Article content

Analysis Concludes the Market Is Valuing Braemar’s Seven Luxury Hotels at Roughly 30% of the Value Implied by Its Own 2026 Asset Sales, Peer Multiples and Precedent Transactions

Article content

Blackwells Supports Completion of the Separation from Ashford Inc. and Encourages Shareholders to Judge the Self-Managed Company on Its Results

Article content

Article content

NEW YORK, Oct. 13, 2026 (GLOBE NEWSWIRE) — Blackwells Capital LLC (“Blackwells”), a shareholder of Braemar Hotels & Resorts Inc. (“Braemar” or the “Company”) (NYSE: BHR), today released a presentation titled “Life After Ashford,” an independent analysis of the Company’s portfolio, balance sheet and valuation following its October 8, 2026 portfolio update, full-year 2027 outlook and investor presentation. The full presentation is available at www.blackwellscap.com.

Article content

Article content

THE FULL TEXT OF THE STATEMENT FOLLOWS:

Article content

Article content

On July 15, 2026, we said that the Company’s decision to terminate its advisory agreement with Ashford Inc. and become a self-managed REIT was a significant step toward the simpler, more directly accountable structure that Braemar’s shareholders have needed for years, and that the constructive path for shareholders was to let that process conclude and then evaluate it on the merits. The Company has now given shareholders the information needed to do exactly that. On October 8, 2026, Braemar published pro forma financials for its go-forward portfolio, a one-time outlook for full-year 2027 and an investor presentation describing the self-managed company. Shareholders can now ask and answer: what is this business worth once the separation is complete?

Article content

Three conclusions follow.

Article content

First, the separation is being funded by asset sales at prices that bear no resemblance to Braemar’s own trading value. During 2026 the Company has closed or contracted approximately $1.18 billion of hotel sales — the Park Hyatt Beaver Creek, the Ritz-Carlton Sarasota, Hotel Yountville and Bardessono, the Pier House Resort & Spa, and the pending sale of the Four Seasons Resort Scottsdale — at a blended capitalization rate of approximately 6.7% and an average of approximately $1.2 million per key. The Special Committee’s renegotiation of the Company Sale Fee separately reduced the amount owed to Ashford by approximately $94.3 million.

Article content

Article content

Second, the business that remains is a focused, high-quality luxury portfolio with a materially lower cost base. The seven go-forward hotels — the Ritz-Carlton Reserve Dorado Beach, the Ritz-Carlton St. Thomas, the Ritz-Carlton Lake Tahoe, the Capital Hilton, the Notary Hotel, the Sofitel Chicago Magnificent Mile and Cameo Beverly Hills — comprise 2,062 keys and generated approximately $381 million of revenue and $88 million of Hotel EBITDA for the twelve months ended June 30, 2026, with RevPAR of approximately $328, more than three times the U.S. industry average. The Company expects to reduce annual corporate general and administrative expense, including advisory and related fees, from approximately $42 million to approximately $15 million, and has guided to full-year 2027 Adjusted EBITDAre of $85 million to $90 million, and net debt to gross assets of approximately 36%, down from approximately 50%. We regard these as credible figures: the trailing results reconcile to the Company’s own per-hotel disclosure, and the cost savings are a function of a contract that is ending, not of operating assumptions that must be achieved.