Braemar Hotels & Resorts Inc. (BHR): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of a high-end real estate investment trust, and honestly, understanding the core engine of a company like Braemar Hotels & Resorts Inc. is where the real alpha (outperformance) hides. As someone who's spent two decades mapping these structures, I can tell you their model is built on managing a portfolio of 14 trophy assets, driving $143.56 million in Rooms Revenue in Q3 2025 alone, all while navigating tricky debt maturity schedules. Below, we break down exactly how they create shareholder value-from their key partnerships with major brands to the cost structure dominated by interest expense on their $2 billion asset base-so you can see the risks and opportunities clearly.

Braemar Hotels & Resorts Inc. (BHR) - Canvas Business Model: Key Partnerships

The Key Partnerships for Braemar Hotels & Resorts Inc. (BHR) center on brand affiliation, capital structure management, and strategic transaction advisory as the company pursued a sale process in late 2025.

The portfolio relies on affiliations with major global hotel brands to maintain its luxury positioning and achieve premium RevPAR performance, which year-to-date through June 30, 2025, was 2.9% growth, outpacing the U.S. Hotel Industry's 0.8% growth.

• Ritz-Carlton Reserve
• Four Seasons
• Ritz Carlton
• Park Hyatt
• Autograph Collection by Marriott
• Hilton
• Sofitel

Third-party management is utilized for specific assets, such as the 415-room Sofitel Chicago Magnificent Mile, which transitioned to a franchise structure but remains managed by Remington Hospitality under an existing Master Hotel Management Agreement, as announced in April 2025.

Capital structure management involves significant relationships with commercial lenders, highlighted by the March 2025 refinancing:

Partner Type	Specific Entity/Transaction Detail	Financial Amount/Metric
Commercial Lender (Originator)	JPMorgan Chase Bank	New loan of $363 million
Refinanced Debt Component	Existing debt refinanced by the new loan	$355 million
Closing Costs Financed	Estimated closing-related costs	$8 million
Loan-to-Value (LTV)	New financing LTV based on appraisals	48.9%
Appraised Value of Secured Hotels	Sum of 'as-is' values for the five secured hotels	$742.2 million

The strategic review and potential sale process, initiated in August 2025, required engagement with specialized financial advisors.

A critical operational partnership is with Ashford Inc., related to the Advisory Agreement. In the context of a change of control transaction, Ashford agreed to accept a total Company Sale Fee of $480 million, against which an advance of $17 million was received upon execution of the letter agreement in August 2025.

Joint venture structures are key for specific asset ownership, such as the 550-room Capital Hilton in Washington, D.C., where Braemar Hotels & Resorts Inc. owns a 75% equity interest in the joint venture (the 'Hilton JV'). This property was refinanced with a new mortgage loan from Aareal Capital Corporation.

The table below details the financing partnership for the Capital Hilton:

Asset	Joint Venture Equity Interest (BHR)	Lender	Loan Amount	Maturity Date (Initial)
Capital Hilton	75%	Aareal Capital Corporation	$110.6 million	December 2026

The engagement of Robert W. Baird & Co. Inc. ('Baird') as the financial advisor for the sale process is a time-sensitive partnership, alongside legal advisors White & Case LLP.

Braemar Hotels & Resorts Inc. (BHR) - Canvas Business Model: Key Activities

You're looking at the core actions Braemar Hotels & Resorts Inc. takes to run its luxury hotel portfolio and execute its strategic vision as of late 2025. These activities are all about maximizing asset value and managing the balance sheet in a focused, high-end segment.

Active asset management and strategic capital deployment

Active asset management is central to Braemar Hotels & Resorts Inc.'s strategy, focusing on enhancing property values through disciplined investment and portfolio refinement. This involves continuous evaluation of the 14 hotels in the portfolio as of September 30, 2025, to ensure they meet the high RevPAR targets expected of luxury properties. The company is actively positioning itself for a potential sale, which makes every capital deployment decision critical for maximizing the final transaction value.

The capital deployment for the year 2025 is substantial, with expected Capital expenditures (Capex) to be between $75 million and $85 million. For the third quarter alone, Capex invested was $21.5 million. This spending supports the ongoing drive for operational excellence and property upgrades.

