Company: BHR-PD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001574085-25-000051
Chunk: 34

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 34
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SIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)(unaudited)

any month be less than the minimum base fee as provided by our advisory agreement. The base fee is payable on the fifth business day of each month.The minimum base fee for Braemar for each month will be equal to the greater of:▪90% of the base fee paid for the same month in the prior year; and▪1/12 of the G&A Ratio (as defined) multiplied by the total market capitalization of Braemar.We are also required to pay Ashford LLC an incentive fee that is measured annually (or for a stub period if the advisory agreement is terminated at other than year-end). Each year that our annual total stockholder return exceeds the average annual total stockholder return for our peer group, we pay Ashford LLC an incentive fee over the following three years, subject to the Fixed Charge Coverage Ratio (“FCCR”) Condition, as defined in the advisory agreement, which relates to the ratio of adjusted EBITDA to fixed charges. We also reimburse Ashford LLC for certain reimbursable overhead and internal audit, risk management advisory and asset management services, as specified in the advisory agreement. We also recorded equity-based compensation expense for equity grants of common stock, PSUs and LTIP units awarded to officers and employees of Ashford LLC in connection with providing advisory services.The following table summarizes the advisory services fees incurred (in thousands):Three Months Ended March 31,20252024Advisory services feeBase advisory fee$3,576 $3,327 Reimbursable expenses (1)3,001 2,265 Equity-based compensation (2) (48)1,108 Incentive fee82 — Total$6,611 $6,700 ________(1)Reimbursable expenses include overhead, internal audit, risk management advisory, asset management services and deferred cash awards.(2)    Equity-based compensation is associated with equity grants of Braemar’s common stock, PSUs, LTIP units and Performance LTIP units awarded to officers and employees of Ashford LLC.

On each of March 11, 2024 and March 10, 2025, we entered into a Limited Waiver Under Advisory Agreement with Ashford Inc. and Ashford LLC (collectively, the “Advisory Agreement Limited Waivers”). Pursuant to the Advisory Agreement Limited Waivers, the Company,