Braemar Hotels & Resorts Inc. (NYSE: BHR), announced yesterday its preliminary expectations for net income and Adjusted EBITDAre for the fourth quarter ending December 31, 2022.
The Company reported today a preliminary estimated range of net income of approximately $0.5 million to $3.5 million and a preliminary estimated range of Adjusted EBITDAre of $36.0 million to $39.0 million. The lower end of this preliminary estimated range of Adjusted EBITDAre is higher than the current average of the estimates published by the equity research analysts that cover the Company. As previously announced, the Company's RevPAR for the month of October was $280, reflecting an increase of approximately 14% compared to October of 2019 and the Company's RevPAR for the month of November was $253, reflecting an increase of approximately 15% compared to November of 2019. The Company currently expects its RevPAR for the month of December to be at a similar premium to 2019.
The following table contains a reconciliation of the Company's preliminary estimated GAAP net income (loss) to the Company's preliminary estimated EBITDA, EBITDAre, and Adjusted EBITDAre:
| BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, EBITDAre AND ADJUSTED EBITDAre (in millions) (unaudited) | |||
| Three Months Ending December 31, 2022 | |||
| Low End | High End | ||
| Net income (loss) | $ 0.5 | $ 3.5 | |
| Interest expense and amortization of loan costs | 18.7 | 18.7 | |
| Depreciation and amortization | 19.5 | 19.5 | |
| Income tax expense (benefit) | (0.8) | (0.8) | |
| Equity in (earnings) loss of unconsolidated entity | 0.1 | 0.1 | |
| Company's portion of EBITDA of OpenKey | (0.1) | (0.1) | |
| EBITDA and EBITDAre | 37.9 | 40.9 | |
| Adjustments | (1.9) | (1.9) | |
| Adjusted EBITDAre | $ 36.0 | $ 39.0 | |
Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.