Acquiring and disposing of luxury/upper-upscale hotel real estate

The current focus is heavily weighted toward disposition to deleverage and sharpen the portfolio. Braemar Hotels & Resorts Inc. completed the sale of the Marriott Seattle Waterfront in August 2025 for $145 million, which repaid $88.4 million of debt. Following that, a definitive agreement was reached to sell The Clancy in San Francisco for $115 million, which closed post-quarter on November 7, 2025, repaying $64.7 million of debt.

These sales are part of a broader strategic move, as the Board of Directors initiated a process for the sale of the entire Company in August 2025. The portfolio as of Q3 2025 consisted of 14 hotels with 3,298 net rooms.

Here are the key portfolio transactions and positioning metrics:

Metric/Activity	Value/Status
Sale Price - Marriott Seattle Waterfront	$145 million
Sale Price - The Clancy (Agreed/Closed)	$115 million
Portfolio Size (Rooms) as of Q3 2025	3,298 net rooms
Portfolio Size (Hotels) as of Q3 2025	14 hotels
Year-to-Date RevPAR Growth (through June 30, 2025)	2.9% (vs. U.S. Industry 0.8%)

Managing debt and capital structure (e.g., addressing 2025 debt maturities)

Managing the capital structure involved successfully addressing the final 2025 debt maturities, which is a major de-risking activity. The company redeemed approximately $125 million of its non-traded preferred stock to date. You should note that as of the Q3 2025 earnings call, Braemar Hotels & Resorts Inc. confirmed it has no remaining debt maturities in 2025.

The balance sheet remains leveraged, with the net debt to gross assets ratio at 43.2% at the end of the third quarter. A significant portion of the debt is floating, with approximately 87% floating (caps in place), carrying a blended rate of approximately 6.9%.

Key debt management actions include:

• Refinanced mortgage loan secured by Four Seasons Resort Scottsdale True North at SOFR +3.00%.
• Extended Ritz-Carlton Lake Tahoe mortgage with a $10 million paydown, setting the spread to SOFR +3.25%.
• Completed a $363 million refinancing across five hotels earlier in the year at SOFR +2.52%.

Overseeing property renovations and capital projects (e.g., Ritz-Carlton Lake Tahoe)

Overseeing property renovations is a key activity that temporarily impacts operating results but is intended to drive future premium pricing and occupancy. The Ritz-Carlton Lake Tahoe, for instance, came off a major renovation last year and showed strong performance in Q3 2025, with total revenue up 32% year-over-year. This renovation, which took 19 months and was completed in December 2024, included upgrading 188 guest rooms and suites and converting office space into a Topgolf Swing Suite.

The portfolio experienced temporary headwinds due to ongoing renovations at multiple properties. For example, the Park Hyatt Beaver Creek was noted as under renovation in Q2 2025. Excluding hotels under renovation during Q3 2025, the portfolio's RevPAR growth was 3.4%.

Driving operational efficiency and flow-through to Hotel EBITDA

Driving operational efficiency is evident in the strong flow-through achieved on revenue growth, which management highlighted. In Q3 2025, property managers generated strong flow-through, resulting in approximately 15% growth in comparable Hotel EBITDA.

The results show this efficiency in action across the portfolio:

Comparable Hotel EBITDA for the entire portfolio increased 15.1% year-over-year to $21.4 million in Q3 2025. This contrasts with a net loss attributable to common stockholders of $(8.2) million for the same period. In Q1 2025, Comparable Hotel EBITDA was $70.8 million, with the Hotel EBITDA margin improving to 32.4% from 32.1% in Q1 2024.

The resort segment is a particular driver of this efficiency, with comparable resort RevPAR growth of 5.5% in Q3 2025, and resort comparable Hotel EBITDA up approximately 58% year-over-year for that quarter. Finance: draft 13-week cash view by Friday.

Braemar Hotels & Resorts Inc. (BHR) - Canvas Business Model: Key Resources

You're looking at the core assets that power Braemar Hotels & Resorts Inc.'s operations as of late 2025. These aren't just line items; they are the tangible and intangible foundations supporting their luxury lodging strategy, especially as they navigate a formal sale process initiated in August 2025.

Portfolio of 14 luxury and upper-upscale hotels and resorts

The physical assets are concentrated in high-end markets, balancing resort destinations with key urban locations. As of the third quarter of 2025, the portfolio is comprised of 14 hotels. This portfolio structure is intentionally weighted toward resorts, which have shown strong operational resilience.

