BHR - The Gloomy Future Of Braemar Hotels And Ashford

2024-04-17 20:23:55 ET

Summary

• Braemar's dividend coverage is only at 80%, and it has a front-loaded debt repayment schedule.
• The company saw its AFFO per share dip by 12 cents year-over-year.
• The collapse of AINC and interest rates remaining higher for longer spell gloom for BHR.

When I last covered Braemar Hotels & Resorts ( BHR ), the core message was poignant; avoid the commons forever. The commons have dipped by 23% as BHR fights to address a wall of debt maturities and higher interest expenses that have heavily discombobulated its ability to earn cash on its portfolio of hotels and resorts. The REIT, externally managed by Ashford ( AINC ), faces a murky future with its dividend not covered. The share price collapse of AINC whose board also recently approved a plan to cancel the registration of its common stock on the NYSE adds to this picture. While this will have no near-term impact on BHR, it adds to the REIT's specter of risk and could contribute to a continuation of negative investor sentiment. ...

For further details see: