BRAEMAR HOTELS & RESORTS ANNOUNCES TAX REPORTING INFORMATION FOR 2025 COMMON AND PREFERRED SHARE DISTRIBUTIONS

Rhea-AI Summary

Braemar Hotels & Resorts (NYSE: BHR) announced the 2025 tax reporting treatment for its common and Series B, D, E and M preferred share distributions. Each distribution paid Jan 15, 2025 is reportable in 2025 and is shown by CUSIP with the per-share amounts and tax classification.

The company said the common distribution of $0.20 per share and all listed preferred distributions are classified entirely as return of capital; Form 8937 will be posted for basis details.

Positive

• Clear tax classification provided for 2025 distributions
• Specific per-share amounts listed for common and preferred shares
• Company will post Form 8937 for basis-reduction details

Negative

• All reported distributions are classified as return of capital
• Return of capital treatment may reduce shareholders' tax basis

News Market Reaction

-3.87%

1 alert

-3.87% News Effect

On the day this news was published, BHR declined 3.87%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Common distribution per share: $0.2000000 Series B preferred distribution: $1.3752000 Series D preferred distribution: $2.0624000 +5 more

8 metrics

Common distribution per share $0.2000000 Distributions per common share reportable in 2025; fully return of capital

Series B preferred distribution $1.3752000 Annual distributions per Series B share reportable in 2025; return of capital

Series D preferred distribution $2.0624000 Annual distributions per Series D share reportable in 2025; return of capital

Series E preferred distribution $1.8750000 Annual distributions per Series E share reportable in 2025; return of capital

Series M preferred distribution (CUSIP 10482B705) $2.1354100 Annual distributions per Series M share reportable in 2025; return of capital

Series M preferred distribution (CUSIP 10482B770) $2.1104000 Annual distributions per Series M share reportable in 2025; return of capital

RevPAR target At least 2x U.S. national average Targeted revenue per available room for portfolio properties

Form reference Form 1099-DIV and Form 8937 Tax reporting and organizational actions affecting basis

Market Reality Check

Price: $3.04 Vol: Volume 435,182 is 1.18x t...

normal vol

$3.04 Last Close

Volume Volume 435,182 is 1.18x the 20-day average of 367,663 shares. normal

Technical Trading above 200-day MA with price 2.84 vs 200-day MA at 2.52.

Peers on Argus

BHR fell 1.05% with several hotel REIT peers also down: CLDT -1.27%, SVC -1.48%,...

BHR fell 1.05% with several hotel REIT peers also down: CLDT -1.27%, SVC -1.48%, INN -2.34%, AHT -1.00%, PEB -1.94%, indicating broader weakness despite the stock-specific tax notice.

Common Catalyst One close peer, AHT, also released tax reporting information for 2025 preferred share distributions, suggesting coordinated dividend tax disclosures in the hotel REIT space.

Historical Context

5 past events · Latest: Jan 26 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 26	Preferred dividends	Positive	-1.7%	Board declared January 2026 dividends across multiple preferred series.
Jan 07	Earnings call timing	Neutral	+4.8%	Set dates for Q4 2025 earnings release and conference call.
Dec 18	Leadership change	Neutral	+2.8%	Ashford Inc. named new EVP and General Counsel covering BHR.
Dec 05	Meeting format shift	Neutral	-3.0%	2025 annual meeting converted from in-person to virtual-only format.
Nov 07	Asset sale	Positive	+4.2%	Closed $115M sale of The Clancy and paid down debt with proceeds.

Pattern Detected

Recent news has been largely operational or governance-related, with mixed short-term price reactions and one notable divergence on a positive dividend announcement.

Recent Company History

Over the last several months, Braemar reported preferred dividend declarations, set dates for its Q4 2025 earnings call, adjusted its 2025 annual meeting to a virtual format, and completed the sale of The Clancy for $115.0M, using proceeds to pay down $64.7M of debt. Price reactions ranged from about -3% to +4%, with the dividend declaration on Jan 26, 2026 seeing a modest decline, while the asset sale and earnings-call scheduling saw positive moves.

Market Pulse Summary

This announcement clarified tax reporting for 2025 common and preferred share distributions, showing...

Analysis

This announcement clarified tax reporting for 2025 common and preferred share distributions, showing that amounts such as the $0.20 per common share and higher preferred payouts were characterized as return of capital rather than ordinary dividends or capital gains. It also referenced Form 1099-DIV and Form 8937 disclosures under IRS Section 6045B. In context with prior preferred dividend declarations and the $115.0M Clancy sale, investors may monitor future distributions, asset sales, and governance-related filings for additional balance-sheet and income implications.

