QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (IRS employer identification number) | |||||||
(Address of principal executive offices) | (Zip code) |
Large accelerated filer | ☐ | ☑ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.01 par value per share | ||||||||
(Class) | Outstanding at May 4, 2023 |
March 31, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Investments in hotel properties, gross | $ | $ | |||||||||
Accumulated depreciation | ( | ( | |||||||||
Investments in hotel properties, net | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Accounts receivable, net of allowance of $ | |||||||||||
Inventories | |||||||||||
Prepaid expenses | |||||||||||
Investment in unconsolidated entity | |||||||||||
Derivative assets | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other assets | |||||||||||
Intangible assets, net | |||||||||||
Due from related parties, net | |||||||||||
Due from third-party hotel managers | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Indebtedness, net | $ | $ | |||||||||
Accounts payable and accrued expenses | |||||||||||
Dividends and distributions payable | |||||||||||
Due to Ashford Inc. | |||||||||||
Due to third-party hotel managers | |||||||||||
Operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Derivative liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (note 15) | |||||||||||
Series E redeemable preferred stock, $ | |||||||||||
Series M redeemable preferred stock, $ | |||||||||||
Redeemable noncontrolling interests in operating partnership | |||||||||||
Equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity of the Company | |||||||||||
Noncontrolling interest in consolidated entities | ( | ( | |||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
REVENUE | |||||||||||
Rooms | $ | $ | |||||||||
Food and beverage | |||||||||||
Other | |||||||||||
Total hotel revenue | |||||||||||
EXPENSES | |||||||||||
Hotel operating expenses: | |||||||||||
Rooms | |||||||||||
Food and beverage | |||||||||||
Other expenses | |||||||||||
Management fees | |||||||||||
Total hotel operating expenses | |||||||||||
Property taxes, insurance and other | |||||||||||
Depreciation and amortization | |||||||||||
Advisory services fee | |||||||||||
Corporate general and administrative | |||||||||||
Total operating expenses | |||||||||||
OPERATING INCOME (LOSS) | |||||||||||
Equity in earnings (loss) of unconsolidated entity | ( | ( | |||||||||
Interest income | |||||||||||
Interest expense and amortization of discounts and loan costs | ( | ( | |||||||||
Write-off of loan costs and exit fees | ( | ( | |||||||||
Gain (loss) on extinguishment of debt | |||||||||||
Realized and unrealized gain (loss) on derivatives | ( | ||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | |||||||||||
Income tax (expense) benefit | ( | ( | |||||||||
NET INCOME (LOSS) | |||||||||||
(Income) loss attributable to noncontrolling interest in consolidated entities | ( | ||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | ( | ( | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | |||||||||||
Preferred dividends | ( | ( | |||||||||
Deemed dividends on preferred stock | ( | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | $ | |||||||||
INCOME (LOSS) PER SHARE - BASIC: | |||||||||||
Net income (loss) attributable to common stockholders | $ | $ | |||||||||
Weighted average common shares outstanding – basic | |||||||||||
INCOME (LOSS) PER SHARE - DILUTED: | |||||||||||
Net income (loss) attributable to common stockholders | $ | $ | |||||||||
Weighted average common shares outstanding – diluted | |||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
NET INCOME (LOSS) | $ | $ | |||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | |||||||||||
Total other comprehensive income (loss) | |||||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) | |||||||||||
Comprehensive (income) loss attributable to noncontrolling interest in consolidated entities | ( | ||||||||||
Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership | ( | ( | |||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Noncontrolling Interest in Consolidated Entities | Total | Preferred Stock | Series E Redeemable Preferred Stock | Series M Redeemable Preferred Stock | Redeemable Noncontrolling Interests in Operating Partnership | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | — | — | ( | ( | ( | — | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted common shares | — | — | ( | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared – common stock ($ | — | — | — | — | — | ( | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared – preferred stock - Series B ($ | — | — | — | — | — | ( | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared – preferred stock - Series D ($ | — | — | — | — | — | ( | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared – preferred stock - Series E ($ | — | — | — | — | — | ( | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared – preferred stock - Series M ($ | — | — | — | — | — | ( | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption/conversion of operating partnership units | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of preferred stock | — | — | — | — | — | — | — | — | — | — | ( | ( | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption value adjustment - preferred stock | — | — | — | — | — | ( | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption value adjustment | — | — | — | — | — | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Noncontrolling Interest in Consolidated Entities | Total | Series E Redeemable Preferred Stock | Series M Redeemable Preferred Stock | Redeemable Noncontrolling Interests in Operating Partnership | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | ( | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | — | — | ( | ( | ( | — | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted common shares | — | — | ( | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared - common stock - ($ | — | — | — | — | ( | — | ( | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared – preferred stock - Series B ($ | — | — | — | — | — | ( | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared – preferred stock-Series D ($ | — | — | — | — | — | ( | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared – preferred stock - Series E ($ | — | — | — | — | — | ( | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared – preferred stock - Series M ($$ | — | — | — | — | — | ( | — | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption value adjustment - preferred stock | — | — | — | — | — | ( | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption value adjustment | — | — | — | — | — | ( | — | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ | $ | |||||||||
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Equity-based compensation | |||||||||||
Bad debt expense | |||||||||||
(Gain) loss on extinguishment of debt | ( | ||||||||||
Amortization of loan costs, discounts and capitalized default interest | |||||||||||
Write-off of loan costs and exit fees | |||||||||||
Amortization of intangibles | |||||||||||
Amortization of non-refundable membership initiation fees | ( | ( | |||||||||
Interest expense accretion on refundable membership club deposits | |||||||||||
Realized and unrealized (gain) loss on derivatives | ( | ||||||||||
Equity in (earnings) loss of unconsolidated entity | |||||||||||
Deferred income tax expense (benefit) | |||||||||||
Changes in operating assets and liabilities, exclusive of the effect of hotel acquisitions: | |||||||||||
Accounts receivable and inventories | ( | ||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable and accrued expenses | ( | ||||||||||
Operating lease right-of-use assets | |||||||||||
Due to/from related parties, net | ( | ||||||||||
Due to/from third-party hotel managers | ( | ||||||||||
Due to/from Ashford Inc. | ( | ||||||||||
Operating lease liabilities | ( | ( | |||||||||
Other liabilities | |||||||||||
Net cash provided by (used in) operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Proceeds from property insurance | |||||||||||
Acquisition of hotel properties, net of cash and restricted cash acquired | ( | ||||||||||
Investment in unconsolidated entity | ( | ||||||||||
Improvements and additions to hotel properties | ( | ( | |||||||||
Net cash provided by (used in) investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Borrowings on indebtedness | |||||||||||
Repayments of indebtedness | ( | ( | |||||||||
Payments of loan costs and exit fees | ( | ( | |||||||||
Payments for derivatives | ( | ( | |||||||||
Proceeds from derivatives | |||||||||||
Purchase of common stock | ( | ||||||||||
Payments for dividends and distributions | ( | ( | |||||||||
Proceeds from issuance of preferred stock | |||||||||||
Proceeds from issuance of common stock | ( | ||||||||||
Contributions from noncontrolling interest in consolidated entities | |||||||||||
Redemption of operating partnership units | ( | ||||||||||
Distributions to noncontrolling interest in consolidated entities | ( | ||||||||||
Redemption of preferred stock | ( | ||||||||||
Net cash provided by (used in) financing activities | |||||||||||
Net change in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid (refunded) | ( | ||||||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
Dividends and distributions declared but not paid | $ | $ | |||||||||
Common stock purchases accrued but not paid | |||||||||||
Assumption of debt in hotel acquisition | |||||||||||
Capital expenditures accrued but not paid | |||||||||||
Issuance of common stock for hotel acquisition | |||||||||||
Accrued common stock offering expense | |||||||||||
Accrued preferred stock offering expenses | |||||||||||
Non-cash preferred stock dividends | |||||||||||
Unsettled proceeds from derivatives | |||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||
Cash and cash equivalents at beginning of period | $ | $ | |||||||||
Restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period | $ | $ | |||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Restricted cash at end of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ |
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Primary Geographical Market | Number of Hotels | Rooms | Food and Beverage | Other Hotel | Total | |||||||||||||||||||||||||||
California | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Puerto Rico | ||||||||||||||||||||||||||||||||
Arizona | ||||||||||||||||||||||||||||||||
Colorado | ||||||||||||||||||||||||||||||||
Florida | ||||||||||||||||||||||||||||||||
Illinois | ||||||||||||||||||||||||||||||||
Pennsylvania | ||||||||||||||||||||||||||||||||
Washington | ||||||||||||||||||||||||||||||||
Washington, D.C. | ||||||||||||||||||||||||||||||||
USVI | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||
Primary Geographical Market | Number of Hotels | Rooms | Food and Beverage | Other Hotel | Total | |||||||||||||||||||||||||||
California | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Puerto Rico | ||||||||||||||||||||||||||||||||
Colorado | ||||||||||||||||||||||||||||||||
Florida | ||||||||||||||||||||||||||||||||
Illinois | ||||||||||||||||||||||||||||||||
Pennsylvania | ||||||||||||||||||||||||||||||||
Washington | ||||||||||||||||||||||||||||||||
Washington, D.C. | ||||||||||||||||||||||||||||||||
USVI | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Land | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Furniture, fixtures and equipment | |||||||||||
Construction in progress | |||||||||||
Residences | |||||||||||
Total cost | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Investments in hotel properties, net | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Carrying value of the investment in OpenKey (in thousands) | $ | $ | |||||||||
Ownership interest in OpenKey | % | % |
Three Months Ended March 31, | ||||||||||||||
Line Item | 2023 | 2022 | ||||||||||||
Equity in earnings (loss) of unconsolidated entity | $ | ( | $ | ( |
Line Item | March 31, 2023 | December 31, 2022 | ||||||||||||
Investment in unconsolidated entity | $ | $ |
Three Months Ended March 31, | ||||||||
Line Item | 2023 | |||||||
Equity in earnings (loss) of unconsolidated entity | $ |
Indebtedness | Collateral | Current Maturity | Final Maturity (11) | Interest Rate | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||
Mortgage loan (3) | The Ritz-Carlton Sarasota | April 2023 | April 2023 | LIBOR (1) + | $ | $ | ||||||||||||||||||||||||||||||||
Mortgage loan (4) | Hotel Yountville | May 2023 | May 2023 | LIBOR (1) + | ||||||||||||||||||||||||||||||||||
Mortgage loan (5) | The Notary Hotel | June 2023 | June 2025 | LIBOR (1) + | ||||||||||||||||||||||||||||||||||
The Clancy | ||||||||||||||||||||||||||||||||||||||
Sofitel Chicago Magnificent Mile | ||||||||||||||||||||||||||||||||||||||
Marriott Seattle Waterfront | ||||||||||||||||||||||||||||||||||||||
Mortgage loan | Bardessono Hotel and Spa | August 2023 | August 2023 | SOFR (2) + | ||||||||||||||||||||||||||||||||||
Mortgage loan (6) | The Ritz-Carlton St. Thomas | August 2023 | August 2024 | LIBOR (1) + | ||||||||||||||||||||||||||||||||||
Mortgage loan | The Ritz-Carlton Lake Tahoe | January 2024 | January 2024 | SOFR (2) + | ||||||||||||||||||||||||||||||||||
Mortgage loan | Capital Hilton | February 2024 | February 2024 | LIBOR (1) + | ||||||||||||||||||||||||||||||||||
Hilton La Jolla Torrey Pines | ||||||||||||||||||||||||||||||||||||||
Mortgage loan (7) | Park Hyatt Beaver Creek Resort & Spa | February 2024 | February 2027 | SOFR (2) + | ||||||||||||||||||||||||||||||||||
Mortgage loan (8) | The Ritz-Carlton Reserve Dorado Beach | March 2024 | March 2026 | LIBOR (1) + | ||||||||||||||||||||||||||||||||||
Mortgage loan (9) | Mr. C Beverly Hills Hotel | August 2024 | August 2024 | LIBOR (1) + | ||||||||||||||||||||||||||||||||||
Mortgage loan | Pier House Resort & Spa | September 2024 | September 2024 | SOFR (2) + | ||||||||||||||||||||||||||||||||||
Mortgage loan (10) | Four Seasons Resort Scottsdale | December 2025 | December 2027 | SOFR (2) + | ||||||||||||||||||||||||||||||||||
Convertible Senior Notes | Equity | June 2026 | June 2026 | |||||||||||||||||||||||||||||||||||
Capitalized default interest and late charges, net | ||||||||||||||||||||||||||||||||||||||
Deferred loan costs, net | ( | ( | ||||||||||||||||||||||||||||||||||||
Premiums/(discounts), net | ( | |||||||||||||||||||||||||||||||||||||
Indebtedness, net | $ | $ |
Three Months Ended March 31, | |||||||||||
Interest rate caps:(1) | 2023 | 2022 | |||||||||
Notional amount (in thousands) | $ | $ | |||||||||
Strike rate low end of range | % | % | |||||||||
Strike rate high end of range | % | % | |||||||||
Effective date range | January 2023 | February 2022 | |||||||||
Termination date range | January 2024 | February 2024 | |||||||||
Total cost of interest rate caps (in thousands) | $ | $ | |||||||||
