Braemar Hotels & Resorts Inc. (BHR) Covered Calls

Braemar Hotels & Resorts Inc. is a real estate investment trust (REIT) focused on investing in high-performance luxury hotels and resorts. The company targets "upper-upscale" and luxury properties that generate a revenue per available room (RevPAR) significantly higher than the industry average. By partnering with global brands like Ritz-Carlton, Four Seasons, and Hilton LXR, it maintains a premier portfolio of irreplaceable assets in high-barrier-to-entry urban and resort markets.

You can sell covered calls on Braemar Hotels & Resorts Inc. to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for BHR (prices last updated Mon 4:16 PM ET):

Want to make money with covered calls?  Sign Up For A Free Trial

Braemar Hotels & Resorts Inc. operates as a specialized lodging REIT with a strategy centered on the highest tier of the hospitality market. The company business model focuses on "asset sharpening," which involves significant capital reinvestment into its properties to drive premium pricing and high occupancy. Its portfolio consists of approximately 15 luxury properties, including iconic resorts in Maui, Lake Tahoe, and St. Thomas, as well as flagship urban hotels in Chicago and Washington, D.C.

The company is currently undergoing a comprehensive strategic review, which includes the potential sale of the entire entity or individual high-value assets to maximize shareholder value. To enhance its operational flexibility, the company has transitioned several properties to franchise models managed by its affiliate, Remington Hospitality. This shift allows the firm to capture more of the property-level EBITDA while maintaining the marketing power of global luxury brands. A key recent milestone is the $25 million repositioning of the Cameo Beverly Hills into Hilton LXR luxury portfolio, designed to capture growing demand in the West Los Angeles luxury corridor.

Competition

In the luxury lodging REIT sector, the company competes for capital and assets with other institutional owners of high-end hospitality real estate. Its primary rivals include Host Hotels & Resorts and Ryman Hospitality Properties, both of which manage large portfolios of premium branded hotels. It also contends with Xenia Hotels & Resorts for luxury urban and boutique properties.

Additionally, the company faces competition from specialized hospitality firms such as DiamondRock Hospitality and RLJ Lodging Trust. Competition is driven by the ability to secure long-term management agreements with global brands, the efficiency of property-level operations, and the successful execution of high-ROI renovation projects. While private equity firms also compete for these assets, the company listed status and relationship with Ashford Inc. provide a distinct framework for capital recycling and external advisory expertise.

Strategic Outlook

The strategic outlook for the company is dominated by its ongoing sale process and the management of its debt maturities through 2026. A primary objective is the de-leveraging of the balance sheet through strategic asset dispositions, such as the recently completed sale of the Marriott Seattle Waterfront. By utilizing proceeds from these sales to redeem high-cost preferred equity and retire convertible notes, the company aims to simplify its capital structure and improve its cash flow per share in an environment of higher-for-longer interest rates.

Future growth is expected to stem from the full stabilization of its recently renovated properties and the continued recovery of group and luxury leisure travel. Management is focused on a "Total Return" approach, evaluating whether the company is better positioned as a standalone entity or as part of a larger institutional portfolio. By maintaining a disciplined capital expenditure budget and focusing on properties with RevPAR at least twice the U.S. national average, the company seeks to remain a dominant player in the ultra-luxury hospitality space, regardless of the eventual outcome of its strategic review.

Want more examples? BHP Covered Calls | BHVN Covered Calls