Braemar Hotels & Resorts Initiates Sale Process, Forms Special Committee.

Braemar Hotels & Resorts has initiated a sale process to maximize shareholder value. The board has formed a special committee to explore strategic alternatives and has determined that selling the company is in the best interests of shareholders. The company has appointed a financial advisor to assist in the sale process, and the board will provide updates as necessary.

DALLAS, Aug. 26, 2025 -- The Board of Directors of Braemar Hotels & Resorts Inc. (NYSE: BHR) has announced the initiation of a sale process to maximize shareholder value. The decision follows a thorough review of strategic alternatives by a Special Committee composed of independent and disinterested directors. This committee aims to explore various options to enhance both near- and long-term shareholder returns [1].

The Special Committee, led by Chairperson Rebecca "Becky" Odino-Johnson, has determined that selling the company is the best course of action. The portfolio, which includes nine resort and five urban properties under respected brands such as Ritz-Carlton Reserve, Four Seasons, and Hilton, has consistently achieved the highest RevPAR among publicly traded lodging REITs. This strong market positioning has attracted multiple activist investors over the years [1].

The portfolio's high-quality nature, coupled with the company's recent performance, has led to a year-to-date RevPAR growth of 2.9% through June 30, 2025, compared to the overall U.S. Hotel Industry's 0.8% growth during the same period. This growth is attributed to the company's prime locations and limited competitive supply [1].

The sale process, which includes soliciting interest from potential buyers and coordinating information sharing, is being led by financial advisor Robert W. Baird & Co. Inc. (Baird). The company has also executed a letter agreement with Ashford Inc. to address the termination fee payable upon a sale, which has increased significantly due to the growth of the portfolio [1].

The decision to pursue a sale is driven by several factors, including the historically low EBITDA multiple lodging REITs are achieving and the ongoing activism the company has experienced. The company's CEO, Richard Stockton, believes the current economic conditions and industry performance present a favorable environment for a potential sale [1].

Braemar's portfolio also includes excess land at several properties, which was valued at $9.7 million at The Ritz-Carlton Sarasota, $8.4 million at The Ritz-Carlton Lake Tahoe, and $17.8 million at the Four Seasons Resort Scottsdale. The company's positive net working capital and the recent sale of the Marriott Seattle Waterfront for $50.8 million further strengthen its financial position [1].

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

The Board of Directors of Braemar Hotels & Resorts believes that the sale process presents an attractive valuation opportunity for shareholders. The company will continue to execute its business plan and generate optimal returns from its assets while the sale process progresses [1].

References:

[1] https://www.prnewswire.com/news-releases/braemar-hotels--resorts-announces-initiation-of-sale-process-302539371.html