Analysis Concludes the Market Is Valuing Braemar's Seven Luxury Hotels at Roughly 30% of the Value Implied by Its Own 2026 Asset Sales, Peer Multiples and Precedent Transactions

Blackwells Supports Completion of the Separation from Ashford Inc. and Encourages Shareholders to Judge the Self-Managed Company on Its Results

NEW YORK, Oct. 13, 2026 (GLOBE NEWSWIRE) -- Blackwells Capital LLC ("Blackwells"), a shareholder of Braemar Hotels & Resorts Inc. ("Braemar" or the "Company") (NYSE: BHR), today released a presentation titled "Life After Ashford," an independent analysis of the Company's portfolio, balance sheet and valuation following its October 8, 2026 portfolio update, full-year 2027 outlook and investor presentation. The full presentation is available at www.blackwellscap.com.

THE FULL TEXT OF THE STATEMENT FOLLOWS:

On July 15, 2026, we said that the Company's decision to terminate its advisory agreement with Ashford Inc. and become a self-managed REIT was a significant step toward the simpler, more directly accountable structure that Braemar's shareholders have needed for years, and that the constructive path for shareholders was to let that process conclude and then evaluate it on the merits. The Company has now given shareholders the information needed to do exactly that. On October 8, 2026, Braemar published pro forma financials for its go-forward portfolio, a one-time outlook for full-year 2027 and an investor presentation describing the self-managed company. Shareholders can now ask and answer: what is this business worth once the separation is complete?

Three conclusions follow.

First, the separation is being funded by asset sales at prices that bear no resemblance to Braemar's own trading value. During 2026 the Company has closed or contracted approximately $1.18 billion of hotel sales — the Park Hyatt Beaver Creek, the Ritz-Carlton Sarasota, Hotel Yountville and Bardessono, the Pier House Resort & Spa, and the pending sale of the Four Seasons Resort Scottsdale — at a blended capitalization rate of approximately 6.7% and an average of approximately $1.2 million per key. The Special Committee's renegotiation of the Company Sale Fee separately reduced the amount owed to Ashford by approximately $94.3 million.

Second, the business that remains is a focused, high-quality luxury portfolio with a materially lower cost base. The seven go-forward hotels — the Ritz-Carlton Reserve Dorado Beach, the Ritz-Carlton St. Thomas, the Ritz-Carlton Lake Tahoe, the Capital Hilton, the Notary Hotel, the Sofitel Chicago Magnificent Mile and Cameo Beverly Hills — comprise 2,062 keys and generated approximately $381 million of revenue and $88 million of Hotel EBITDA for the twelve months ended June 30, 2026, with RevPAR of approximately $328, more than three times the U.S. industry average. The Company expects to reduce annual corporate general and administrative expense, including advisory and related fees, from approximately $42 million to approximately $15 million, and has guided to full-year 2027 Adjusted EBITDAre of $85 million to $90 million, and net debt to gross assets of approximately 36%, down from approximately 50%. We regard these as credible figures: the trailing results reconcile to the Company's own per-hotel disclosure, and the cost savings are a function of a contract that is ending, not of operating assumptions that must be achieved.

Third, the market is not yet pricing any of this. At the October 9, 2026 closing price of $1.21, Braemar's equity is valued at approximately $90 million, and its enterprise value, including preferred equity at liquidation preference, at approximately $902 million — roughly 10.3x the midpoint of the Company's 2027 Adjusted EBITDAre outlook, 2.2x revenue against a lodging REIT peer average of approximately 2.9x, and approximately $437,000 per key for hotels that the Company has been selling at $900,000 per key and above. Measured five ways — against peer EBITDA multiples, peer revenue multiples, a net asset value at the capitalization rates the Company has actually achieved in 2026, per-key values benchmarked to comparable trades, and precedent luxury hotel transactions — our analysis indicates a value of approximately $2.45 to $5.13 per share, with an average of approximately $3.94, or roughly 3.3 times the current share price. These methods are presented in full in the presentation so that shareholders can test every input for themselves.

Braemar has spent most of its public life trading as an externally advised vehicle. That arrangement is ending. The seven hotels that remain, the balance sheet that will support them and the cost structure of the company that will own them are now a matter of public record, and we believe shareholders are better served by examining that record than by the noise that has surrounded the Company for the past three years.

Blackwells will continue to monitor the Company's progress on the separation, the refinancing program it has outlined and the reconstitution of its Board, and will make its views known as circumstances warrant.

Important Information

The presentation and this statement reflect the views of Blackwells as of the date hereof and are based on publicly available information, including the Company's filings with the Securities and Exchange Commission, its October 8, 2026 press release and investor presentation, and third-party sources believed to be reliable. Valuation figures are Blackwells' estimates derived from that information and are not forecasts; actual results may differ materially. Blackwells and its affiliates hold shares of the Company's common stock and preferred stock and may buy or sell such securities at any time, subject to the terms of the cooperation agreement between Blackwells and the Company dated July 2, 2024, which is described in the Company's filings with the SEC. Nothing in this statement or the presentation is a solicitation of proxies, a recommendation to buy or sell any security, or an offer of any kind. Blackwells takes no position on the election of directors at the Company's 2026 Annual Meeting.

About Blackwells Capital

Blackwells is a multi-strategy alternative asset management firm that invests in public and private markets globally. Our public markets portfolio focuses on currencies, equities, credit and commodities. When necessary, we engage with public company boards to drive value for all stakeholders. Our private markets portfolio includes investments in space, clean energy, infrastructure, real estate and technology. Further information is available at www.blackwellscap.com.

Contact

IR@blackwellscap.com

A PowerPoint accompanying this announcement is available at 

https://www.globenewswire.com/NewsRoom/AttachmentNg/6e169020-3834-4b00-86d4-3c888eaf81c5