Braemar Hotels' Largest Shareholder Accuses Company of Self-Dealing
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 15 2026
0mins
Source: seekingalpha
- Shareholder Self-Dealing Accusation: Braemar Hotels & Resorts' largest shareholder, Al Shams Investments, has accused the company of self-dealing in recent transactions, claiming that using proceeds from future asset sales to pay Ashford's termination fee represents a betrayal of shareholders, potentially impacting corporate governance.
- Management Restructuring: The board approved a management spin-out, with all current directors stepping down except for CEO Richard Stockton, and plans to appoint five new independent directors along with an independent chairman, aiming to enhance governance transparency and accountability.
- Demand for Shareholder Meeting: Al Shams Investments is pushing for an immediate annual shareholder meeting and plans to initiate a proxy challenge against company-selected candidates, reflecting dissatisfaction with corporate governance and a commitment to shareholder rights.
- Shareholder Ownership Stake: Al Shams Investments holds 9.5% of Braemar's shares, which gives it significant influence over company decisions and may lead to increased governance pressure on the company in the future.
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Analyst Views on BHR
About BHR
Braemar Hotels & Resorts Inc. is a real estate investment trust (REIT) which invests primarily in high revenue per available room (RevPAR) luxury hotels and resorts. The Company owns interests in approximately 13 hotel properties in six states, the District of Columbia, Puerto Rico and St. Thomas, United States (U.S.) Virgin Islands with over 3,028 total rooms. The hotel properties in its portfolio are predominantly located in U.S. urban and resort locations. Its hotel properties are asset-managed by Ashford LLC. Its hotel properties include Four Seasons Resort Scottsdale, The Ritz-Carlton Sarasota, The Ritz-Carlton St. Thomas, The Ritz-Carlton Reserve Dorado Beach, Capital Hilton, Pier House Resort & Spa, The Notary Hotel, Sofitel Chicago Magnificent Mile, The Ritz-Carlton Lake Tahoe, Bardessono Hotel and Spa, Hotel Yountville, and Cameo Beverly Hills. The Four Seasons Resort Scottsdale includes over 210 luxurious, spacious guest rooms, including 22 suites and more.
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.
Braemar Hotels Announces Q2 2026 Earnings Release Date
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- Company Focus: Braemar targets the high-growth luxury hotel and resort sector, aiming for revenue per available room (RevPAR) at least twice the U.S. national average, demonstrating its competitive edge in the premium market.
- Asset Management Strength: The company leverages deep industry expertise and disciplined asset management to drive performance that exceeds industry averages, highlighting its leadership position in luxury hotel investments.
- Forward-Looking Statements: The press release includes forward-looking information regarding business strategies, anticipated asset transactions, and financial performance, cautioning investors to carefully consider associated risks when making investment decisions.
See More
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- Interest Rate Structure: The new loan is priced at SOFR + 325 basis points, indicating that the company can still secure relatively favorable financing terms in the current debt market, with potential for further improvements in financing conditions.
- Financial Strategy: CEO Richard Stockton stated that this loan extension addresses the company's only remaining maturity in 2026, ensuring no other final maturities until 2028, thereby enhancing the company's financial stability.
- Market Outlook: Braemar focuses on the high-growth luxury hotel and resort sector, leveraging deep industry expertise and disciplined asset management, which is expected to drive the company's performance in the future.
See More
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- Loan Extension: Braemar Hotels & Resorts Inc. announced the extension of its $43.4 million mortgage loan, originally maturing on July 15, 2026, now extended to October 15, 2026, alleviating the company's financial pressure for 2026.
- Interest Rate Structure: The loan is priced at SOFR plus 325 basis points, indicating that the company has secured relatively favorable financing terms in the current market environment, with expectations for potential further improvements in financing conditions.
- Financial Strategy: CEO Richard Stockton stated that the loan extension addresses the company's only remaining maturity in 2026, which will help ensure no other final maturities until 2028, thereby enhancing financial flexibility.
- Market Outlook: Braemar focuses on the high-growth luxury hotel and resort sector, leveraging deep industry expertise and disciplined asset management, which is expected to drive the company's performance in the future.
See More
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- Multiple Preferred Stock Dividends: The company will also pay a cash dividend of $0.17186 per share for its 8.25% Series D Preferred Stock, enhancing the attractiveness of its preferred shares to investors and reflecting robust performance in the luxury hotel market.
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See More
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- Multiple Preferred Stock Dividends: Additionally, the Board announced a dividend of $0.17186 per share for its 8.25% Series D Preferred Stock, which is expected to enhance the company's attractiveness to preferred stock investors and boost market confidence.
- Series E and M Dividends: The company will also pay $0.15625 per share for Series E Redeemable Preferred Stock and $0.17917 and $0.17708 for Series M Redeemable Preferred Stock on the same date, indicating a robust liquidity management strategy.
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See More
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- Stock Price Plummet: Braemar Hotels' stock fell 15% in two days, and since separating from Ashford Hospitality Trust, the stock has nearly collapsed by 90%, currently trading at just $2.10, indicating strong market dissatisfaction with the board's decisions, potentially leading to further declines in investor confidence.
- Increased Financial Risk: This transaction imposes a financial obligation exceeding the net proceeds from the sales on Braemar Hotels, exacerbating its status as one of the most leveraged lodging REITs, which may affect its future financing capabilities and operational stability.
- Commitment to Legal Action: Al Shams Investments vows to pursue all available legal remedies and plans to nominate independent directors at the 2026 Annual Meeting, aiming to restore shareholder control over governance, reflecting its dissatisfaction with the board's actions and a firm commitment to protecting shareholder rights.
