Braemar Hotels & Resorts Inc. 8-K

What Happened
Braemar Hotels & Resorts Inc. filed an 8‑K (dated March 26, 2026) disclosing that it engaged Robert A. Stanger & Co., Inc. to provide an opinion of the liquidation value of its non‑traded Series E Redeemable Preferred Stock and Series M Redeemable Preferred Stock as of the valuation date December 31, 2025. Stanger concluded the estimated liquidation value for each series was $25.00 per share, which equals the stated per‑share liquidation preference in the companies’ articles supplementary.

Key Details

• Valuation date: December 31, 2025.
• Conclusion: Estimated liquidation value = $25.00 per share for both Series E and Series M (equals the stated liquidation preference).
• Methods used: market capitalization (including analyst target prices), direct capitalization of net operating income, and analysis based on recent third‑party appraisals. In each approach, equity value exceeded total liquidation preference for outstanding preferred securities.
• Advisor relationship: Stanger has provided prior valuations to Braemar (most recently as of Dec 31, 2024) and advisory services to Braemar and Ashford entities since 2019; fees were normal and customary and not contingent on the outcome.
• Limitations noted: The opinion is an estimate (not audited or GAAP fair value), does not reflect transactions after Dec 31, 2025, and results could differ materially under different assumptions—especially given the company’s concentrated real‑estate holdings.

Why It Matters
For holders of Braemar’s Series E and Series M preferred shares and for broker‑dealers reporting customer account values, the Stanger opinion supports that the liquidation value equals the $25.00 per‑share liquidation preference as of year‑end 2025. Investors should note this is an independent estimate based on specific assumptions and available data as of Dec 31, 2025—not a GAAP valuation—and changes in asset values or events after that date could change the liquidation outlook.