Financial Outlook
The Company is providing one-time financial guidance so that shareholders can more fully understand the future of Braemar on a pro forma basis as it undergoes its transition.
The Company’s full-year 2027 outlook assumes a projected net debt balance of approximately $405 million1 and projected preferred equity outstanding of approximately $407 million2 as of December 31, 2026, and expects the following results for the year ending December 31, 2027:
Full Year 2027 Guidance
| Low-end of range | High-end of range | Middle of range | |
| RevPAR Growth | +4.5% | +6.5% | +5.5% |
| Comparable RevPAR | $ 354 | $ 361 | $ 358 |
| Comparable total RevPAR | $ 535 | $ 542 | $ 539 |
| Total revenues (millions) | $ 407 | $ 412 | $ 409 |
| Operating profit margin under GAAP | 7.1% | 8.2% | 7.7% |
| Comparable hotel EBITDA margin | 24.5% | 25.4% | 24.9% |
| Capital Expenditures (% of total Revenue) | 7.0% | 9.0% | 8.0% |
Based upon the above parameters, the Company estimates its 2027 guidance as follows:
| Low-end of range | High-end of range | Middle of range | |
| Net income under GAAP (millions)3 | ($ 11) | ($ 6) | ($ 9) |
| Adjusted EBITDAre (millions) | $ 85 | $ 90 | $ 88 |
| Diluted earnings per common share under GAAP3 | ($ 0.50) | ($ 0.43) | ($ 0.47) |
| NAREIT FFO per diluted share | $ 0.23 | $ 0.30 | $ 0.26 |
| Adjusted FFO per diluted share | $ 0.25 | $ 0.31 | $ 0.28 |
These estimates assume annual corporate, general and administrative expenses of $15 million and shares outstanding totaling 74.3 million4 as of June 30, 2026.
| (1) | Includes gross debt of $570 million, unrestricted cash of $111 million, restricted cash of $46 million, and a loan receivable of $9 million, differences due to rounding | |
| (2) | Assumes $8 million of redemptions in Q4 2026 | |
| (3) | Under U.S. GAAP, net income is the residual amount of an entity's revenues and gains for a reporting period, after deducting all expenses and losses recognized on an accrual basis. That includes non-cash charges such as depreciation, amortization, impairment losses, share-based compensation, deferred income tax expense, and unrealized losses on certain financial instruments | |
| (4) | Adjusted from 73.3 million shares outstanding to include 1 million shares of stock-based compensation for 2027 |
Richard Stockton, Braemar’s President and Chief Executive Officer, said, "With Four Seasons Resort Scottsdale under contract and our transition to self-management on schedule, Braemar is well positioned to deliver long-term value for our shareholders. Current sector tailwinds and strong fundamentals support our luxury hotel investment strategy."
Mr. Stockton continued, "We have consistently demonstrated an ability to grow selectively and accretively. Going forward, we will remain disciplined and deliberate in evaluating opportunities to add complementary properties to our portfolio while maintaining our focus on the luxury hotel segment. We are excited about this portfolio and will remain open to any pathway that maximizes its value."
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