RestructuringJun 12, 2026, 06:11 AM
Braemar to become self-managed REIT; expects $25M+ annual G&A savings
AI Summary
Braemar Hotels & Resorts announced it will become a self-managed REIT, terminating its advisory agreement with Ashford Inc. and its affiliates. This strategic move, recommended by a Special Committee, is expected to reduce general and administrative costs by over $25 million annually. The company plans to reconstitute its Board with five new independent directors and an independent Chair, while retaining President and CEO Richard Stockton. Braemar will maintain a portfolio of 6-8 luxury properties and evaluate further asset sales to cover termination fees.
Key Highlights
- Braemar will become a self-managed REIT, terminating its advisory agreement with Ashford Inc.
- The company expects to reduce general and administrative costs by over $25 million annually.
- The Board will be reconstituted with five new independent directors and an independent Chair.
- Existing directors, except CEO Richard Stockton, will step down from the Board.
- Braemar intends to maintain a portfolio of 6-8 luxury properties with over $1 billion gross asset value.
- The portfolio generated $300-$350 million in annual revenue as of March 31, 2026.
- The company plans to evaluate the sale of 2-3 additional assets to cover termination obligations.
- Certain members of the management team currently employed by Ashford will become Braemar employees.
Price Impact
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