Interest rate caps: (1) | March 31, 2023 | December 31, 2022 | |||||||||
Notional amount (in thousands) | $ | $ | |||||||||
Strike rate low end of range | % | % | |||||||||
Strike rate high end of range | % | % | |||||||||
Termination date range | April 2023 - January 2025 | January 2023- January 2025 | |||||||||
Aggregate principal balance on corresponding mortgage loans (in thousands) | $ | $ | |||||||||
Quoted Market Prices (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||
Interest rate derivatives - caps | $ | $ | $ | $ | ||||||||||||||||||||||
Total | $ | $ | $ | $ | (1) | |||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||
Warrants | $ | $ | ( | $ | $ | ( | (2) | |||||||||||||||||||
Net | $ | $ | $ | $ |
Quoted Market Prices (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||
Interest rate derivatives - caps | $ | $ | $ | $ | ||||||||||||||||||||||
$ | $ | $ | $ | (1) | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||
Warrants | $ | $ | ( | $ | $ | ( | (2) | |||||||||||||||||||
Net | $ | $ | $ | $ |
Gain (Loss) Recognized in Income | |||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Assets | |||||||||||
Derivative assets: | |||||||||||
Interest rate derivatives - caps | $ | ( | $ | ||||||||
Total | $ | ( | $ | ||||||||
Liabilities | |||||||||||
Derivative liabilities: | |||||||||||
Warrants | $ | $ | ( | ||||||||
Net | $ | ( | $ | ||||||||
Total combined | |||||||||||
Interest rate derivatives - caps | $ | ( | $ | ||||||||
Warrants | ( | ||||||||||
Unrealized gain (loss) on derivatives | $ | ( | (1) | $ | |||||||
Realized gain (loss) on interest rate caps | (1) (2) | ||||||||||
Net | $ | ( | $ |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||
Financial assets measured at fair value: | |||||||||||||||||||||||
Derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Financial liabilities measured at fair value: | |||||||||||||||||||||||
Derivative liabilities | $ | $ | $ | $ | |||||||||||||||||||
Financial assets not measured at fair value: | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Restricted cash | |||||||||||||||||||||||
Accounts receivable, net | |||||||||||||||||||||||
Due from related parties, net | |||||||||||||||||||||||
Due from third-party hotel managers | |||||||||||||||||||||||
Financial liabilities not measured at fair value: | |||||||||||||||||||||||
Indebtedness | $ | $ | $ | $ | |||||||||||||||||||
Accounts payable and accrued expenses | |||||||||||||||||||||||
Dividends and distributions payable | |||||||||||||||||||||||
Due to Ashford Inc. | |||||||||||||||||||||||
Due to third-party hotel managers |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income (loss) attributable to common stockholders - basic and diluted: | |||||||||||
Net income (loss) attributable to the Company | $ | $ | |||||||||
Less: dividends on preferred stock | ( | ( | |||||||||
Less: deemed dividends on preferred stock | ( | ||||||||||
Less: dividends on common stock | ( | ( | |||||||||
Less: dividends on unvested performance stock units | ( | ( | |||||||||
Less: dividends on unvested restricted shares | ( | ( | |||||||||
Less: net (income) loss allocated to performance stock units | ( | ||||||||||
Less: net (income) loss allocated to unvested restricted shares | ( | ||||||||||
Undistributed net income (loss) allocated to common stockholders | ( | ||||||||||
Add back: dividends on common stock | |||||||||||
Distributed and undistributed net income (loss) - basic | $ | $ | |||||||||
Interest expense on Convertible Senior Notes | |||||||||||
Income (loss) attributable to redeemable noncontrolling interest in operating partnership | — | ||||||||||
Dividends on preferred stock - Series E (inclusive of deemed dividends) | — | ||||||||||
Dividends on preferred stock - Series M (inclusive of deemed dividends) | — | ||||||||||
Distributed and undistributed net income (loss) - diluted | $ | $ | |||||||||
Weighted average common shares outstanding: | |||||||||||
Weighted average common shares outstanding – basic | |||||||||||
Effect of assumed exercise of warrants | |||||||||||
Effect of assumed conversion of operating partnership units | |||||||||||
Effect of assumed conversion of Convertible Senior Notes | |||||||||||
Effect of assumed conversion of preferred stock - Series E | |||||||||||
Effect of assumed conversion of preferred stock - Series M | |||||||||||
Weighted average common shares outstanding – diluted | |||||||||||
Income (loss) per share - basic: | |||||||||||
Net income (loss) allocated to common stockholders per share | $ | $ | |||||||||
Income (loss) per share - diluted: | |||||||||||
Net income (loss) allocated to common stockholders per share | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income (loss) allocated to common stockholders is not adjusted for: | |||||||||||
Income (loss) allocated to unvested restricted shares | $ | $ | |||||||||
Income (loss) allocated to unvested performance stock units | |||||||||||
Income (loss) attributable to redeemable noncontrolling interests in operating partnership | |||||||||||
Dividends on preferred stock - Series B | |||||||||||
Interest expense on Convertible Senior Notes | |||||||||||
Dividends on preferred stock - Series E (inclusive of deemed dividends) | |||||||||||
Dividends on preferred stock - Series M (inclusive of deemed dividends) | |||||||||||
Total | $ | $ | |||||||||
Weighted average diluted shares are not adjusted for: | |||||||||||
Effect of unvested restricted shares | |||||||||||
Effect of unvested performance stock units | |||||||||||
Effect of assumed conversion of operating partnership units | |||||||||||
Effect of assumed conversion of preferred stock - Series B | |||||||||||
Effect of assumed conversion of Convertible Senior Notes | |||||||||||
Effect of assumed conversion of preferred stock - Series E | |||||||||||
Effect of assumed conversion of preferred stock - Series M | |||||||||||
Total |
March 31, 2023 | December 31, 2022 | ||||||||||
Redeemable noncontrolling interests in Braemar OP (in thousands) | $ | $ | |||||||||
Adjustments to redeemable noncontrolling interests (1) (in thousands) | $ | $ | |||||||||
Ownership percentage of operating partnership | % | % | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | $ | ( | $ | ( | |||||||
Distributions declared to holders of common units, LTIP units and Performance LTIP units | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Common stock dividends declared | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Series D Cumulative Preferred Stock | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Series B Convertible Preferred Stock | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Series E Preferred Stock shares issued (1) | |||||||||||
Net proceeds | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Series E Preferred Stock | $ | $ | |||||||||
Cumulative adjustments to Series E Preferred Stock (1) | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Series E Preferred Stock | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Series E Preferred Stock shares redeemed | |||||||||||
Redemption amount, net of redemption fees | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Series M Preferred Stock shares issued (1) | |||||||||||
Net proceeds | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Series M Preferred Stock | $ | $ | |||||||||
Cumulative adjustments to Series M Preferred Stock (1) | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Series M Preferred Stock | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Series M Preferred Stock shares redeemed | |||||||||||
Redemption amount, net of redemption fees | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Advisory services fee | |||||||||||
Base advisory fee | $ | $ | |||||||||
Reimbursable expenses (1) | |||||||||||
Equity-based compensation (2) | |||||||||||
Incentive fee | |||||||||||
Total | $ | $ | |||||||||
Three Months Ended March 31, | ||||||||||||||
Line Item | 2023 | 2022 | ||||||||||||
Corporate, general and administrative | $ | $ | ||||||||||||
Three Months Ended March 31, | ||||||||||||||
Line Item | 2023 | 2022 | ||||||||||||
Other hotel expenses | $ | $ |
Three Months Ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Rooms | $ | 137,527 | $ | 105,192 | $ | 32,335 | 30.7 | % | |||||||||||||||
Food and beverage | 52,228 | 36,707 | 15,521 | 42.3 | |||||||||||||||||||
Other | 25,546 | 19,981 | 5,565 | 27.9 | |||||||||||||||||||
Total hotel revenue | 215,301 | 161,880 | 53,421 | 33.0 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Hotel operating expenses: | |||||||||||||||||||||||
Rooms | 27,358 | 20,184 | (7,174) | (35.5) | |||||||||||||||||||
Food and beverage | 39,739 | 28,028 | (11,711) | (41.8) | |||||||||||||||||||
Other expenses | 62,295 | 46,207 | (16,088) | (34.8) | |||||||||||||||||||
Management fees | 6,705 | 4,148 | (2,557) | (61.6) | |||||||||||||||||||
Total hotel operating expenses | 136,097 | 98,567 | (37,530) | (38.1) | |||||||||||||||||||
Property taxes, insurance and other | 8,116 | 8,603 | 487 | 5.7 | |||||||||||||||||||
Depreciation and amortization | 22,521 | 18,441 | (4,080) | (22.1) | |||||||||||||||||||
Advisory services fee | 7,948 | 7,322 | (626) | (8.5) | |||||||||||||||||||
Corporate general and administrative | 2,820 | 2,495 | (325) | (13.0) | |||||||||||||||||||
Total expenses | 177,502 | 135,428 | (42,074) | (31.1) | |||||||||||||||||||
Operating income (loss) | 37,799 | 26,452 | 11,347 | 42.9 | |||||||||||||||||||
Equity in earnings (loss) of unconsolidated entity | (73) | (72) | (1) | (1.4) | |||||||||||||||||||
Interest income | 2,108 | 25 | 2,083 | 8,332.0 | |||||||||||||||||||
Interest expense and amortization of discounts and loan costs | (22,873) | (8,522) | (14,351) | (168.4) | |||||||||||||||||||
Write-off of loan costs and exit fees | (12) | (76) | 64 | 84.2 | |||||||||||||||||||
Gain (loss) on extinguishment of debt | 2,318 | — | 2,318 | ||||||||||||||||||||
Realized and unrealized gain (loss) on derivatives | (334) | 408 | (742) | (181.9) | |||||||||||||||||||
Income (loss) before income taxes | 18,933 | 18,215 | 718 | 3.9 | |||||||||||||||||||
Income tax (expense) benefit | (2,329) | (2,611) | 282 | 10.8 | |||||||||||||||||||
Net income (loss) | 16,604 | 15,604 | 1,000 | 6.4 | |||||||||||||||||||
(Income) loss attributable to noncontrolling interest in consolidated entities | (309) | 26 | (335) | (1,288.5) | |||||||||||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | (261) | (967) | 706 | 73.0 | |||||||||||||||||||
Net income (loss) attributable to the Company | $ | 16,034 | $ | 14,663 | $ | 1,371 | (9.4) | % |
Hotel Properties | Location | Type | Date | |||||||||||||||||
The Ritz-Carlton Reserve Dorado Beach | Dorado, Puerto Rico | Acquisition | March 11, 2022 | |||||||||||||||||
Four Seasons Resort Scottsdale | Scottsdale, Arizona | Acquisition | December 1, 2022 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Occupancy | 64.85 | % | 54.95 | % | |||||||
ADR (average daily rate) | $ | 559.16 | $ | 543.79 | |||||||
RevPAR (revenue per available room) | $ | 362.62 | $ | 298.79 | |||||||
Rooms revenue (in thousands) | $ | 137,527 | $ | 105,192 | |||||||
Total hotel revenue (in thousands) | $ | 215,301 | $ | 161,880 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Occupancy | 65.70 | % | 54.13 | % | |||||||
ADR (average daily rate) | $ | 468.30 | $ | 519.94 | |||||||
RevPAR (revenue per available room) | $ | 307.68 | $ | 285.04 | |||||||
Rooms revenue (in thousands) | $ | 107,940 | $ | 99,717 | |||||||
Total hotel revenue (in thousands) | $ | 168,568 | $ | 154,385 |
Hotel Property | Favorable (Unfavorable) | |||||||||||||||||||
Rooms Revenue | Occupancy (change in bps) | ADR (change in %) | ||||||||||||||||||
Comparable | ||||||||||||||||||||
Capital Hilton (1) | $ | 4,896 | 3,297 | 21.7 | % | |||||||||||||||
Marriott Seattle Waterfront (2) | 1,633 | 1,695 | 13.6 | % | ||||||||||||||||
The Notary Hotel | 1,445 | 1,184 | 12.5 | % | ||||||||||||||||
The Clancy | 3,514 | 1,068 | 44.9 | % | ||||||||||||||||
Sofitel Chicago Magnificent Mile | 807 | 1,077 | 3.8 | % | ||||||||||||||||
Pier House Resort & Spa | (1,352) | (521) | (9.0) | % | ||||||||||||||||
The Ritz-Carlton St. Thomas | (2,882) | (717) | (6.9) | % | ||||||||||||||||
Park Hyatt Beaver Creek Resort & Spa | 2,164 | 387 | 11.0 | % | ||||||||||||||||
Hotel Yountville | (79) | 971 | (22.9) | % | ||||||||||||||||
The Ritz-Carlton Sarasota | (2,082) | (278) | (10.1) | % | ||||||||||||||||
Hilton La Jolla Torrey Pines | 1,404 | 867 | 12.0 | % | ||||||||||||||||
Bardessono Hotel and Spa | (833) | (814) | (11.1) | % | ||||||||||||||||
The Ritz-Carlton Lake Tahoe | (321) | 201 | (6.1) | % | ||||||||||||||||
Mr. C Beverly Hills Hotel | (90) | 932 | (14.7) | % | ||||||||||||||||
Total | $ | 8,224 | 1,157 | (9.9) | % | |||||||||||||||
Non-comparable | ||||||||||||||||||||
The Ritz-Carlton Reserve Dorado Beach | $ | 9,954 | n/a | n/a | ||||||||||||||||
Four Seasons Resort Scottsdale | 14,157 | n/a | n/a | |||||||||||||||||
Total | $ | 24,111 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income (loss) | $ | 16,604 | $ | 15,604 | |||||||
Interest expense and amortization of loan costs | 22,873 | 8,522 | |||||||||
Depreciation and amortization | 22,521 | 18,441 | |||||||||
Income tax expense (benefit) | 2,329 | 2,611 | |||||||||
Equity in (earnings) loss of unconsolidated entity | 73 | 72 | |||||||||
Company’s portion of EBITDA of OpenKey | (77) | (71) | |||||||||
EBITDA and EBITDAre | 64,323 | 45,179 | |||||||||
Amortization of favorable (unfavorable) contract assets (liabilities) | 119 | 108 | |||||||||
Transaction and conversion costs | 1,195 | 555 | |||||||||
Write-off of loan costs and exit fees | 12 | 76 | |||||||||
Realized and unrealized (gain) loss on derivatives | 334 | (408) | |||||||||
Stock/unit-based compensation | 2,328 | 2,365 | |||||||||
Legal, advisory and settlement costs | 69 | 317 | |||||||||
Advisory services incentive fee | — | 977 | |||||||||
(Gain) loss on extinguishment of debt | (2,318) | — | |||||||||
Company’s portion of adjustments to EBITDAre of OpenKey | — | 6 | |||||||||
Adjusted EBITDAre | $ | 66,062 | $ | 49,175 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income (loss) | $ | 16,604 | $ | 15,604 | |||||||
(Income) loss attributable to noncontrolling interest in consolidated entities | (309) | 26 | |||||||||
Net (Income) loss attributable to redeemable noncontrolling interests in operating partnership | (261) | (967) | |||||||||
Preferred dividends | (10,350) | (3,303) | |||||||||
Deemed dividends on preferred stock | (2,454) | — | |||||||||
Net income (loss) attributable to common stockholders | 3,230 | 11,360 | |||||||||
Depreciation and amortization on real estate (1) | 21,785 | 17,795 | |||||||||
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | 261 | 967 | |||||||||
Equity in (earnings) loss of unconsolidated entity | 73 | 72 | |||||||||
Company’s portion of FFO of OpenKey | (78) | (72) | |||||||||