• Portfolio composition: Nine resort properties and five urban properties.
• Resort segment comparable RevPAR growth for Q3 2025 was 5.5%.
• Urban segment comparable RevPAR growth for Q3 2025 was 1.4%, driven by a 4.7% improvement in ADR.

Strong brand affiliations and franchise agreements

The value of the portfolio is significantly tied to its association with top-tier global brands, which drive premium pricing and access to high-value customer segments. These affiliations are critical for maintaining high Average Daily Rates (ADR).

Key brand affiliations include:

• Ritz-Carlton Reserve
• Four Seasons
• Ritz Carlton
• Park Hyatt
• Autograph Collection by Marriott
• Hilton
• Sofitel

Significant capital base with $2 billion in total assets (Q3 2025)

The balance sheet strength, even while undergoing strategic review, provides a cushion and supports ongoing capital expenditure needs. The company reported $2 billion in total assets at the end of the third quarter of 2025. This asset base is being actively refined through dispositions, such as the sale of the Marriott Seattle Waterfront and the definitive agreement for The Clancy sale.

Here's a quick look at the key financial figures from the Q3 2025 report:

Financial Metric	Amount (Q3 2025)
Total Assets	$2 billion
Cash and Equivalents	$116.3 million
Restricted Cash	$47.7 million
Net Debt to Gross Assets	43.2%
Comparable Hotel EBITDA	$21.4 million

Cash and equivalents of $116.3 million (Q3 2025)

Liquidity remains a focus, with readily available cash providing operational flexibility. As of the end of the third quarter, Braemar Hotels & Resorts Inc. held $116.3 million in cash and equivalents. When combined with restricted cash, the total liquidity available was approximately $164.0M. This liquidity supports ongoing capital projects, with total anticipated CapEx for 2025 targeted between $75 million and $95 million.

Experienced asset management and executive team

The management group, led by President and CEO Richard Stockton, is responsible for executing the portfolio refinement and sale process. Their expertise in asset management is key to driving operational performance, evidenced by the 15.1% growth in comparable Hotel EBITDA for Q3 2025. The team is actively managing renovations at properties like the Four Seasons Resort Scottsdale, which saw RevPAR growth of approximately 25% in the quarter.

The executive team includes:

• Richard Stockton, President and Chief Executive Officer.
• Deric Eubanks, CFO & Treasurer.
• Christopher Nixon, Senior VP & Head of Asset Management.

Finance: draft 13-week cash view by Friday.

Braemar Hotels & Resorts Inc. (BHR) - Canvas Business Model: Value Propositions

For guests, Braemar Hotels & Resorts Inc. delivers exceptional, high-end experiences at iconic luxury properties. This is supported by a portfolio featuring world-class brands like Ritz-Carlton Reserve, Four Seasons, Ritz Carlton, Park Hyatt, Autograph Collection by Marriott, Hilton, and Sofitel.

For shareholders, the value proposition centers on achieving superior risk-adjusted returns via a high-RevPAR portfolio. The company's strategy is to focus on properties in key gateway cities and resort destinations with high barriers to entry. The portfolio, as of September 30, 2025, consisted of 14 hotels with 3,298 net rooms.

The focus on a high-quality resort portfolio is evident in recent performance metrics. For the third quarter of 2025, the comparable resort RevPAR showed a significant increase of 5.5%. This operational strength contributed to a 15.1% increase in comparable Hotel EBITDA for the quarter.

The commitment to premium locations with high barriers to entry underpins the long-term asset value. The company is actively refining its portfolio, having completed the sale of the Marriott Seattle Waterfront for $145M and entering a definitive agreement to sell The Clancy for $115M post-quarter. As of September 30, 2025, Braemar Hotels & Resorts Inc. maintained cash and restricted cash totaling ~$164.0M, with net debt/gross assets at 43.2%.

Braemar Hotels & Resorts Inc. maintains a consistent common stock dividend of $0.05 per share quarterly. This equates to an annualized rate of $0.20 per share.

Here's a quick look at the key operational metrics from the third quarter of 2025:

Metric	Value	Context
Comparable RevPAR (Portfolio-wide)	$257	Q3 2025
Comparable Resort RevPAR Growth	5.5%	Q3 2025 vs. prior year quarter
Average Daily Rate (ADR)	$401	Q3 2025
Occupancy	64.3%	Q3 2025
Comparable Hotel EBITDA Growth	15.1%	Q3 2025 vs. prior year quarter
Quarterly Common Stock Dividend	$0.05 per share	Declared for Q3 and Q4 2025

The portfolio composition supports these value drivers:

• Portfolio Breakdown: 9 resort and 5 urban properties.
• Asset Sales Proceeds (YTD 2025): ~$50.8M from Marriott Seattle Waterfront sale.
• Asset Sale Proceeds (Post-Q3 2025): ~$43.7M expected from The Clancy sale.
• Refinancing Benefit: Refinanced Four Seasons Scottsdale at SOFR+3.00%.

