Braemar Hotels & Resorts (BHR) reported its fourth‑quarter 2025 results on February 26, 2026, posting revenue of $165.56 million—12.5 % above the $147.20 million consensus estimate—while the company recorded an earnings‑per‑share loss of $0.67, a miss of $0.62 against the $‑0.05 estimate. The quarter also added to the company’s full‑year 2025 net loss of $72.7 million, underscoring the ongoing profitability challenges.
Revenue growth was driven by stronger demand in the luxury and upper‑upscale hotel segment, which helped offset a 4.5 % year‑over‑year decline in overall revenue. The company’s top‑line beat the consensus largely because of higher occupancy rates and premium pricing in its core portfolio, but the YoY drop reflects weaker performance in other segments and a broader slowdown in the hospitality market.
The earnings miss can be traced to a combination of high leverage and rising operating costs. BHR’s debt‑to‑equity ratio sits at 5.64, and the company reported a funds‑from‑operations loss of $1.5 million, or 2 cents per share, in the quarter. These factors, coupled with negative net margin and a negative return on equity, contributed to the $0.67 loss per share and the broader net loss for the year.
Management highlighted the company’s dividend strategy in its earnings call. President and CEO Richard Stockton said, "This ensures all parity requirements with respect to distributions across all of our series of preferred stock are met." He also noted that the high dividend yield reflects shares trading at a wide discount to net asset value, and that the portfolio is positioned to deliver results over time.
BHR is currently in the midst of a formal sale process that began in August 2025, and the company has not announced a common dividend policy for 2026. The focus on capital‑structure flexibility, combined with the high debt load and ongoing net losses, signals a period of strategic reassessment as the company seeks to optimize its balance sheet and unlock shareholder value.
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