When Richard Stockton, CEO of Braemar Hotels & Resorts, reflects on the future of the company, his optimism is palpable. "We aim to not just participate in the luxury hotel sector but to lead it," he shares, setting the tone for Braemar's ambitious plans. Under Stockton's leadership, the company is poised for aggressive growth, especially following a quieter year.

Strategic Focus

In the last 12 months, Braemar Hotels & Resorts has been distinguishing itself through a robust performance in the luxury segment. Stockton highlighted that 12 out of their 14 hotels achieved positive EBITDA in the third quarter of the previous year, with 10 properties surpassing 60% occupancy. This success is largely due to the sustained appeal of luxury resorts, which have consistently performed at or above pre-pandemic levels, even as urban properties gradually recover.

Stockton emphasizes the company's strategic patience and selective approach in acquisitions. "Our goal is to build a portfolio that not only delivers strong financial returns but also enhances our brand's reputation for luxury and excellence," he explains. This vision is supported by Braemar's recent moves, including the sale of the Hilton La Jolla Torrey Pines, which demonstrates a commitment to optimizing their asset mix.

Braemar's acquisition of the Mr. C Beverly Hills property, coupled with a $10 million investment to elevate it to top-tier luxury standards, exemplifies this strategic approach. Stockton remarked that this acquisition aligns with Braemar's strategy to enhance its portfolio with high RevPAR (revenue per available room) properties that deliver premium guest experiences.

Leading the Luxury Charge

The luxury hotel segment has been a cornerstone of Braemar's strategy, driving significant revenue growth amid fluctuating market conditions. Stockton pointed out that the luxury segment has led the recovery, with luxury resorts outperforming other segments. This trend underscores the enduring demand for premium experiences, which has been a key driver of Braemar’s success.

"Clearly, the luxury resorts are leading the charge and responsible for such a great result," Stockton noted, highlighting the exceptional performance of these properties. The company’s focus on luxury aligns with current market trends, positioning Braemar to attract high-value travelers seeking unparalleled experiences.

The steady increase in occupancy and revenue at urban properties is a positive sign for the future, complementing the thriving luxury resorts. Braemar's strategic focus on luxury not only meets the rising demand for premium experiences but also positions the company favorably for long-term growth.

An Aggressive end to 2024

Looking forward, Braemar Hotels & Resorts is poised to continue aggressive expansion in 2024. Stockton’s vision includes leveraging the return of corporate transient demand and the resurgence of meetings and conventions to drive peak performance in urban properties. This approach is expected to complement the strong performance of luxury resorts, paving the way for sustained growth.

"We're not just building a portfolio of luxury hotels; we're creating a legacy of excellence," Stockton affirms. His strategic plan is built on Braemar's diverse portfolio, strong financial position, and luxury focus. Stockton outlined a multifaceted growth strategy encompassing acquisitions, strategic investments, and operational excellence, aimed at maximizing shareholder value and reinforcing Braemar's market leadership.

Operational Innovation

Operational excellence and innovation are critical to Braemar's success. Stockton prides himself on having fostered a culture of continuous improvement, ensuring that every aspect of the guest experience is meticulously curated. This commitment to excellence ensures that Braemar's properties consistently deliver exceptional value and experiences.

"Innovation is key to maintaining our competitive edge," Stockton remarked. Braemar has embraced technology to enhance the guest experience, streamline operations, and drive efficiency. From advanced booking systems to personalized guest services, technology plays a crucial role in sustaining Braemar's competitive advantage.

Stockton's emphasis on operational excellence extends to the company's internal practices as well. By continuously refining processes and adopting best practices, Braemar ensures that it remains at the forefront of the luxury hospitality sector.

Executive Vision

Richard Stockton's leadership is characterized by a clear vision and strategic acumen. His deep understanding of the hospitality industry, coupled with a proactive approach to market trends, has been instrumental in Braemar's success. Stockton’s ability to navigate challenges and seize opportunities underscores his leadership prowess.

"Resilience and adaptability are crucial in this industry," Stockton shared, reflecting on the qualities that have driven Braemar’s achievements. His leadership philosophy is built on resilience, adaptability, and a relentless focus on delivering value to stakeholders. This approach has been the foundation of Braemar's achievements and its strategic direction.

Stockton’s commitment to integrity, transparency, and excellence has also played a significant role in shaping Braemar's corporate culture. These values permeate every aspect of the company's operations, fostering a strong sense of trust and loyalty among employees, guests, and investors.

Sustainability and Corporate Responsibility

Braemar Hotels & Resorts is committed to sustainability and corporate responsibility, recognizing the importance of environmental stewardship. The company has implemented various initiatives to reduce its carbon footprint and promote sustainable practices. From energy-efficient technologies to waste reduction programs, Braemar is dedicated to operating responsibly and making a positive environmental impact.

Stockton's vision for sustainability extends beyond operational practices to include community engagement and support. Braemar actively participates in initiatives that benefit local communities, enhance social well-being, and contribute to societal betterment. "Our commitment to community engagement is a core aspect of our corporate identity," Stockton stated.

Braemar hosts major company-wide philanthropic events such as their Community Service Day in the spring and Holiday Events Participation in the winter. Throughout the year, employees are encouraged to contribute to community efforts, supported by financial backing from the company. Among the numerous organizations Braemar supports are Habitat for Humanity, the S.M. Wright Foundation, and the Salvation Army.

These efforts reflect Braemar's belief in corporate responsibility and their dedication to making a positive impact in the communities they operate in. "Being a responsible corporate citizen is integral to our business model," Stockton emphasized.

Our closing thoughts

Braemar Hotels & Resorts, under the adept leadership of Richard Stockton, exemplifies resilience, innovation, and strategic growth in the luxury hospitality segment. As the company gears up for an ambitious 2024, its focus on luxury, operational excellence, and sustainability positions it for continued success in an evolving market.

For executives and industry stakeholders, Braemar’s journey offers valuable insights into navigating market challenges, capitalizing on opportunities, and leading with vision and integrity. As the luxury hospitality landscape continues to evolve, Braemar Hotels & Resorts remains at the forefront, setting new benchmarks for excellence and redefining the guest experience.

"We aim to lead the industry, not just participate in it," Stockton himself concluded, encapsulating the ambitious spirit that drives Braemar Hotels & Resorts. With strategic acquisitions, innovative practices, and a strong commitment to community engagement, Braemar is set to redefine luxury hospitality. The company's future is bright, and its journey is one that will undoubtedly be followed closely by industry peers and luxury travellers alike.