FFO available to common stockholders and OP unitholders | 25,271 | 30,122 | |||||||||
Deemed dividends on preferred stock | 2,454 | — | |||||||||
Transaction and conversion costs | 1,195 | 555 | |||||||||
Write-off of loan costs and exit fees | 12 | 76 | |||||||||
Unrealized (gain) loss on derivatives | 2,201 | (408) | |||||||||
Stock/unit-based compensation | 2,328 | 2,365 | |||||||||
Legal, advisory and settlement costs | 69 | 317 | |||||||||
Interest expense accretion on refundable membership club benefits | 178 | 190 | |||||||||
Amortization of loan costs (1) | 739 | 642 | |||||||||
Advisory services incentive fee | — | 977 | |||||||||
(Gain) loss on extinguishment of debt | (2,318) | — | |||||||||
Company’s portion of adjustments to FFO of OpenKey | — | 6 | |||||||||
Adjusted FFO available to common stockholders and OP unitholders | $ | 32,129 | $ | 34,842 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Depreciation and amortization on real estate | $ | (736) | $ | (646) | |||||||
Amortization of loan costs | (23) | (22) |
Hotel Property | Location | Total Rooms | % Owned | Owned Rooms | ||||||||||||||||||||||
Fee Simple Properties | ||||||||||||||||||||||||||
Capital Hilton | Washington, D.C. | 550 | 75 | % | 413 | |||||||||||||||||||||
Marriott Seattle Waterfront | Seattle, WA | 369 | 100 | % | 369 | |||||||||||||||||||||
The Notary Hotel | Philadelphia, PA | 499 | 100 | % | 499 | |||||||||||||||||||||
The Clancy | San Francisco, CA | 410 | 100 | % | 410 | |||||||||||||||||||||
Sofitel Chicago Magnificent Mile | Chicago, IL | 415 | 100 | % | 415 | |||||||||||||||||||||
Pier House Resort & Spa | Key West, FL | 142 | 100 | % | 142 | |||||||||||||||||||||
The Ritz-Carlton St. Thomas | St. Thomas, USVI | 180 | 100 | % | 180 | |||||||||||||||||||||
Park Hyatt Beaver Creek Resort & Spa | Beaver Creek, CO | 193 | 100 | % | 193 | |||||||||||||||||||||
Hotel Yountville | Yountville, CA | 80 | 100 | % | 80 | |||||||||||||||||||||
The Ritz-Carlton Sarasota | Sarasota, FL | 276 | 100 | % | 276 | |||||||||||||||||||||
The Ritz-Carlton Lake Tahoe (1) | Truckee, CA | 170 | 100 | % | 170 | |||||||||||||||||||||
Mr. C Beverly Hills Hotel (2) | Los Angeles, CA | 143 | 100 | % | 143 | |||||||||||||||||||||
The Ritz-Carlton Reserve Dorado Beach (3) | Dorado, Puerto Rico | 96 | 100 | % | 96 | |||||||||||||||||||||
Four Seasons Resort Scottsdale | Scottsdale, AZ | 210 | 100 | % | 210 | |||||||||||||||||||||
Ground Lease Properties (4) | ||||||||||||||||||||||||||
Hilton La Jolla Torrey Pines (5) | La Jolla, CA | 394 | 75 | % | 296 | |||||||||||||||||||||
Bardessono Hotel and Spa (6) | Yountville, CA | 65 | 100 | % | 65 | |||||||||||||||||||||
Total | 4,192 | 3,957 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plan | ||||||||||||||||||||||
Common stock: | ||||||||||||||||||||||||||
January 1 to January31 | 2,948,031 | $ | 4.69 | (2) | 2,948,002 | $ | 5,063,184 | |||||||||||||||||||
February 1 to February 28 | 938,568 | (1) | $ | 5.39 | 938,273 | $ | 7 | |||||||||||||||||||
March 1 to March 31 | 82,776 | (1) | $ | 4.30 | (2) | — | $ | 7 | ||||||||||||||||||
Total | 3,969,375 | $ | 4.85 | 3,886,275 |
Exhibit | Description | ||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
3.4 | |||||||||||
3.5 | |||||||||||
3.6 | |||||||||||
3.7 | |||||||||||
10.1 | |||||||||||
31.1* | |||||||||||
31.2* | |||||||||||
32.1** | |||||||||||
32.2** | |||||||||||
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 are formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements Comprehensive Income; (iv) Consolidated Statements of Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to the Consolidated Financial Statements. In accordance with Rule 402 of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be part of any registration statement or other document filed under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. | |||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Submitted electronically with this report. | |||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Submitted electronically with this report. | |||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Submitted electronically with this report. | |||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | Submitted electronically with this report. | |||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | Submitted electronically with this report. | |||||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
Date: | May 8, 2023 | By: | /s/ RICHARD J. STOCKTON | |||||||||||
Richard J. Stockton | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
Date: | May 8, 2023 | By: | /s/ DERIC S. EUBANKS | |||||||||||
Deric S. Eubanks | ||||||||||||||
Chief Financial Officer |
/s/ RICHARD J. STOCKTON | |||||
Richard J. Stockton | |||||
President and Chief Executive Officer |
/s/ DERIC S. EUBANKS | |||||
Deric S. Eubanks | |||||
Chief Financial Officer |
/s/ DERIC S. EUBANKS | |||||
Deric S. Eubanks | |||||
Chief Financial Officer |
/s/ RICHARD J. STOCKTON | |||||
Richard J. Stockton | |||||
President and Chief Executive Officer |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
NET INCOME (LOSS) | $ 16,604 | $ 15,604 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | ||
Total other comprehensive income (loss) | 0 | 0 |
TOTAL COMPREHENSIVE INCOME (LOSS) | 16,604 | 15,604 |
Comprehensive (income) loss attributable to noncontrolling interest in consolidated entities | (309) | 26 |
Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership | (261) | (967) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ 16,034 | $ 14,663 |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) |
Total |
Impact of adoption of new accounting standard |
Series D Preferred Stock |
Series B Preferred Stock |
Series E Preferred Stock |
Series M Preferred Stock |
Preferred Stock
Series D Preferred Stock
|
Preferred Stock
Series B Preferred Stock
|
Preferred Stock
Series E Preferred Stock
|
Preferred Stock
Series M Preferred Stock
|
Common Stock |
Additional Paid-in Capital |
Additional Paid-in Capital
Impact of adoption of new accounting standard
|
Accumulated Deficit |
Accumulated Deficit
Impact of adoption of new accounting standard
|
Accumulated Deficit
Series D Preferred Stock
|
Accumulated Deficit
Series B Preferred Stock
|
Accumulated Deficit
Series E Preferred Stock
|
Accumulated Deficit
Series M Preferred Stock
|
Noncontrolling Interest in Consolidated Entities |
Redeemable Noncontrolling Interests in Operating Partnership |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2021 | 1,600,000 | 65,365,000 | |||||||||||||||||||
Beginning balance at Dec. 31, 2021 | $ 382,298,000 | $ (5,601,000) | $ 16,000 | $ 653,000 | $ 707,418,000 | $ (6,257,000) | $ (309,240,000) | $ 656,000 | $ (16,549,000) | $ 36,087,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Purchase of common stock (in shares) | (93,000) | ||||||||||||||||||||
Purchase of common stock | (552,000) | $ (1,000) | (551,000) | ||||||||||||||||||
Equity-based compensation | 1,320,000 | 1,320,000 | |||||||||||||||||||
Equity-based compensation, redeemable noncontrolling interests | 934,000 | ||||||||||||||||||||
Issuance of common stock (in shares) | 6,000,000 | ||||||||||||||||||||
Issuance of common stock | 35,041,000 | $ 60,000 | 34,981,000 | ||||||||||||||||||
Forfeiture of restricted common shares (in shares) | (2,000) | ||||||||||||||||||||
Dividends declared - common stock | (720,000) | (720,000) | |||||||||||||||||||
Dividends declared - preferred stock | $ (825,000) | $ (1,058,000) | $ (1,399,000) | $ (21,000) | $ (825,000) | $ (1,058,000) | $ (1,399,000) | $ (21,000) | |||||||||||||
Contributions from noncontrolling interests | 164,000 | 164,000 | |||||||||||||||||||
Distributions to noncontrolling interests | 0 | (83,000) | |||||||||||||||||||
Net income (loss) | 14,637,000 | 14,663,000 | (26,000) | 967,000 | |||||||||||||||||
Redemption value adjustment - preferred stock | (993,000) | (993,000) | |||||||||||||||||||
Redemption value adjustment - preferred stock | $ 972,000 | $ 21,000 | |||||||||||||||||||
Redemption value adjustment | (4,386,000) | (4,386,000) | 4,386,000 | ||||||||||||||||||
Ending balance (in shares) at Mar. 31, 2022 | 1,600,000 | 71,270,000 | |||||||||||||||||||
Ending balance at Mar. 31, 2022 | 417,905,000 | $ 16,000 | $ 712,000 | 736,911,000 | (303,323,000) | (16,411,000) | 42,291,000 | ||||||||||||||
Units outstanding at beginning of year (in shares) at Dec. 31, 2021 | 3,078,000 | 1,710,000 | 29,000 | ||||||||||||||||||
Beginning balance, temporary equity at Dec. 31, 2021 | $ 65,426,000 | $ 39,339,000 | $ 715,000 | ||||||||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||||||||||||
Units issued (in shares) | 1,477,000 | 33,000 | 1,481,000 | 33,000 | |||||||||||||||||
Issuance of preferred stock | $ 33,093,000 | $ 802,000 | |||||||||||||||||||
Redemptions of preferred stock | $ 0 | $ 0 | |||||||||||||||||||
Preferred Stock shares redeemed (in shares) | 0 | 0 | |||||||||||||||||||
Ending balance, temporary equity at Mar. 31, 2022 | $ 65,426,000 | $ 73,404,000 | $ 1,538,000 | ||||||||||||||||||
Units outstanding at end of year (in shares) at Mar. 31, 2022 | 3,078,000 | 3,191,000 | 62,000 | ||||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 1,600,000 | 65,365,000 | |||||||||||||||||||
Beginning balance at Dec. 31, 2021 | 382,298,000 | $ (5,601,000) | $ 16,000 | $ 653,000 | 707,418,000 | $ (6,257,000) | (309,240,000) | $ 656,000 | (16,549,000) | 36,087,000 | |||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 1,600,000 | 69,919,000 | |||||||||||||||||||
Ending balance at Dec. 31, 2022 | 393,763,000 | $ 16,000 | $ 699,000 | 734,134,000 | (324,740,000) | (16,346,000) | 40,555,000 | ||||||||||||||
Units outstanding at beginning of year (in shares) at Dec. 31, 2021 | 3,078,000 | 1,710,000 | 29,000 | ||||||||||||||||||
Beginning balance, temporary equity at Dec. 31, 2021 | $ 65,426,000 | $ 39,339,000 | $ 715,000 | ||||||||||||||||||
Ending balance, temporary equity at Dec. 31, 2022 | $ 65,426,000 | $ 291,076,000 | $ 35,182,000 | $ 65,426,000 | $ 291,076,000 | $ 35,182,000 | |||||||||||||||
Units outstanding at end of year (in shares) at Dec. 31, 2022 | 3,078,017 | 12,656,529 | 1,428,332 | 3,078,000 | 12,657,000 | 1,428,000 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Purchase of common stock (in shares) | (3,968,000) | ||||||||||||||||||||
Purchase of common stock | (19,250,000) | $ (40,000) | (19,210,000) | ||||||||||||||||||
Equity-based compensation | 805,000 | 805,000 | |||||||||||||||||||
Equity-based compensation, redeemable noncontrolling interests | 1,408,000 | ||||||||||||||||||||
Forfeiture of restricted common shares (in shares) | (1,000) | ||||||||||||||||||||
Dividends declared - common stock | (3,334,000) | (3,334,000) | |||||||||||||||||||
Dividends declared - preferred stock | $ (825,000) | $ (1,058,000) | $ (7,534,000) | $ (933,000) | $ (825,000) | $ (1,058,000) | $ (7,534,000) | $ (933,000) | |||||||||||||
Contributions from noncontrolling interests | 2,024,000 | 2,024,000 | |||||||||||||||||||
Distributions to noncontrolling interests | (361,000) | ||||||||||||||||||||
Redemption/conversion of operating partnership units | (7,039,000) | ||||||||||||||||||||
Net income (loss) | 16,343,000 | 16,034,000 | 309,000 | 261,000 | |||||||||||||||||
Redemption value adjustment - preferred stock | (2,454,000) | (2,454,000) | |||||||||||||||||||
Redemption value adjustment - preferred stock | $ 2,196,000 | $ 258,000 | |||||||||||||||||||
Redemption value adjustment | 4,000 | 4,000 | (4,000) | ||||||||||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 1,600,000 | 65,950,000 | |||||||||||||||||||
Ending balance at Mar. 31, 2023 | $ 377,551,000 | $ 16,000 | $ 659,000 | $ 715,729,000 | $ (324,840,000) | $ (14,013,000) | $ 34,820,000 | ||||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||||||||||||
Units issued (in shares) | 3,798,000 | 531,000 | 3,828,000 | 533,000 | |||||||||||||||||
Issuance of preferred stock | $ 85,916,000 | $ 12,879,000 | |||||||||||||||||||
Redemptions of preferred stock | $ (282,000) | $ (25,000) | $ (282,000) | $ (25,000) | |||||||||||||||||
Preferred Stock shares redeemed (in shares) | (11,000) | (1,000) | (11,000) | (1,000) | |||||||||||||||||
Ending balance, temporary equity at Mar. 31, 2023 | $ 65,426,000 | $ 378,906,000 | $ 48,294,000 | $ 65,426,000 | $ 378,906,000 | $ 48,294,000 | |||||||||||||||
Units outstanding at end of year (in shares) at Mar. 31, 2023 | 3,078,017 | 16,474,156 | 1,960,267 | 3,078,000 | 16,474,000 | 1,960,000 |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Dividends declared per common share (in dollars per share) | $ 0.05 | |
Common Stock | ||
Dividends declared per common share (in dollars per share) | $ 0.01 | |
Series B Preferred Stock | ||
Temporary equity, dividend rate (as a percent) | 5.50% | 5.50% |
Series B Preferred Stock | Preferred Stock | ||
Dividends declared per preferred share (in dollars per share) | $ 0.34 | $ 0.34 |
Series D Preferred Stock | ||
Preferred stock dividend rate (as a percent) | 8.25% | 8.25% |
Series D Preferred Stock | Preferred Stock | ||
Dividends declared per preferred share (in dollars per share) | $ 0.52 | $ 0.52 |
Series E Preferred Stock | Preferred Stock | ||
Dividends declared per preferred share (in dollars per share) | $ 0.48 | 0.50 |
Series M Preferred Stock | ||
Temporary equity, dividend rate (as a percent) | 0.00082% | |
Series M Preferred Stock | Preferred Stock | ||
Dividends declared per preferred share (in dollars per share) | $ 0.52 | $ 0.51 |
