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• Simon Property Group for luxury hotels.
• Marriott International for luxury hotel real estate.
• Blackstone for luxury hotels.

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• Hotel Accommodation: Providing luxury guest rooms and suites for short-term stays to leisure and business travelers.
• Food & Beverage Services: Offering a variety of dining options, including restaurants, bars, in-room dining, and catering for events held on premises.
• Meeting & Event Facilities: Providing versatile spaces for conferences, banquets, weddings, and other group events, often accompanied by catering and event planning services.

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Major Customers of Braemar Hotels & Resorts (BHR)

Braemar Hotels & Resorts (BHR) primarily sells its services (lodging, amenities, and event spaces) directly to individuals.

The company serves the following categories of customers:

• Leisure Travelers: Individuals or families traveling for vacations, holidays, weekend getaways, and recreational purposes. These customers seek experiences, relaxation, and tourism, often utilizing the upscale amenities and prime locations of Braemar's luxury-branded properties.
• Business Travelers: Professionals traveling for work, conferences, meetings, corporate events, or other business-related activities. These customers often prioritize amenities such as high-speed internet, meeting facilities, and convenient locations near business districts or convention centers.
• Group and Event Attendees: Customers who are part of organized groups, such as those attending destination weddings, family reunions, conventions, corporate retreats, or other social and business events hosted at Braemar's hotels and resorts. These bookings often involve blocks of rooms and the use of specialized event spaces and services.

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• Marriott International, Inc. (NASDAQ: MAR)
• Hilton Worldwide Holdings Inc. (NYSE: HLT)
• Hyatt Hotels Corporation (NYSE: H)
• Ashford Inc. (NYSE American: AINC)

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Richard J. Stockton, Chief Executive Officer and President

Mr. Stockton has served as Chief Executive Officer of Braemar Hotels & Resorts since November 2016 and as President since April 2017. He brings over 15 years of experience at Morgan Stanley in real estate investment banking, where he rose from an Associate to Managing Director and regional group head, serving as head of EMEA Real Estate Banking in London and co-head of the Asia Pacific Real Estate Banking Group. Mr. Stockton left Morgan Stanley in 2013 to become President & CEO-Americas for OUE Limited, a publicly listed Singaporean property company. Most recently, he served as Global Chief Operating Officer for Real Estate at Carval Investors, a subsidiary of Cargill (now AB CarVal Investors LP) with approximately $1 billion in real estate investments. He received an MBA in Finance and Real Estate from The Wharton School, University of Pennsylvania and a BS from Cornell University, School of Hotel Administration.

Deric S. Eubanks, Chief Financial Officer

Mr. Eubanks is the Chief Financial Officer of Braemar Hotels & Resorts and also serves as the Chief Financial Officer for Ashford Inc. and Ashford Hospitality Trust. He has been with Ashford Trust since its initial public offering in 2003. Mr. Eubanks oversees all corporate finance and financial reporting initiatives and is involved in capital market activities, including equity raises and debt financings, and also oversees investor relations. Prior to his current role, he served as Senior Vice President of Finance, and before that, as Vice President of Investments, where he was responsible for sourcing and underwriting hotel investments. Before joining Ashford, Mr. Eubanks was a Manager of Financial Analysis for ClubCorp, assisting in underwriting and analyzing investment opportunities in the golf and resort industries. He earned a BBA from Southern Methodist University and is a CFA charterholder.

Alex Rose, Executive Vice President, General Counsel and Secretary

Mr. Rose has served as Executive Vice President, General Counsel and Secretary of Ashford Inc., Ashford Hospitality Trust, Inc., Stirling Hotels & Resorts, Inc. and Braemar Hotels & Resorts Inc. since July 2021. His responsibilities include supervising the legal needs and interests of the Board of Directors and senior management, as well as maintaining legal compliance in the public and private sectors. He also serves as a liaison to various third parties within Ashford's portfolio of companies.

Monty J. Bennett, Chairman

Mr. Bennett is the Founder, Chairman, and Chief Executive Officer of Ashford Inc. and is also the Founder and Chairman of both Ashford Hospitality Trust (NYSE: AHT) and Braemar Hotels & Resorts (NYSE: BHR). He has over 30 years of experience in virtually all aspects of the hospitality industry, including hotel real estate, finance, hotel ownership, operations, development, and asset management. Braemar was formed as a spin-off from Ashford Hospitality Trust, and the existing AHT management team, led by Mr. Bennett, spearheaded its creation and continues to provide advisory services through Ashford Inc. He holds a Master's degree in Business Administration from Cornell's S.C. Johnson Graduate School of Management and a Bachelor of Science degree with distinction from the School of Hotel Administration also at Cornell.