Key Terms

form 1099-div, section 199a dividend, return of capital, irs code section 6045b, +4 more

8 terms

form 1099-div regulatory

"announced the tax reporting (Federal Form 1099-DIV) information for the 2025"

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

section 199a dividend financial

"Ordinary Taxable Dividend | Section 199A Dividend | Capital Gain"

A section 199A dividend is a type of corporate payout that can qualify individual shareholders for a special U.S. tax break that reduces taxable income by up to 20% for certain pass-through earnings. For investors, it matters because the label affects after-tax returns and how dividends are reported on tax forms—think of it as a coupon that lowers the tax bill on part of the dividend, so identical cash payments can result in different take-home amounts depending on this classification.

return of capital financial

"Capital Gain Distribution | Return of Capital"

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

irs code section 6045b regulatory

"In accordance with IRS Code Section 6045B, the Company will post Form 8937"

A provision of U.S. tax law that requires brokers to report detailed information about sales of securities to both the taxpayer and the IRS—typically on Form 1099‑B. It covers items such as sale proceeds, the security’s cost basis, acquisition date, and whether a gain or loss is short- or long-term, which helps investors and the tax authority compute taxable gain or loss much like a receipt that shows what you paid, when you bought it, and what you sold it for.

form 8937 regulatory

"the Company will post Form 8937, Report of Organizational Actions Affecting Basis"

Form 8937 is a U.S. Internal Revenue Service disclosure companies file to explain how a corporate action—like a merger, spin-off, or stock split—changes the tax cost (tax basis) of an investor’s shares. It matters because that tax cost determines how much profit or loss you report when you sell, so the form is like an instruction sheet showing how to split or adjust the original purchase price for tax reporting.

real estate investment trust financial

"Braemar Hotels & Resorts Inc. (NYSE: BHR) is a real estate investment trust (REIT)"

A real estate investment trust (REIT) is a company that owns and manages income-producing properties—like apartment buildings, shopping centers, offices, or warehouses—and is required to pass most of its rental income to shareholders as dividends. Think of it as a shared property owner: instead of buying a whole building, investors buy a slice of a portfolio that pays regular income and can offer exposure to property values and rental markets without direct management. REITs matter to investors for predictable income, diversification, and liquidity compared with owning physical real estate.

reit financial

"is a real estate investment trust (REIT) focused on the high-growth luxury"

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

revpar technical

"specializing in assets that generate revenue per available room (RevPAR) at least twice"

RevPAR, or revenue per available room, is a measure used in the hotel industry to show how much money a hotel earns from each of its rooms over a certain period. It helps investors understand how well a hotel is performing financially, similar to how a store's sales per square foot reveal its profitability. Higher RevPAR indicates better use of resources and stronger financial health.

AI-generated analysis. Not financial advice.

DALLAS, Jan. 27, 2026 /PRNewswire/ -- Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") today announced the tax reporting (Federal Form 1099-DIV) information for the 2025 distributions on its common shares and its Series B, D, E and M preferred shares.

The amounts below represent the income tax treatment applicable to each distribution that is reportable in 2025. The common and preferred distributions that the Company paid on January 15, 2025 to stockholders of record as of December 31, 2024 are reportable in 2025. The common and preferred distributions that the Company paid on January 15, 2026 to stockholders of record as of December 31, 2025 will be reportable in 2026.