Organization and Description of Business |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Braemar Hotels & Resorts Inc., together with its subsidiaries (“Braemar”), is a Maryland corporation that invests primarily in high revenue per available room (“RevPAR”) luxury hotels and resorts. High RevPAR, for purposes of our investment strategy, means RevPAR of at least twice the then-current U.S. national average RevPAR for all hotels as determined by STR, LLC. Braemar has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). Braemar conducts its business and owns substantially all of its assets through its operating partnership, Braemar Hospitality Limited Partnership (“Braemar OP”). Terms such as the “Company,” “we,” “us” or “our” refer to Braemar Hotels & Resorts Inc. and, as the context may require, all entities included in its condensed consolidated financial statements. We are advised by Ashford Hospitality Advisors LLC (“Ashford LLC” or the “Advisor”) through an advisory agreement. Ashford LLC is a subsidiary of Ashford Inc. All of the hotel properties in our portfolio are currently asset-managed by Ashford LLC. We do not have any employees. All of the services that might be provided by employees are provided to us by Ashford LLC. We do not operate any of our hotel properties directly; instead we employ hotel management companies to operate them for us under management contracts. Remington Lodging & Hospitality, LLC (“Remington Hotels”), a subsidiary of Ashford Inc., manages four of our 16 hotel properties. Third-party management companies manage the remaining hotel properties. Ashford Inc. also provides other products and services to us or our hotel properties through certain entities in which Ashford Inc. has an ownership interest. These products and services include, but are not limited to, design and construction services, debt placement and related services, broker-dealer and distribution services, audio visual services, real estate advisory and brokerage services, insurance claims services, hypoallergenic premium rooms, watersport activities, travel/transportation services and mobile key technology. The accompanying condensed consolidated financial statements include the accounts of wholly-owned and majority-owned subsidiaries of Braemar OP that as of March 31, 2023, own 16 hotel properties in seven states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands (“USVI”). The portfolio includes 14 wholly-owned hotel properties and two hotel properties that are owned through a partnership in which Braemar OP has a controlling interest. These hotel properties represent 4,192 total rooms, or 3,957 net rooms, excluding those attributable to our partner. As a REIT, Braemar is required to comply with limitations imposed by the Code related to operating hotels. As of March 31, 2023, 15 of our 16 hotel properties were leased by wholly-owned or majority-owned subsidiaries that are treated as taxable REIT subsidiaries (“TRS”) for federal income tax purposes (collectively the TRS entities are referred to as “Braemar TRS”). One hotel property, located in the USVI, is owned by our USVI TRS. Braemar TRS then engages third-party or affiliated hotel management companies to operate the hotel properties under management contracts. Hotel operating results related to the hotel properties are included in the condensed consolidated statements of operations. As of March 31, 2023, 13 of the 16 hotel properties were leased by Braemar’s wholly-owned TRS, and the two hotel properties majority-owned through a consolidated partnership were leased to a TRS wholly-owned by such consolidated partnership. Each leased hotel is leased under a percentage lease that provides for each lessee to pay in each calendar month the base rent plus, in each calendar quarter, percentage rent, if any, based on hotel revenues. Lease revenue from Braemar TRS is eliminated in consolidation. The hotel properties are operated under management contracts with Marriott Hotel Services, Inc. (“Marriott”), Hilton Management LLC (“Hilton”), Accor Management US Inc. (“Accor”), Four Seasons Hotels Limited (“Four Seasons”), Hyatt Corporation (“Hyatt”), The Ritz-Carlton Hotel Company, L.L.C. and its affiliates, each of which is also an affiliate of Marriott (“Ritz-Carlton”) and Remington Hotels, which are eligible independent contractors under the Code.
|
Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting PoliciesBasis of Presentation and Principles of Consolidation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These condensed consolidated financial statements include the accounts of Braemar Hotels & Resorts Inc., its majority-owned subsidiaries, and its majority-owned entities in which it has a controlling interest. All intercompany accounts and transactions between consolidated entities have been eliminated in these condensed consolidated financial statements. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made herein are adequate to prevent the information presented from being misleading. However, the financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 10, 2023. Braemar OP is considered to be a variable interest entity (“VIE”), as defined by authoritative accounting guidance. A VIE must be consolidated by a reporting entity if the reporting entity is the primary beneficiary because it has (i) the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. All major decisions related to Braemar OP that most significantly impact its economic performance, including but not limited to operating procedures with respect to business affairs and any acquisitions, dispositions, financings, restructurings or other transactions with sellers, purchasers, lenders, brokers, agents and other applicable representatives, are subject to the approval of our wholly-owned subsidiary, Braemar OP General Partner LLC, its general partner. As such, we consolidate Braemar OP. The following items affect reporting comparability of our historical condensed consolidated financial statements: •historical seasonality patterns at some of our hotel properties cause fluctuations in our overall operating results. Consequently, operating results for the three months ended March 31, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023; •on March 11, 2022, we acquired The Ritz-Carlton Reserve Dorado Beach hotel located in Dorado, Puerto Rico. The operating results of the hotel property have been included in the results of operations from its acquisition date; and •on December 1, 2022, we acquired the Four Seasons Resort Scottsdale at Troon North located in Scottsdale, Arizona. The operating results of the hotel property have been included in the results of operations from its acquisition date. Use of Estimates—The preparation of these condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recently Adopted Accounting Standards—In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”), which provides optional guidance through December 31, 2022 to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which further clarified the scope of the reference rate reform optional practical expedients and exceptions outlined in Topic 848. The amendments in ASU Nos. 2020-04 and 2021-01 apply to contract modifications that replace a reference rate affected by reference rate reform, providing optional expedients regarding the measurement of hedge effectiveness in hedging relationships that have been modified to replace a reference rate. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) (“ASU 2022-06”), which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company applied the optional expedient in evaluating debt modifications converting from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”). The Company adopted the standards upon the respective effective dates. There was no material impact as a result of this adoption.
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Revenue |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | RevenueThe following tables present our revenue disaggregated by geographical areas (dollars in thousands):
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Investments in Hotel Properties, net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Hotel Properties, net | Investments in Hotel Properties, net Investments in hotel properties, net consisted of the following (in thousands):
Impairment Charges During the three months ended March 31, 2023 and 2022, no impairment charges were recorded.
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Investment in Unconsolidated Entity |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Entity | Investment in Unconsolidated EntityOpenKey, Inc. (“OpenKey”), which is controlled and consolidated by Ashford Inc., is a hospitality-focused mobile key platform that provides a universal smart phone app and related hardware and software for keyless entry into hotel guest rooms. As of March 31, 2023, the Company has made equity investments in OpenKey totaling $2.9 million. All investments were recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors. Our investment is recorded as “investment in unconsolidated entity” in our condensed consolidated balance sheets and is accounted for under the equity method of accounting as we have significant influence over the entity under the applicable accounting guidance. We review our investment in OpenKey for impairment in each reporting period pursuant to the applicable authoritative accounting guidance. An investment is impaired when its estimated fair value is less than the carrying amount of the investment. Any impairment is recorded in equity in earnings (loss) of unconsolidated entity. No such impairment was recorded for the three months ended March 31, 2023 and 2022. The following table summarizes our carrying value and ownership interest in OpenKey:
The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):
On February 2, 2023, the Company entered into a loan funding agreement with Ashford Inc. and OpenKey. Per the agreement, Ashford Inc. and the Company will provide OpenKey with a maximum loan amount of $5.0 million to be allocated on a pro-rata basis based on current ownership interests and funded quarterly, over the course of 2023. The loan bears interest at an annual rate of 15%. Additionally, repayment of the loan principal and all accrued interest is due upon certain events. On February 3, 2023, the Company funded approximately $99,000. The following table summarizes our note receivable from OpenKey (in thousands):
The following table summarizes the interest income associated with the loan to OpenKey (in thousands):
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Indebtedness, net |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness, net | Indebtedness, net Indebtedness, net consisted of the following (dollars in thousands):
__________________ (1)LIBOR rates were 4.86% and 4.39% at March 31, 2023 and December 31, 2022, respectively. (2)SOFR rates were 4.80% and 4.36% at March 31, 2023 and December 31, 2022, respectively. (3)On April 4, 2023, we amended this mortgage loan. Terms of the amendment replaced the variable interest rate of LIBOR +2.65% with SOFR+2.75%, extended the current maturity date to October 2023, and added one six-month extension option, subject to satisfaction of certain conditions. (4)On April 18, 2023, we amended this mortgage loan. Terms of the amendment replaced the variable interest rate of LIBOR +2.55% with SOFR+2.65%, extended the current maturity date to November 2023, and added one six-month extension option, subject to satisfaction of certain conditions. (5)This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions, of which the third was exercised in June 2022. (6)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the second was exercised in August 2022. This mortgage loan has a LIBOR floor of 1.00%. (7)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions. (8)On January 18, 2023, we repaid this mortgage loan. (9)This mortgage loan has a LIBOR floor of 1.50%. (10)This mortgage loan has a SOFR floor of 1.00%. (11)The final maturity date assumes all available extension options will be exercised. During the second and third quarters of 2020, we reached forbearance and other agreements with our lenders relating to loans secured by the Pier House Resort & Spa, The Ritz-Carlton Sarasota, The Ritz-Carlton Lake Tahoe, Hotel Yountville, Bardessono Hotel and Spa, Sofitel Chicago Magnificent Mile, The Notary Hotel, The Clancy, Marriott Seattle Waterfront, Capital Hilton and Hilton La Jolla Torrey Pines. The Company determined that all of the forbearance and other agreements evaluated were considered troubled debt restructurings due to terms that allowed for deferred interest and the forgiveness of default interest and late charges. As a result of the troubled debt restructurings, all accrued default interest and late charges were capitalized into the applicable loan balances and are being amortized over the remaining term of the loans using the effective interest method. The amount of principal that was amortized was approximately $468,000 and $523,000, respectively, for the three months ended March 31, 2023 and 2022. On January 18, 2023, the Company repaid its $54.0 million mortgage loan secured by The Ritz-Carlton Reserve Dorado Beach, which resulted in a gain on extinguishment of debt of $2.3 million for the three months ended March 31, 2023. The gain was primarily attributable to the premium that was recorded upon the assumption of the mortgage loan when the hotel was acquired. Convertible Senior Notes In May 2021, the Company issued $86.25 million aggregate principal amount of 4.50% Convertible Senior Notes due June 2026 (the “Convertible Senior Notes”). The net proceeds from this offering of the Convertible Senior Notes were approximately $82.8 million after deducting the underwriting fees and other expenses paid by the Company. The Convertible Senior Notes are governed by an indenture between the Company and U.S. Bank National Association, as trustee. The Convertible Senior Notes bear interest at a rate of 4.50% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2021. The Convertible Senior Notes will mature on June 1, 2026. The Company recorded coupon interest expense of $970,000 and $970,000 for the three months ended March 31, 2023 and 2022, respectively. The Company recorded discount amortization of $144,000 and $132,000 related to the initial purchase discount for the three months ended March 31, 2023 and 2022, with the remaining discount balance to be amortized through June 2026. The Convertible Senior Notes are convertible at any time prior to the close of business on the business day immediately preceding the maturity date for cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the election of the Company, based on an initial conversion rate of 157.7909 shares of the Company’s common stock per $1,000 principal amount of notes (equivalent to a conversion price of approximately $6.34 per share of common stock), subject to adjustment of the conversion rate under certain circumstances. In addition, following the occurrence of certain corporate events, if the Company provides notice of redemption or if it exercises its option to convert the Convertible Senior Notes, the Company will, in certain circumstances, increase the conversion rate for a holder that converts its Convertible Senior Notes in connection with such corporate event, such notice of redemption, or such issuer conversion option, as the case may be. The Company may redeem the Convertible Senior Notes at the Company’s option, in whole or in part, on any business day on or after the date of issuance if the last reported sale price per share of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the Convertible Senior Notes to be redeemed subject to certain adjustments, plus accrued and unpaid interest to, but excluding, the redemption date. If we violate covenants in any debt agreement, we could be required to repay all or a portion of our indebtedness before maturity at a time when we might be unable to arrange financing for such repayment on attractive terms, if at all. The assets of certain of our subsidiaries are pledged under non-recourse indebtedness and are not available to satisfy the debts and other obligations of the consolidated group. As of March 31, 2023, we were in compliance with all covenants.
