Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Braemar Hotels & Resorts, Inc. Second Quarter 2025 Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Deric Eubanks, Chief Financial Officer. Please go ahead.

Good morning, and welcome to today's call to review results for Braemar Hotels & 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 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 8-K with the SEC on July 31, 2025, and may also be accessed through the company's website at www.bhrreit.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.

Good 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 for the second half of 2025. Then Deric 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 1.5% growth in comparable RevPAR 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 3 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 RevPAR of $318, reflecting an increase of 1.5% over the prior year quarter. This marks our third consecutive quarter of RevPAR 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. 9 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 RevPAR 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…

Thank you Deric. We are pleased to report another strong quarter of performance across our portfolio. During the second quarter, comparable hotel RevPAR reached $318, representing a 1.5% increase compared to the prior year period. Comparable hotel EBITDA increased 3.7% during the second quarter over the prior year period, supported by a combination of healthy demand trends, disciplined cost controls and continued execution of our strategic initiatives. Our resort properties led portfolio performance with comparable hotel EBITDA increasing 6.9% during the second quarter compared to the prior year period. Ancillary guest spending remained a key contributor to top line growth across the portfolio with food and beverage revenue increasing 6.6% during the second quarter compared to the prior year period. In addition to high-margin revenue initiatives, our team maintained a strong focus on expense management, delivering improvements across multiple operational areas. As a result, during the second quarter, comparable hotel EBITDA margin improved by 11 basis points compared to the prior year quarter. We achieved this performance despite temporary headwinds from 2 properties currently undergoing renovations, Park Hyatt Beaver Creek and Hotel Yountville, which muted results to some extent. Notably, comparable hotel EBITDA growth during the second quarter for the remainder of the portfolio, excluding these properties, was 6.3% compared to the prior year quarter. This performance underscores the underlying strength of our assets. We continue to see strong operating performance across the portfolio and believe we are well positioned to deliver outperformance in the periods ahead. Group performance remained strong during the second quarter with group revenue finishing 2.3% above the prior year period. In the quarter bookings for in the quarter stays were particularly strong. We entered the quarter down 1.5% in group revenue and finished ahead 2.3%. This strong recovery reflects the efforts of our property sales…

Thank you, Chris. In summary, I'd like to reiterate that we continue to be pleased with the performance of our hotels, in particular, the return to normalized growth of our resort assets and continued steady performance of our urban properties. We also remain well positioned with a solid balance sheet and promising outlook. We look forward to updating you on our progress in the quarters ahead. This concludes our prepared remarks, and we will now open the call for Q&A. Thank you.

[Operator Instructions] Our first question will come from the line of Daniel Hogan with Baird.

First, just on some revenue management strategies. Is there an incremental focus on grouping up? I know you mentioned doing that at Dorado Beach. Is that something you're looking to do at more properties? And is there a change in booking leads versus signed contracts?

Yes. Great question, Daniel. We are looking to group up broadly across the portfolio. I think group -- additional group base insulates you from any external headwinds. It has to be the right group, and there's a heavy focus on our end on group that generates additional catering and banquet spend. And so we've been pleased with the F&B performance across our portfolio. F&B revenue growth in the quarter outpaced rooms revenue growth, which is fantastic. And in doing that, we were also able to achieve 110 basis points of margin growth through food and beverage. And so we're looking for additional groups, but it's got to be the right groups. Placement is also very important at these resorts. So we're primarily focused on funneling groups and slower demand months and off-season. But broadly, to your question, yes, we're looking to group up across the portfolio.

Okay. Great. And then I know April was affected by the Easter shift. Maybe how did May and June perform versus your expectations and performance throughout the quarter? Was that more in line being more normalized months and calendars?

Yes. May and June performed more in line with our expectations. I think broadly across the portfolio, there are some headwinds that we experienced this quarter. We've got a couple of hotels that are under renovation, which did have some displacement within the quarter. In addition, we saw extreme softness out of the government segment, which impacted Capital Hilton and D.C. So government business was soft in the quarter. The rest of the business was extremely strong and allowed us to kind of outrun those challenges. So we talked already about the group strength, which was up high single digits in the quarter. Corporate business was up in the quarter. And then leisure was very strong, where we saw strength in leisure at our resorts. And so there were some challenges with Easter in April, some challenges with the hotels that were under renovation, but we were very pleased with the results given kind of government softness and how we were able to outrun that.

Okay. And then last one for me. Following the Seattle sale, does this make there'd be less of an urge to sell more assets? Is that's still focused and does that affect any of the upcoming transactions that you're looking to do?

Yes. Thanks, Daniel. Yes, I think with the sale of Seattle, we'll have a significant cash balance on the balance sheet, gives us more flexibility to pursue various initiatives. So I'd say, as I said in our public announcement, we don't have any further property sales planned for this year. But I think 2026, we'll assess when it comes, I certainly wouldn't rule it out. I think the transaction environment continues to improve. We had a very interested group, a large group of interested buyers in the Seattle process. So I feel like we achieved full market value for that asset. And as the debt markets continue to heal, potentially cost of financing comes down a bit, we should see even more interest in our assets going into next year. So I'm definitely open to it at that point.

And that will conclude our question-and-answer session. I'll turn the call back over to management for any closing remarks.

Yes. Thank you for joining us on our second quarter earnings call, and we look forward to speaking with you again next quarter.

This concludes today's call. Thank you all for joining. You may now disconnect.