Braemar Hotels & Resorts Inc.

All lines have been placed on mute to prevent any background noise. 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'd now like to turn the conference over to Allison Beach, Director of Public Relations. Please go ahead.

Good morning and welcome to today's call to review results for Braemar Hotels and Resorts for the third quarter of 2025 and to update you on recent developments. On the call today will be Richard Stockton, President and Chief Executive Officer, Derek Eubanks, Chief Financial Officer, and Chris Nixon, Executive Vice President and Head of Asset Management. The results as well as notice of 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 November 4th, 2025, and may also be accessed through the company's website at www.bhrreit.com. Each listener is encouraged to review these reconciliations provided in the earnings release together with all the other information provided in the release. Also, unless otherwise stated, all reported results discussed in this call compared to third quarter ended September 30th, 2025, with the third quarter ended September 30th, 2024. I will now turn the call over to Richard Stockton. Please go ahead, Richard.

Good morning. Welcome to our third quarter earnings conference call. Before I begin, I'd like to remind you that back in August, we announced the initiation of a sale process for Braemar. The company has engaged Robert W. Baird & Co. as its financial advisor, and the sale process has been initiated. On today's call, we will not be providing any update on that process or be able to address any questions about that process. As we highlighted in the press release, there's no deadline or dependent timetable set for completion of the sale process, and there can be no assurance that this process will result in the sale of the company. Additionally, we do not expect to disclose or provide any update concerning developments related to this process unless and until the Board of Directors has approved a specific transaction or other course of action requiring disclosure. With that said, Let me begin today's call by providing an overview of our recent results and our strategic priorities for the remainder 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 will open the call for Q&A. We have a few key themes for today's call. First, I'm excited to report that our portfolio achieved 1.4% growth in comparable rev par in the third quarter and total comparable hotel EBITDA growth of 15.1%. Importantly, our resorts continue to show strong growth with comparable RevPar growth of 5.5% for the quarter. Second, we have significant renovations in process at three hotels, which significantly impacted our portfolio results. If you exclude hotels under renovation during the quarter, our RevPar growth was 3.4%. Third, from a liquidity perspective, We remain very well positioned, having addressed our final 2025 debt maturity earlier this year, completing the sale of the Marriott Seattle Waterfront in August, and announcing the planned sale of the Clancy, which we expect to close shortly. Turning to our third quarter results. Our portfolio delivered solid results with comparable rev par of $257, reflecting an increase of 1.4% over the prior year quarter. This marks our fourth consecutive quarter of rev par growth which I believe reflects an important inflection point in our performance. Additionally, comparable total hotel revenue increased by 3.9% over the prior year period, and comparable hotel EBITDA was $21.4 million, which reflected a 15.1% increase over the prior year quarter. Nine of our 14 hotels are considered resort destinations, and our luxury resort portfolio continues to return to a more normalized growth trajectory delivering a strong third quarter performance. Our resort portfolio reported comparable rev par of $361, a 5.5% increase over the prior year period, and combined comparable hotel EBITDA of $13.1 million, a 58% increase over the prior year period. The brightest spots within our resort portfolio this quarter included the Four Seasons Resort Scottsdale True North, which delivered an impressive comparable rev par growth of approximately 25%, The Ritz-Carlton Lake Tahoe also performed exceptionally well, with total revenue up roughly 32% year-over-year, reflecting strong group demand and the benefits from the recently completed renovation. And our Ritz-Carlton Reserve Dorado Beach continued to be a standout, achieving approximately 20% growth in comparable rev par. This impressive performance was slightly offset by some near-term softness in our urban hotels. We saw comparable rev par decrease 3.9% during the quarter. This reflects the extensive renovation at the Academy of Beverly Hills, as well as citywide occupancy declines in Philadelphia, which created headwinds this quarter for the Notary Hotel. Looking ahead, our booking base continues to be strong, and we believe our portfolio is well positioned to outperform. As a reminder, on the capital markets front, in March of this year, we closed on our refinancing across five hotels at a very competitive spread. Importantly, this financing addressed our only remaining final debt maturity for 2025. In August, we capitalized on the strong credit market for lodging assets by refinancing the mortgage loan secured by the Four Seasons Resort Scottsdale at True North. During the quarter, we sold the 369-room Marriott Seattle waterfront for $145 million, or $393,000 per key. The transaction aligns nicely with our strategic objectives to deleverage the portfolio while sharpening our focus on the luxury hotel sector. Additionally, subsequent to quarter end, We entered into a definitive agreement to sell the 410-room Clancy in San Francisco for $115 million, or approximately $280,000 per key. The transaction is expected to close this month. Of note, we received a $3.5 million nonrefundable earnest money deposit, and the buyer has the right to extend the closing for 30 days with an incremental $1 million nonrefundable deposit. The sale price represents a 5.2% capitalization rate on net operating income for the trailing 12 months ended September 2025. We are strategically refining our portfolio with one clear objective, to maximize its value for our shareholders, and this divestiture will help us to ensure that our future sale of the company results in the best possible outcome for our investors. Next, I'm pleased to report that, to date, we have redeemed approximately $125 million of our non-traded preferred stock, which represents approximately 27% 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. We are pleased with the performance of our portfolio and believe the renovations we are completing will drive strong performance going forward. I will now turn the call over to Derek to take you through our financials in more detail.