Braemar Hotels to End Advisory Deal, Save $25M and Manage $1B Portfolio
BHR•Braemar Hotels will end its advisory agreement with Ashford to become a self-managed REIT and appoint five new independent directors plus an independent chair. Its six-to-eight luxury properties (over $1 billion gross assets, $300–350 million revenue) and in-house management are expected to reduce G&A costs by more than $25 million annually.
1. Transition to Self-Managed REIT
Braemar Hotels & Resorts will terminate its Fifth Amended and Restated Advisory Agreement with Ashford and its affiliates, hiring its own employees and relocating its headquarters to Dallas. This shift eliminates legacy contractual obligations and grants the company full control over property and project management services.
2. Portfolio and Cost Savings
The company will maintain a streamlined portfolio of six to eight luxury hotels across the U.S. and Caribbean, representing over $1 billion in gross assets and generating $300–350 million in annual revenue. Direct employment of its management team is projected to cut G&A expenses by more than $25 million per year, implying significant equity value accretion at prevailing 11–13x EBITDA multiples.
3. Board Refresh and Governance
A Special Committee will oversee the appointment of five new independent directors and an independent chair, replacing existing board members upon termination of the advisory agreement. These governance enhancements aim to align management incentives with shareholder interests, with new directors slated for nomination at the next annual meeting.
