Braemar Hotels & Resorts Initiates Sale Process

Braemar Hotels & Resorts initiates sale process, focusing on luxury hotels and resorts investment. The company owns interests in 16 hotel properties with 4,192 total rooms, primarily located in US urban and resort locations. Braemar's hotel properties include Capital Hilton, The Clancy, and The Notary Hotel, all asset-managed by Ashford LLC. The company aims to generate attractive returns and long-term growth in cash flow for its stockholders.

DALLAS, Aug. 26, 2025 /PRNewswire/ -- The Board of Directors of Braemar Hotels & Resorts Inc. ("Braemar" or the "Company") (NYSE: BHR) today announced that it is initiating a process for the sale of the Company. The Board formed a Special Committee comprised solely of independent and disinterested directors to explore a range of strategic alternatives aimed at maximizing both near- and long-term shareholder value. After reviewing various strategic options, the Board determined that it is in the best interests of the Company and its shareholders to pursue a sale [1].

Braemar's predominantly luxury hotel portfolio has consistently achieved the highest RevPAR among publicly traded lodging REITs. The portfolio includes nine resort and five urban properties, operated under respected brands such as Ritz-Carlton Reserve, Four Seasons, Ritz Carlton, Park Hyatt, Autograph Collection by Marriott, Hilton, and Sofitel [1]. The portfolio's high-quality nature has attracted multiple activist investors over the years. The Board believes that a sale process is the right step to maximize shareholder value, given the sustained disconnect between the share price and the portfolio's intrinsic real estate value [1].

The Company's 2025 year-to-date RevPAR growth was 2.9% through June 30, 2025, while the overall U.S. Hotel Industry achieved RevPAR growth of 0.8% during the same period [1]. Braemar's portfolio includes the Capital Hilton, The Clancy, and The Notary Hotel, all asset-managed by Ashford LLC [1].

The Special Committee, along with the Independent Directors, negotiated that the buyer of the Company will be required to assume the master project management agreement between the Company and Premier Project Management, LLC, and the master hotel management agreement between the Company and Remington Lodging & Hospitality, LLC. However, these documents may be completely canceled by the buyer for an additional payment of $25 million to be paid to Ashford at the time of closing [1].

The Company's share count currently stands at 73.6 million fully diluted shares outstanding, which is comprised of 68.2 million shares of common stock and 5.4 million OP units. The total indebtedness of the Company is currently approximately $1.172 billion, and the current liquidation value of its outstanding preferred stock is approximately $473 million [1].

Braemar has engaged Baird as its financial advisor and White & Case LLP as its legal advisor in conjunction with Braemar's review of its strategic alternatives [1].

References:
[1] https://finance.yahoo.com/news/braemar-hotels-resorts-announces-initiation-213000192.html
[2] https://www.marketscreener.com/news/braemar-hotels-resorts-announces-initiation-of-sale-process-ce7c50d9de81f627