Braemar Hotels & Resorts Inc (BHR) News & EventsBHRNews & EventsBraemar Hotels & Resorts Inc

Braemar Hotels Issues Statement on Wafic Said

Braemar Hotels & Resorts issued the following statement regarding recent public communications from Wafic Said, Principal of Al Shams Investments: "For more than two years now, Mr. Said has been aggressively trying to undermine the Company. His latest efforts are forcing us to continue to spend Company resources needlessly, and we are particularly concerned about his apparent self-interested motives and checkered past. Mr. Said and his firm, Al Shams, have repeatedly made demands on the Braemar Board of Directors, and these included actions that would have had catastrophic consequences for shareholders. While the Board categorically resisted those ill-advised demands, it has implemented every other aspect of Al Shams' asks - including all three of its requests made in a November 2024 letter. Specifically, Braemar has begun the process of separating from its external advisor, Ashford, to become a self-managed REIT, successfully renegotiated the terms of the Company Sale Fee, resulting in a $94.3M lower payment to Ashford than was contractually due, and hired Ferguson Partners, a nationally recognized search firm, to recruit new and fully independent members to the Board, including installing an independent Chairman - a process in which neither Ashford nor Mr. Bennett have any involvement whatsoever. Despite these bold reforms that increase alignment with shareholders and provide a clear path to significantly enhanced value, Mr. Said's hectoring continues unabated. We believe Mr. Said is attempting to install his own hand-picked candidates to the Board to serve his personal interests - at the expense of the best interests of other shareholders. While Mr. Said publicly claims to be acting with selfless benevolence, his private meetings with the Company tell a different story. As a hospitality investor himself, Mr. Said understands full well the value of the Braemar portfolio. Shareholders should question why he is so focused on gaining Board influence - especially because this could result in him being able to acquire Company assets below their fair values. It certainly wouldn't be the first time Mr. Said has tried to bend the rules in his favor. In a 2025 news report, BBC News refers to Mr. Said as a "former arms dealer" and notes that he was listed as a donor in records of meetings with then-Prime Minister Boris Johnson - despite Mr. Said not being allowed to make political donations in the UK. The press reported that Mr. Said used his wife as the conduit for his contributions, which has raised questions about the legality of the donations. The Syrian-born Mr. Said was also involved in the scandal-ridden Al-Yamamah arms deal, serving as an advisor to the UK and BAE Systems, the contractor for the deal, which produced revenue of $40B. A 2024 Guardian article describes a UK government report noting that the deal potentially involved corruption and bribery covered up by officials. While Mr. Said was busy making headlines for his unsavory entanglements, Braemar has enacted significant reforms in a thoughtful and disciplined manner. We have attempted to engage constructively with Mr. Said on many occasions, only to now be rebuffed. We can't help but ask: why force the Company to waste significant shareholder capital on a baseless proxy fight when the reforms that Mr. Said claims to have been advocating for have already been effectuated? We will do everything necessary to protect the best interests of all shareholders, and we urge Mr. Said to promptly end his value-destructive initiatives that seem clearly designed to support his personal economic interests, rather than the result of any genuine desire to create value for shareholders."

Braemar Hotels & Resorts Simplifies Corporate Structure

Braemar Hotels & Resorts announced a series of actions designed to simplify its corporate structure, reduce costs, enhance governance and position the company for long-term profitability and value creation. Following the conclusion of a lengthy strategic review process, and upon the recommendation of a Special Committee comprised solely of independent directors, the BHR Board of Directors has approved a management spin-out, which will enable Braemar to become a self-managed real estate investment trust. These actions include the initiation of steps to terminate the Fifth Amended and Restated Advisory Agreement with Ashford Inc. and its affiliates, hire employees directly, and reconstitute the company's Board. On a go-forward basis, the Company intends to maintain a portfolio of approximately six to eight luxury properties across the U.S. and the Caribbean, which had a gross asset value of over $1 billion and generated total annual revenue of $300 to $350 million as of the trailing twelve months ending March 31, 2026. The Company intends to directly hire employees and relocate to new office space, headquartered in Dallas. By directly employing its own management team, Braemar expects to reduce G&A costs by more than $25 million per year. Based on prevailing industry EBITDA multiples, ranging from 11-13x these savings imply significant potential equity value accretion. The in-house management structure and a new Board are designed to improve shareholder alignment. The Company has retained Ferguson Partners, an independent executive search firm, to identify five new independent Board members. The new Board members will be appointed to the Board, with the existing directors simultaneously stepping down, at the termination of the Advisory Agreement and will also be nominated for election at the Company's next annual meeting. Certain members of the management team currently employed by Ashford will become employees of Braemar, who will work exclusively for the company and have no ongoing relationship with Ashford or its affiliates. The Special Committee and the entire Board has worked tirelessly to exhaust all available options to maximize shareholder value. While initially a sale of the company was explored, the Special Committee ultimately concluded that there was a superior value creation available by terminating the Advisory Agreement, spinning out management, and remaining publicly listed. While the directors have agreed to formally resign their positions, they remain devoted to the future success of the company.

Braemar Hotels Sells Park Hyatt for $176 Million

Braemar Hotels & Resorts announced that it has entered into a definitive agreement to sell the 193-room Park Hyatt Beaver Creek Resort & Spa for $176 million and has received a $6.5 million non-refundable earnest money deposit. The sale price represents a 5.1% capitalization rate on net operating income for the trailing 12 months ended December 2025. The transaction is expected to close in May 2026.