Financial Review: BRAEMAR HOTELS & RESORTS (NYSE:BHR) versus American Hotel Income Properties REIT (OTCMKTS:AHOTF)

American Hotel Income Properties REIT (OTCMKTS:AHOTF) and BRAEMAR HOTELS & RESORTS (NYSE:BHR) are both real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Insider & Institutional Ownership

10.3% of American Hotel Income Properties REIT shares are owned by institutional investors. Comparatively, 64.8% of BRAEMAR HOTELS & RESORTS shares are owned by institutional investors. 8.2% of BRAEMAR HOTELS & RESORTS shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

American Hotel Income Properties REIT pays an annual dividend of $0.76 per share and has a dividend yield of 191.9%. BRAEMAR HOTELS & RESORTS pays an annual dividend of $0.20 per share and has a dividend yield of 9.7%. American Hotel Income Properties REIT pays out 1,245.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRAEMAR HOTELS & RESORTS pays out -27.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for American Hotel Income Properties REIT and BRAEMAR HOTELS & RESORTS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Hotel Income Properties REIT	0	0	0	0	0.00
BRAEMAR HOTELS & RESORTS	1	2	0	0	1.67

BRAEMAR HOTELS & RESORTS has a consensus price target of $2.50, indicating a potential upside of 21.36%. Given BRAEMAR HOTELS & RESORTS’s stronger consensus rating and higher probable upside, analysts plainly believe BRAEMAR HOTELS & RESORTS is more favorable than American Hotel Income Properties REIT.

Profitability

This table compares American Hotel Income Properties REIT and BRAEMAR HOTELS & RESORTS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Hotel Income Properties REIT	N/A	N/A	N/A
BRAEMAR HOTELS & RESORTS	-0.45%	-1.92%	-0.17%

Valuation & Earnings

This table compares American Hotel Income Properties REIT and BRAEMAR HOTELS & RESORTS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Hotel Income Properties REIT	N/A	N/A	N/A	$0.06	6.49
BRAEMAR HOTELS & RESORTS	$689.13 million	0.21	-$22.32 million	($0.73)	-2.82

American Hotel Income Properties REIT has higher earnings, but lower revenue than BRAEMAR HOTELS & RESORTS. BRAEMAR HOTELS & RESORTS is trading at a lower price-to-earnings ratio than American Hotel Income Properties REIT, indicating that it is currently the more affordable of the two stocks.

About American Hotel Income Properties REIT

American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.V), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP’s portfolio of premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG and Choice Hotels through license agreements. AHIP’s long-term objectives are to build on its proven track record of successful investment, deliver monthly U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio.

About BRAEMAR HOTELS & RESORTS

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).