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Braemar Hotels & Resorts Inc. has officially begun the process of selling the company, aiming to capitalize on its strong market position and maximize shareholder value. The decision follows a strategic review by a Special Committee of independent directors, who explored various alternatives before determining that a sale would be in the best interest of the company and its shareholders.
Braemar’s portfolio, renowned for its luxury offerings, includes nine resort and five urban properties under esteemed brands such as Ritz-Carlton Reserve, Four Seasons, and Park Hyatt. This collection has consistently achieved the highest Revenue Per Available Room (RevPAR) among publicly traded lodging REITs, a testament to its prime locations and limited competitive supply.
Richard Stockton, CEO of Braemar Hotels & Resorts, expressed optimism about the sale, citing improving economic conditions and robust industry performance as favorable factors. “We’ve built a high-quality portfolio that is well-positioned to attract significant interest from private market buyers,” Stockton stated.
The company has engaged Robert W. Baird & Co. Inc. as its financial advisor and White & Case LLP as its legal advisor to facilitate the sale process. Additionally, Braemar has reached an agreement with its external advisor, Ashford Inc., regarding a reduced termination fee, which is part of the strategic sale plan.
Braemar’s decision mirrors trends seen in other luxury lodging REITs, such as Strategic Hotel & Resorts, which faced similar market challenges and ultimately opted for a sale. The company’s high-quality assets, including excess land at key properties such as the Ritz-Carlton Sarasota and the Four Seasons Resort Scottsdale, enhance its appeal to potential buyers.
While there is no set deadline for the sale’s completion, the company anticipates significant buyer interest due to the rarity and quality of its portfolio.
|
Braemar Company Sale Fee Calculation
| |||||||
|
($ in millions)
| |||||||
|
TTM as of
|
TTM as of
| ||||||
|
Q1 2021 (1)
|
Q1 2025
| ||||||
|
Advisory Revenues*
|
19.0
|
30.0
| |||||
|
Advisory Expenses
|
(10.5)
|
(7.7)
| |||||
|
Advisory EBITDA
|
8.5
|
22.2
| |||||
|
Premier EBITDA
|
1.0
|
7.7
| |||||
|
INSPIRE EBITDA
|
(0.0)
|
2.7
| |||||
|
RED EBITDA
|
0.4
|
2.9
| |||||
|
Lismore EBITDA
|
3.4
|
2.4
| |||||
|
Other EBITDA
|
0.1
|
0.7
| |||||
|
Net Earnings
|
13.4
|
38.7
| |||||
|
Implied Adjustments to Advisory Expenses
|
(6.6)
| ||||||
|
Implied Net Earnings
|
32.1
| ||||||
|
Agreed
| |||||||
|
12x Multiple (2)
|
161.0
|
385.3
| |||||
|
20% Premium Owed at Termination (3)
|
193.2
|
462.3
| |||||
|
Uninvested Amount (4)
|
31.1
|
17.7
| |||||
|
TOTAL
|
224.3
|
480.0
| |||||
|
* Advisory Revenues for TTM Q1 2025 can be found in Braemar’s Form 10-K filed on March 12, 2025 and Form
| |||||||
|
10-Q filed on May 8, 2025 on the line item Advisory Services Fee on the Consolidated Statement of Operations.
| |||||||
|
(1) As reported in Braemar’s first quarter 2021 Form 10-Q filed on May 7, 2021 for Net Earnings.
| |||||||
|
(2) Per the definition of Termination Fee in the Fifth Amended and Restated Advisory Agreement.
| |||||||
|
(3) Per the definition of Adjusted Termination Fee and section 12.5.b in the Fifth Amended and Restated Advisory Agreement.
| |||||||
|
(4) Per section 12.5(b) of the Fifth Amended and Restated Advisory Agreement.
| |||||||
|
Braemar Hotels & Resorts Portfolio:
| |||
|
Hotel
|
Location
|
# of Rooms
|
TTM NOI**
|
|
Capital Hilton*
|
Washington, D.C.
|
559
|
15.0
|
|
The Ritz-Carlton Lake Tahoe
|
Truckee, CA
|
170
|
5.1
|
|
The Ritz-Carlton St. Thomas
|
St. Thomas, USVI
|
180
|
14.5
|
|
The Ritz-Carlton Sarasota
|
Sarasota, FL
|
276
|
18.4
|
|
The Ritz-Carlton Reserve Dorado Beach
|
Dorado, PR
|
96
|
17.2
|
|
Four Seasons Resort Scottsdale at Troon North
|
Scottsdale, AZ
|
210
|
21.3
|
|
The Notary Hotel
|
Philadelphia, PA
|
499
|
11.2
|
|
Pier House Resort & Spa
|
Key West, FL
|
142
|
12.6
|
|
Park Hyatt Beaver Creek Resort & Spa
|
Beaver Creek, CO
|
193
|
9.4
|
|
Bardessono Hotel & Spa
|
Yountville, CA
|
65
|
3.8
|
|
Hotel Yountville
|
Yountville, CA
|
80
|
2.9
|
|
Sofitel Chicago Magnificent Mile
|
Chicago, IL
|
415
|
4.6
|
|
TOTAL
|
2,885
|
135.8
| |
|
The Clancy
|
San Francisco, CA
|
410
|
5.2
|
|
Cameo Beverly Hills (1)
|
Beverly Hills, CA
|
143
|
(2.2)
|
|
* Braemar has 75% ownership in this hotel.
| |||
|
** As of June 30, 2025; $ in millions
| |||
|
(1) The Gross Asset Value of the Cameo Beverly Hills is currently $86.2 million.
| |||
Four Seasons Resort Scottsdale
Braemar Hotels & Resorts Inc. has officially begun the process of selling the company, aiming to capitalize on its strong market position and maximize shareholder value. The decision follows a strategic review by a Special Committee of independent directors, who explored various alternatives before determining that a sale would be in the best interest of the company and its shareholders.
