

Good morning, and welcome to today's call to review results for Braemar Hotels & Resorts, the second quarter 2024 and to update you on recent developments. On the call today will be Richard Stockton, President and Chief Executive Officer, as well as Chris Nixon, Executive Vice President and Head of Asset Management. The results as well as notice of accessibility of this conference call on a listen-only basis over the Internet were distributed yesterday in a press release.

早安，歡迎參加今天的電話會議，審核布雷馬酒店及度假村 2024 年第二季的業績並向您通報最新動態。總裁兼執行長理查德·斯托克頓 (Richard Stockton) 以及執行副總裁兼資產管理主管克里斯·尼克森 (Chris Nixon) 出席今天的電話會議。昨天，在一份新聞稿中發布了結果以及透過網路收聽本次電話會議的通知。

At this time, let me remind you that certain statements and assumptions in this conference call contain or are based upon forward-looking information and are being made pursuant to the Safe Harbor provisions of the federal securities regulations. Such forward-looking statements are subject to numerous assumptions, uncertainties and known or unknown risks, which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the company's filings with the Securities and Exchange Commission.

此時，讓我提醒您，本次電話會議中的某些陳述和假設包含或基於前瞻性信息，並且是根據聯邦證券法規的安全港條款做出的。此類前瞻性陳述受到眾多假設、不確定性以及已知或未知風險的影響，可能導致實際結果與預期有重大差異。這些因素在該公司向美國證券交易委員會提交的文件中進行了更全面的討論。

The forward-looking statements included in this call are only made as of the date of this call and the company is not obligated to publicly update or revise them. Statements made during this call do not constitute an offer to sell or solicitation of an offer to buy any securities. Securities will be offered only by means of a registration statement and prospectus, which can be found at www.sec.gov.

本次電話會議中所包含的前瞻性陳述僅在本次電話會議之日作出，本公司沒有義務公開更新或修改這些陳述。本次電話會議期間所發表的聲明並不構成出售任何證券的要約或購買任何證券的要約。證券將僅透過註冊聲明和招股說明書的方式發行，註冊聲明和招股說明書可在 www.sec.gov 上找到。

In addition, certain terms used in this call are non-GAAP financial measures, reconciliations of which are provided in the company's earnings release and the company's tables or schedules, which have been filed on Form 8-K with the SEC on July 31, 2024, and may also be accessed through the company's website at www.bhrreit.com.

此外，本次電話會議中使用的某些術語是非GAAP 財務指標，其調節表已在公司的收益發布以及公司的表格或時間表中提供，這些數據已於2024 年7 月31 日以8-K表格形式向SEC 提交，也可以透過公司網站 www.bhrreit.com 存取。

Each listener is encouraged to review those reconciliations provided in the earnings release together, with all other information provided in the release. Also, unless otherwise stated, all reported results discussed in this call compared to the first quarter ended June 30, 2024, with the first quarter ended June 30, 2023.

我們鼓勵每位聽眾一起查看收益發布中提供的對帳資訊以及發布中提供的所有其他資訊。此外，除非另有說明，本次電話會議討論的所有報告結果均與截至 2024 年 6 月 30 日的第一季度和截至 2023 年 6 月 30 日的第一季度進行了比較。

I'll now turn the call over to Richard Stockton. Please go ahead.

我現在將把電話轉給理查德·斯托克頓。請繼續。

Good morning, and welcome to our 2024 second quarter earnings conference call. I'll begin today's call by providing an overview of our business and update on our portfolio and our recently announced plans to create additional shareholder value. Then Deric will provide a review of our financial results, and Chris will provide an update on our asset management activity. Afterwards, we will open the call for Q&A.

早安，歡迎參加我們的 2024 年第二季財報電話會議。在今天的電話會議開始時，我將概述我們的業務並更新我們的投資組合以及我們最近宣布的創造額外股東價值的計劃。然後 Deric 將審查我們的財務業績，Chris 將提供我們資產管理活動的最新情況。之後，我們將開啟問答環節。

We have several key themes for today's call. First, our urban hotels delivered strong performance in the quarter with comparable RevPAR growth of 6% over the prior year quarter. Second, our most recent acquisition, the Four Seasons Resort Scottsdale at Troon North continues to perform well and achieved RevPAR growth of 10% in the quarter. Third, as we continue to diligently work through our refinancing program, we have refinanced, extended or paid down all of our 2024 debt maturities and fourth, we're pleased with the progress we have made recently announced shareholder value creation plan with the closing of the sale of the Hilton La Jolla Torrey Pines at an attractive value.

我們今天的電話會議有幾個關鍵主題。首先，我們的城市酒店在本季表現強勁，可比每間客房營收比去年同期成長 6%。其次，我們最近收購的位於 Troon North 的斯科茨代爾四季度假村 (Four Seasons Resort Scottsdale at Troon North) 繼續表現良好，本季的 RevPAR 成長了 10%。第三，隨著我們繼續努力完成我們的再融資計劃，我們已經再融資、延長或償還了2024 年的所有債務到期日。進展感到滿意。

Let me first turn to our results. We reported comparable RevPAR of $305, which reflected a 1.5% decrease over the prior year quarter and comparable hotel EBITDA of $51.1 million. We continue to be very encouraged by the strong performance of our urban hotels, which achieved RevPAR growth of 6% in the quarter. Regarding our urban assets, RevPAR for the quarter was $228 and comparable hotel EBITDA was $22.1 million. Looking ahead, we remain very encouraged by the continued momentum for this segment of our portfolio.