Braemar Hotels & Resorts Inc. (BHR) - Canvas Business Model: Customer Relationships

You're looking at how Braemar Hotels & Resorts Inc. (BHR) connects with the guests who drive its revenue, which is critical given its focus on high-end properties. The relationship strategy centers on delivering a luxury experience, securing repeat group business, and maintaining transparent communication with its owners and investors.

High-touch, personalized service inherent to the luxury segment

Braemar Hotels & Resorts Inc. specializes in luxury hotels and resorts, aiming for properties with a Revenue Per Available Room (RevPAR) of at least twice the then-current U.S. national average RevPAR for all hotels, as determined by STR, LLC. For the year ended December 31, 2024, two times the U.S. national average was $199. This focus on high-end assets necessitates a service model that is inherently personalized. You see this reflected in the operational results; for instance, the Comparable RevPAR across the portfolio for the third quarter of 2025 was $257, and for the second quarter of 2025, it was $318. The Average Daily Rate (ADR) in Q3 2025 hit $401. These figures suggest a customer base willing to pay a premium for service quality.

Leveraging major brand loyalty programs for repeat transient business

While specific data on the direct impact or enrollment numbers for major brand loyalty programs isn't public, the performance of the transient segment-which heavily utilizes these programs-is evident in the comparable RevPAR growth. The company achieved its fourth consecutive quarter of RevPAR growth in Q3 2025. The resort segment, often driven by leisure and repeat transient travelers, showed strong recovery; for example, the Ritz-Carlton Lake Tahoe delivered total revenue growth of 14% year-over-year in Q2 2025. The overall portfolio's Comparable RevPAR increased 1.5% in Q2 2025 and 1.4% in Q3 2025, year-over-year. This sustained growth in RevPAR points to successful retention of high-value transient customers.

Dedicated group sales teams for corporate and social bookings

The group segment is a key relationship channel managed by dedicated sales efforts. The booking pace for the full year 2025 shows a healthy increase, with the Group room revenue pace up 9.1% compared to the prior year. For the third quarter of 2025 specifically, the group room revenue pace was up 8.8% compared to the prior year quarter. Looking ahead, the group pace for 2026 shows continued growth at 3.6%. The Ritz-Carlton Lake Tahoe was a standout, delivering group room revenue growth of 80.2% in Q3 2025 following its 2024 renovation, which clearly demonstrates the effectiveness of targeted group sales efforts following capital improvements.

You can see the year-to-date group demand strength in this snapshot:

Metric	Period	Value	Comparison
Group Room Revenue Pace	Full Year 2025	Up 9.1%	vs. Prior Year
Group Room Revenue Pace	Q3 2025	Up 8.8%	vs. Prior Year Quarter
Group Pace	2026	3.6% growth	Indicated Pace

Investor relations for a diverse shareholder base

Managing relationships with the shareholder base involves clear communication on value realization and capital returns. Braemar Hotels & Resorts Inc. is listed on the New York Stock Exchange under the symbol BHR. The Board of Directors actively manages shareholder expectations through dividend policy and portfolio optimization. For the third quarter ending September 30, 2025, the Board declared a quarterly cash dividend of $0.05 per diluted share for common stock, equating to an annual rate of $0.20 per share. Furthermore, the company is actively engaging the market to maximize shareholder value through strategic asset sales, announcing the sale of the Marriott Seattle Waterfront for $145 million and an agreement to sell The Clancy for $115 million. As of September 30, 2025, the company owned interests in 14 hotel properties totaling 3,438 rooms. The company is externally-advised by Ashford.

Here is a summary of key operational and financial metrics relevant to customer-facing performance through Q3 2025:

• Portfolio size as of September 30, 2025: 14 properties, 3,438 total rooms.
• Comparable RevPAR (Q3 2025): $257.
• Comparable RevPAR (Q2 2025): $318.
• Comparable ADR (Q3 2025): $401.
• Comparable Occupancy (Q3 2025): 64.3%.
• Comparable Hotel EBITDA (Q3 2025): $21.4 million, up 15.1% year-over-year.
• Quarterly common dividend declared (Q3 2025): $0.05 per diluted share.

