In the past six months (March 2026 - September 2026), Braemar Hotels & Resorts' stock has been impacted by several key events. The company reported a significant earnings beat for Q1 2026, with adjusted funds from operations (AFFO) of $0.52 per diluted share against a consensus estimate of -$0.1616, though the stock declined by 1.98% after the announcement. A major controversy involved a potential $480 million "Company Sale Fee" payable to its external manager, Ashford, which led to activist investor pressure. On June 12, 2026, Braemar announced its plan to become a self-managed REIT, aiming to terminate its advisory agreement with Ashford Inc., directly hire employees, and reconstitute its Board to reduce costs and enhance governance, expecting over $25 million per year in savings. This announcement was overshadowed by an ongoing dispute with its largest shareholder, Al Shams Investments, regarding the "Company Sale Fee." Al Shams Investments Limited nominated five independent candidates for election to Braemar's Board of Directors on September 14, 2026, citing a 38.06% stock price decline and substantial fees paid to the external advisor as reasons for their concerns about governance and underperformance. Other events include the declaration of preferred dividends for Q3 2026 on July 24, 2026, and the extension of its $43.4 million mortgage loan secured by The Ritz-Carlton Lake Tahoe from July 15, 2026, to October 15, 2026. For Q2 2026, released on August 5, 2026, the company reported a loss of $0.01 per share, exceeding analyst estimates of a $0.44 loss, and revenue of $171.03 million, also above expectations, though funds from operations (FFO) per share were down from Q2 2025. Analyst sentiment has been cautious, with an average "Reduce" rating and an average price target of $2.50.
