- Braemar Hotels & Resorts is initiating a formal sale process, citing low lodging REIT valuations and shareholder activism as major headwinds.
- The company owns a 3,400-key luxury hotel portfolio, including nine resort and five urban properties across the US and surrounding islands.
- Despite above-average RevPAR growth, Braemar’s board concluded that a sale is the best path forward amid persistent stock underperformance and governance challenges.
A Strategic Shift
Braemar Hotels & Resorts is a publicly traded REIT focused on high-end hospitality assets. The company announced it is beginning a formal process to sell itself, reports Bisnow. The board’s decision follows a comprehensive review of strategic alternatives, including the possibility of internalizing management.
Portfolio Overview
The company’s holdings include 14 properties: nine resorts and five urban hotels. These assets are spread across major markets such as California, Florida, Chicago, Philadelphia, and Washington, DC. Despite a challenging environment for REITs, Braemar’s portfolio posted 2.9% growth in revenue per available room (RevPAR) through Q2 2025. This performance outpaced the national average of 0.8%, according to STR.
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Headwinds In Play
In a press release, Braemar acknowledged that luxury lodging REITs are facing significant challenges. These include historically low EBITDA multiples and sustained activist pressure. The company faced a notable board challenge last year from Blackwells Capital, which attempted to nominate four new directors.
Financial Implications
A sale of Braemar would trigger a $480M termination fee tied to its external advisory agreement with Ashford Inc., its longtime advisor. Ashford has already received $17M of that fee, which will be credited toward the total if the sale closes before July 1, 2028. Additionally, any buyer must honor management contracts with two Ashford subsidiaries: Premier Project Management and Remington Lodging & Hospitality. If not, they will be required to pay a combined $25M cancellation fee.
Why It Matters
Braemar’s decision reflects growing pressures on publicly traded lodging REITs, particularly those with luxury-focused portfolios. Discrepancies between asset value and market capitalization are creating pressure for REITs. Combined with ongoing investor activism, this is prompting more firms to consider strategic exits or consolidations.
What’s Next
The sale process is being overseen by a special committee led by board chair Rebeca Odino-Johnson. There is no announced buyer yet, but all options are on the table. Industry watchers expect heightened interest from private equity, sovereign wealth funds, and institutional hotel operators looking to capitalize on discounted luxury hospitality assets.