Braemar Hotels & Resorts Inc. (BHR) - Canvas Business Model: Channels

You're looking at how Braemar Hotels & Resorts Inc. gets its rooms booked and revenue flowing in late 2025. The distribution strategy heavily leans on the strength of its luxury brand affiliations and a growing focus on contracted group business, which provides more predictable revenue streams.

Global distribution systems (GDS) and major brand reservation platforms

Braemar Hotels & Resorts Inc. leverages its portfolio of upscale and luxury properties, which operate under respected brands such as Ritz-Carlton Reserve, Four Seasons, Ritz Carlton, Park Hyatt, Autograph Collection by Marriott, Hilton, and Sofitel. The reliance on these brand platforms inherently utilizes their respective Global Distribution Systems (GDS) access for corporate and wholesale bookings. A key strategic move impacting this channel was the conversion of the 415-room Sofitel Chicago Magnificent Mile to a franchise structure in May 2025, which shifts some management and distribution control while maintaining brand presence. The portfolio as of Q3 2025 consists of 14 hotels, split between nine resort and five urban properties.

Direct hotel websites and on-site sales teams

While specific revenue attribution to direct channels isn't publicly itemized in the latest reports, the focus on driving high Average Daily Rate (ADR) and strong comparable RevPAR growth suggests effective management of direct bookings and on-site sales efforts. For instance, the comparable ADR for all hotels in Q3 2025 was $401. The company's overall portfolio achieved a comparable RevPAR of $318 in Q2 2025, marking its third consecutive quarter of growth. The on-site teams are critical for capturing high-margin transient and meeting business directly at the luxury resort and urban locations.

Third-party travel agents and luxury travel consortia

As a portfolio focused on the luxury segment, third-party travel agents, particularly those affiliated with luxury travel consortia, are a vital, albeit often costly, distribution layer. These channels drive high-value leisure demand, especially for the resort properties that led performance in Q3 2025 with 5.5% RevPAR growth. The company's total assets were valued at approximately $2 billion as of Q3 2025, indicating the scale of inventory managed through these high-touch, commission-based relationships.

Group sales channels for corporate and banquet business

The group segment is a clearly tracked and emphasized channel for Braemar Hotels & Resorts Inc., providing a strong forward booking base. The group revenue pace for the full year 2025 is reported up 9.1% year-over-year, showing continued demand strength heading into the end of the year. Furthermore, the Q4 group room revenue pace is ahead by 1.7%. This focus is a deliberate strategy, as the group revenue increased by a substantial 31% year-over-year in Q1 2025, driven partly by major citywide events. The management team is actively focused on this segment, as noted in their outlook discussions.

Here's a quick look at the financial context underpinning the channel performance as of late 2025:

Metric	Value (Latest Reported Period)	Period End Date
Total Assets	$2 billion	Q3 2025
Net Debt to Gross Assets	43.2%	Q3 2025
Comparable Total Hotel Revenue	$138.5 million	Q3 2025
Comparable Hotel EBITDA	$21.4 million	Q3 2025
Group Room Revenue Pace (Full Year 2025)	Up 9.1% Year-over-Year	Q3 2025
Portfolio Size	14 Hotels	Q3 2025

The company is actively managing its distribution and asset base, evidenced by the announced sale of The Clancy hotel for $115 million, which will impact the future channel mix. Also, the company initiated a formal sale process for the entire company in August 2025. If you're tracking this, watch for any disclosures on the expected contribution of the remaining portfolio to direct versus third-party bookings in the next filings.

Braemar Hotels & Resorts Inc. (BHR) - Canvas Business Model: Customer Segments

You're looking at the core groups Braemar Hotels & Resorts Inc. (BHR) serves to drive revenue across its portfolio of 14 hotels, nine of which are resort destinations. Honestly, the customer base is clearly split between high-end leisure and structured group bookings, with a necessary third segment being the capital providers.

The performance data from late 2025 clearly shows where the demand is concentrated. For instance, the portfolio-wide Comparable RevPAR (Revenue Per Available Room) for the third quarter of 2025 hit $257, a 1.4% increase year-over-year. Still, you see the luxury focus in the Average Daily Rate (ADR) for that same period, which was $401, up 4.7%.

