BRAEMAR HOTELS & RESORTS ANNOUNCES SHAREHOLDER VALUE CREATION PLAN
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 06 2024
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Should l Buy BHR?
Source: newsfilter
- Sale of Hilton Torrey Pines: Braemar Hotels & Resorts Inc. announced the sale of Hilton Torrey Pines for $165 million and is evaluating the sale of two other hotels.
- Debt Repayment: The company repaid its remaining 2024 debt maturities and fully repaid a loan associated with the Cameo Beverly Hills hotel.
- Redemption Programs: Braemar announced a $50 million preferred share redemption program and plans to redeem non-traded preferred stock using proceeds from the sale of Hilton Torrey Pines.
- Stock Buyback Authorization: The Board of Directors authorized a new stock repurchase program of up to $50 million to enhance shareholder value.
- Forward-Looking Statements: The press release includes forward-looking statements about the company's strategy, future plans, risks, and uncertainties.
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Analyst Views on BHR
About BHR
Braemar Hotels & Resorts Inc. is a real estate investment trust focused on investing in luxury hotels and resorts. Its business objectives are to generate attractive returns on its invested capital and long-term growth in cash flow to maximize total returns to its stockholders. The Company operates in the direct hotel investment segment of the hotel lodging industry. It owns interests in approximately 14 hotel properties in seven states, the District of Columbia, Puerto Rico and St. Thomas, U.S. Virgin Islands. The hotel properties in its portfolio are predominantly located in the United States urban and resort locations. It owns 14 of its hotel properties directly and the remaining hotel property through an investment in a majority-owned consolidated joint venture entity. All the hotel properties in its portfolio are asset-managed by Ashford LLC. The Company's hotel properties include Capital Hilton, The Notary Hotel and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Al Shams Investments Seeks New Directors at Braemar's 2026 Meeting
- Shareholder Nomination: Al Shams Investments, holding approximately 9.5% of Braemar Hotels & Resorts, intends to nominate new directors at the 2026 Annual Meeting to enhance the protection of shareholder interests.
- Asset Sale Risk Warning: Al Shams warns that continuing hotel asset sales could trigger a termination payment exceeding $480 million, nearly 2.4 times the company's current market capitalization, posing significant risks to shareholders.
- Board Trust Crisis: Current board members received support below 5% in the 2025 elections, indicating a lack of shareholder trust, prompting Al Shams to call for a pause on major transactions until new board elections are completed.
- Legal Accountability Threat: Al Shams states that if the current board proceeds with asset sales detrimental to shareholders, they will face legal accountability, potentially leading to lawsuits against board members and their advisors to protect shareholder rights.
See More
Al Shams Investments Plans to Elect New Directors
- Shareholder Rights Protection: Al Shams Investments, holding 9.5% of Braemar Hotels & Resorts, intends to elect new directors at the 2026 Annual Meeting to safeguard public shareholders' interests and prevent the current board from pursuing controversial asset sales.
- Potential Huge Termination Risk: The advisory agreement with Ashford Inc. includes a termination provision that could trigger over $480 million in payments, nearly 2.4 times the company's current market capitalization, posing significant risks to shareholders if hotel assets are sold.
- Board Trust Crisis: Current board members faced multiple shareholder rejections in 2025, indicating a lack of trust, prompting Al Shams to call for a pause on major transactions until new directors are elected.
- Threat of Legal Action: Al Shams warns the current board that proceeding with asset sales detrimental to shareholders will lead to legal action to hold them accountable, ensuring shareholder rights are protected.
See More
Braemar Hotels to Sell Park Hyatt Beaver Creek for $176M
- Transaction Value: Braemar Hotels & Resorts has agreed to sell the 193-room Park Hyatt Beaver Creek Resort & Spa for $176 million, translating to $912,000 per key, indicating the asset's strong valuation in the luxury market.
- Non-Refundable Deposit: The deal includes a $6.5 million non-refundable earnest money deposit, which not only signifies the buyer's strong commitment but also provides Braemar with financial security, enhancing its liquidity position.
- Cap Rate Insight: The transaction reflects a 5.1% cap rate based on trailing 12-month NOI through December 2025, suggesting a stable income expectation for the property and potentially attracting further investor interest.