讓我先談談我們的結果。我們報告的可比 RevPAR 為 305 美元，比去年同期下降 1.5%，可比飯店 EBITDA 為 5,110 萬美元。我們的城市酒店的強勁表現繼續令我們深受鼓舞，本季每間客房收入增長了 6%。就我們的城市資產而言，本季的 RevPAR 為 228 美元，同類酒店 EBITDA 為 2,210 萬美元。展望未來，我們仍然對我們投資組合的這一部分的持續成長勢頭感到非常鼓舞。

However, this impressive performance was offset by softness in our resort average daily rates, which are still coming off historic highs that follow the pandemic. Nevertheless, our luxury resort portfolio delivered admirable performance with hotel EBITDA of $29 million during the Q2.

然而，這令人印象深刻的表現被我們度假村日均房價的疲軟所抵消，該房價仍低於疫情後的歷史高點。儘管如此，我們的豪華度假村組合仍取得了令人欽佩的業績，第二季飯店 EBITDA 達到 2,900 萬美元。

The brightest spot within our resort portfolio was our most recent acquisition, the Four Seasons Resort Scottsdale at Troon North, which continues to exceed our expectations. The property was acquired in December 2022 and fits perfectly with our strategy of owning high RevPAR luxury hotels and resorts. It delivered a strong second quarter performance with hotel EBITDA up 21.6%. We continue to be very excited about the prospects for this hotel.

我們度假村組合中最亮點的是我們最近收購的特倫北斯科茨代爾四季度假村，它繼續超越我們的預期。該物業於 2022 年 12 月收購，完全符合我們擁有高 RevPAR 豪華酒店和度假村的策略。第二季業績強勁，飯店 EBITDA 成長 21.6%。我們仍然對這家酒店的前景感到非常興奮。

While the Ritz-Carlton Reserve Dorado Beach had a challenging quarter, both of our recent acquisitions continue to perform well compared to our acquisition costs and our initial underwriting. Over the trailing 12 months, the Ritz-Carlton Reserve Dorado Beach achieved a 9.2% yield on cost, while the Four Seasons Scottsdale achieved an 8% yield on cost. These luxury assets have both outpaced our underwriting, and looking ahead to the next several quarters, we remain very encouraged about the prospects for these well positioned properties.

雖然多拉多海灘麗思卡爾頓酒店度過了一個充滿挑戰的季度，但與我們的收購成本和初始承保相比，我們最近的兩項收購仍然表現良好。在過去 12 個月中，多拉多海灘麗思卡爾頓酒店的成本收益率為 9.2%，而斯科茨代爾四季酒店的成本收益率為 8%。這些豪華資產的承保速度均超過了我們的承保速度，展望未來幾個季度，我們對這些定位良好的房產的前景仍然感到非常鼓舞。

Looking at Braemar’s capital position, we continue to emphasize balance sheet flexibility. With the recent closing of the sale of the Hilton La Jolla Torrey Pines, we've now addressed all of our 2024 debt maturities. During the quarter, we announced a shareholder value creation plan, which has four components.

考慮到BMW的資本狀況，我們繼續強調資產負債表的靈活性。隨著拉荷亞多利松希爾頓酒店最近的出售完成，我們現在已經解決了 2024 年的所有債務到期問題。在本季度，我們宣布了股東價值創造計劃，該計劃由四個部分組成。

They are, number one, execute select noncore asset sales, including the recent sale of the Hilton La Jolla Torrey Pines. Number two, the repayment of our remaining 2024 debt maturities. Number three, a $50 million preferred share redemption program and number four, a $50 million common share buyback authorization.

第一，他們執行精選的非核心資產出售，包括最近出售希爾頓拉霍亞多利松酒店。第二，償還 2024 年到期的剩餘債務。第三，5000萬美元的優先股贖回計劃，第四，5000萬美元的普通股回購授權。

Subsequent to quarter end, we sold the Hilton La Jolla Torrey Pines for $165 million or $419,000 per key. Including anticipated capital expenditures of $40 million the sales price represents a 7.2% capitalization rate on net operating income for the trailing 12 months ended March 31, 2024. Looking ahead, we are also evaluating the sale of two more hotels.

季度末後，我們以 1.65 億美元（即每間鑰匙 419,000 美元）的價格出售了希爾頓拉霍亞多利松酒店。包括 4,000 萬美元的預期資本支出，銷售價格佔截至 2024 年 3 月 31 日的過去 12 個月淨營業收入的資本化率為 7.2%。展望未來，我們也將評估另外兩家酒店的出售。

To date, we have redeemed approximately $40.1 million of our non-traded preferred stock. We believe these announcements reflect our commitment to maximize value for our shareholders and look forward to providing more updates in the coming weeks months as we work through our plan.

迄今為止，我們已贖回約 4,010 萬美元的非交易優先股。我們相信這些公告反映了我們為股東創造最大價值的承諾，並期待在未來幾週內在我們制定計劃的過程中提供更多更新。

In summary, Braemar has a unique well positioned portfolio and a solid liquidity position. As we look ahead to the remainder of 2024, we believe Braemar is on firm footing to perform well in both the near and long term.

總而言之，BMW擁有獨特的、定位良好的投資組合和穩固的流動性狀況。展望 2024 年剩餘時間，我們相信 Braemar 的基礎穩固，在近期和長期表現良好。

I will now turn the call over to Deric to take you through our financials in more detail.

我現在將把電話轉給 Deric，讓您更詳細地了解我們的財務狀況。

Thanks, Richard. For the quarter, we reported a net loss attributable to common stockholders of $21.9 million or $0.33 per diluted share and AFFO per diluted share of $0.10 Adjusted EBITDAre for the quarter was $42.7 million. At quarter end, we had total assets of $2.2 billion. We had $1.2 billion of loans of which $44.3 million related to our joint venture partner share of the loans on the Capital Hilton and Hilton La Jolla Torrey Pines. Our total combined loans at a blended average interest rate of 8.1% taking into account in the money interest rate caps.