Here's a quick look at the key customer-related metrics as of the third quarter of 2025:

Customer Segment Driver	Metric	Value / Rate	Period / Context
Corporate and Group Business	Full Year 2025 Group Room Revenue Pace Growth	9.1% increase	Compared to prior year
Affluent Leisure Travelers (Resort)	Comparable Resort Portfolio RevPAR	$464	Q2 2025
Affluent Leisure Travelers (Overall)	Comparable Portfolio ADR	$401	Q3 2025
High-Net-Worth/Corporate Events	Ritz-Carlton Lake Tahoe Group Catering Pace Growth	Over 100% increase	Q2 2025 Context
Institutional and Individual Investors	Quarterly Common Stock Dividend	$0.05 per share	Q3 2025 Declaration

The focus on high-value group business is evident. The full-year 2025 group room revenue pace was up 9.1% compared to the prior year. To be fair, specific properties showed even more dramatic results; The Ritz-Carlton Lake Tahoe saw group room revenue growth of 80.2% in the third quarter of 2025, partly due to demand following its 2024 renovation.

For the segment involving high-net-worth individuals and corporate clients utilizing Food & Beverage (F&B) and event services, the strength in group pace translates directly. The group catering pace at the aforementioned Lake Tahoe property was up over 100%, which contributes to high-margin ancillary revenue. Braemar Hotels & Resorts Inc. is actively seeking to increase group business that generates significant catering and banquet spend.

The final, crucial segment is the capital providers, the institutional and individual investors holding REIT shares. As of September 30, 2025, the total fully diluted share count stood at 73.6 million shares, comprising 68.2 million shares of common stock and 5.4 million OP units. The Board declared a quarterly common stock dividend of $0.05 per share, which annualizes to $0.20 per share, representing an approximate annual yield of 8% based on the stock price as of September 30, 2025. Total assets for Braemar Hotels & Resorts Inc. were reported at $2 billion at the end of Q3 2025, with net debt to gross assets at 43.2%.

You can see the mix of demand drivers in the portfolio's operational statistics:

• Affluent Leisure Travelers seeking luxury resort experiences: Nine of 14 hotels are resorts.
• Corporate and Group Business: Group room revenue pace for 2025 is up 9.1%.
• High-net-worth individuals and corporate clients for F&B/event services: Group catering pace at a key resort is up over 100%.
• Institutional and individual investors (REIT shareholders): The company has 73.6 million fully diluted shares outstanding as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

Braemar Hotels & Resorts Inc. (BHR) - Canvas Business Model: Cost Structure

You're looking at the core expenses Braemar Hotels & Resorts Inc. (BHR) faces to keep its luxury portfolio running and growing as of late 2025. This structure is heavily weighted toward debt service and property-level costs, which is typical for a hotel REIT.

The debt load is a major cost driver. As of the third quarter of 2025, the company's total combined loans carried a blended average interest rate of approximately 6.9%. What this estimate hides is the significant exposure to rate fluctuations; approximately 87% of that debt was effectively floating as of September 30, 2025. For context, the interest expense line item in the first quarter of 2025 was reported at $24,827 (in thousands, likely). This floating rate exposure means that near-term interest costs can shift based on SOFR movements, even with interest rate caps in place.

Property operating expenses are the day-to-day costs of running 14 hotels. These expenses cover everything from the staff on the ground to keeping the lights on and the buildings maintained. For the third quarter of 2025, total operating expenses reached $154.72 million. This figure encompasses the required spending on labor, utilities, maintenance, and property taxes across the portfolio.

Capital expenditures are a planned, significant outlay to maintain the luxury standard. Management reiterated its full-year 2025 guidance for these investments, targeting between $75 million and $85 million for renovations and essential upgrades. To give you a sense of the quarterly spend, the company invested $17.7 million in CapEx during the second quarter of 2025 alone.

Hotel management and advisory fees, along with General and Administrative (G&A) costs, are embedded within the total operating expenses, but they represent fixed or contractual costs essential for corporate oversight and property management. While specific fee percentages aren't explicitly broken out in the latest reports, the overall operational efficiency is reflected in the Comparable Hotel EBITDA, which was $21.4 million for Q3 2025.