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Derivative Instruments |
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Derivative Instruments | Derivative Instruments Interest Rate Derivatives—We are exposed to risks arising from our business operations, economic conditions and financial markets. To manage these risks, we primarily use interest rate derivatives to hedge our debt and our cash flows, which include interest rate caps. All derivatives are recorded at fair value. Payments from counterparties on in-the-money interest rate caps are recognized as realized gains on our consolidated statements of operations. The following table summarizes the interest rate derivatives we entered into over the applicable periods:
_______________ (1) No instruments were designated as cash flow hedges. Interest rate derivatives consisted of the following:
_______________ (1)No instruments were designated as cash flow hedges. Warrants—On August 5, 2021, as part of the consideration paid to acquire the Mr. C Beverly Hills Hotel and five adjacent luxury residences, the Company issued 500,000 warrants for the purchase of Braemar common stock with a $6.00 strike price on or after August 5, 2021 until August 5, 2024. The holder can choose to exercise the warrant by cash or by net issue exercise, in which event the Company shall issue to the holder a number of warrant shares which reflect the fair market value of the Company’s common stock. As of March 31, 2023, no warrants have been exercised. The initial fair value of the warrant was calculated using a Black-Scholes option pricing model with the following assumptions: three-year contractual term; 97.93% volatility; 0% dividend rate; and a risk-free interest rate of 0.38%. The estimated fair value of the warrants was approximately $1.5 million on the date of issuance. The warrants are re-valued at each reporting period with the change in fair value recorded through earnings. In applying the guidance in ASC 815, it was determined that the warrants should be classified as a liability as a result of certain settlement provisions. The warrants are included in derivative liabilities on the condensed consolidated balance sheets and changes in value are reported as a component of “realized and unrealized gain (loss) on derivatives” on the condensed consolidated statements of operations. This is a Level 2 valuation technique.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair Value Hierarchy—Our financial instruments measured at fair value either on a recurring or a non-recurring basis are classified in a hierarchy for disclosure purposes consisting of three levels based on the observability of inputs in the marketplace as discussed below: •Level 1: Fair value measurements that are quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. •Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. •Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. The fair value of interest rate caps are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rose above the strike rates of the caps. Variable interest rates used in the calculation of projected receipts and payments on the caps are based on an expectation of future interest rates derived from observable market interest rate curves (LIBOR/SOFR forward curves) and volatilities (Level 2 inputs). We also incorporate credit valuation adjustments (Level 3 inputs) to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk. When a majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. However, when the valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparties, which we consider significant (10% or more) to the overall valuation of our derivatives, the derivative valuations in their entirety are classified in Level 3 of the fair value hierarchy. Transfers of inputs between levels are determined at the end of each reporting period. In determining the fair values of our derivatives at March 31, 2023, the LIBOR/SOFR interest rate forward curve (Level 2 inputs) assumed a downtrend from 4.858% to 3.125% for the remaining term of our derivatives. Credit spreads (Level 3 inputs) used in determining the fair values derivatives assumed an uptrend in nonperformance risk for us and all of our counterparties through the maturity dates. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):
__________________ (1)Reported as “derivative assets” in our condensed consolidated balance sheets. (2)Reported as “derivative liabilities” in our condensed consolidated balance sheets. Effect of Fair Value Measured Assets and Liabilities on Condensed Consolidated Statements of Operations The following table summarizes the effect of fair value measured assets and liabilities on our condensed consolidated statements of operations (in thousands):
________ (1)Reported in “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations. (2)Represents settled and unsettled payments from counterparties on interest rate caps.
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Summary of Fair Value of Financial Instruments |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value of Financial Instruments | Summary of Fair Value of Financial Instruments Determining the estimated fair values of certain financial instruments such as indebtedness requires considerable judgment to interpret market data. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Accordingly, the estimates presented are not necessarily indicative of the amounts at which these instruments could be purchased, sold or settled. The carrying amounts and estimated fair values of financial instruments were as follows (in thousands):
Cash, cash equivalents and restricted cash. These financial assets have maturities of less than 90 days and most bear interest at market rates. The carrying value approximates fair value due to their short-term nature. This is considered a Level 1 valuation technique. Accounts receivable, net, due from related parties, net, accounts payable and accrued expenses, dividends and distributions payable, due to Ashford Inc. and due to/from third-party hotel managers. The carrying values of these financial instruments approximate their fair values due to the short-term nature of these financial instruments. This is considered a Level 1 valuation technique. Derivative assets and derivative liabilities. See notes 7 and 8 for a complete description of the methodology and assumptions utilized in determining fair values. Indebtedness, net. Fair value of indebtedness is determined using future cash flows discounted at current replacement rates for these instruments. Cash flows are determined using a forward interest rate yield curve. The current replacement rates are determined by using the U.S. Treasury yield curve or the index to which these financial instruments are tied, and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral. We estimated the fair value of the total indebtedness to be approximately 90.6% to 100.2% of the carrying value of $1.3 billion at March 31, 2023, and approximately 92.0% to 101.6% of the carrying value of $1.3 billion at December 31, 2022. These fair value estimates are considered a Level 2 valuation technique.
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Income (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) Per Share | Income (Loss) Per Share The following table reconciles the amounts used in calculating basic and diluted income (loss) per share (in thousands, except per share amounts):
Due to their anti-dilutive effect, the computation of diluted income (loss) per share does not reflect the adjustments for the following items (in thousands):
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Redeemable Noncontrolling Interests in Operating Partnership |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests in Operating Partnership | Redeemable Noncontrolling Interests in Operating Partnership Redeemable noncontrolling interests in the operating partnership represents the limited partners’ proportionate share of equity and their allocable share of equity in earnings/losses of Braemar OP, which is an allocation of net income/loss attributable to the common unitholders based on the weighted average ownership percentage of these limited partners’ common units of limited partnership interest in the operating partnership (the “common units”) and units issued under our Long-Term Incentive Plan (the “LTIP” units) that are vested. Each common unit may be redeemed, by the holder, for either cash or, at our sole discretion, up to one share of our REIT common stock, which is either: (i) issued pursuant to an effective registration statement; (ii) included in an effective registration statement providing for the resale of such common stock; or (iii) issued subject to a registration rights agreement. LTIP units, which are issued to certain executives and employees of Ashford LLC as compensation, generally have vesting periods of three years. Additionally, certain independent members of the board of directors have elected to receive LTIP units as part of their compensation, which are fully vested upon grant. Upon reaching economic parity with common units, each vested LTIP unit can be converted by the holder into one common unit which can then be redeemed for cash or, at our election, settled in our common stock. An LTIP unit will achieve parity with the common units upon the sale or deemed sale of all or substantially all of the assets of our operating partnership at a time when our stock is trading at a level in excess of the price it was trading on the date of the LTIP issuance. More specifically, LTIP units will achieve full economic parity with common units in connection with (i) the actual sale of all or substantially all of the assets of our operating partnership; or (ii) the hypothetical sale of such assets, which results from a capital account revaluation, as defined in the partnership agreement, for our operating partnership. The compensation committee of the board of directors of the Company may authorize the issuance of Performance LTIP units to certain executive officers and directors from time to time. The award agreements provide for the grant of a target number of Performance LTIP units that will be settled in common units of Braemar OP, if, when and to the extent the applicable vesting criteria have been achieved following the end of the performance and service period, which is generally three years from the grant date. As of March 31, 2023, there were approximately 2.4 million Performance LTIP units, representing 200% of the target, outstanding. With respect to the 2021, 2022 and 2023 award agreements, the compensation committee shifted to a new performance metric, pursuant to which, the performance awards will be eligible to vest, from 0% to 200% of target, based on achievement of certain performance targets over the -year performance period. The performance criteria for the 2021, 2022 and 2023 performance grants are based on performance conditions under the relevant literature. The corresponding compensation cost is recognized ratably over the service period for the award as the service is rendered, based on the applicable measurement date fair value of the award. The grant date fair value of the award may vary from period to period, as the number of performance grants earned may vary since the estimated probable achievement of certain performance targets may vary from period to period.In March 2023, the Company granted approximately 353,000 Performance LTIP units, representing 200% of the target, and a vesting period of approximately years. As of March 31, 2023, the Company does not have sufficient shares of common stock available under its incentive stock plan to settle any future redemptions of the Performance LTIP units, upon reaching the conditions required for redemption. As a result, the 2023 awards are classified as liability awards on the condensed consolidated balance sheet and are included in “due to Ashford Inc., net” on the condensed consolidated balance sheets. The 2023 awards are subject to remeasurement each reporting period. The fair value of the awards as of March 31, 2023 was $3.86 per share.As of March 31, 2023, we have issued a total of approximately 3.8 million LTIP and Performance LTIP units, net of Performance LTIP cancellations. All LTIP and Performance LTIP units, other than approximately 569,000 LTIP units and 1.2 million Performance LTIP units issued from March 2015 to March 2023, had reached full economic parity with, and are convertible into, common units.The following table presents the redeemable noncontrolling interests in Braemar OP and the corresponding approximate ownership percentage of our operating partnership:
____________________________________ (1) Reflects the excess of the redemption value over the accumulated historical cost. We allocated net (income) loss to the redeemable noncontrolling interests as illustrated in the table below (in thousands):
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Equity and Stock-Based Compensation |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Stock-Based Compensation | Equity and Stock-Based Compensation Common Stock Dividends—The following table summarizes the common stock dividends declared during the period (in thousands):
Performance Stock Units—The compensation committee of the board of directors of the Company may authorize the issuance of grants of performance stock units (“PSUs”) to certain executive officers and directors from time to time. The award agreements provide for the grant of a target number of PSUs that will be settled in shares of common stock of the Company, if, when and to the extent the applicable vesting criteria have been achieved following the end of the performance and service period, which is generally three years from the grant date. With respect to the 2021, 2022 and 2023 award agreements, the compensation committee shifted to a new performance metric, pursuant to which, the performance awards will be eligible to vest, from 0% to 200% of target, based on achievement of certain performance targets over the three-year performance period. The performance criteria for the 2021, 2022 and 2023 performance grants are based on performance conditions under the relevant literature, and the 2021, 2022 and 2023 performance grants were issued to non-employees. The corresponding compensation cost is recognized ratably over the service period for the award as the service is rendered, based on the corresponding measurement date fair value of the award, which may vary from period to period, as the number of performance grants earned may vary since the estimated probable achievement of certain performance targets may vary from period to period. In March 2023, 383,000 PSUs with a vesting period of approximately three years were granted. The 2023 awards may be settled in cash or shares of the Company’s common stock solely at the option of the Company. As of March 31, 2023, the Company does not have sufficient shares available under its incentive stock plan to settle the 2023 awards in shares of the Company’s common stock. As a result, the 2023 awards are classified as liability awards and are included in “due to Ashford Inc., net” on the condensed consolidated balance sheet. The 2023 awards are subject to remeasurement each reporting period. The fair value of the awards as of March 31, 2023 was $2.8 million. 8.25% Series D Cumulative Preferred Stock—The dividend for all issued and outstanding shares of the Company’s Series D Cumulative Preferred Stock (the “Series D Preferred Stock”) is set at $2.0625 per annum per share. The following table summarizes dividends declared (in thousands):
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Redeemable Preferred Stock |
