Company: BHR-PD
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001574085-25-000130
Chunk: 204

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 204
---
 were 4.6% of total hotel revenue in the 2025 period and 4.5% in the 2024 period. 

The decrease in direct expenses is associated with lower direct expenses of approximately $494,000 at seven comparable hotel properties and a decrease of $500,000 due to the sales of Marriott Seattle Waterfront and Hilton La Jolla Torrey Pines. These decreases were partially offset by higher direct expenses of $896,000 at The Ritz-Carlton Sarasota, Four Seasons Resort Scottsdale, The Ritz-Carlton Lake Tahoe, The Notary Hotel, The Ritz-Carlton Reserve Dorado Beach, Sofitel Chicago Magnificent Mile and Cameo Beverly Hills.

The decrease in indirect expenses is comprised of decreases in: (i) lease expense of $1.7 million comprising of a decrease of $1.9 million from the two disposed hotel properties partially offset by an aggregate increase of $135,000 at our 14 comparable hotel properties; (ii) incentive management fees of $1.2 million including $691,000 at our 14 comparable hotel properties and $477,000 from the two disposed hotel properties; and (iii) marketing costs of $776,000 comprising an aggregate decrease of $2.7 million from the two disposed hotel properties partially offset by an increase of $1.9 million at our 14 comparable hotel properties. These decreases were partially offset by increases in: (i) general and administrative costs of $2.1 million comprising an aggregate increase of $4.7 million at our 14 comparable hotel properties partially offset by a decrease of $2.5 million from the two disposed hotel properties; (ii) repairs and maintenance of $633,000 comprising an aggregate increase of $1.5 million at our 14 comparable hotel properties partially offset by a decrease of $827,000 from the two disposed hotel properties; and (iii) energy costs of $62,000 comprising an aggregate increase of $1.2 million at our 14 comparable hotel properties partially offset by a decrease of $1.1 million from the two disposed hotel properties.

Management Fees. Base management fees decreased $1.0 million, or 5.7%, to $16.9 million in the 2025 period compared to the 2024 period. Management fees decreased $654,000 at six comparable hotel properties and $1.0 million due to the sales of Marriott Seattle Waterfront and Hilton La Jolla Torrey Pines. These decreases