- Use of Proceeds: The net proceeds from the sale are planned to be used to redeem outstanding convertible notes due in June 2026, a strategy that will help improve Braemar's capital structure and reduce future financial risks.
See More
Braemar Hotels Sells Beaver Creek Resort for $176 Million
- Asset Sale Announcement: Braemar Hotels & Resorts has announced the sale of the 193-room Park Hyatt Beaver Creek Resort & Spa for $176 million, equating to $912,000 per key, highlighting the high value and market appeal of its assets.
- Capitalization Rate Insight: The transaction reflects a capitalization rate of 5.1%, based on net operating income for the trailing 12 months ending December 2025, indicating the company's robust performance and profitability in the luxury hotel sector.
- Planned Use of Proceeds: Braemar intends to use the net proceeds from this sale to redeem its outstanding convertible notes in June, which will help improve the company's financial structure and reduce debt burden.
- Strategic Implications: This asset sale is viewed as a significant milestone in the company's ongoing strategic review and sales process, underscoring Braemar's confidence in the high quality of its portfolio and laying the groundwork for future growth.
See More
Braemar Hotels Sells Park Hyatt Beaver Creek for $176 Million
- Asset Sale Announcement: Braemar Hotels & Resorts has announced the sale of the 193-room Park Hyatt Beaver Creek Resort & Spa for $176 million, translating to $912,000 per key, highlighting the high value and demand for its assets in the luxury market.
- Capitalization Rate Insight: The transaction reflects a capitalization rate of 5.1%, based on net operating income for the trailing twelve months ending December 2025, indicating stable revenue performance and boosting investor confidence in the company's financial health.
- Use of Proceeds: Braemar intends to utilize the net proceeds from this sale to redeem its outstanding convertible notes in June, which will help reduce financial leverage and improve its capital structure.
- Strategic Implications: This asset sale is viewed as a significant milestone in the company's ongoing strategic review and sales process, underscoring Braemar's competitiveness in the high-growth luxury hotel market and its commitment to optimizing its asset portfolio.
See More
Braemar Hotels & Resorts Announces Cash Dividend Plan
- Cash Dividend Declaration: Braemar Hotels & Resorts announced a cash dividend of $0.1146 per share for its 5.5% Series B Cumulative Convertible Preferred Stock, to be paid on July 15, 2026, reflecting the company's commitment to shareholder returns.
- Preferred Stock Dividend Arrangement: The company also set a cash dividend of $0.17187 per share for its 8.25% Series D Preferred Stock, scheduled for the same payment date, indicating stability in maintaining shareholder interests.
- Series M Preferred Stock Dividends: Braemar will pay cash dividends of $0.17917 and $0.17708 per share for different CUSIPs of its Series M Redeemable Preferred Stock, enhancing its attractiveness to investors.
- Equity Overview: As of March 31, 2026, Braemar had 11,388,459 shares of Series E and 1,379,289 shares of Series M Redeemable Preferred Stock issued and outstanding, demonstrating the company's active presence in the preferred stock market.
See More
Al Shams Investments Seeks New Directors at Braemar's 2026 Meeting
- Shareholder Nomination: Al Shams Investments, holding approximately 9.5% of Braemar Hotels & Resorts, intends to nominate new directors at the 2026 Annual Meeting to enhance the protection of shareholder interests.
- Asset Sale Risk Warning: Al Shams warns that continuing hotel asset sales could trigger a termination payment exceeding $480 million, nearly 2.4 times the company's current market capitalization, posing significant risks to shareholders.
- Board Trust Crisis: Current board members received support below 5% in the 2025 elections, indicating a lack of shareholder trust, prompting Al Shams to call for a pause on major transactions until new board elections are completed.
- Legal Accountability Threat: Al Shams states that if the current board proceeds with asset sales detrimental to shareholders, they will face legal accountability, potentially leading to lawsuits against board members and their advisors to protect shareholder rights.
See More
Al Shams Investments Plans to Elect New Directors
- Shareholder Rights Protection: Al Shams Investments, holding 9.5% of Braemar Hotels & Resorts, intends to elect new directors at the 2026 Annual Meeting to safeguard public shareholders' interests and prevent the current board from pursuing controversial asset sales.