謝謝，理查。本季度，我們報告普通股股東應佔淨虧損為 2,190 萬美元，即稀釋後每股 0.33 美元，稀釋後每股 AFFO 為 0.10 美元，本季調整後 EBITDA 為 4,270 萬美元。截至季末，我們的總資產為 22 億美元。我們擁有 12 億美元的貸款，其中 4,430 萬美元與我們的合資夥伴在 Capital Hilton 和 Hilton La Jolla Torrey Pines 的貸款中所佔份額有關。考慮到貨幣利率上限，我們的合併貸款總額的混合平均利率為 8.1%。

Based on the current level of SOFR and our corresponding interest rate caps, approximately 77% of our debt is effectively fixed and approximately 23% is effectively floating. As of the end of second quarter, we had approximately 40.4% net debt to gross assets. We ended the quarter with cash and cash equivalents of $120.3 million and restricted cash of $60.7 million. The vast majority of that restricted cash is comprised of lender and manager held reserve accounts.

根據目前的 SOFR 水平和我們相應的利率上限，我們約 77% 的債務實際上是固定的，約 23% 的債務實際上是浮動的。截至第二季末，我們的淨債務佔總資產的比例約為 40.4%。本季結束時，我們的現金和現金等價物為 1.203 億美元，限制性現金為 6,070 萬美元。絕大多數受限制的現金由貸方和管理人持有的儲備帳戶組成。

At the end of the quarter, we also had $17.1 million in due from third party hotel managers. This primarily represents cash held by one of our brand managers which is also available to fund hotel operating costs. With regard to dividends, we again announced the quarterly common stock dividend of $0.05 per share or $0.20 per diluted share on an annualized basis. This equates to an annual yield of approximately 5.6% based on yesterday's stock price. Our Board of Directors will review the company's dividend policy on a quarter-to-quarter basis with a view to increasing it as financial performance improves.

截至本季末，我們也應收第三方飯店管理人員 1,710 萬美元的款項。這主要是我們的一位品牌經理持有的現金，也可用於支付飯店營運成本。關於股息，我們再次宣布按年化計算的季度普通股股息為每股 0.05 美元或稀釋後每股 0.20 美元。根據昨天的股價計算，這相當於年殖利率約 5.6%。我們的董事會將按季度審查公司的股利政策，以期隨著財務表現的改善而增加股利政策。

During the quarter, we paid off the $30 million loan secured by the Cameo Beverly Hills in Beverly Hills, California. This property is now unencumbered. As of June 30, 2024, our portfolio consisted of 16 hotels with 3963 net rooms, but with the recent sale of the Hilton La Jolla Torrey Pines, the portfolio currently consists of 15 hotels with 3667 net rooms.

本季度，我們還清了由加州比佛利山莊 Cameo Beverly Hills 擔保的 3000 萬美元貸款。該財產現在不受限制。截至2024 年6 月30 日，我們的投資組合由16 家酒店組成，擁有3963 間淨客房，但隨著最近拉霍亞多利松希爾頓酒店的出售，我們的投資組合目前由15 家酒店組成，淨客房數為3667 間。

Our share count currently stands at 73.9 million fully diluted shares outstanding, which is comprised of 66.5 million shares of common stock and 7.4 million OP units.

目前，我們的完全稀釋流通股數為 7,390 萬股，其中包括 6,650 萬股普通股和 740 萬股 OP 單位。

This concludes our financial review. I'd now like to turn it over to Chris to discuss our asset management activities for the quarter.

我們的財務審查到此結束。我現在想將其交給克里斯討論我們本季的資產管理活動。

Thank you, Deric. For the quarter comparable hotel RevPAR for our portfolio was down 1.5% compared with the prior year quarter at $305. This represents a 22% increase compared to the second quarter in 2019. Group revenue pace for the portfolio continues to drive results for the second half of the year showing strength. Our urban assets have benefited from strong citywide calendars resulting in 7% growth in total revenue over the prior year quarter. Lastly, our team's involvement at the Four Seasons Scottsdale helped drive 22% growth in hotel EBITDA over the prior year quarter. I will now go into more detail on some of the achievements completed throughout the quarter.

謝謝你，德里克。本季度，我們投資組合的可比飯店 RevPAR 與去年同期相比下降了 1.5%，為 305 美元。與 2019 年第二季相比，成長了 22%。該投資組合的集團營收成長速度持續推動下半年業績表現強勁。我們的城市資產受益於強勁的全市日曆，總收入比去年同期成長了 7%。最後，我們團隊對斯科茨代爾四季酒店的參與幫助推動酒店 EBITDA 較去年同期成長 22%。現在我將更詳細地介紹本季所取得的一些成就。

Group pace continues to accelerate across portfolio. Group rooms revenue for the full year is pacing ahead of last year by 3% with the third quarter through the balance of year pacing ahead by 5%. This represents a 71% increase in group rooms revenue compared to full year 2019. Group rate alone has increased by 26% compared to full year 2019.

整個投資組合的集團步伐持續加快。全年團體客房營收比去年同期成長 3%，其中第三季至去年同期的營收比去年同期成長 5%。與 2019 年全年相比，團體客房收入增加了 71%。與 2019 年全年相比，僅集團費率就增加了 26%。

Our 2025 group rooms revenue pace is currently ahead by 20% compared to the prior year. While year over-year-group lead volume has started to normalize, conversion rates remain strong and the average group booking size continues to increase. This has resulted in increased sales efficiencies across many of our hotels.