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Temporary Equity Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Preferred Stock | Redeemable Preferred Stock 5.50% Series B Cumulative Convertible Preferred Stock Each share of our 5.50% Series B Cumulative Convertible Preferred Stock (the “Series B Convertible Preferred Stock”) is convertible at any time, at the option of the holder, into a number of whole shares of common stock at a conversion price of $18.70 (which represents a conversion rate of 1.3372 shares of our common stock, subject to certain adjustments). The Series B Convertible Preferred Stock is also subject to conversion upon certain events constituting a change of control. Holders of the Series B Convertible Preferred Stock have no voting rights, subject to certain exceptions. The Series B Convertible Preferred Stock dividend for all issued and outstanding shares is set at $1.375 per annum per share. The Company may, at its option, cause the Series B Convertible Preferred Stock to be converted in whole or in part, on a pro-rata basis, into fully paid and nonassessable shares of the Company’s common stock at the conversion price, provided that the “Closing Bid Price” (as defined in the Articles Supplementary) of the Company’s common stock shall have equaled or exceeded 110% of the conversion price for the immediately preceding 45 consecutive trading days ending three days prior to the date of notice of conversion. Additionally, the Series B Convertible Preferred Stock contains cash redemption features that consist of: 1) an optional redemption in which on or after June 11, 2020, the Company may redeem shares of the Series B Convertible Preferred Stock, in whole or in part, for cash at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid dividends; 2) a special optional redemption, in which on or prior to the occurrence of a Change of Control (as defined in the Articles Supplementary), the Company may redeem shares of the Series B Convertible Preferred Stock, in whole or in part, for cash at a redemption price of $25.00 per share; and 3) a “REIT Termination Event” and “Listing Event Redemption,” in which at any time (i) a REIT Termination Event (as defined below) occurs or (ii) the Company’s common stock fails to be listed on the NYSE, NYSE American, or NASDAQ, or listed or quoted on an exchange or quotation system that is a successor thereto (each a “National Exchange”), the holder of Series B Convertible Preferred Stock shall have the right to require the Company to redeem any or all shares of Series B Convertible Preferred Stock at 103% of the liquidation preference ($25.00 per share, plus any accumulated, accrued, and unpaid dividends) in cash. A “REIT Termination Event,” shall mean the earliest of: (i) filing of a federal income tax return where the Company does not compute its income as a REIT; (ii) stockholders’ approval on ceasing to be qualified as a REIT; (iii) board of directors’ approval on ceasing to be qualified as a REIT; (iv) board’s determination based on the advice of counsel to cease to be qualified as a REIT; or (v) determination within the meaning of Section 1313(a) of the Code to cease to be qualified as a REIT. Series B Convertible Preferred Stock does not meet the requirements for permanent equity classification prescribed by the authoritative guidance because of certain cash redemption features that are outside our control. As such, the Series B Convertible Preferred Stock is classified outside of permanent equity. The following table summarizes dividends declared (in thousands):
Series E Redeemable Preferred Stock On April 2, 2021, the Company entered into equity distribution agreements with certain sales agents to sell, from time to time, shares of the Series E Redeemable Preferred Stock (the “Series E Preferred Stock”). Pursuant to such equity distribution agreements, the Company is offering a maximum of 20,000,000 shares of Series E Preferred Stock in a primary offering at a price of $25.00 per share. The Company is also offering a maximum of 8,000,000 shares of the Series E Preferred Stock pursuant to a dividend reinvestment plan (the “DRIP”) at $25.00 per share (the “Stated Value”). The Series E Preferred Stock ranks senior to all classes or series of the Company’s common stock and future junior securities, on a parity with each series of the Company’s outstanding preferred stock (the Series B Convertible Preferred stock, the Series D Preferred Stock and the Series M Preferred Stock (as defined below)) and with any future parity securities and junior to future senior securities and to all of the Company’s existing and future indebtedness, with respect to the payment of dividends and the distribution of amounts upon liquidation, dissolution or winding up of the Company’s affairs. Holders of the Series E Preferred Stock shall have the right to vote for the election of directors of the Company and on all other matters requiring stockholder action by the holders of the common stock, each share being entitled to vote to the same extent as one share of the Company’s common stock, and all such shares voting together as a single class. If and whenever dividends on any shares of the Series E Preferred Stock shall be in arrears for 18 or more monthly periods, whether or not such quarterly periods are consecutive, the number of directors then constituting the board shall be increased by two and the holders of such shares of Series E Preferred Stock (voting together as a single class with all other classes or series of capital stock ranking on a parity with the Series E Preferred Stock) shall be entitled to vote for the election of the additional directors of the Company who shall each be elected for one-year terms. Each share is redeemable at any time, at the option of the holder, at a redemption price of $25.00 per share, plus any accumulated, accrued, and unpaid dividends, less a redemption fee. Starting on the second anniversary, each share is redeemable at any time, at the option of the Company, at a redemption price of $25.00 per share, plus any accumulated, accrued, and unpaid dividends (with no redemption fee). The Series E Preferred Stock is also subject to conversion upon certain events constituting a change of control. Upon such change of control events, holders have the option to convert their shares of Series E Preferred Stock into a maximum of 5.69476 shares of our common stock. The redemption fee shall be an amount equal to: •8.0% of the stated value of $25.00 per share (the “Stated Value”) beginning on the Original Issue Date (as defined in the Articles Supplementary) of the shares of the Series E Preferred Stock to be redeemed; •5.0% of the Stated Value beginning on the second anniversary from the Original Issue Date of the shares of the Series E Preferred Stock to be redeemed; and •0% of the Stated Value beginning on the third anniversary from the Original Issue Date of the shares of the Series E Preferred Stock to be redeemed. The Company has the right, in its sole discretion, to redeem the shares in cash, or in an equal number of shares of common stock or any combination thereof, calculated based on the closing price per share for the single trading day prior to the date of redemption. The Series E Preferred Stock cash dividends are as follows: •8.0% per annum of the Stated Value beginning on the date of the first settlement of the Series E Preferred Stock (the “Date of Initial Closing”); •7.75% per annum of the Stated Value beginning on the first anniversary from the Date of Initial Closing; and •7.5% per annum of the Stated Value beginning on the second anniversary from the Date of Initial Closing. Dividends are payable on a monthly basis in arrears on the 15th day of each month (or, if such payment date is not a business day, the next succeeding business day) to holders of record at the close of business on the last business day of each month immediately preceding the applicable dividend payment date. Dividends will be computed on the basis of twelve 30-day months and a 360-day year. The Company has a DRIP that allows participating holders to have their Series E Preferred Stock dividend distributions automatically reinvested in additional shares of the Series E Preferred Stock at a price of $25.00 per share. The issuance activity of the Series E Preferred Stock is summarized below (in thousands):
__________________ (1)Exclusive of shares issued under the DRIP. The Series E Preferred Stock does not meet the requirements for permanent equity classification prescribed by the authoritative guidance because of certain cash redemption features that are outside of the Company’s control. As such, the Series E Preferred Stock is classified outside of permanent equity. At the date of issuance, the carrying amount of the Series E Preferred Stock was less than the redemption value. As a result of the Company’s determination that redemption is probable the carrying value will be adjusted to the redemption amount each reporting period. The redemption value adjustment of Series E Preferred Stock is summarized below (in thousands):
________ (1) Reflects the excess of the redemption value over the accumulated carrying value. The following table summarizes dividends declared (in thousands):
The redemption activities of Series E Preferred Stock is summarized below (in thousands):
Series M Redeemable Preferred Stock On April 2, 2021, the Company entered into equity distribution agreements with certain sales agents to sell, from time to time, shares of the Series M Redeemable Preferred Stock (the “Series M Preferred Stock”). Pursuant to such equity distribution agreements, the Company is offering a maximum of 20,000,000 shares of the Series M Preferred Stock (par value $0.01) in a primary offering at a price of $25.00 per share (or “Stated Value”). The Company is also offering a maximum of 8,000,000 shares of Series M Preferred Stock pursuant to the DRIP at $25.00 per share. The Series M Preferred Stock ranks senior to all classes or series of the Company’s common stock and future junior securities, on a parity with each series of the Company’s outstanding preferred stock (the Series B Convertible Preferred Stock, the Series D Preferred Stock and the Series E Preferred Stock) and with any future parity securities and junior to future senior securities and to all of the Company’s existing and future indebtedness, with respect to the payment of dividends and the distribution of amounts upon liquidation, dissolution or winding up of the Company’s affairs. Holders of the Series M Preferred Stock shall have the right to vote for the election of directors of the Company and on all other matters requiring stockholder action by the holders of the common stock, each share being entitled to vote to the same extent as one share of the Company’s common stock, and all such shares voting together as a single class. If and whenever dividends on any shares of Series E Preferred Stock shall be in arrears for 18 or more monthly periods, whether or not such quarterly periods are consecutive, the number of directors then constituting the board shall be increased by two and the holders of such shares of Series M Preferred Stock (voting together as a single class with all other classes or series of capital stock ranking on a parity with the Series M Preferred Stock) shall be entitled to vote for the election of the additional directors of the Company who shall each be elected for one-year terms. Each share is redeemable at any time, at the option of the holder, at a redemption price of $25.00 per share, plus any accumulated, accrued, and unpaid dividends, less a redemption fee. Starting on the second anniversary, each share is redeemable at any time, at the option of the Company, at a redemption price of $25.00 per share, plus any accumulated, accrued, and unpaid dividends (with no redemption fee). The Series M Preferred Stock is also subject to conversion upon certain events constituting a change of control. Upon such change of control events, holders have the option to convert their shares of Series M Preferred Stock into a maximum of 5.69476 shares of our common stock. The redemption fee shall be an amount equal to: •1.5% of the Stated Value of $25.00 per share beginning on the Series M Original Issue Date (as defined in the Articles Supplementary) of the shares of Series M Preferred Stock to be redeemed; and •0% of the Stated Value beginning on the first anniversary from the Series M Original Issue Date of the shares of Series M Preferred Stock to be redeemed. The Company has the right, in its sole discretion, to redeem the shares in cash, or in an equal number of shares of common stock or any combination thereof, calculated based on the closing price per share for the single trading day prior to the date of redemption. Holders of Series M Preferred Stock are entitled to receive cumulative cash dividends at the initial rate of 8.2% per annum of the Stated Value of $25.00 per share (equivalent to an annual dividend rate of $2.05 per share). Beginning one year from the date of original issuance of each share of Series M Preferred Stock and on each one-year anniversary thereafter for such share of Series M Preferred Stock, the dividend rate shall increase by 0.10% per annum; provided, however, that the dividend rate for any share of Series M Preferred Stock shall not exceed 8.7% per annum of the Stated Value. Dividends are payable on a monthly basis and in arrears on the 15th day of each month (or, if such payment date is not a business day, on the next succeeding business day) to holders of record at the close of business on the last business day of each month immediately preceding the applicable dividend payment date. Dividends will be computed on the basis of twelve 30-day months and a 360-day year. The Company has a DRIP that allows participating holders to have their Series M Preferred Stock dividend distributions automatically reinvested in additional shares of the Series M Preferred Stock at a price of $25.00 per share. The issuance activity of Series M Preferred Stock is summarized below (in thousands):
__________________ (1)Exclusive of shares issued under the DRIP. The Series M Preferred Stock does not meet the requirements for permanent equity classification prescribed by the authoritative guidance because of certain cash redemption features that are outside the Company’s control. As such, the Series M Preferred Stock is classified outside of permanent equity. At the date of issuance, the carrying amount of the Series M Preferred Stock was less than the redemption value. As a result of the Company’s determination that redemption is probable the carrying value will be adjusted to the redemption amount each reporting period. The redemption value adjustment of Series M Preferred stock is summarized below (in thousands):
__________________ (1) Reflects the excess of the redemption value over the accumulated carrying value. The following table summarizes dividends declared (in thousands):
The redemption activities of Series M Preferred Stock is summarized below (in thousands):
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Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions Ashford Inc. Advisory Agreement Ashford LLC, a subsidiary of Ashford Inc., acts as our advisor. Our chairman, Mr. Monty Bennett, also serves as chairman of the board of directors and chief executive officer of Ashford Inc. Under our advisory agreement, we pay advisory fees to Ashford LLC. We pay a monthly base fee equal to 1/12th of the sum of (i) 0.70% of the total market capitalization of our company for the prior month, plus (ii) the Net Asset Fee Adjustment (as defined in our advisory agreement), if any, on the last day of the prior month during which our advisory agreement was in effect; provided, however in no event shall the base fee for any month be less than the minimum base fee as provided by our advisory agreement. The base fee is payable on the fifth business day of each month. The minimum base fee for Braemar for each month will be equal to the greater of: ▪90% of the base fee paid for the same month in the prior year; and ▪1/12th of the G&A Ratio (as defined) multiplied by the total market capitalization of Braemar. We are also required to pay Ashford LLC an incentive fee that is measured annually (or for a stub period if the advisory agreement is terminated at other than year-end). Each year that our annual total stockholder return exceeds the average annual total stockholder return for our peer group we pay Ashford LLC an incentive fee over the following three years, subject to the Fixed Charge Coverage Ratio (“FCCR”) Condition, as defined in the advisory agreement, which relates to the ratio of adjusted EBITDA to fixed charges. We also reimburse Ashford LLC for certain reimbursable overhead and internal audit, risk management advisory and asset management services, as specified in the advisory agreement. We also recorded equity-based compensation expense for equity grants of common stock, PSUs and LTIP units awarded to officers and employees of Ashford LLC in connection with providing advisory services. The following table summarizes the advisory services fees incurred (in thousands):