Here's a quick look at the key cost-related financial data points we have for the recent periods:

Cost Component Category	Specific Metric/Period	Amount (USD)
Debt Cost Structure (Q3 2025)	Blended Average Interest Rate	6.9%
Debt Structure (Q3 2025)	Percentage of Debt Effectively Floating	87%
Property Operating Expenses (Q3 2025)	Total Operating Expenses	$154.72 million
Property Operating Expenses (Q3 2025)	Comparable Hotel EBITDA	$21.4 million
Capital Expenditures (2025 Guidance)	Full Year Expected Spending Range	$75 million to $85 million
Capital Expenditures (Q2 2025)	CapEx Invested During the Quarter	$17.7 million
Interest Expense (Q1 2025 Example)	Reported Interest Expense and Amortization	$24,827 thousand

The cost structure is clearly dominated by the ongoing costs of property operation and the financing of the asset base. You can see the impact of planned investment versus recurring operational spend:

• Property-Level Costs: Labor, utilities, maintenance, and property taxes are the largest variable component, totaling $154.72 million in operating expenses for Q3 2025.
• Financing Costs: Debt service is significant, with a blended rate near 6.9% and high floating exposure.
• Investment Costs: Planned CapEx for 2025 is substantial, guided between $75 million and $85 million.
• Management/G&A: These fixed overheads are bundled into the total operating expenses, but they are necessary for corporate oversight.

Finance: draft 13-week cash view by Friday.

Braemar Hotels & Resorts Inc. (BHR) - Canvas Business Model: Revenue Streams

You're looking at the core ways Braemar Hotels & Resorts Inc. brings in cash, which is pretty straightforward for a luxury hotel REIT. It's all about rooms, food, and smart property moves. Here's the quick math on what drove their top line as of late 2025.

Rooms Revenue is the bread and butter, as you noted. For the third quarter of 2025, this primary stream hit $143.56 million. To give you a bigger picture, the cumulative revenue for the first three quarters of 2025 stood at $538.45 million.

The operational performance in Q3 2025 showed some nice movement in the underlying hotel business, even with a slight dip in occupancy. Comparable RevPAR (Revenue Per Available Room) rose 1.4% to $257, driven by a strong ADR (Average Daily Rate) increase of 4.7% to $401, though occupancy fell 3.2% to 64.3%.

The luxury resort segment, which makes up nine of the 14 hotels, was a standout performer for the quarter.

• Comparable resort RevPAR increased 5.5% over the prior year period.
• Comparable resort Hotel EBITDA was up approximately 58% year over year.
• Ritz-Carlton Lake Tahoe saw group room revenue growth of 80.2%, translating to catering revenue increasing 80.7%.
• Four Seasons Scottsdale comparable RevPAR was up approximately 25%.
• Ritz-Carlton Lake Tahoe total revenue increased 32% year over year.
• Dorado Beach RevPAR increased ~20% year over year, helped by its residential rental program expansion.

Beyond the room rate, other guest spending contributes significantly. While I don't have the aggregate Food and Beverage (F&B) and ancillary spending number for the entire portfolio for Q3 2025, the meeting space rental income is tied to group business, which is clearly active at certain properties.

The Marriott Seattle Waterfront, before its sale, featured approximately 17,000-square-feet of meeting space, which included the largest ballroom in its competitive set at 8,000 square feet.

Braemar Hotels & Resorts Inc. also generates cash flow through strategic capital recycling, which you correctly pointed out. These asset sales are key to deleveraging and focusing the portfolio on pure luxury assets. You'll want to track these proceeds closely:

Asset Sold	Sale Price	Debt Repaid	Net Proceeds (Approximate)	Trailing 12-Month Cap Rate
Marriott Seattle Waterfront	$145 million	$88.4 million	$50.8 million	8.1% (Ended May 31, 2025)
The Clancy (Post-Quarter Closing)	$115 million	$64.7 million	$43.7 million	N/A
Hilton La Jolla Torrey Pines (Prior Sale)	$165 million	N/A	N/A	N/A

Finally, while direct dividend income from joint venture investments isn't explicitly broken out in the Q3 2025 summary, the company maintains a commitment to shareholder returns through dividends, which is a form of cash distribution from its operations and investments. For the fourth quarter ending December 31, 2025, the Board declared a quarterly cash dividend for common stock.

• Quarterly Common Stock Dividend (Q4 2025): $0.05 per diluted share.
• Annualized Common Stock Dividend Rate: $0.20 per share.
• Series E Preferred Stock Monthly Dividend (Nov 2025 payment): $0.15625 per share.

Finance: draft 13-week cash view by Friday.