Braemar Hotels & Resorts Inc. reported its financial results for the quarter and nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total hotel revenue decreased to $148.4 million from $159.8 million in the same period of 2023, marking a decline of 7.1%. The nine-month total hotel revenue also saw a slight decrease, falling to $555.1 million from $561.8 million, a drop of 1.2%. Operating expenses for the quarter increased to $166.3 million, up from $159.2 million, while for the nine months, expenses rose to $518.3 million from $506.0 million, reflecting a 2.4% increase.

Despite the revenue decline, Braemar reported a substantial increase in operating income for the quarter, which rose to $70.3 million from just $0.7 million in 2023, and for the nine months, operating income surged to $125.0 million from $55.8 million. Net income for the quarter was $39.8 million, a significant turnaround from a loss of $22.6 million in the prior year. For the nine months, net income reached $41.5 million, compared to a loss of $9.1 million in 2023.

The company attributed its improved profitability to a gain of approximately $88.2 million from the sale of the Hilton La Jolla Torrey Pines for $165 million, which was completed on July 17, 2024. This sale allowed Braemar to repay a $66.6 million mortgage loan secured by the property. Additionally, the company closed on a refinancing deal involving five hotels totaling $407 million, with a floating interest rate of SOFR + 3.24%.

Braemar's investments in hotel properties decreased to $1.79 billion as of September 30, 2024, down from $1.88 billion at the end of 2023. Total assets also declined to $2.18 billion from $2.23 billion, while total stockholders’ equity fell to $276.9 million from $307.0 million. The company’s net indebtedness increased to $1.21 billion from $1.16 billion.

In terms of operational metrics, the occupancy rate improved to 68.2% from 66.7% in the previous year, although the average daily rate (ADR) decreased to $378.80 from $393.48. Revenue per available room (RevPAR) also saw a slight decline to $258.41 from $262.54.

Strategically, Braemar has engaged in various financial maneuvers, including a new share repurchase program approved on May 3, 2024, allowing for the repurchase of up to $50 million in common stock. The company also reported a significant increase in cash and cash equivalents, which rose to $168.7 million from $85.6 million at the end of 2023.