Braemar Hotels & Resorts Inc., a luxury hotel real estate investment trust, announced on Friday that following the completion of a months-long strategic review, the company will transition to a self-managed model while continuing to maintain its public listing status. This move is designed to terminate its long-standing advisory relationship with external advisor Ashford and its affiliates, with anticipated annual savings of over $25 million in general and administrative expenses.
According to the company's statement, the board of directors has approved a management separation plan, as recommended by a special committee composed of independent directors. Braemar will terminate its Fifth Amended and Restated Advisory Agreement with Ashford and other related contractual arrangements. Going forward, the company will directly employ its management team, including President and Chief Executive Officer Richard Stockton.
This transition is accompanied by significant governance reforms. Within the existing board, all current directors, including Chairman Monty Bennett, have agreed to resign, with the exception of Stockton. The company will use the independent executive search firm Ferguson Partners to select five new independent directors and will appoint an independent chairman. The reconstituted board will have no current or prior affiliations with Ashford.
Looking ahead, Braemar plans to streamline its portfolio to approximately six to eight luxury hotel properties located in the U.S. mainland and the Caribbean region. Over the twelve months ended March 31, 2026, this retained portfolio had a total value exceeding $1 billion and generated annual total revenue between $300 million and $350 million.
To cover costs associated with terminating the agreements with Ashford, the company is proceeding with the sale of select assets. It had previously announced the sale of three hotel properties in Florida and California for $437.5 million. The company expects to sell an additional two to three assets to fulfill all financial obligations related to the termination.
Special Committee Chair Rebeca Odino-Johnson stated that the committee had seriously considered the option of selling the company but ultimately concluded that terminating the advisory agreement, separating the management, and remaining an independent, listed entity was the path to creating greater value. The company's headquarters will relocate to Dallas, and it has engaged Robert W. Baird & Co. as its financial advisor.
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