See More
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- Earnings Release Plan: Braemar Hotels & Resorts plans to issue its Q2 2026 earnings release after market close on August 5, 2026, with details available in the Investor Relations section of its website, ensuring transparency and timely communication.
- Company Focus: Braemar targets the high-growth luxury hotel and resort sector, aiming for revenue per available room (RevPAR) at least twice the U.S. national average, demonstrating its competitive edge in the premium market.
- Asset Management Strength: The company leverages deep industry expertise and disciplined asset management to drive performance that exceeds industry averages, highlighting its leadership position in luxury hotel investments.
- Forward-Looking Statements: The press release includes forward-looking information regarding business strategies, anticipated asset transactions, and financial performance, cautioning investors to carefully consider associated risks when making investment decisions.
See More
Braemar Hotels Extends Mortgage Loan Maturity
- Loan Extension: Braemar Hotels & Resorts announced the extension of its $43.4 million mortgage loan maturity to October 15, 2026, from the original date of July 15, 2026, alleviating short-term financial pressure on the company.
- Interest Rate Structure: The new loan is priced at SOFR + 325 basis points, indicating that the company can still secure relatively favorable financing terms in the current debt market, with potential for further improvements in financing conditions.
- Financial Strategy: CEO Richard Stockton stated that this loan extension addresses the company's only remaining maturity in 2026, ensuring no other final maturities until 2028, thereby enhancing the company's financial stability.
- Market Outlook: Braemar focuses on the high-growth luxury hotel and resort sector, leveraging deep industry expertise and disciplined asset management, which is expected to drive the company's performance in the future.
See More
Braemar Extends $43.4 Million Mortgage Loan Maturity
- Loan Extension: Braemar Hotels & Resorts Inc. announced the extension of its $43.4 million mortgage loan, originally maturing on July 15, 2026, now extended to October 15, 2026, alleviating the company's financial pressure for 2026.
- Interest Rate Structure: The loan is priced at SOFR plus 325 basis points, indicating that the company has secured relatively favorable financing terms in the current market environment, with expectations for potential further improvements in financing conditions.
- Financial Strategy: CEO Richard Stockton stated that the loan extension addresses the company's only remaining maturity in 2026, which will help ensure no other final maturities until 2028, thereby enhancing financial flexibility.
- Market Outlook: Braemar focuses on the high-growth luxury hotel and resort sector, leveraging deep industry expertise and disciplined asset management, which is expected to drive the company's performance in the future.
See More
Braemar Hotels Declares Cash Dividends for Preferred Stocks
- Dividend Announcement: Braemar Hotels & Resorts has declared a partial cash dividend of $0.1146 per share for its 5.5% Series B Cumulative Convertible Preferred Stock, to be paid on July 15, 2026, to shareholders of record as of June 30, 2026, indicating the company's commitment to shareholder returns and financial stability.
- Multiple Preferred Stock Dividends: The company will also pay a cash dividend of $0.17186 per share for its 8.25% Series D Preferred Stock, enhancing the attractiveness of its preferred shares to investors and reflecting robust performance in the luxury hotel market.
- Series E and M Dividends: For the Series E Redeemable Preferred Stock, a dividend of $0.15625 per share will be paid, while Series M will see dividends of $0.17917 and $0.17708 per share, demonstrating the company's flexibility in financing structures and commitment to investors.
- Equity Status: As of May 29, 2026, Braemar has 10,905,043 shares of Series E Redeemable Preferred Stock and 1,367,795 shares of Series M outstanding, showcasing the company's activity in the preferred stock market and its capital management capabilities.
See More
Braemar Hotels Declares Cash Dividends for Preferred Stocks
- Dividend Announcement: Braemar Hotels' Board declared a partial cash dividend of $0.1146 per share for its 5.5% Series B Cumulative Convertible Preferred Stock, payable on July 15, 2026, to shareholders of record as of June 30, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Multiple Preferred Stock Dividends: Additionally, the Board announced a dividend of $0.17186 per share for its 8.25% Series D Preferred Stock, which is expected to enhance the company's attractiveness to preferred stock investors and boost market confidence.
- Series E and M Dividends: The company will also pay $0.15625 per share for Series E Redeemable Preferred Stock and $0.17917 and $0.17708 for Series M Redeemable Preferred Stock on the same date, indicating a robust liquidity management strategy.
- Shareholder Return Strategy: As of May 29, 2026, Braemar had 10,905,043 shares of Series E and 1,367,795 shares of Series M Preferred Stock outstanding, demonstrating the company's continued investment in the high-growth luxury hotel market and its focus on shareholder value.
See More
Al Shams Investments Sends Letter to Braemar Hotels Board Over Controversial Sale
- Shareholder Rights Violated: Al Shams Investments, as the largest shareholder of Braemar Hotels, strongly condemns the board for authorizing the sale of three hotels, resulting in a $480 million termination fee to a company controlled by Monty Bennett, which is viewed as a betrayal of shareholders and directly impacts trust and governance structure.
- Stock Price Plummet: Braemar Hotels' stock fell 15% in two days, and since separating from Ashford Hospitality Trust, the stock has nearly collapsed by 90%, currently trading at just $2.10, indicating strong market dissatisfaction with the board's decisions, potentially leading to further declines in investor confidence.
- Increased Financial Risk: This transaction imposes a financial obligation exceeding the net proceeds from the sales on Braemar Hotels, exacerbating its status as one of the most leveraged lodging REITs, which may affect its future financing capabilities and operational stability.
- Commitment to Legal Action: Al Shams Investments vows to pursue all available legal remedies and plans to nominate independent directors at the 2026 Annual Meeting, aiming to restore shareholder control over governance, reflecting its dissatisfaction with the board's actions and a firm commitment to protecting shareholder rights.
See More
