Jonathan Jenkins's questions to Braemar Hotels & Resorts (BHR) leadership • Q1 2025
Question
Jonathan Jenkins asked about the group booking window, potential for increased cancellations, international travel exposure, opportunities for near-term margin growth, and the strategic rationale and expected CapEx for the Sofitel Chicago Magnificent Mile conversion.
Answer
Christopher Nixon, EVP and Head of Asset Management, stated the portfolio is well-insulated from macro headwinds, with only a slight shortening of the booking window and no significant impact on group business. He noted international inbound travel is a minimal part of the business. Nixon also expressed optimism for margin growth, citing cost containment, productivity improvements, and stabilizing wages. President and CEO Richard Stockton explained the Sofitel conversion to a franchise model makes the asset unencumbered, which should increase its value upon a potential sale. Christopher Nixon added that the planned renovations would require minimal CapEx.