BRAEMAR HOTELS & RESORTS ANNOUNCES AGREEMENT TO SELL THE CLANCY (Form 8-K)

BRAEMAR HOTELS & RESORTS ANNOUNCES AGREEMENT TO SELL THE CLANCY

DALLAS, October 7, 2025 - Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") announced today that it has entered into a definitive agreement to sell the 410-room The Clancy in San Francisco for $115 million ($280,487 per key) and has received a $3.5 million non-refundable earnest money deposit. The sale price represents a 5.0% capitalization rate on net operating income for the trailing 12 months ended August 2025.

"We are strategically refining our portfolio with one clear objective: to maximize its value for our shareholders," said Richard J. Stockton, president and CEO. "This divestiture will help us to ensure that a future sale of the Company results in the best possible outcome for our investors."

The transaction is expected to close in November 2025, subject to customary conditions. The buyer has the right to extend the closing for 30 days with an incremental $1 million non-refundable deposit. The Company provides no assurances that the sale will be completed on these terms or at all.

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Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.

Braemar Hotels & Resorts Inc.
The Clancy
Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and Hotel Net Operating Income
(Unaudited, in millions)
						12 Months Ended
						August 31, 2025
Net income (loss)						$	(4.2)
Interest expense						5.0
Amortization of loan cost						0.3
Depreciation and amortization						6.6
Hotel EBITDA						$	7.7
Capital reserve						(2.0)
Hotel Net Operating Income						$	5.7

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All information in this table is based upon unaudited operating financial data for the twelve month period ended August 31, 2025. This data has not been audited or reviewed by the Company's independent registered public accounting firm. The financial information presented could change.

EBITDA is defined as net income (loss), computed in accordance with generally accepted accounting principles ("GAAP"), before interest, taxes, depreciation and amortization. Hotel EBITDA multiple is defined as the purchase price divided by the trailing 12 month EBITDA. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's hotel EBITDA minus a capital expense reserve of 5% of gross revenue.