目前，我們的 2025 年團體客房收入成長率比前一年領先 20%。雖然同比團體銷售量已開始正常化，但轉換率仍然強勁，平均團體預訂規模持續增加。這提高了我們許多酒店的銷售效率。

We are seeing continued growth from the incentive market, which represents corporations rewarding their highest performing employees and partners. The Ritz-Carlton St. Thomas has performed particularly well in the incentive market during the second quarter with group revenue exceeding the prior year quarter by 31%.

我們看到激勵市場持續成長，這代表企業獎勵表現最好的員工和合作夥伴。聖托馬斯麗思卡爾頓酒店第二季度在獎勵旅遊市場的表現尤其出色，集團收入比去年同期增長了 31%。

In addition, the hotel is partnered with Inspire Event Solutions, which provides audiovisual services to in house groups. During the second quarter, audiovisual revenue increased approximately 200% per occupied group room compared to the prior year. Inspire Event Solutions understands clients' needs to deliver unique experiences and exceptional services providing a win-win for the client and our hotel.

此外，飯店也與 Inspire Event Solutions 合作，為內部團體提供視聽服務。第二季度，每個佔用的團體房間的視聽收入與去年同期相比增長了約 200%。Inspire Event Solutions 了解客戶的需求，提供獨特的體驗和卓越的服務，為客戶和我們的飯店實現雙贏。

We're seeing continued success across our urban hotels during the second quarter with hotel EBITDA increasing 8% over the prior year quarter. Additionally, hotel EBITDA margin increased by 40 basis points. Our largest hotel, Capitol Hilton just finished a transformative guest room renovation, which lasted from the first quarter of 2023 to the first quarter of 2024.

我們看到第二季度我們的城市酒店繼續取得成功，酒店 EBITDA 比去年同期增長了 8%。此外，飯店 EBITDA 利潤率成長了 40 個基點。我們最大的飯店 Capitol Hilton 剛完成了一項變革性的客房翻新工程，從 2023 年第一季持續到 2024 年第一季。

While under renovation, the hotel grew full year 2023 total revenue by 28% compared to the prior year. Now that the renovation is fully complete, the hotel is positioned for even further growth as evidenced by the second quarter performance.

在裝修期間，該酒店 2023 年全年總收入較上年增長 28%。現在翻修工作已全面完成，第二季的業績證明了飯店將進一步成長。

During the second quarter, the hotel increased total revenue by 14% over the prior year quarter. Additionally, hotel EBITDA increased by 24% and expanded hotel EBITDA margin by approximately 330 basis points over the prior year quarter.

第二季度，飯店總收入比去年同期成長 14%。此外，飯店 EBITDA 比去年同期成長了 24%，飯店 EBITDA 利潤率擴大了約 330 個基點。

We have also been particularly pleased with the performance of our most recent acquisition, the Four Seasons Scottsdale. We created and executed a detailed takeover plan in which our team identified value add opportunities for creating and optimizing the assets value. During the second quarter, total revenue increased 13% over the prior year quarter. More impressively, hotel EBITDA increased 22% over the prior year quarter.

我們對最近收購的斯科茨代爾四季酒店 (Four Seasons Scottsdale) 的表現也感到特別滿意。我們制定並執行了詳細的收購計劃，其中我們的團隊確定了創造和優化資產價值的增值機會。第二季總營收比去年同期成長 13%。更令人印象深刻的是，飯店 EBITDA 比去年同期成長了 22%。

We expanded our sales solicitation efforts targeting markets and segments that had underperformed. The team secured a large buyout program as well as other entertainment groups by expanding solicitation efforts to target under deployed markets and segments.

我們擴大了針對錶現不佳的市場和細分市場的銷售招標工作。該團隊透過擴大部署不足的市場和細分市場的招標工作，獲得了大型收購計劃以及其他娛樂集團的支持。

Group revenue for the quarter was up 74% over the prior year quarter. In addition, our team implemented several initiatives focused on driving margin including a deep dive into food and beverage, implementing dynamic pricing on spa treatments, minimizing the cost per spa treatment and only backfilling critical positions. These efforts and more led to the hotel improving hotel EBITDA margin by approximately 210 basis points compared to the prior year quarter.

該季度集團營收比去年同期成長 74%。此外，我們的團隊還實施了多項旨在提高利潤率的舉措，包括深入研究食品和飲料、對水療護理實施動態定價、最大限度地降低每次水療護理的成本以及僅補充關鍵職位。這些努力以及更多努力使酒店 EBITDA 利潤率比去年同期提高了約 210 個基點。

Moving on to capital expenditures in the second quarter of 2024, we made significant progress on multiple major renovations. At the Ritz-Carlton Sarasota, we started the transformation of an unused outdoor bar into a new courtyard bar. We also started construction on the Epicurean retail market at the Four Seasons Scottsdale by converting underutilized back of house space into a retail outlet.

接下來是 2024 年第二季的資本支出，我們在多項重大改造方面取得了重大進展。在薩拉索塔麗思卡爾頓酒店，我們開始將一個閒置的戶外酒吧改造成新的庭院酒吧。我們也開始在斯科茨代爾四季酒店建造伊比鳩魯零售市場，將未充分利用的後台空間轉變為零售店。

Lastly, we initiated several transformational renovations to Ritz-Carlton, Lake Tahoe including the relocation and expansion of the living room bar, the fitness center, meeting space and outdoor pool area.