Security Description	CUSIP	Ticker Symbol	Distributions Per Share *	Ordinary Taxable Dividend	Section 199A Dividend	Capital Gain Distribution	Return of Capital
Common Stock	10482B101	BHR	$0.2000000	$0.0000000	$0.0000000	$0.0000000	$0.2000000
Series B Cumulative Convertible Preferred Stock	10482B200	BHRPrB	$1.3752000	$0.0000000	$0.0000000	$0.0000000	$1.3752000
Series D Cumulative Preferred Stock	104823B09	BHRPrD	$2.0624000	$0.0000000	$0.0000000	$0.0000000	$2.0624000
Series E Preferred Stock	10482B606		$1.8750000	$0.0000000	$0.0000000	$0.0000000	$1.8750000
Series E Preferred Stock	10482B804		$1.8750000	$0.0000000	$0.0000000	$0.0000000	$1.8750000
Series E Preferred Stock	10482B812		$1.8750000	$0.0000000	$0.0000000	$0.0000000	$1.8750000
Series E Preferred Stock	10482B879		$1.8750000	$0.0000000	$0.0000000	$0.0000000	$1.8750000
Series E Preferred Stock	10482B788		$1.8750000	$0.0000000	$0.0000000	$0.0000000	$1.8750000
Series E Preferred Stock	10482B853		$1.8750000	$0.0000000	$0.0000000	$0.0000000	$1.8750000
Series E Preferred Stock	10482B838		$1.8750000	$0.0000000	$0.0000000	$0.0000000	$1.8750000
Series M Preferred Stock	10482B705		$2.1354100	$0.0000000	$0.0000000	$0.0000000	$2.1354100
Series M Preferred Stock	10482B887		$2.1291400	$0.0000000	$0.0000000	$0.0000000	$2.1291400
Series M Preferred Stock	10482B796		$2.1228800	$0.0000000	$0.0000000	$0.0000000	$2.1228800
Series M Preferred Stock	10482B861		$2.1166400	$0.0000000	$0.0000000	$0.0000000	$2.1166400
Series M Preferred Stock	10482B770		$2.1104000	$0.0000000	$0.0000000	$0.0000000	$2.1104000
Series M Preferred Stock	10482B846		$2.1041600	$0.0000000	$0.0000000	$0.0000000	$2.1041600
Series M Preferred Stock	10482B820		$2.0979200	$0.0000000	$0.0000000	$0.0000000	$2.0979200
_______
* Distributions Per Share reflects the annual rate per share for distributions reportable in 2025.

In accordance with IRS Code Section 6045B, the Company will post Form 8937, Report of Organizational Actions Affecting Basis of Securities, which may be found in the Corporate Actions section of the Company's website. This form provides detailed information on the return of capital amount of the common and preferred share distributions.

The Company encourages stockholders to consult with their own tax advisors with respect to the federal, state and local, and foreign income tax effects of these dividends.

*  *  *  *  *

Braemar Hotels & Resorts Inc. (NYSE: BHR) is a real estate investment trust (REIT) focused on the high-growth luxury hotel and resort sector. The Company targets high-performance luxury urban and resort properties,  specializing in assets that generate revenue per available room (RevPAR) at least twice the U.S. national average. Its industry-leading portfolio features luxury properties across the United States and the U.S. territories in the Caribbean. Externally advised by Ashford Hospitality Advisors LLC, Braemar leverages deep industry expertise and disciplined asset management to drive outsized performance.

Forward-Looking Statements

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the federal securities regulations. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Additionally, statements regarding the following subjects are forward-looking by their nature: our business and investment strategy; anticipated or expected purchases, sales or dispositions of assets; our projected operating results; completion of any pending transactions; our ability to restructure existing property-level indebtedness; our ability to secure additional financing to enable us to operate our business; our understanding of our competition; projected capital expenditures; and the impact of technology on our operations and business. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. These and other risk factors are more fully discussed in the Company's filings with the SEC.

The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We will not publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise except to the extent required by law.

View original content:https://www.prnewswire.com/news-releases/braemar-hotels--resorts-announces-tax-reporting-information-for-2025-common-and-preferred-share-distributions-302671818.html

SOURCE Braemar Hotels & Resorts, Inc.

FAQ

What tax treatment did Braemar Hotels (BHR) say applies to the Jan 15, 2025 common distribution?

The Jan 15, 2025 common distribution of $0.20 per share is classified entirely as return of capital. According to the company, this amount is reportable in 2025 and may affect shareholders' cost basis.

How are Braemar preferred share distributions for 2025 reported for tax purposes (BHR preferred)?

Braemar reported each listed Series B, D, E and M preferred distribution as return of capital for 2025. According to the company, the press release lists exact per-share amounts by CUSIP for tax reporting.

Will Braemar (BHR) provide a tax form explaining basis changes for 2025 distributions?

Yes. The company will post Form 8937 explaining organizational actions affecting basis of securities. According to the company, Form 8937 will be available in the Corporate Actions section of its website.

Which distributions are reportable in 2025 for Braemar Hotels (NYSE: BHR)?

Distributions paid Jan 15, 2025 to holders of record Dec 31, 2024 are reportable in 2025. According to the company, those distributions include the common and all listed preferred share payments.

How might the return of capital classification affect BHR shareholders' taxes for 2025?

Return of capital typically reduces the shareholder's tax basis in the stock rather than creating ordinary dividend income. According to the company, shareholders should consult tax advisors about federal, state and local tax effects.