________ (1)Reimbursable expenses include overhead, internal audit, risk management advisory, asset management services and deferred cash awards. (2) Equity-based compensation is associated with equity grants of Braemar’s common stock, PSUs, LTIP units and Performance LTIP units awarded to officers and employees of Ashford LLC. Pursuant to the Company's hotel management agreements with each hotel management company, the Company bears the economic burden for casualty insurance coverage. Under the advisory agreement, Ashford Inc. secures casualty insurance policies to cover Braemar, Ashford Hospitality Trust, Inc. (“Ashford Trust”), their hotel managers, as needed, and Ashford Inc. The total loss estimates included in such policies are based on the collective pool of risk exposures from each party. Ashford Inc.'s risk management department manages the casualty insurance program. Each year Ashford Inc.'s risk management department collects funds from Braemar, Ashford Trust and their respective hotel management companies, to fund the casualty insurance program as needed, on an allocated basis.On September 27, 2022, an agreement was entered into by Ashford Inc., Ashford Trust and Braemar pursuant to which the Advisor is to implement the REITs' cash management strategies. This will include actively managing the REITs excess cash by primarily investing in short-term U.S. Treasury securities. The annual fee is 20 bps of the average daily balance of the funds managed by the Advisor and is payable monthly in arrears. As of March 31, 2023, “due to Ashford Inc.” includes a $365,000 security deposit paid to Remington Hotel Corporation (“RHC”) for office space allocated to us under our advisory agreement. It will be held as security for the payment of our allocated share of the office space rental. If unused it will be returned to us upon lease expiration or earlier termination. As of December 31, 2022, RHC was indirectly owned by Mr. Monty J. Bennett and Mr. Archie Bennett, Jr. and the $365,000 was included in “due from related parties, net.” On January 3, 2023, Ashford Inc. acquired RHC.On March 10, 2022, the Company entered into a Limited Waiver Under Advisory Agreement (the “2022 Limited Waiver”) with Braemar OP, Braemar TRS and its advisor. The advisory agreement (i) allocates responsibility for certain employee costs between the Company and its advisor and (ii) permits the Company’s board of directors to issue annual equity awards in the Company or Braemar OP to employees and other representatives of its advisor based on achievement by the Company of certain financial or other objectives or otherwise as the Company’s board of directors sees fit. Pursuant to the 2022 Limited Waiver, the Company, Braemar OP, Braemar TRS and the Company’s advisor waived the operation of any provision in the advisory agreement that would otherwise have limited our ability, in our discretion and at our cost and expense, to award during the first and second fiscal quarters of calendar year 2022 cash incentive compensation to employees and other representatives of our advisor. On March 2, 2023, the Company entered into a second Limited Waiver Under Advisory Agreement (the “2023 Limited Waiver”) with Braemar OP, Braemar TRS and its advisor. Pursuant to the 2023 Limited Waiver, the Company, Braemar OP, Braemar TRS and the Company’s advisor waived the operation of any provision in the advisory agreement that would otherwise limit our ability, in our discretion and at our cost and expense, to award during the first and second fiscal quarters of calendar year 2023 cash incentive compensation to employees and other representatives of our advisor. Lismore We engage Lismore or its subsidiaries to provide debt placement services and assist with loan modifications on our behalf. During the three months ended March 31, 2023 and 2022, we made payments of $0 and $637,000, respectively, to Lismore or its subsidiaries. Ashford Securities On December 31, 2020, an Amended and Restated Contribution Agreement (the “Amended and Restated Contribution Agreement”) was entered into by Ashford Inc., Ashford Trust and Braemar (collectively, the “Parties” and each individually a “Party”) with respect to funding certain expenses of Ashford Securities LLC, a subsidiary of Ashford Inc. (“Ashford Securities”). Beginning on the effective date of the Amended and Restated Contribution Agreement, costs will be allocated based upon an allocation percentage of 50% to Ashford Inc., 50% to Braemar and 0% to Ashford Trust. Upon reaching the earlier of $400 million in aggregate capital raised, or June 10, 2023, there will be a true up (the “Amended and Restated True-Up Date”) among Ashford Inc., Ashford Trust and Braemar whereby the actual amount contributed by each company will be based on the actual amount of capital raised by Ashford Inc., Ashford Trust and Braemar, respectively, through Ashford Securities (the resulting ratio of contributions among the Parties, the “Initial True-up Ratio”). On January 27, 2022, Ashford Trust, Braemar and Ashford Inc. entered into a Second Amended and Restated Contribution Agreement which provided for an additional $18 million in expenses to be reimbursed with all expenses allocated 45% to Ashford Trust, 45% to Braemar and 10% to Ashford Inc. On February 1, 2023, Braemar entered into a Third Amended and Restated Contribution Agreement with Ashford Inc. and Ashford Trust. The Third Amended and Restated Contribution Agreement states that after the Amended and Restated True-Up Date occurs, capital contributions for the remainder of fiscal year 2023 will be divided between each Party based on the Initial True-Up Ratio. Thereafter on a yearly basis at year-end, starting with the year-end of 2023, there will be a true-up between the Parties whereby there will be adjustments so that the capital contributions made by each Party will be based on the cumulative amount of capital raised by each Party through Ashford Securities as a percentage of the total amount raised by the Parties collectively through Ashford Securities since June 10, 2019 (the resulting ratio of capital contributions among Braemar, Ashford Inc. and Ashford Trust following this true-up, the “Cumulative Ratio”). Thereafter, the capital contributions will be divided among each Party in accordance with the Cumulative Ratio, as recalculated at the end of each year. During the year ended December 31, 2022, the funding estimate was revised based on the latest capital raise estimates of the aggregate capital raised through Ashford Securities. As of December 31, 2022, Braemar had funded approximately $5.8 million and had a payable, included in “due to Ashford Inc., net” on the condensed consolidated balance sheet, of approximately $6.6 million. In March 2023, Braemar paid Ashford Inc. $8.7 million as a result of the contribution true-up between entities described above. As of March 31, 2023, Braemar has funded approximately $15.9 million. As of March 31, 2023, Braemar has a pre-funded balance of approximately $2.1 million that is included in “other assets” and approximately $343,000 that is included in “due to Ashford Inc., net” on the condensed consolidated balance sheet. The table below summarizes the amount Braemar has expensed related to reimbursed operating expenses of Ashford Securities (in thousands):
Design and Construction Services Premier Project Management LLC (“Premier”), as a subsidiary of Ashford Inc., provides design and construction services to our hotels, including construction management, interior design, architectural services, and the purchasing, freight management, and supervision of installation of FF&E and related services. Pursuant to the design and construction services agreement, we pay Premier: (a) design and construction fees of up to 4% of project costs; and (b) for the following services: (i) architectural (6.5% of total construction costs); (ii) construction management for projects without a general contractor (10% of total construction costs); (iii) interior design (6% of the purchase price of the FF&E designed or selected by Premier); and (iv) FF&E purchasing (8% of the purchase price of FF&E purchased by Premier; provided that if the purchase price exceeds $2.0 million for a single hotel in a calendar year, then the purchasing fee is reduced to 6% of the FF&E purchase price in excess of $2.0 million for such hotel in such calendar year). Hotel Management Services At March 31, 2023, Remington Hotels managed four of our 16 hotel properties. We pay monthly hotel management fees equal to the greater of approximately $16,000 per hotel (increased annually based on consumer price index adjustments) or 3% of gross revenues as well as annual incentive management fees, if certain operational criteria were met and other general and administrative expense reimbursements primarily related to accounting services.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Restricted Cash—Under certain management and debt agreements for our hotel properties existing at March 31, 2023, escrow payments are required for insurance, real estate taxes and debt service. In addition, for certain properties based on the terms of the underlying debt and management agreements, we escrow 3% to 5% of gross revenues for capital improvements. Licensing Fees—In conjunction with the Mr. C Beverly Hills Hotel acquisition on August 5, 2021, we entered into an Intellectual Property Sublease Agreement, which allows us to continue to use certain proprietary marks associated with the Mr. C brand name. In return, we pay licensing fees of: (i) 1% of total operating revenue; (ii) 2% of gross food and beverage revenues; and (iii) 25% of food and beverage profits. The agreement expires on August 5, 2023. The table below summarizes the licensing fees incurred (in thousands):
Management Fees—Under hotel management agreements for our hotel properties existing at March 31, 2023, we pay a monthly hotel management fee equal to the greater of approximately $16,000 per hotel (increased annually based on consumer price index adjustments) or 3% of gross revenues, or in some cases 3.0% to 5.0% of gross revenues, as well as annual incentive management fees, if applicable. These management agreements expire from December 2027 through December 2065, with renewal options. If we terminate a management agreement prior to its expiration, we may be liable for estimated management fees through the remaining term, liquidated damages or, in certain circumstances, we may substitute a new management agreement. Income Taxes—We and our subsidiaries file income tax returns in the federal jurisdiction and various states. Tax years 2018 through 2022 remain subject to potential examination by certain federal and state taxing authorities. Litigation—On December 20, 2016, a class action lawsuit was filed against one of the Company’s hotel management companies in the Superior Court of the State of California in and for the County of Contra Costa alleging violations of certain California employment laws, which class action affects two hotels owned by subsidiaries of the Company. The court has entered an order granting class certification with respect to: (i) a statewide class of non-exempt employees of our manager who were allegedly deprived of rest breaks as a result of our manager’s previous written policy requiring its employees to stay on premises during rest breaks; and (ii) a derivative class of non-exempt former employees of our manager who were not paid for allegedly missed breaks upon separation from employment. Notices to potential class members were sent out on February 2, 2021. Potential class members had until April 4, 2021 to opt out of the class; however, the total number of employees in the class has not been definitively determined and is the subject of continuing discovery. The opt out period has been extended until such time that discovery has concluded. If this litigation goes to trial, we expect that the earliest the trial would occur is the last quarter of 2023, based on various extensions to which the parties have agreed. While we believe it is reasonably possible that we may incur a loss associated with this litigation, because there remains uncertainty under California law with respect to a significant legal issue, discovery relating to class members continues, and the trial judge retains discretion to award lower penalties than set forth in the applicable California employment laws, we do not believe that any potential loss to the Company is reasonably estimable at this time. As of March 31, 2023, no amounts have been accrued. We are also engaged in other legal proceedings that have arisen but have not been fully adjudicated. To the extent the claims giving rise to these legal proceedings are not covered by insurance, they relate to the following general types of claims: employment matters, tax matters and matters relating to compliance with applicable law (for example, the ADA and similar state laws). The likelihood of loss from these legal proceedings is based on the definitions within contingency accounting literature. We recognize a loss when we believe the loss is both probable and reasonably estimable. Based on the information available to us relating to these legal proceedings and/or our experience in similar legal proceedings, we do not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial position, results of operations, or cash flow. However, our assessment may change depending upon the development of these legal proceedings, and the final results of these legal proceedings cannot be predicted with certainty. If we do not prevail in one or more of these legal matters, and the associated realized losses exceed our current estimates of the range of potential losses, our consolidated financial position, results of operations, or cash flows could be materially adversely affected in future periods.
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Segment Reporting |
3 Months Ended |
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Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingWe operate in one business segment within the hotel lodging industry: direct hotel investments. Direct hotel investments refers to owning hotel properties through either acquisition or new development. We report operating results of direct hotel investments on an aggregate basis as substantially all of our hotel investments have similar economic characteristics and exhibit similar long-term financial performance. As of March 31, 2023 and December 31, 2022, all of our hotel properties were in the U.S. and its territories. |
Significant Accounting Policies (For 10Q) (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These condensed consolidated financial statements include the accounts of Braemar Hotels & Resorts Inc., its majority-owned subsidiaries, and its majority-owned entities in which it has a controlling interest. All intercompany accounts and transactions between consolidated entities have been eliminated in these condensed consolidated financial statements. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made herein are adequate to prevent the information presented from being misleading. However, the financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 10, 2023. Braemar OP is considered to be a variable interest entity (“VIE”), as defined by authoritative accounting guidance. A VIE must be consolidated by a reporting entity if the reporting entity is the primary beneficiary because it has (i) the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. All major decisions related to Braemar OP that most significantly impact its economic performance, including but not limited to operating procedures with respect to business affairs and any acquisitions, dispositions, financings, restructurings or other transactions with sellers, purchasers, lenders, brokers, agents and other applicable representatives, are subject to the approval of our wholly-owned subsidiary, Braemar OP General Partner LLC, its general partner. As such, we consolidate Braemar OP. The following items affect reporting comparability of our historical condensed consolidated financial statements: •historical seasonality patterns at some of our hotel properties cause fluctuations in our overall operating results. Consequently, operating results for the three months ended March 31, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023; •on March 11, 2022, we acquired The Ritz-Carlton Reserve Dorado Beach hotel located in Dorado, Puerto Rico. The operating results of the hotel property have been included in the results of operations from its acquisition date; and •on December 1, 2022, we acquired the Four Seasons Resort Scottsdale at Troon North located in Scottsdale, Arizona. The operating results of the hotel property have been included in the results of operations from its acquisition date.
