Company: BHR-PD
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001574085-25-000130
Chunk: 141

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 141
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 fiscal year ended December 31, 2024, filed with the SEC, which describe various risks and uncertainties to which we are or may become subject. These risks and uncertainties have the potential to affect our business, financial condition, results of operations, cash flows, strategies, or prospects in a material and adverse manner. In addition to the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, the following risk factor should be carefully considered in evaluating us and our business.

A prolonged U.S. government shutdown may adversely impact our business, financial condition, and results of operations.

During government shutdowns, federal employees may be furloughed or required to work without pay, reducing their discretionary income and willingness to travel for leisure purposes. Additionally, government contractors and businesses that depend on federal spending may experience financial constraints that limit corporate travel budgets and business-related hotel bookings.

Government shutdowns can also disrupt critical travel infrastructure and services. The Transportation Security Administration (“TSA”), Federal Aviation Administration (“FAA”), and other agencies responsible for air travel safety and operations may experience staffing shortages due to employee absences, leading to longer security wait times, flight delays, and cancellations. Such disruptions discourage both business and leisure travel, directly reducing demand for hotel accommodations.

Any material decrease in travel demand resulting from government shutdowns could adversely affect our occupancy rates, ADR, RevPAR, and overall financial performance. If the federal government were to continue experiencing issues in reaching budgetary consensus in the future, resulting in mandatory furloughs and/or other budget constraints, or if a government shutdown were to continue for an extended period of time, our operations and results of operations could be materially negatively impacted.

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