Chris Nixon, Executive Vice President and Head of Asset Management

Mr. Nixon is the Executive Vice President and Head of Asset Management at Braemar Hotels & Resorts.

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The key risks to Braemar Hotels & Resorts (BHR) include a substantial debt load with significant exposure to floating interest rates, ongoing unprofitability with limited revenue growth projections, and vulnerability to broader economic and industry-specific conditions.

1. High Debt Load and Interest Rate Sensitivity: Braemar Hotels & Resorts faces significant financial risk due to its high debt levels, with 78% of its debt at floating rates. The company's net debt to gross assets ratio stands at 44.2%. Analysts view this interest rate sensitivity as a key risk to net margins and cash flow, especially if credit markets tighten or if inflation pushes labor and operating costs higher. The company also faces considerable risks in its ability to raise sufficient capital, meet liquidity requirements, and refinance or restructure its existing debt.
2. Persistent Unprofitability and Limited Revenue Growth: The company has remained unprofitable, showing no improvement in its net profit margin over the past year. Revenue is projected to grow at a significantly lower rate of 0.9% annually, compared to the broader U.S. market's forecast of 10.5%. Furthermore, earnings are expected to decline by an average of 67.8% per year over the next three years, and the company is not anticipated to become profitable within this timeframe. This unprofitability is reflected in a low market valuation, which raises skepticism about near-term profitability and the sustainability of dividends. The probability of bankruptcy for Braemar Hotels & Resorts Inc. is stated at 50.4%.
3. Exposure to Economic Conditions and Market Volatility: Braemar's reliance on luxury property revenues and premium destinations makes it particularly susceptible to downturns in travel demand caused by economic or industry shocks. The company is also exposed to the general volatility of capital markets and stock prices, as well as the impact of geopolitical conditions. Broader economic factors in the U.S., such as inflation, unemployment, and energy prices, could materially affect its earnings and financial condition. Additionally, climate-related risks, including severe weather and natural disasters, are expected to exert pressure on capital expenditures and insurance costs.

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Braemar Hotels & Resorts (BHR) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Continued Strong Performance and Focus on the Luxury Resort Portfolio: Braemar Hotels & Resorts anticipates sustained robust performance from its luxury resort properties. Key assets like the Ritz-Carlton Lake Tahoe and Four Seasons Resort Scottsdale have demonstrated significant revenue per available room (RevPAR) growth and overall strong results, contributing substantially to the company's comparable hotel EBITDA. The luxury segment continues to benefit from high consumer spending and is a primary focus for the company's strategy.
2. Benefits from Recently Completed and Ongoing Property Renovations and Enhancements: The company has invested significant capital in renovations and high-impact projects across its portfolio, such as the transformation at the Four Seasons Resort Scottsdale. These enhancements are designed to improve guest experiences, increase average daily rate (ADR), and drive higher RevPAR, leading to improved financial performance once completed.
3. Growth in Group Business and Strong Booking Pace: Braemar Hotels & Resorts is experiencing a positive trajectory in its group segment revenue. The company has reported increases in portfolio-wide group room revenue for the current year, with a strong booking pace continuing into 2025 and 2026, indicating sustained demand that will contribute to future revenue growth.
4. Strategic Portfolio Optimization Towards Higher-Performing Luxury Assets: Braemar is actively engaged in strategic portfolio realignment, including the sale of certain non-core assets to focus on and reinvest in its high-quality luxury properties. This strategy aims to enhance the overall quality and profitability of the portfolio, driving stronger revenue generation from a more concentrated collection of high-performing luxury hotels and resorts.

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Share Repurchases

• Braemar Hotels & Resorts authorized a new stock repurchase program of up to $50 million in May 2024.
• In December 2022, the company authorized a share buyback program for up to $25 million.

Outbound Investments

• In 2022, Braemar acquired the Four Seasons Resort Scottsdale at Troon North for $267.8 million.
• Braemar expects to close on 1-2 hotel acquisitions in 2025.

Capital Expenditures

• Braemar Hotels & Resorts expects full-year 2025 capital expenditures to be between $75 million and $95 million.
• Capital expenditures invested during the third quarter of 2025 amounted to $21.5 million.
• The primary focus of capital expenditures includes renovations and brand alignment to enhance the quality and value of the luxury hotel portfolio.