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Use of Estimates | Use of Estimates—The preparation of these condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards—In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”), which provides optional guidance through December 31, 2022 to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which further clarified the scope of the reference rate reform optional practical expedients and exceptions outlined in Topic 848. The amendments in ASU Nos. 2020-04 and 2021-01 apply to contract modifications that replace a reference rate affected by reference rate reform, providing optional expedients regarding the measurement of hedge effectiveness in hedging relationships that have been modified to replace a reference rate. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) (“ASU 2022-06”), which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company applied the optional expedient in evaluating debt modifications converting from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”). The Company adopted the standards upon the respective effective dates. There was no material impact as a result of this adoption. |
Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables present our revenue disaggregated by geographical areas (dollars in thousands):
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Investments in Hotel Properties, net (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investment in Hotel Properties | Investments in hotel properties, net consisted of the following (in thousands):
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Investment in Unconsolidated Entity (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Financial Information | The following table summarizes our carrying value and ownership interest in OpenKey:
The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):
The following table summarizes our note receivable from OpenKey (in thousands):
The following table summarizes the interest income associated with the loan to OpenKey (in thousands):
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Indebtedness, net (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Indebtedness, net | Indebtedness, net consisted of the following (dollars in thousands):
__________________ (1)LIBOR rates were 4.86% and 4.39% at March 31, 2023 and December 31, 2022, respectively. (2)SOFR rates were 4.80% and 4.36% at March 31, 2023 and December 31, 2022, respectively. (3)On April 4, 2023, we amended this mortgage loan. Terms of the amendment replaced the variable interest rate of LIBOR +2.65% with SOFR+2.75%, extended the current maturity date to October 2023, and added one six-month extension option, subject to satisfaction of certain conditions. (4)On April 18, 2023, we amended this mortgage loan. Terms of the amendment replaced the variable interest rate of LIBOR +2.55% with SOFR+2.65%, extended the current maturity date to November 2023, and added one six-month extension option, subject to satisfaction of certain conditions. (5)This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions, of which the third was exercised in June 2022. (6)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the second was exercised in August 2022. This mortgage loan has a LIBOR floor of 1.00%. (7)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions. (8)On January 18, 2023, we repaid this mortgage loan. (9)This mortgage loan has a LIBOR floor of 1.50%. (10)This mortgage loan has a SOFR floor of 1.00%. (11)The final maturity date assumes all available extension options will be exercised.
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Derivative Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table summarizes the interest rate derivatives we entered into over the applicable periods:
_______________ (1) No instruments were designated as cash flow hedges. Interest rate derivatives consisted of the following:
_______________ (1)No instruments were designated as cash flow hedges.
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):
__________________ (1)Reported as “derivative assets” in our condensed consolidated balance sheets. (2)Reported as “derivative liabilities” in our condensed consolidated balance sheets.
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Effect of Fair Value Measured Assets and Liabilities on Consolidated Statements of Operations | The following table summarizes the effect of fair value measured assets and liabilities on our condensed consolidated statements of operations (in thousands):
________ (1)Reported in “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations. (2)Represents settled and unsettled payments from counterparties on interest rate caps.
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Summary of Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments were as follows (in thousands):
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Income (Loss) Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amounts Used in Calculating Basic and Diluted Earnings (Loss) Per Share | The following table reconciles the amounts used in calculating basic and diluted income (loss) per share (in thousands, except per share amounts):
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Summary of Computation of Diluted Income Per Share | Due to their anti-dilutive effect, the computation of diluted income (loss) per share does not reflect the adjustments for the following items (in thousands):
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Redeemable Noncontrolling Interests in Operating Partnership (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | The following table presents the redeemable noncontrolling interests in Braemar OP and the corresponding approximate ownership percentage of our operating partnership:
____________________________________ (1) Reflects the excess of the redemption value over the accumulated historical cost. We allocated net (income) loss to the redeemable noncontrolling interests as illustrated in the table below (in thousands):
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Equity and Stock-Based Compensation (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared | Common Stock Dividends—The following table summarizes the common stock dividends declared during the period (in thousands):
The following table summarizes dividends declared (in thousands):
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Redeemable Preferred Stock (Tables) |
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Temporary Equity Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Activity of Temporary Equity | The following table summarizes dividends declared (in thousands):
The issuance activity of the Series E Preferred Stock is summarized below (in thousands):
__________________ (1)Exclusive of shares issued under the DRIP. The redemption value adjustment of Series E Preferred Stock is summarized below (in thousands):
________ (1) Reflects the excess of the redemption value over the accumulated carrying value. The following table summarizes dividends declared (in thousands):
The issuance activity of Series M Preferred Stock is summarized below (in thousands):
__________________ (1)Exclusive of shares issued under the DRIP. The redemption value adjustment of Series M Preferred stock is summarized below (in thousands):
__________________ (1) Reflects the excess of the redemption value over the accumulated carrying value. The following table summarizes dividends declared (in thousands):
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Preferred Stock Redemption Activities | The redemption activities of Series E Preferred Stock is summarized below (in thousands):
The redemption activities of Series M Preferred Stock is summarized below (in thousands):
|
Related Party Transactions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table summarizes the advisory services fees incurred (in thousands):
________ (1)Reimbursable expenses include overhead, internal audit, risk management advisory, asset management services and deferred cash awards. (2) Equity-based compensation is associated with equity grants of Braemar’s common stock, PSUs, LTIP units and Performance LTIP units awarded to officers and employees of Ashford LLC. The table below summarizes the amount Braemar has expensed related to reimbursed operating expenses of Ashford Securities (in thousands):
|
Commitment and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Licensing Fees Incurred | The table below summarizes the licensing fees incurred (in thousands):
|
Investments in Hotel Properties, net (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||
Land | $ 630,842 | $ 630,489 |
Buildings and improvements | 1,515,711 | 1,511,949 |
Furniture, fixtures and equipment | 153,456 | 147,019 |
Construction in progress | 22,790 | 22,890 |
Residences | 12,746 | 12,746 |
Total cost | 2,335,545 | 2,325,093 |
Accumulated depreciation | (455,279) | (440,492) |
Investments in hotel properties, net | $ 1,880,266 | $ 1,884,601 |
Investments in Hotel Properties, net - Impairment Charges and Insurance Recoveries (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Property, Plant and Equipment [Abstract] | ||
Impairment charges | $ 0 | $ 0 |
Derivative Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Interest rate derivatives - caps | |||
Derivative [Line Items] | |||
Notional amount (in thousands) | $ 960,500 | $ 960,500 | |
Aggregate principal balance on corresponding mortgage loans (in thousands) | $ 958,750 | $ 959,000 | |
Interest rate derivatives - caps | Minimum | |||
Derivative [Line Items] | |||
Strike rate (as a percent) | 2.00% | 2.00% | |
Interest rate derivatives - caps | Maximum | |||
Derivative [Line Items] | |||
Strike rate (as a percent) | 4.50% | 4.50% | |
Interest rate derivatives - caps | |||
Derivative [Line Items] | |||
Notional amount (in thousands) | $ 54,000 | $ 70,500 | |
Total cost of interest rate caps (in thousands) | $ 755 | $ 76 | |
Interest rate derivatives - caps | Minimum | |||
Derivative [Line Items] | |||
Strike rate (as a percent) | 3.50% | 3.50% | |
Interest rate derivatives - caps | Maximum | |||
Derivative [Line Items] | |||
Strike rate (as a percent) | 3.50% | 3.50% |
Fair Value Measurements - Additional Information (Details) |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Significance of current credit spreads to level 3 input considerations (as a percent) | 10.00% | |
LIBOR interest rate forward curve (as a percent) | 4.858% | 4.39% |
SOFR interest rate forward curve (as a percent) | 0.03125 |
Summary of Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maximum maturity term of financial assets (in days) | 90 days | |
Indebtedness, Carrying Value | $ 1,282,500 | $ 1,336,750 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Indebtedness, Carrying Value | $ 1,280,443 | $ 1,337,250 |
Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total indebtedness fair value variance from carrying value (as a percent) | 90.60% | 92.00% |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total indebtedness fair value variance from carrying value (as a percent) | 100.20% | 101.60% |
Redeemable Noncontrolling Interests in Operating Partnership (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Noncontrolling Interest [Line Items] | |||
Redeemable noncontrolling interests in Braemar OP (in thousands) | $ 34,820 | $ 40,555 | |
Adjustments to redeemable noncontrolling interests | 4 | $ (4,386) | |
Braemar Hotels & Resorts, Inc. | |||
Noncontrolling Interest [Line Items] | |||
Redeemable noncontrolling interests in Braemar OP (in thousands) | 34,820 | 40,555 | |
Adjustments to redeemable noncontrolling interests | $ 66 | $ 70 | |
Ownership percentage of operating partnership | 7.47% | 7.69% |
Redeemable Noncontrolling Interests in Operating Partnership (Allocated Redeemable Noncontrolling Interests) (For 10K) - (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Noncontrolling Interest [Line Items] | ||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | $ (261) | $ (967) |
Distributions declared to holders of common units, LTIP units and Performance LTIP units | $ 361 | $ 83 |
Equity and Stock-Based Compensation (Common Stock Dividends) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Equity [Abstract] | ||
Dividends declared – common stock ($0.05 /share) | $ 3,334 | $ 720 |
Equity and Stock-Based Compensation (Preferred Stock Dividends) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Series D Preferred Stock | ||
Class of Stock [Line Items] | ||
Series D Cumulative Preferred Stock | $ 825,000 | $ 825,000 |
Redeemable Preferred Stock - Convertible Preferred Stock Series B Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Class of Stock [Line Items] | ||
Series Preferred Stock | $ 10,350 | $ 3,303 |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Series Preferred Stock | $ 1,058 | $ 1,058 |
Redeemable Preferred Stock - Series E Activity (Details) - Series E Preferred Stock - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Class of Stock [Line Items] | ||
Units issued (in shares) | 3,798 | 1,477 |
Net proceeds | $ 85,444 | $ 33,236 |
Redeemable Preferred Stock - Value Adjustment Series E (Details) - Series E Preferred Stock - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Class of Stock [Line Items] | ||
Series preferred stock | $ 378,906 | $ 291,076 |
Cumulative adjustments to Series Preferred Stock | $ 11,599 | $ 9,403 |
Redeemable Preferred Stock - Series E Dividend Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Series E Preferred Stock | ||
Class of Stock [Line Items] | ||
Dividends on preferred stock | $ 7,534 | $ 1,399 |
Redeemable Preferred Stock - Series E Redemption Activity (Details) - Series E Preferred Stock - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Class of Stock [Line Items] | ||
Preferred Stock shares redeemed (in shares) | 11 | 0 |
Redemption amount, net of redemption fees | $ 282 | $ 0 |
Redeemable Preferred Stock - Issuance Activity Series M (Details) - Series M Preferred Stock - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Class of Stock [Line Items] | ||
Units issued (in shares) | 531 | 33 |
Net proceeds | $ 12,869 | $ 810 |
Redeemable Preferred Stock - Series M Redemption Activity (Details) - Series M Preferred Stock - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Class of Stock [Line Items] | ||
Series preferred stock | $ 48,294 | $ 35,182 |
Cumulative adjustments to Series Preferred Stock | $ 1,070 | $ 812 |
Redeemable Preferred Stock - Series M Dividend Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Series M Preferred Stock | ||
Class of Stock [Line Items] | ||
Dividends on preferred stock | $ 932 | $ 21 |
Redeemable Preferred Stock - Series M Preferred Stock Activity (Details) - Series M Preferred Stock - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Class of Stock [Line Items] | ||
Preferred Stock shares redeemed (in shares) | 1 | 0 |
Redemption amount, net of redemption fees | $ 25 | $ 0 |
Related Party Transactions (Schedule of Advisory Services Fee) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Related Party Transaction [Line Items] | ||
Advisory services fee | $ 7,948 | $ 7,322 |
Ashford LLC | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Advisory services fee | 7,948 | 7,322 |
Ashford LLC | Affiliated Entity | Base advisory fee | ||
Related Party Transaction [Line Items] | ||
Advisory services fee | 3,640 | 2,939 |
Ashford LLC | Affiliated Entity | Reimbursable expenses | ||
Related Party Transaction [Line Items] | ||
Advisory services fee | 2,022 | 1,096 |
Ashford LLC | Affiliated Entity | Equity-based compensation | ||
Related Party Transaction [Line Items] | ||
Advisory services fee | 2,286 | 2,310 |
Ashford LLC | Affiliated Entity | Incentive fee | ||
Related Party Transaction [Line Items] | ||
Advisory services fee | $ 0 | $ 977 |
Related Party Transactions (Schedule of Reimbursed Operating Expenses) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Ashford Inc. | ||
Related Party Transaction [Line Items] | ||
Corporate, general and administrative | $ 1,195 | $ 527 |
Commitments and Contingencies - Schedule of Licensing Fees Incurred (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Other Commitments [Line Items] | ||
Other hotel expenses | $ 136,097 | $ 98,567 |
Intellectual Property Sublease Agreement | ||
Other Commitments [Line Items] | ||
Other hotel expenses | $ 202 | $ 102 |
Segment Reporting (Details) |
3 Months Ended |
---|---|
Mar. 31, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |
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