Braemar Board Faces Shareholder Revolt Over $480M Windfall to Chair
BHR•Al Shams Investments, Braemar’s largest shareholder, condemned the board’s approval of a three-hotel sale that triggers a $480 million termination fee benefiting Chair Monty Bennett. Braemar’s stock plunged 15% over two days, compounding a 90% collapse since its Ashford separation, with shares trading at $2.10.
1. Self-Dealing Accusations Against Chair Monty Bennett
Al Shams Investments, Braemar’s largest shareholder, issued an open letter condemning the board’s authorization of a three-hotel sale that triggers a $480 million termination fee payable to a company controlled by Chair Monty Bennett. The shareholder group alleges Bennett orchestrated the deal to enrich himself at the expense of investors and labels it a breach of fiduciary duty.
2. Financial Impact and Share Price Decline
Following board approval, Braemar’s stock plunged 15% over two trading days, adding to a 90% collapse since its separation from Ashford Hospitality Trust, with shares now at $2.10. The REIT’s high leverage and the obligation to pay the termination fee to Bennett’s entity intensify concerns over liquidity and capital structure.
3. Al Shams’ Next Steps and Proxy Fight Plans
Al Shams vows to pursue legal remedies against directors and Bennett personally while preparing a full slate of independent nominees for the 2026 Annual Meeting. The group demands an immediate shareholder vote to replace the current board and restore fiduciary integrity.
