Braemar Hotels & Resorts Inc.

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press 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.

Good morning and welcome to today's call to review results for Braemar Hotels and Resorts for the second quarter of 2025 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 perspectives, 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 July 31, 2025, and may also be accessed through the company's website at www.bhreit.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 second quarter ended June 30, 2025 with the second quarter ended June 30, 2024. I will now turn the call over to Richard Stockton. Please go ahead, Richard.

Morning. Welcome to our second quarter earnings conference call. I'll begin today's call by providing an overview of our recent results and our strategic priorities in the second half of 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 a Q&A. We have a few key themes for today's call. First, I'm excited to report that our portfolio achieved 1.5% growth in comparable REFAR in the second quarter and total comparable hotel EBITDA growth of 3.7%. on slightly stronger margins. Importantly, we experienced revenue and EBITDA growth in both our urban and resort hotel segments. Second, from a liquidity perspective, we remain very well positioned, having addressed our final 2025 debt maturity earlier this year and agreeing to sell the Marriott Seattle Waterfront. And third, despite having significant renovations in process at three of our hotels, as we look forward, our booking pace continues to be strong. Turning to our second quarter results, our portfolio delivered solid results with comparable rev par of $318, reflecting an increase of 1.5% over the prior year quarter. This marks our third consecutive quarter of rev par growth, which I believe reflects an important inflection point in our performance. Additionally, comparable total hotel revenue increased by 3.3% over the prior year period, and comparable hotel EBITDA was $47.8 million, which reflected a 3.7% increase over the prior year quarter. Nine of our 15 hotels are considered resort destinations, and our luxury resort portfolio continues to return to a more normalized growth trajectory, delivering a strong second quarter performance. Our resort portfolio reported comparable rev par of $464, a 1.6% increase over the prior year period, and combined comparable hotel EBITDA of $25.7 million, a 6.9% increase over the prior year period. The brightest spots within our resort portfolio included the Ritz-Carlton Lake Tahoe with approximately 39% growth in total revenue and the Ritz-Carlton Reserve Dorado Beach with approximately 14% growth in total revenue. We're also pleased by the continued steady performance of our urban hotels, which delivered comparable rent par growth of 0.5% during the second quarter. As the citywide conference calendar continues to improve, The Clancy in San Francisco achieved total revenue growth of 14% in the quarter. We believe our portfolios well positioned to outperform, and our booking pace continues to be strong. Our group pace for 2025 is up 8.6%, and 2026 shows continued growth at 3.6%. Chris will discuss these trends in more detail. As a reminder, on the capital markets front, in March of this year, we closed on a refinancing across five hotels at a very competitive spread. Importantly, this financing addresses our only remaining final debt maturity for 2025. Also during the quarter, we restructured the 415-room Sofitel Chicago Magnificent Mile as a franchise. Under this new agreement, the hotel will continue to operate under the Sofitel Chicago Magnificent Mile brand, while day-to-day management has been assumed by Remington Hospitality. Looking ahead, we expect a meaningful uplift in the value of the property due to the Sofitel brand remaining on the hotel and the management agreement with Remington being terminable on sale. Subsequent to quarter end, we signed a definitive agreement to sell the 369-room Manhattan-Seattle waterfront for $145 million, or $393,000 per key. Including anticipated capital expenditures of $7 million, the sale price represents an 8.1% capitalization rate on net operating income for the trailing 12 months ended May 31, 2025. The transaction aligns nicely with our strategic objective to deleverage the portfolio while sharpening our focus on the luxury hotel sector. Closing is expected in the next few weeks, subject to customary conditions. I'm also pleased to report that to date, we have redeemed approximately $107 million of our non-traded preferred stock, which represents approximately 23% of the original capital raise. We expect to continue to redeem these shares as we seek to deleverage our platform and improve our cash flow per share. I will now turn the call over to Derek to take you through our financial details.