最後，我們對太浩湖麗思卡爾頓酒店進行了幾項轉型性翻修，包括客廳酒吧、健身中心、會議空間和室外泳池區的搬遷和擴建。

In the third quarter of 2024, we will embark on several major renovations across our portfolio. These include comprehensive updates to the restaurants at the Ritz-Carlton Sarasota, the Ritz-Carlton St. Thomas, the Ritz-Carlton, Lake Tahoe and the Ritz-Carlton Reserve Dorado Beach. Additionally, we will begin renovating underutilized beach space at the Ritz-Carlton St. Thomas by adding five luxury beachside cabanas. In the fourth quarter, we plan to begin a guest room renovation at Hotel Yountville. For 2024, we anticipate spending between $80 million and a $100 million, on capital expenditures.

2024 年第三季度，我們將對我們的產品組合進行幾項重大改造。其中包括對薩拉索塔麗思卡爾頓酒店、聖托馬斯麗思卡爾頓酒店、太浩湖麗思卡爾頓酒店和多拉多海灘麗思卡爾頓酒店的餐廳進行全面更新。此外，我們將開始翻新聖托馬斯麗思卡爾頓酒店未充分利用的海灘空間，增加五個豪華海濱小屋。我們計劃在第四季開始對揚特維爾酒店的客房進行翻修。2024 年，我們預計資本支出將在 8,000 萬至 1 億美元之間。

We are already executing new initiatives to further enhance our portfolio, which include a transformative full property brand conversion and the potential development of underutilized land. With these new initiatives underway, we are optimistic about the future for this portfolio.

我們已經在執行新舉措，以進一步增強我們的投資組合，其中包括變革性的全面房地產品牌轉換和未充分利用土地的潛在開發。隨著這些新措施的實施，我們對該產品組合的未來感到樂觀。

I will now turn the call back to Richard.

我現在將電話轉回給理查德。

Thank you, Chris. In summary, I'd like to reiterate that we continue to be pleased with the performance of our hotels. We also remain very well positioned with a solid balance sheet and promising outlook. We look forward to updating you on our progress in the quarters ahead.

謝謝你，克里斯。總之，我想重申，我們對酒店的表現仍然感到滿意。我們也保持著良好的地位，擁有穩健的資產負債表和充滿希望的前景。我們期待向您通報我們未來幾季的最新進展。

This concludes our prepared remarks, and we'll now open the call for Q&A. Please note that our comments regarding the recent settlement with Blackwells will be limited to what has been publicly filed, so we'll not be able to respond to questions on that specific matter.

我們準備好的演講到此結束，現在我們將開始問答環節。請注意，我們對最近與 Blackwells 達成的和解的評論將僅限於已公開提交的內容，因此我們無法回答有關該具體事項的問題。

Please limit your questions to those concerning the company's assets, operations, management's industry outlook and capital allocation priorities as well as our recently announced shareholder value creation plan. Thank you.

請將您的問題限制在有關公司的資產、營運、管理層的行業前景和資本配置優先事項以及我們最近宣布的股東價值創造計劃的問題。謝謝。

(Operator Instructions)

（操作員說明）

Tyler Batory, Oppenheimer.

泰勒·巴托里，奧本海默。

Hey. Good morning. Thanks for taking my questions. So in terms of the softness in resort ADR that you're seeing, can you just address that a little bit more in-depth? I'm not sure how much of that is kind of asset specific versus macro versus a demand pullback, just really trying to get a good sense of what's driving that?

嘿。早安.感謝您回答我的問題。那麼，就您所看到的度假村 ADR 的疲軟而言，您能否更深入地解決這個問題？我不確定其中有多少是特定資產、宏觀和需求回調的影響，只是想很好地了解是什麼推動了這個趨勢？

Hey, Tyler, it's Chris. I can take that. So, our resorts are down year-over-year when we look at kind of revenue performance. However, they're still up significantly versus 2019. Our resorts were up over 45% versus 2019 and so there is some softening in demand. We think there's a few things at play there. I think the resort and leisure kind of segments are normalizing a bit. There was also some impact in Q2 with the Easter and spring break shift.

嘿，泰勒，我是克里斯。我可以接受。因此，當我們查看收入表現時，我們的度假村逐年下降。然而，與 2019 年相比，它們仍然大幅上升。我們的度假村較 2019 年成長了 45% 以上，因此需求疲軟。我們認為其中有一些因素在起作用。我認為度假和休閒類細分市場正在逐漸正常化。復活節和春假的轉變對第二季也產生了一些影響。

We saw kind of that last week in March. There were significantly more spring breaks, schools on spring break this year than they were last year. The first week in April was roughly the same, but that second week in April, there was significantly fewer spring breaks this year than there were last year.

三月的上週我們看到了這樣的情況。今年春假的數量、學校春假的數量明顯多於去年。4月的第一周大致相同，但4月的第二週，今年的春假次數明顯少於去年。

So there was a shift in demand kind of out of April and end of March, which also affected the resorts. When you look at our resorts, our two ski resorts, Ritz-Carlton, Lake Tahoe and Park Hyatt, Beaver Creek both experienced significantly softer snowfall than we've seen the prior year. That resulted in the mountains closing earlier in April this year than they did last year and had a pretty significant impact to resort revenue across portfolio. So it was a combination of all those things.

因此，需求在四月和三月底發生了變化，也影響了度假村。當你看看我們的度假村時，我們的兩個滑雪度假村——太浩湖麗思卡爾頓酒店和海狸溪柏悅酒店——的降雪量都比去年要軟得多。這導致今年 4 月山區關閉時間比去年提前，並對整個投資組合的度假村收入產生了相當大的影響。所以這是所有這些事情的結合。

I'd add to that that, if you look at the portfolio wide hotel EBITDA performance, which is down about 5%, all of that and more can be accounted for by the performance of Dorado Beach and the EBITDA drop year-over-year to that property. And as Chris said, a lot of factors at play there, most notably the Easter timing shift into the first quarter from the second quarter. So Dorado Beach certainly missed out in the second quarter as a result of that, but it's really just a shift in timing that accounted for that.

