Company: BHR-PD
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001574085-25-000024
Chunk: 45

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 45
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 return on our investment in the hotel (referred to as the owner’s priority), as summarized in the chart below:

HotelManagement Fee(1)Incentive FeeMarketing Fee Owner’s Priority(2)Owner’sInvestment(2)Capital Hilton3%20% of operating cash flow (after deduction for capital renewals reserve and owner’s priority)Reimbursement of hotel’s pro rata share of group services11.5% of owner’s total investment$174,950,115Marriott Seattle Waterfront3%After payment of owner’s 1st priority, remaining operating profit is split between owner and manager, such that manager receives 30% of remaining operating profit that is less than the sum of $15,113,000 plus 10.75% of owner-funded capital expenses, and 50% of the operating profit in excess of such sumReimbursement of the hotel’s pro rata share of chain services, capped at 2.2% of gross revenues per fiscal yearOwner’s 1st Priority: 10.75% of owner’s investmentOwner’s 2nd Priority: After payment of the owner’s 1st priority, remaining operating profit is split between owner and manager, such that owner receives 70% of remaining operating profit that is less than the sum of $15,113,000 plus 10.75% of owner-funded capital expenses, and 50% of the operating profit in excess of such sum$91,571,054The Clancy5%50% of the excess of operating profit (after deduction for contributions to the FF&E reserve) over owner’s priority up to the Spread Threshold of $3,000,000, reduced to 25% for Operating Profit exceeding the Spread Threshold.1.5% of gross room sales$12,478,067, plus 11.5% of owner funded capital expenses Not applicableThe Notary Hotel4%20% of the excess of operating profit over owner’s priority1.5% of gross room sales$9,053,011 Plus 10.25% of owner-funded capital expenditures after the effective date, the amount of reserve shortfalls funded by Owner after the effective date, and the amount of owner-funded capital expenditures spent for completion of the conversion of the hotel to The Notary Hotel, up to $18,000,000Not applicableSofitel Chicago Magnificent Mile3%20% of the amount by which the hotel’s annual net operating income exceeds