Braemar Hotels & Resorts Inc. - BHR STOCK NEWS

Braemar Hotels & Resorts Inc. (NYSE: BHR) has successfully closed a $407 million refinancing involving five luxury hotels. The new loan offers a two-year initial term with three one-year extension options, potentially extending the final maturity to 2029. It features a floating interest rate of SOFR + 3.24% and is interest-only. By acquiring $42.2 million of the most junior tranche, Braemar effectively lowered its net spread on the remaining $364.8 million to SOFR + 3.01%.

This refinancing encompasses the Pier House Resort & Spa, Bardessono Hotel & Spa, Hotel Yountville, The Ritz-Carlton Sarasota, and The Ritz-Carlton St. Thomas. It replaces three existing loans with higher interest rates and earlier maturity dates. CEO Richard J. Stockton highlighted that this move results in a lower cost of capital, improves the company's maturity schedule, and extends its weighted average maturity.

Ashford Inc. announced the passing of W. Michael Murphy, a member of its Board of Directors, on July 24, 2024. Murphy, a distinguished hotel industry veteran, had served on Ashford Inc.'s board since August 2018. His extensive experience included board positions at Braemar Hotels & Resorts (NYSE: BHR) from 2013 to 2015 and Ashford Hospitality Trust (NYSE: AHT) from 2003 to 2013.

Monty J. Bennett, Ashford Inc.'s Chairman and CEO, expressed deep sadness at Murphy's passing, acknowledging his value as both a friend and business leader. The company extended condolences to Murphy's family on behalf of the directors, management, and the entire Ashford Group of Companies.

Braemar Hotels & Resorts Inc. (NYSE: BHR) has successfully closed the sale of the Hilton La Jolla Torrey Pines for $165 million, or $419,000 per key. This transaction, based on the trailing twelve months ended March 31, 2024, represents a 7.2% capitalization rate on net operating income, including anticipated capital expenditures of $40 million.

The sale removes BHR's last remaining 2024 debt maturity and showcases the high-quality nature of its portfolio. The company is evaluating the potential sale of two more hotels, subject to market conditions, to be completed in 2024 and 2025. This strategic move aligns with Braemar's focus on investing in luxury hotels and resorts as a real estate investment trust (REIT).

Braemar Hotels & Resorts (NYSE: BHR) has announced quarterly and monthly dividends for its various stock series for the third quarter of 2024. For the common stock, a quarterly dividend of $0.05 per share will be paid on October 15, 2024, to shareholders of record as of September 30, 2024. Series B and Series D preferred stocks will receive quarterly dividends of $0.3438 and $0.5156 per share, respectively, on the same payment date. Monthly dividends are also declared for Series E and Series M Redeemable Preferred Stocks, with payments scheduled for August 15, September 16, and October 15, 2024. The dividends range from $0.15625 to $0.17708 per share depending on the series.

Braemar Hotels & Resorts (NYSE: BHR) has entered a cooperation agreement with Blackwells Capital. Blackwells will withdraw its proxy solicitation and vote in favor of Braemar's nominees and proposals at the 2024 Annual Meeting. Both parties will release all pre-settlement legal claims and dismiss corresponding actions. Blackwells commits to purchasing 3.5 million Braemar shares, financed partly by Braemar. Additionally, Braemar will add an independent director with Blackwells' input. Blackwells will adhere to a multi-year standstill and voting commitments. This agreement aims to enhance Braemar's capital structure and maximize shareholder value.

Braemar Hotels & Resorts (NYSE: BHR) announces the release date for its second-quarter earnings results, set for July 31, 2024, after market close.

A conference call will follow on August 1, 2024, at 11:00 a.m. ET, accessible by dialing (646) 960-0284. A replay will be available until August 8, 2024, by calling (609) 800-9909 and using the confirmation number 2925607.

The live broadcast and a subsequent replay will also be accessible on the company's website, www.bhrreit.com.

Braemar focuses on investing in luxury hotels and resorts.

Braemar Hotels & Resorts (NYSE: BHR) has launched www.ExpelBlackwells.com to counteract misinformation from activist investor Blackwells Capital ahead of the 2024 Annual Meeting on July 30, 2024.

The website aims to provide shareholders with details about Blackwells' misleading campaign and discourage them from supporting Blackwells' nominees.

Monty J. Bennett, Founder & Chairman of Braemar, emphasizes the company's commitment to shareholders' best interests, suggesting Blackwells aims to seize control of the board without paying a premium.

Shareholders are advised to ignore proxy materials from Blackwells, as their nominations do not meet the company's requirements.

Braemar Hotels & Resorts (NYSE: BHR) announced that Blackwells Capital's attempted withhold proxy campaign at Ashford Hospitality Trust failed, with only 7% of outstanding shares voting on the Blackwells proxy card. Ashford Trust confirmed that seven out of nine nominees received a majority vote, and the remaining two were re-appointed by the Board. Braemar reminds shareholders to disregard any proxy materials from Blackwells for the 2024 Annual Meeting on July 30, 2024, as their nominations do not meet the minimum requirements.

Braemar Hotels & Resorts invests in luxury hotels and resorts as a real estate investment trust (REIT).

Braemar Hotels & Resorts Inc. (NYSE: BHR) announced a plan to enhance shareholder value through strategic initiatives, including the sale of Hilton Torrey Pines for $165 million, repayment of 2024 debt maturities, a preferred share redemption program, and a common share buyback authorization. The sale of Hilton La Jolla Torrey Pines at a 7.2% capitalization rate is expected to be completed by August 2024. The company is also evaluating the sale of two more hotels, aiming to improve capital structure and financial flexibility.