我想補充一點，如果你看一下整個投資組合酒店的 EBITDA 業績（下降了約 5%），所有這些以及更多的因素都可以歸因於多拉多海灘的業績和 EBITDA 同比下降到該財產。正如克里斯所說，有很多因素在起作用，最值得注意的是復活節時間從第二季轉移到第一季。因此，多拉多海灘肯定因此錯過了第二季度的比賽，但這實際上只是時間的轉變造成的。

Okay. Makes sense. And then quick follow-up on portfolio trends. There's been some discussion about DC impact from the upcoming election. Is that something that you're seeing in your forward bookings now especially on the group side of things in November?

好的。有道理。然後快速跟進投資組合趨勢。關於即將到來的選舉對華盛頓特區的影響存在一些討論。您現在的提前預訂中是否也出現過這種情況（尤其是 11 月的團體預訂）？

Yes, it's cap built in. I mean group pace on the whole is very strong there. DC has got a strong citywide calendar this year. We are seeing some softness specifically as it relates to government groups and government business. Luckily for that hotel, we've been able to effectively offset it with other segments and other group segments and so, that hotel, I think the renovation timing was spot on.

是的，它是內建的。我的意思是，那裡的整體節奏非常強勁。今年，華盛頓特區的全市日曆很豐富。我們看到了一些特別是與政府團體和政府業務相關的疲軟。對於那家酒店來說幸運的是，我們已經能夠透過其他細分市場和其他集團細分市場有效地抵消它，因此，我認為那家酒店的裝修時機恰到好處。

As you heard with my prepared remarks, through the renovation, we drove revenue, we had a very strong year and now that the renovation is behind us, the market is really, the customers are really responding well to the new product and so we're very excited about the outlook, but yes, we're certainly seeing some softness as it relates to specifically those government segments through kind of the inauguration period.

正如您在我準備好的演講中聽到的那樣，透過翻新，我們增加了收入，我們度過了非常強勁的一年，現在翻新已經過去，市場確實如此，客戶對新產品的反應確實很好，所以我們'我們對前景感到非常興奮，但是，是的，我們確實看到了一些疲軟，因為它與就職期間的那些政府部門有關。

Okay. And then last for me in terms of the shareholder value creation plan, you've checked off a number of boxes there. Talk more about, the two hotels you could sell, what might go into that decision, which you're seeing out there in the market and then, you bought back, I think, 40 million of the of the preferred, but you still got the share buyback that's out there as well. So talk about how you're thinking about potentially executing on that too.

好的。最後對我來說，就股東價值創造計畫而言，您已經勾選了其中的許多方框。多談談，你可以出售的兩家酒店，可能會影響這個決定，你在市場上看到的，然後，你買回了，我想，4000萬的首選酒店，但你仍然得到了股票回購也在那裡。因此，請談談您是如何考慮執行該計劃的。

Sure. On the two potential assets sales, we're still going through the internal process of evaluating the right candidate for that, leaning towards what I would say are more noncore, so therefore non-luxury hotels as those candidates. We don't have anything actively in marketing right now, but in the coming months, we'll finalize our work on that and get moving. So that's still very much in play.

當然。關於兩項潛在的資產出售，我們仍在評估合適的候選人的內部流程，傾向於我所說的非核心酒店，因此非豪華酒店作為候選人。目前我們在行銷方面還沒有任何積極的舉措，但在接下來的幾個月裡，我們將完成這方面的工作並開始行動。所以這仍然很重要。

In terms of the share buyback and progress on that, there's a couple of things there that are considerations for the appropriate timing. We have the authorization in place. The first kind of hurdle for us was ensuring that we have adequate liquidity to move forward because we did announce also this preferred redemption program at the same time.

就股票回購及其進展而言，有幾件事需要考慮適當的時機。我們已獲得授權。我們面臨的第一個障礙是確保我們有足夠的流動性來前進，因為我們同時也宣布了這個優先贖回計劃。

With the sale of Torrey Pines, we've shored up our liquidity pretty significantly, but then the other not necessarily called hurdle, but the other factor here is, when do we as management have the ability to go into the market to buy shares by not having non-public information and the timing has coincided in terms of the sales of Torrey Pines with our earnings and some other announcements that we made, etc. that have prevented us from proceeding but we hope to be back in action on that front shortly as well.

透過出售多利松，我們的流動性得到了相當大的提升，但另一個不一定稱為障礙，但這裡的另一個因素是，我們作為管理層何時有能力進入市場購買股票沒有非公開信息，而且就多利鬆的銷售而言，時間與我們的收益和我們發布的其他一些公告等重合，這阻礙了我們繼續進行，但我們希望很快能在這方面採取行動以及。

Bryan Maher, B. Riley Securities

布萊恩‧馬赫 (Bryan Maher)，B. 萊利證券

Thank you and good morning. Just a couple from me. Tyler got most of mine. It seems like only a few quarters ago, maybe it was a year, year and a half that I felt like we were talking about being in the market buying one or two hotels a year and now we just sold an asset, possibly two more for sale. What's been the key change that has kind of changed course for the company there? Is it really kind of cost of capital, higher interest rates? I mean, maybe you can give a little color on that, Richard or Deric.

謝謝你，早安。只是我的一對。泰勒得到了我的大部分。似乎就在幾個季度前，也許是一年、一年半之前，我覺得我們正在談論每年在市場上購買一到兩家酒店，而現在我們只是出售一項資產，可能還有兩家銷售。改變該公司發展方向的關鍵變化是什麼？這真的是資本成本、更高的利率嗎？我的意思是，理查德或德里克，也許你可以對此進行一些說明。

Sure, Bryan. When we said that, that was our plan, it was 100% our objective. I think we've all been surprised by the higher for longer environment that we've been in. Cost of capital is significantly higher, but our availability of excess cash flow has also been constrained and so as a result that puts us on the sidelines.

