Key Highlights

  • The loss for common holders reached USD 240.9 million, or USD 3.51 per diluted share, versus USD 8.2 million (USD 0.12) a year earlier, largely reflecting a USD 480.0 million fee owed to the outside advisor.
  • Comparable RevPAR grew 14.4% to USD 284, while average daily rate increased 8.6% to USD 419 and occupancy rose 5.3% to 67.9%.
  • Comparable Hotel EBITDA advanced 20.7% to USD 12.9 million, though adjusted EBITDAre dropped to USD 3.9 million from USD 16.4 million.
  • Adjusted funds from operations came to negative USD 0.25 per diluted share, worse than negative USD 0.19 in the prior-year period.

Advisor Fee Pushes the Quarter Into a Large Loss

Braemar Hotels & Resorts (NYSE:BHR) published third-quarter 2026 figures on November 4, 2026. The net loss attributable to common stockholders came to USD 240.9 million, or USD 3.51 per diluted share, mainly because of a USD 480.0 million termination fee payable to its external advisor, booked during the period. The year-earlier loss was a far smaller USD 8.2 million, or USD 0.12 per share. Comparable total hotel Revenue increased 9.9% to USD 95.2 million. Management reported that the last hotel sale needed to finish the move to self-management, and to settle the remaining advisor fees, has closed, and the REIT expects to become self-managed in mid-November.

Urban Hotels Lead as Portfolio Sales Reshape Results

Operating results were solid. Comparable RevPAR of USD 284 ranked as the second-best third quarter in company history, and the comparable Hotel EBITDA Margin expanded 122 basis points to 13.6%. Urban properties delivered RevPAR growth of 23.3% and Hotel EBITDA growth of 63.2% to USD 10.1 million. Resort RevPAR rose 5.9% to USD 457, and Cameo Beverly Hills gained 82.8% in RevPAR following its move into Hilton's LXR collection. Adjusted EBITDAre declined because the prior-year figure included properties since sold. Sales closed on the Ritz-Carlton Sarasota, Hotel Yountville and Bardessono Hotel and Spa for USD 437.5 million combined in July, the Pier House Resort for USD 190.0 million in August and the Four Seasons Resort Scottsdale for USD 372 million on October 28, 2026, a total of about USD 999.5 million (calculated).

Leverage, Cash and a Lower-Spread Refinancing

Braemar held USD 78.9 million of cash and USD 39.6 million of restricted cash at quarter end. Its USD 624.4 million of Debt is entirely non-recourse and floating rate, carrying a blended rate of 7.25%, and net debt to gross Assets stood at 33.3%. On October 30, 2026 the Ritz-Carlton Lake Tahoe Loan was refinanced into a USD 60.0 million Facility at a tighter spread, pushing the next hard Maturity out to December 2028. The board intends to put forward seven new independent directors for the 2026 annual meeting. Preferred payouts continue, with Series B at USD 0.3438 and Series D at USD 0.5156 per share, and USD 63.5 million of redeemable preferred redemptions were payable.

Where Things Stand

The fee, a charge tied to ending the external advisory relationship, explains most of the loss. Braemar Hotels & Resorts (NYSE:BHR) still grew hotel-level profit, with comparable RevPAR up 14.4%, but adjusted EBITDAre and AFFO per share were weaker than a year earlier. Third quarter is seasonally the weakest period. Next markers are completion of the self-management shift in mid-November, the annual meeting with new director nominees and any further asset sales or debt actions.