Braemar Hotels & Resorts Inc. (NYSE: BHR) announced a portfolio update and provided financial guidance for 2027 on October 8, 2026. The company entered into a definitive agreement to sell the Four Seasons Resort Scottsdale for $372 million, with an expected closing date of October 22, 2026. This transaction, which includes a $10 million non-refundable earnest money deposit, represents a 6.2% capitalization rate on net operating income for the trailing twelve months ended August 2026, subject to anticipated capital expenditures of $23 million.
Following the sale, Braemar’s portfolio will consist of seven properties: the Ritz-Carlton Reserve Dorado Beach (96 keys), the Ritz-Carlton, St. Thomas (180 keys), Capital Hilton (559 keys), The Notary Hotel, Autograph Collection (499 keys), Sofitel Chicago Magnificent Mile (415 keys), the Ritz-Carlton, Lake Tahoe (170 keys), and Cameo Beverly Hills, LXR Hotels & Resorts (143 keys).
The company reported key financial metrics for the trailing twelve months ended June 30, 2026. The weighted average property RevPAR was $328, with total revenues of $381.4 million and hotel EBITDA of $87.9 million. The weighted average EBITDA margin was 23.0%.
Braemar provided full-year 2027 guidance on a pro forma basis, assuming a net debt balance of approximately $405 million and preferred equity outstanding of approximately $407 million as of December 31, 2026. The company expects comparable RevPAR to range from $354 to $361, with total revenues projected between $407 million and $412 million. The guidance includes an operating profit margin under GAAP of 7.1% to 8.2% and a comparable hotel EBITDA margin of 24.5% to 25.4%.
Regarding capital structure, the company anticipates reducing annual corporate general and administrative expenses from approximately $42 million to $15 million following the termination of its advisory relationship with Ashford Inc. Additionally, the company expects to reduce the weighted-average interest rate for refinanced assets by more than 150 basis points, generating estimated 2027 interest savings of approximately $4.8 million to $5.5 million.
In other corporate news, Braemar announced a Cooperation and Settlement Agreement with its largest shareholder, Al Shams Investments Limited. Under this agreement, Al Shams has withdrawn its notice related to the nomination of candidates for election to the Board at the 2026 Annual Meeting of Stockholders.