當然，布萊恩。當我們這麼說時，這就是我們的計劃，這就是我們 100% 的目標。我想我們都對我們所處的更高、更長的環境感到驚訝。資本成本明顯更高，但我們可用的過剩現金流也受到限制，因此我們處於觀望狀態。

Yes, I would say that there are probably some interesting acquisition opportunities still available out there and we've seen some of our peers pursuing those, but for us, we're really much more focused on our balance sheet and doing the various CapEx projects that we have on cap as well and so that's been the highest and best use of our liquidity is to pursue those things rather than new acquisitions.

是的，我想說，可能仍然存在一些有趣的收購機會，我們已經看到一些同行在追求這些機會，但對我們來說，我們實際上更關注我們的資產負債表和開展各種資本支出項目我們也有上限，因此對我們流動性的最高和最佳利用是追求這些目標而不是新的收購。

And that's maybe a good segue to my second question, which is the cameo. What what's going on there? I mean, RevPAR was pretty weak. I think it was down 18% for the quarter. Is the renovation there underway? When is it planning on starting? How deep is it? Can you tell us what the plans are for that property? Yeah.

這也許是我的第二個問題的一個很好的延續，即客串。那裡發生了什麼事？我的意思是，RevPAR 相當弱。我認為該季度下降了 18%。那裡正在裝修嗎？計劃什麼時候開始？有多深？您能告訴我們該房產的計畫是什麼嗎？是的。

We're very excited about the outlook of that hotel once we get it rebranded, fully renovated, converted to the LXR brand. Right now we're working through the model room with Hilton. We want to make sure that we get that right. So, the full on guest room renovation hasn't started. We're going through design, we're going through the model room, figuring out the public spaces, the pools. But what we've got so far we're very, very excited about. Until then we're in kind of this period where we're white labeled. We're on Hilton's website, but more as an independent hotel.

一旦我們重新命名、全面翻新並轉換為 LXR 品牌，我們對該酒店的前景感到非常興奮。現在我們正在與希爾頓一起設計樣板間。我們希望確保我們做對了。所以，全面的客房裝潢還沒開始。我們正在經歷設計，我們正在經歷樣品屋，弄清楚公共空間和游泳池。但到目前為止我們所取得的成果讓我們非常非常興奮。在那之前，我們就處於一個被貼上「白標」標籤的時期。我們在希爾頓的網站上，但更多的是作為一家獨立酒店。

The biggest impact there has been the loss of American Express Fine Hotels and Resorts. That's a segment of business that generated millions of dollars for the hotel each year. Without the strong brand on the hotel, we're no longer in that program. Part of the big influence and why we selected LXR is every LXR branded hotel is in that program and so, we're very optimistic that once the renovation is complete, we'll be back in that program, but outrunning that revenue stream has been the biggest impact.

其中最大的影響是美國運通精品飯店及度假村的損失。該業務每年為酒店創造數百萬美元的收入。如果飯店沒有強大的品牌，我們就不再參與該計劃。我們選擇 LXR 的巨大影響力和原因之一是每家 LXR 品牌酒店都參與該計劃，因此，我們非常樂觀地認為，一旦翻修完成，我們將重新參與該計劃，但超出該收入流的情況是影響最大。

Maybe sticking with the cameo for one more second. I think that there was, correct me if I'm wrong, I think there was like five kind of residences slash condos. I remember two of them a few years ago and I and I thought that there was a plan to sell those. What what's the current thought process on that asset of the component of the portfolio of that property?

也許再堅持客串一秒鐘。我認為，如果我錯了，請糾正我，我認為有五種住宅和公寓。我記得幾年前有兩個，我和我認為有計劃出售它們。目前對該財產投資組合組成部分的資產的思考過程是什麼？

Bryan, your memory serves you correctly. That is still the plan. We've been working through a city regulation recently in order to get the permission to sell those. That approval process has taken a little bit longer than we would have liked. Nevertheless, we have hired an agent to sell those residences and expect that process to start moving forward more rapidly very soon.

布萊恩，你的記憶沒錯。這仍然是計劃。我們最近一直在研究一項城市法規，以獲得銷售這些產品的許可。這個批准過程花費的時間比我們希望的要長一些。儘管如此，我們已經聘請了一名代理商來出售這些住宅，並預計這一過程很快就會開始更快地推進。

Michael Bellisario, Baird.

邁克爾貝利薩裡奧，貝爾德。

Thank you. Good morning, everyone. A couple of questions for you. First for Deric, maybe on the incentive fee. Can you remind us of the calculation? Is there a cap on the payment and sort of what are the inputs there to come up with that calculation on the incentive fee side?

謝謝。大家早安。有幾個問題想問你。首先對德瑞克來說，也許是獎勵費。能提醒我們一下計算過程嗎？付款是否有上限，以及在獎勵費方面進行計算時需要輸入哪些資訊？

Yes, the incentive fee under the advisory agreement is purely based on total shareholder return outperformance versus peers. So, we look at the peer average, it's done on an annualized basis, so it won't be firm and final until the end of the year. But during the year, we do approve for that, if it would be owed and that's what happened in the quarter. It's purely as a result of the stock performance of Braemar year-to-date. And there is a cap on it and the cap is based on the outperformance is capped at 25% and it's 5% of the outperformance. So it's 1.25% of the equity market cap is the cap on that fee.

