The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Bryan Anthony Maher - B. Riley FBR, Inc., Research Division - Analyst
: A couple of questions. Specifically, let's start with the reopening of some of the 11 hotels to try and take advantage of the summer drive-to travel
as people try and get out of their houses, specifically Key West, La Jolla, Bardessono, Yountville. What are the lead times needed to get those open?
And are any of those still state-mandated closed?
Question: Bryan Anthony Maher - B. Riley FBR, Inc., Research Division - Analyst
: Got it. And then I understand that once you open and start generating revenue, it will slow your cash burn, but what level of occupancy do you
need to kind of get to breakeven on these assets? And I understand a lot of that's going to have to do with what rate you're going to be able to
charge. But do you have thoughts on a range of occupancy, not at the corporate level, but on the asset level?
Question: Bryan Anthony Maher - B. Riley FBR, Inc., Research Division - Analyst
: Okay. And then, Richard, how do you weigh eliminating services, housekeeping, et cetera? You ran through a list of items to eliminate or considering
to eliminate versus the premium pricing you get on a daily rate for many of these assets.
Question: Bryan Anthony Maher - B. Riley FBR, Inc., Research Division - Analyst
: Okay. And then last for me, and then I'll go back into the queue, and maybe best for Deric, I suppose. We weren't surprised really to see Ashford
Trust hold payments on the nonrecourse property level debt. But we were a little surprised that Braemar did so since it has less leverage and kind
of more of a cash burn run rate than Ashford Trust did. What are the thoughts there? And do you run the risk of loan payment acceleration request
from those lenders? And how do you weigh that risk, especially when there's so much equity in many of these properties?
Question: Bryan Anthony Maher - B. Riley FBR, Inc., Research Division - Analyst
: And will you announce those before the next quarterly earnings call if and when they come in?
|
