Braemar Hotels & Resorts Inc announced plans to terminate its Fifth Amended and Restated Advisory Agreement with Ashford Inc. and affiliates and will convert into a self-managed real estate investment trust. The stock responded immediately - shares rose about 8% in premarket trading on Friday following the disclosure.
The company said the decision follows a strategic review and a recommendation from a special committee of independent directors. Under the transition plan, Braemar will hire employees directly rather than relying on Ashford-provided services, and it will reconstitute its board of directors to reflect its new management structure.
Management has quantified one of the drivers for the move: Braemar expects the shift to a self-managed model to reduce general and administrative costs by more than $25 million each year. The company said it intends to preserve a concentrated portfolio of approximately six to eight luxury properties located across the United States and the Caribbean. For the trailing twelve months ended March 31, 2026, that portfolio had a combined gross asset value of over $1 billion and produced total annual revenue in the range of $300 million to $350 million.
Board composition will change materially. Braemar will add five new independent directors to its board, and several existing directors have agreed to step down, including Chairman Monty Bennett. Richard Stockton, the company president and chief executive officer, will remain on the board. The reconstituted board will be led by an independent chairman.
As part of the disentanglement from Ashford, Braemar intends to terminate contractual relationships with Premier Project Management LLC and Remington Lodging & Hospitality, LLC - both subsidiaries of Ashford. The company also indicated that certain members of the current management team who are employed by Ashford will transition to become Braemar employees.
To address fees owed to Ashford under the advisory agreement, Braemar said it will use net proceeds from previously announced asset sales to pay down a portion or all of the Company Sale Fee. The company also expects to evaluate the sale of an additional two or three assets to satisfy obligations related to the termination.
Robert W. Baird & Co. Inc. served as financial advisor to Braemar, and White & Case LLP acted as legal counsel to the company in connection with the announcement.
Context and next steps
- Braemar's move formalizes a transition to internal management and a reconstituted governance structure following a formal strategic review.
- The company has provided an operating-range estimate for the portfolio's revenue and a gross asset value figure for the trailing twelve months ending March 31, 2026.
- Braemar will use proceeds from prior asset sales and may pursue further dispositions to address termination-related obligations.