Company: BHR-PD
Filing Date: 2025-08-26
Form Type: 8-K
Source: 0001104659-25-083118
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Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-08-26
Form: 8-K
Item: Item 1.01
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ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On August 26, 2025, Braemar Hotels & Resorts
Inc. (the “ Company”) entered into a Letter Agreement (the “ Letter Agreement”) with its external
advisor, Ashford Inc. (the “ Advisor”), with respect to that certain Fifth Amended and Restated Advisory Agreement,
dated as of April 23, 2018, among the Company, Braemar Hospitality Limited Partnership, Braemar TRS Corporation, Ashford Hospitality Advisors
LLC and the Advisor (as amended, the “ Advisory Agreement”). The Letter Agreement was entered into in connection with
the exploration of a potential sale of the Company by the Company’s Board of Directors.

Pursuant to the Letter Agreement, the Company
and the Advisor have agreed that the fair and reasonable calculation of all amounts due from the Company to the Advisor under the termination
provisions in Section 12.5(b) of the Advisory Agreement with respect to a Company Sale Transaction (as defined in the Letter Agreement)
is $574.83 million (exclusive of accrued fees). However, the Company and the Advisor have agreed to the payment of a discounted aggregate
amount of $480 million plus accrued fees (the “ Company Sale Fee”) by the Company to the Advisor upon a Company Sale
Transaction in full and final satisfaction of such termination payment obligations. The Advisor received $17 million of such payment upon
the execution of the Letter Agreement in accordance with its terms, which amount will be credited against amounts due and payable to the
Advisor by the Company under the Advisory Agreement in the event the Company does not undergo a Company Sale Transaction by July 1, 2028
in accordance with the Letter Agreement. In addition, the definitive documentation in any Company Sale Transaction will include an express
condition that the buyer will assume the master project management agreement with Premier Project Management, LLC and the master hotel
management agreement with Remington Lodging & Hospitality, LLC (together, the “ Master Agreements”). However, the
special committee of the Board of Directors and the independent members of the Board of Directors have negotiated that the Master Agreements
may be completely canceled by the buyer for an additional payment of $25 million to be paid to the Advisor at the time of closing of any
Company Sale Transaction.

If a Company Sale Transaction is consummated at
any time prior to July 1, 2028, then the Company Sale Fee shall be due and payable in accordance with