Company: BHR-PD
Filing Date: 2025-03-31
Form Type: 8-K
Source: 0001574085-25-000027
Chunk: 0

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-03-31
Form: 8-K
Item: Item 8.01
Chunk 0
---
ITEM 8.01 OTHER EVENTS.

Opinion of the Liquidation Value of our Series E Preferred Stock and Series M Preferred Stock as of December 31, 2024

In order to assist broker-dealers in complying with their obligations under FINRA Rule 2331(c)(1)(B) with respect to customer account statements and our non-traded Series E Redeemable Preferred Stock (the “ Series E Preferred Stock”) and our non-traded Series M Redeemable Preferred Stock (the “ Series M Preferred Stock”), Braemar Hotels & Resorts Inc. (the “ Company”, “ we”, “ us” or “ our”) engaged Robert A. Stanger & Co., Inc. (“Stanger”) to provide an opinion of the liquidation value of our Series E Preferred Stock and our Series M Preferred Stock as of December 31, 2024 (the “Valuation Date”). The liquidation value is the amount that a holder of the Series E Preferred Stock or the Series M Preferred Stock would receive per share in the event of our liquidation. Based on certain assumptions and qualifications set forth in its report, Stanger concluded that the estimated liquidation value of the Series E Preferred Stock and the Series M Preferred Stock was $25.00 per share, which equals the per share liquidation preference for each series as set forth in the articles supplementary creating the Series E and the Series M Preferred Stock. In arriving at this conclusion, Stanger used the following valuation approaches:

Market capitalization. Stanger reviewed the public market capitalization of our common stock at its 52-week low, its 52-week high and the closing price as of the Valuation Date. Stanger adjusted the public common stock market capitalization for the liquidation value of all outstanding preferred securities to determine an adjusted market capitalization (before the preferred securities). In all cases, the preferred stock coverage ratio, which is the ratio of the adjusted market capitalization to the total liquidation preference for all of our outstanding preferred securities, was adequate as of the Valuation Date.

Analyst target prices. Stanger reviewed the most recently available target common stock prices published by analysts, as reported by Bloomberg Professional Terminal. Using the lowest target price, highest target price and average or “consensus” target price, Stanger estimated the common market capitalization as of the Valuation Date. Stanger adjusted the common market capitalization for the liquidation value of the preferred securities to determine an adjusted market capitalization. In all cases, the preferred stock coverage ratio, which