Braemar Hotels & Resorts Inc.

star, then the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Derek Eubanks, Chief Financial Officer. Please go ahead.

Thank you. Good morning and welcome to today's call to review results for Braemar Hotels and Resorts for the fourth quarter and full year 2024 and to update you on recent developments. On the call today will also be Richard Stockton, President and Chief Executive Officer, and Chris Nixon, Executive Vice President and Head of Asset Management. The results as well as notice of the accessibility of this conference call on a listen-only basis over the Internet were distributed yesterday in a press release. At this time, let me remind you that certain statements and assumptions in this conference call contain or are based upon forward-looking information and are being made pursuant to the safe harbor provisions of the Federal Securities Regulations. Such forward-looking statements are subject to numerous assumptions, uncertainties, and known or unknown risks, which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the company's filings with the Securities and Exchange Commission. The forward-looking statements included in this conference call are only made as of the date of this call, and the company is not obligated to publicly update or revise them. Statements made during this call do not constitute an offer to sell or a solicitation of an offer to buy any securities. Securities will be offered only by means of a registration statement and prospectus, which can be found at www.sec.gov. In addition, certain terms used in this call are non-GAAP financial measures, reconciliations of which are provided in the company's earnings release and accompanying tables or schedules which have been filed on Form 8K with the SEC on February 26, 2025, and may also be accessed through the company's website at www.bhrreat.com. Each listener is encouraged to review those reconciliations provided in the earnings release together with all other information provided in the release. Also, unless otherwise stated, all reported results discussed in this call compare the fourth quarter and full year ended December 31, 2024, with the fourth quarter and full year ended December 31st, 2023. I will now turn the call over to Richard Stockton. Please go ahead, Richard.

Thank you, Derek. Good morning, and welcome to our fourth quarter earnings conference call. I'll begin today's call by providing an overview of our recent results and our strategic priorities for 2025. Then Derek will provide a review of our financial results, and Chris will provide an update on our asset management activity. Afterwards, we'll open the call for Q&A. We have a few key themes for today's call. First, please report that after six straight quarters of declining REVPAR, our portfolio achieved 1.9% comparable REVPAR growth in the fourth quarter and achieved 5.3% comparable total revenue growth. Second, we are in active discussions with the lender on the refinancing of our $293 million loan that matures in June. After completing that refinancing, we will have no remaining final debt maturities in 2025. And third, we continue to make solid progress on our shareholder value creation plan, having redeemed approximately $80 million of our non-traded preferred stock. Turning to our fourth quarter results, I'm excited to report that after several quarters of REVPAR decreases, our portfolio delivered solid results with fourth quarter comparable REVPAR of $305, reflecting an increase of 1.9% over the prior year quarter. Additionally, comparable total hotel revenue increased by 5.3% over the prior year period, and comparable hotel EBITDA was $41.1 million, which represents a 0.7% increase over the prior year quarter. This growth was driven in part by a strong 7% increase in group revenue, underscoring the continued resurgence of group bookings and events. Our portfolio demonstrated solid growth and improved operating performance despite temporary challenges in certain markets. For instance, unseasonably mild winter weather impacted demand in key seasonal destinations, while shifts in the timing of festive events also influenced booking patterns. With New Year's Eve falling on a Wednesday, demand extended into the first weekend of January. Likewise, the shift of Christmas from Monday in 2023 to Wednesday in 2024 compressed the peak festive booking window from 10 days to just six. Despite these calendar-driven challenges, our portfolio remained resilient with a 5% increase in total hotel revenue compared to the prior year period. Nine of our 15 hotels are considered resort destinations, and this luxury resort portfolio delivered solid fourth quarter performance with comparable REVPAR of $515, a 1.3% increase over the prior year period, and combined comparable hotel EBITDA of $31 million, a 4.1% increase over the prior year period. We also continue to be encouraged by the performance of our urban hotels, which achieved comparable REVPAR growth of 3.3% in the fourth quarter. We are seeing strength across all demand segments at our urban properties, and our forward booking pace is strong. January REVPAR for our portfolio was an impressive 13% over the prior year. While the Capital Hilton benefited from the inauguration, our portfolio REVPAR growth excluding the Capital Hilton was still over 9%. As we enter 2025, we are seeing strong momentum and solid forward bookings driven by improving industry fundamentals, sustained growth in our urban hotels, and an anticipated rebound in our resort segment. It's also worth noting that the period of decline as a result of unsustainably high resort rev par driven by post-COVID stimulus and international travel restrictions has ended. However, moving forward, We believe the resort segment is expected to return to steady growth aided by supply constraints stemming from the ongoing restrictive capital markets environment. Moving on to capital expenditures. In the fourth quarter of 2024, we successfully delivered several high impact projects aimed at enhancing the guest experience and driving long-term value across our portfolio. At the Four Seasons Resort Scottsdale, we transformed underutilized back of house space into a retail market. providing guests with seamless access to curated gourmet offerings while generating incremental revenue. We also made significant strides in our food and beverage programming in the fourth quarter of 2024, completing the renovation of the fine dining venue at the Ritz-Carlton Reserve Toronto Beach, reinforcing the resort's market positioning and commitment to world-class culinary experiences. We also refreshed the Oceanside Ballroom and Boardroom at the property, ensuring it remains a premier destination for corporate and social events. Additionally, we successfully completed the renovation of the beachside restaurant, Sales, at the Ritz-Carlton St. Thomas. Overlooking Great Bay, the refreshed venue enhances the resort's elevated dining experience and further solidifies its status as a luxury Caribbean destination. On the capital markets front and subsequent to quarter end, the company successfully extended its mortgage loan secured by the 170-room Ritz-Carlton Lake Tahoe. The loan had an initial maturity date of January 2025 and continues to have a final maturity date in January 2026. The loan has been extended with a pay down of $10 million and the spread on the loan is now SOFR plus 3.25%. I'm also pleased to report that to date we have redeemed approximately $80 million of our non-traded preferred stock. which represents approximately 17% of the original capital rates. We expect to continue to redeem these shares as we seek to deleverage our platform and improve our cash flow per share. Finally, I want to take a moment to express our heartfelt support for all those affected by the recent South California fires. While our assets were not directly impacted, the event has caused fluctuations in Los Angeles market demand. In response, our company swiftly stepped in to assist providing accommodations for long-term displaced guests and securing insurance-related stays in corporate groups to support the local recovery efforts. Initially, at Cameo Beverly Hills, transit demand spiked as evacuees sought temporary housing, but it retracted within a few days as residents returned home or secured long-term accommodations. Since then, the property has experienced daily volatility with frequent bookings and cancellations. Group business has also been impacted, leading to cancellations, state shifts, and softened sell rates across the market. More recently, February saw a return to stable group bookings. We remain committed to supporting local efforts, ensuring that our hotels continue to play a role in the community's rebuilding process. We'll now turn the call over to Derek to take you through our financials in more detail.