是的，諮詢協議下的激勵費純粹基於股東總回報優於同業的表現。因此，我們查看同行平均水平，它是按年計算的，因此要到年底才能確定。但在這一年中，如果欠款的話，我們確實批准這樣做，這就是本季發生的情況。這純粹是由於BMW今年迄今的股票表現所致。而且它有一個上限，上限是基於表現出色的，上限是25%，是表現出色的5%。因此，該費用的上限為股票市值的 1.25%。

And is that -- equity market shares -- outstanding or is that preferred as converted shares outstanding? (technical difficulty)

股票市場股票是流通股還是優先轉換為流通股？（技術難度）

It's just the current equity market cap, common equity market cap does not include the preferred.

這只是目前的股票市值，普通股市值不包括優先股。

Got it. Helpful. And then just switching gears a little on capital allocation, elevated CapEx this year. I know some of that's on some onetime projects. Maybe help us understand sort of the underlying run rate for spend within the portfolio and then how you're balancing some of the cash inflows and outflows, over the next 12 to 24 months, especially given that CapEx number is greater than your cash flow from operations?

知道了。有幫助。然後，只需在資本配置上稍作調整，今年的資本支出就會增加。我知道其中一些是在一些一次性項目中。Maybe help us understand sort of the underlying run rate for spend within the portfolio and then how you're balancing some of the cash inflows and outflows, over the next 12 to 24 months, especially given that CapEx number is greater than your cash flow from營運?

Michael, thanks for the question. So with a portfolio for this size, you're going to see of more volatility in terms of average run rate based on the projects that we're doing. We've got a number of projects that we're very excited about that are underway this year. We just finished the guest rooms at Bardessono, the renovation we mentioned at Capital Hilton.

邁克爾，謝謝你的提問。因此，對於這種規模的投資組合，您將看到基於我們正在進行的專案的平均運行率存在更大的波動性。今年我們有許多令我們感到非常興奮的項目正在進行中。我們剛剛完成了巴德索諾的客房，以及我們在首都希爾頓酒店提到的翻修工程。

We've got a number of projects that are ongoing at Ritz-Carlton, Lake Tahoe that we're very excited about. That hotel is going to be completely transformed. We finished up the guest rooms and have we're doing all the public and meeting space and the outdoor space now. Some smaller value add projects you heard me cite in my opening remarks and so there is a spike this year. I think, the percentage of revenue is slightly higher than we've had in the past.

太浩湖麗思卡爾頓酒店正在進行許多項目，我們對此感到非常興奮。那家酒店將徹底改造。我們已經完成了客房的裝修，現在正在裝修所有的公共空間、會議空間和戶外空間。您聽到我在開場白中引用了一些較小的增值項目，因此今年出現了激增。我認為，收入的百分比略高於我們過去的水平。

From a stabilized basis, we go forward. We're looking to get back under historic levels and I think that's what you'll see from us in terms of percentage of revenue and what we spend going forward. But there is some volatility here just in terms of where projects fall having a portfolio of this size.

在穩定的基礎上，我們繼續前進。我們希望回到歷史水平以下，我認為這就是您從我們身上看到的收入百分比和未來支出的情況。但就擁有如此規模的投資組合的項目而言，這裡存在一些波動。

And I'd add to that also that, Michael, it's just something we're looking at very closely in terms of kind of sequencing our projects. We've had a specific goal this year to reduce our amount of owner funded CapEx, which we've been able to reduce by close to 30%. So that's definitely an objective as well to conserve cash flow.

我還要補充一點，邁克爾，這只是我們在專案排序方面非常密切關注的事情。今年我們的具體目標是減少所有者資助的資本支出，我們已經將其減少了近 30%。因此，這絕對是節省現金流的目標。

And just remind me, what's the 30% figure?

請提醒我，30% 這個數字是多少？

The amount of owner funded CapEx, this year versus last year.

今年與去年相比，所有者資助的資本支出金額。

Okay. And then just lastly, sort of along the same lines, balance sheet leverages 40%. In prior quarters, you've talked about a 35% target. You haven't talked about that in a while. I guess, one, is that still a target? Where is leverage pro forma for La Jolla? And then kind of what's the timeline or the plan to get that back down to 35%? And that's all for me. Thank you.

好的。最後，類似地，資產負債表槓桿比率為 40%。在前幾個季度，您談到了 35% 的目標。你們已經有一段時間沒有談論這個了。我想，一，這仍然是一個目標嗎？拉霍亞的準備槓桿在哪裡？那麼將這一比例降至 35% 的時間表或計劃是什麼？這就是我的全部。謝謝。

Yes. I'll let Deric chime in as well. That's definitely our plan. With La Jolla sale, I don't know that moves the needle too much. Deric is going to let us know in a second, but I think once we have the two other asset sales that we've talked about, we'll be honing in on that 35% or lower, which I would anticipate will achieve by this time next year.

是的。我也會讓 Deric 插話。這絕對是我們的計劃。對於拉霍亞的促銷活動，我不知道這會帶來多大的影響。Deric 很快就會通知我們，但我認為一旦我們討論過的另外兩項資產出售，我們將努力實現 35% 或更低，我預計這將實現明年的時間。

And with that, I'll turn the call back to management for any closing remarks.

至此，我會將電話轉回管理階層，讓他們發表結束語。

All right. Thank you for joining us on our second quarter earnings call, and we look forward to speaking with you all again next quarter. Thank you.

好的。感謝您參加我們的第二季財報電話會議，我們期待下季再次與您交談。謝謝。

This does conclude today's earnings call and thank you all for joining. You may now disconnect.

今天的財報電話會議到此結束，感謝大家的參與。您現在可以斷開連線。