At some point, the new attention and excitement around AHT should spill in to BHR - it's more upscale and cleaner (financially) little sister...
Bullish
I
Entered a big position today. I held it previously and sold maybe 2-3 months back at ~7 b/c it was running too fast. Now I am back in and big. So it is clearly an overshoot. Why? BHR is high quality hotels, like PK but with weaker and smaller balance sheet. So the fact that they could raise unsecured debt at 4.5% is certainly not negative without the context of Convertible feature. (Go try to raise unsecured debt at 4.5% yourself first...) Now to Convertible feature. At any price below 6.30 per share their notes are just debt, cheap unsecured debt. At today's price of 5.58 any of the convertible debt holders can go and buy direct in the market at 20% discount. At 6.30 they will be indifferent so yes, they can increase the equity base but so long as I entered below 6.30, I am totally cool with that because their notes already injected liquidity to the company for the period it is required, to ramp up etc. And it does not mean they are capped at 6:30. All cruises diluted I'm the summer at HALF of today's prices...
S
Not many people write here, should I buy or should I not buy.... mmmm... 5.5 price as a entry point. Somebody know the stock? Any advice?
Y
Braemar Hotels & Resorts is down 6.37% to 6.76
F
This is a great reopening play. All hotels are in great places and demand for travel has just started. Great 6-9 month hold.
J
stocks trading a little off its rocker, don't ya think?
J
I was hoping someone else would get the convo going, but I've been hitting refresh for a solid hour now and I can't wait any longer. Given the negative state of the world and the hospitality industry specifically I was kind of encouraged by the earnings announcement. It seems most believed we would lose about $1.45/share and instead we only lost $1.41/share. Of the 13 properties in out portfolio 11 are currently open for business. Revpar is down catastrophically with no real end in sight, but we have been given forbearance by almost all of our lenders. So a bit of a mixed bag, but if the world can right itself sooner rather than later BHR could be a really lucrative play. Last thing, I got the feeling that the board is going to cancel the dividend for the common stock this quarter too, so that a bummer... but probably the right move given the uncertainty of the future. Now somebody pick up the ball and let's get a little convo going!!!
Bullish
J
I know the audience for this board is pretty small, but I sure would like to hear what people are expecting when the company announces earnings later this month. I believe in this company, their properties, and the fairness with which they treat shareholders... that being said spring/summer revenue appears to have been decimated by COVID. Any thoughts?
c
I'm loving my purchase of BHR-PD...keep those dividends rolling in!
J
With increased revenue and better than expected earnings... when do we think the dividend will be reinstated for the common shareholders. To maintain REIT status they must payout 90% of taxable income as I understand it. Does that mean we could be in store for a special dividend or am I way off base? I’m curious to see where people think this stock is headed... my opinion is that If the vaccine is legit BHR could be $7 by May.
r
Why did this stock sell for $400 in 2006 and why are Institutional holdings zero? Otherwise it looks good. I want to buy a Luxury Hotel REIT to replace LHO which I sold higher than it was bought out by PEB.
F
New filing out BHR doing a share offering up to $50 million Bucks tha'ts why BHR is down.
c
bought in at $24. Maybe not the best move in a rising interest rate world but I'm happy with the dividend for now.
t
interesting 13d filed on bhr, buyer may take company private among other options, surprised it hasnt moved more yet
J
Janney increased PT from $5/share to $6/share... I may be talking to myself on this board, but the sound is sweet! This is an easy double if/when they bring back the dividend!!
J
Now we’re talking... the street seems to like the 25% cut from the board and the elimination of the Q1dividend! Keep climbing BHR... 2020 is going to be a tough year, but we’ll make it through it and be stronger on the other side!
c
Will they survive covid 19?
h
They have money and government programs (ppp) payroll protection program they will get approximately $25. Million I know because I own the hotel and I get some.
J
I’m in AHT... though I have significantly more riding on BHR. I believe a great deal in this company and management team... I used COVID as an opportunity to double down, and so far the market gods have been kind.
A
I guess the question is, why don't they payout more of their FFO to shareholders?
So it is clearly an overshoot.
Why? BHR is high quality hotels, like PK but with weaker and smaller balance sheet. So the fact that they could raise unsecured debt at 4.5% is certainly not negative without the context of Convertible feature. (Go try to raise unsecured debt at 4.5% yourself first...)
Now to Convertible feature. At any price below
6.30 per share their notes are just debt, cheap unsecured debt. At today's price of 5.58 any of the convertible debt holders can go and buy direct in the market at 20% discount. At 6.30 they will be indifferent so yes, they can increase the equity base but so long as I entered below 6.30, I am totally cool with that because their notes already injected liquidity to the company for the period it is required, to ramp up etc. And it does not mean they are capped at 6:30. All cruises diluted I'm the summer at HALF of today's prices...
I want to buy a Luxury Hotel REIT to replace LHO which I sold higher than it was bought out by PEB.