Braemar Hotels & Resorts Initiates Sale Process

• Braemar Hotels & Resorts, known for its luxury hotel portfolio, has announced a sale process to maximize shareholder value, leveraging its high RevPAR and prime locations.
• The sale features prestigious properties under renowned brands such as Ritz-Carlton and Four Seasons, generating significant interest from potential buyers.

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.