- Potential Huge Termination Risk: The advisory agreement with Ashford Inc. includes a termination provision that could trigger over $480 million in payments, nearly 2.4 times the company's current market capitalization, posing significant risks to shareholders if hotel assets are sold.
- Board Trust Crisis: Current board members faced multiple shareholder rejections in 2025, indicating a lack of trust, prompting Al Shams to call for a pause on major transactions until new directors are elected.
- Threat of Legal Action: Al Shams warns the current board that proceeding with asset sales detrimental to shareholders will lead to legal action to hold them accountable, ensuring shareholder rights are protected.
See More
Braemar Hotels to Sell Park Hyatt Beaver Creek for $176M
- Transaction Value: Braemar Hotels & Resorts has agreed to sell the 193-room Park Hyatt Beaver Creek Resort & Spa for $176 million, translating to $912,000 per key, indicating the asset's strong valuation in the luxury market.
- Non-Refundable Deposit: The deal includes a $6.5 million non-refundable earnest money deposit, which not only signifies the buyer's strong commitment but also provides Braemar with financial security, enhancing its liquidity position.
- Cap Rate Insight: The transaction reflects a 5.1% cap rate based on trailing 12-month NOI through December 2025, suggesting a stable income expectation for the property and potentially attracting further investor interest.
- Use of Proceeds: The net proceeds from the sale are planned to be used to redeem outstanding convertible notes due in June 2026, a strategy that will help improve Braemar's capital structure and reduce future financial risks.
See More
Braemar Hotels Sells Beaver Creek Resort for $176 Million
- Asset Sale Announcement: Braemar Hotels & Resorts has announced the sale of the 193-room Park Hyatt Beaver Creek Resort & Spa for $176 million, equating to $912,000 per key, highlighting the high value and market appeal of its assets.
- Capitalization Rate Insight: The transaction reflects a capitalization rate of 5.1%, based on net operating income for the trailing 12 months ending December 2025, indicating the company's robust performance and profitability in the luxury hotel sector.
- Planned Use of Proceeds: Braemar intends to use the net proceeds from this sale to redeem its outstanding convertible notes in June, which will help improve the company's financial structure and reduce debt burden.
- Strategic Implications: This asset sale is viewed as a significant milestone in the company's ongoing strategic review and sales process, underscoring Braemar's confidence in the high quality of its portfolio and laying the groundwork for future growth.
See More
Braemar Hotels Sells Park Hyatt Beaver Creek for $176 Million
- Asset Sale Announcement: Braemar Hotels & Resorts has announced the sale of the 193-room Park Hyatt Beaver Creek Resort & Spa for $176 million, translating to $912,000 per key, highlighting the high value and demand for its assets in the luxury market.
- Capitalization Rate Insight: The transaction reflects a capitalization rate of 5.1%, based on net operating income for the trailing twelve months ending December 2025, indicating stable revenue performance and boosting investor confidence in the company's financial health.
- Use of Proceeds: Braemar intends to utilize the net proceeds from this sale to redeem its outstanding convertible notes in June, which will help reduce financial leverage and improve its capital structure.
- Strategic Implications: This asset sale is viewed as a significant milestone in the company's ongoing strategic review and sales process, underscoring Braemar's competitiveness in the high-growth luxury hotel market and its commitment to optimizing its asset portfolio.
See More
Braemar Hotels & Resorts Announces Cash Dividend Plan
- Cash Dividend Declaration: Braemar Hotels & Resorts announced a cash dividend of $0.1146 per share for its 5.5% Series B Cumulative Convertible Preferred Stock, to be paid on July 15, 2026, reflecting the company's commitment to shareholder returns.
- Preferred Stock Dividend Arrangement: The company also set a cash dividend of $0.17187 per share for its 8.25% Series D Preferred Stock, scheduled for the same payment date, indicating stability in maintaining shareholder interests.
- Series M Preferred Stock Dividends: Braemar will pay cash dividends of $0.17917 and $0.17708 per share for different CUSIPs of its Series M Redeemable Preferred Stock, enhancing its attractiveness to investors.
- Equity Overview: As of March 31, 2026, Braemar had 11,388,459 shares of Series E and 1,379,289 shares of Series M Redeemable Preferred Stock issued and outstanding, demonstrating the company's active presence in the preferred stock market.
See More
