Brookdale Posts 5.7% RevPAR Growth, Exceeds 2025 EBITDA Guidance
Brookdale achieved 5.7% consolidated RevPAR growth and $458 million of adjusted EBITDA in 2025, exceeding guidance and lifting annual occupancy to 80.9% weighted average. Management refined its portfolio through sales and lease resets, generated positive free cash flow, and guided to 8%-9% RevPAR gains and mid-teen EBITDA growth in 2026.
1. 2025 Performance and Occupancy Gains
Brookdale closed 2025 with consolidated RevPAR up 5.7% and adjusted EBITDA of $458 million, surpassing its guidance range. Full-year weighted average occupancy reached 80.9%, with Q4 occupancy peaking at 83.7% consolidated and Adjusted EBITDA of $106 million, up 7% year-over-year.
2. Cash Flow and Leverage
The company generated $23 million of adjusted free cash flow, the first positive figure since 2020, and held $378 million in liquidity as of December 31. Annualized leverage improved to 8.9x trailing EBITDA from 9.9x, with refinancing of near-term mortgage maturities and a target to drop below 6x by end-2028.
3. Portfolio and Capital Investment
Brookdale streamlined its portfolio, exiting 45 leased and two owned communities, completing the Ventas master lease reset and selling 12 owned communities for $26.1 million. It expects $200 million from 29 additional sales in 2026 and plans $175 million to $195 million in capital expenditures, emphasizing larger First Impressions projects.
4. 2026 Outlook and Operational Initiatives
Management forecast 8%-9% RevPAR growth and $502 million to $516 million of Adjusted EBITDA, implying mid-teen growth. Drivers include higher in-place rates, occupancy gains, and accretive dispositions, supported by a new COO appointment, regional structure overhaul, and consolidated operations strategy.