Braemar’s portfolio, renowned for its luxury offerings, includes nine resort and five urban properties under esteemed brands such as Ritz-Carlton Reserve, Four Seasons, and Park Hyatt. This collection has consistently achieved the highest Revenue Per Available Room (RevPAR) among publicly traded lodging REITs, a testament to its prime locations and limited competitive supply.
Richard Stockton, CEO of Braemar Hotels & Resorts, expressed optimism about the sale, citing improving economic conditions and robust industry performance as favorable factors. “We’ve built a high-quality portfolio that is well-positioned to attract significant interest from private market buyers,” Stockton stated.
The company has engaged Robert W. Baird & Co. Inc. as its financial advisor and White & Case LLP as its legal advisor to facilitate the sale process. Additionally, Braemar has reached an agreement with its external advisor, Ashford Inc., regarding a reduced termination fee, which is part of the strategic sale plan.
Braemar’s decision mirrors trends seen in other luxury lodging REITs, such as Strategic Hotel & Resorts, which faced similar market challenges and ultimately opted for a sale. The company’s high-quality assets, including excess land at key properties such as the Ritz-Carlton Sarasota and the Four Seasons Resort Scottsdale, enhance its appeal to potential buyers.
While there is no set deadline for the sale’s completion, the company anticipates significant buyer interest due to the rarity and quality of its portfolio.
|
Braemar Company Sale Fee Calculation
| |||||||
|
($ in millions)
| |||||||
|
TTM as of
|
TTM as of
| ||||||
|
Q1 2021 (1)
|
Q1 2025
| ||||||
|
Advisory Revenues*
|
19.0
|
30.0
| |||||
|
Advisory Expenses
|
(10.5)
|
(7.7)
| |||||
|
Advisory EBITDA
|
8.5
|
22.2
| |||||
|
Premier EBITDA
|
1.0
|
7.7
| |||||
|
INSPIRE EBITDA
|
(0.0)
|
2.7
| |||||
|
RED EBITDA
|
0.4
|
2.9
| |||||
|
Lismore EBITDA
|
3.4
|
2.4
| |||||
|
Other EBITDA
|
0.1
|
0.7
| |||||
|
Net Earnings
|
13.4
|
38.7
| |||||
|
Implied Adjustments to Advisory Expenses
|
(6.6)
| ||||||
|
Implied Net Earnings
|
32.1
| ||||||
|
Agreed
| |||||||
|
12x Multiple (2)
|
161.0
|
385.3
| |||||
|
20% Premium Owed at Termination (3)
|
193.2
|
462.3
| |||||
|
Uninvested Amount (4)
|
31.1
|
17.7
| |||||
|
TOTAL
|
224.3
|
480.0
| |||||
|
* Advisory Revenues for TTM Q1 2025 can be found in Braemar’s Form 10-K filed on March 12, 2025 and Form
| |||||||
|
10-Q filed on May 8, 2025 on the line item Advisory Services Fee on the Consolidated Statement of Operations.
| |||||||
|
(1) As reported in Braemar’s first quarter 2021 Form 10-Q filed on May 7, 2021 for Net Earnings.
| |||||||
|
(2) Per the definition of Termination Fee in the Fifth Amended and Restated Advisory Agreement.
| |||||||
|
(3) Per the definition of Adjusted Termination Fee and section 12.5.b in the Fifth Amended and Restated Advisory Agreement.
| |||||||
|
(4) Per section 12.5(b) of the Fifth Amended and Restated Advisory Agreement.
| |||||||
|
Braemar Hotels & Resorts Portfolio:
| |||
|
Hotel
|
Location
|
# of Rooms
|
TTM NOI**
|
|
Capital Hilton*
|
Washington, D.C.
|
559
|
15.0
|
|
The Ritz-Carlton Lake Tahoe
|
Truckee, CA
|
170
|
5.1
|
|
The Ritz-Carlton St. Thomas
|
St. Thomas, USVI
|
180
|
14.5
|
|
The Ritz-Carlton Sarasota
|
Sarasota, FL
|
276
|
18.4
|
|
The Ritz-Carlton Reserve Dorado Beach
|
Dorado, PR
|
96
|
17.2
|
|
Four Seasons Resort Scottsdale at Troon North
|
Scottsdale, AZ
|
210
|
21.3
|
|
The Notary Hotel
|
Philadelphia, PA
|
499
|
11.2
|
|
Pier House Resort & Spa
|
Key West, FL
|
142
|
12.6
|
|
Park Hyatt Beaver Creek Resort & Spa
|
Beaver Creek, CO
|
193
|
9.4
|
|
Bardessono Hotel & Spa
|
Yountville, CA
|
65
|
3.8
|
|
Hotel Yountville
|
Yountville, CA
|
80
|
2.9
|
|
Sofitel Chicago Magnificent Mile
|
Chicago, IL
|
415
|
4.6
|
|
TOTAL
|
2,885
|
135.8
| |
|
The Clancy
|
San Francisco, CA
|
410
|
5.2
|
|
Cameo Beverly Hills (1)
|
Beverly Hills, CA
|
143
|
(2.2)
|
|
* Braemar has 75% ownership in this hotel.
| |||
|
** As of June 30, 2025; $ in millions
| |||
|
(1) The Gross Asset Value of the Cameo Beverly Hills is currently $86.2 million.
| |||
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