Braemar Hotels & Resorts Expands Dividend Policy to Enhance Shareholder Value Amid Ongoing Sale Process
In a significant update for shareholders, Braemar Hotels & Resorts Inc., a prominent player in the real estate investment trust sector, has announced alterations to its dividend declaration procedures. This announcement, made by President and CEO Richard Stockton, aims to ensure that the company's preferred equity securities reflect a cohesive approach amid the ongoing Company Sale process.
The company revealed that its Series B and Series D preferred stock will now have their dividends 'reserved' on a monthly basis, aligning with the existing Series E and Series M monthly dividend declarations. This change ensures equitable treatment among varying series of preferred stocks— a crucial consideration since Series B and Series D are pari passu with Series E and M regarding distributions. By doing so, Braemar can maintain compliance with all parity requirements, securing the interests of its shareholders while preserving flexibility in potential strategic transactions.
"We are updating our preferred equity securities dividend declaration process to align the dividend cycles of our different preferred stock share classes in conjunction with the Company's previously announced Company Sale process," stated Stockton. The adjustments to the dividend declaration schedule, now set to be made around the 15th of the month following a quarterly end, will not affect the dividend calculation rates; these will remain consistent according to the Articles Supplementary for each series of preferred stock.
As for common equity dividends, the company has opted not to declare a policy for 2026 at this time. Given the complexities associated with the ongoing Company Sale process, which may involve multiple asset transactions, shareholders' distributions will occur only after fulfilling other company obligations. This decision exemplifies Braemar's commitment to ensuring long-term shareholder value while navigating through the sales process.
Founded with a strong focus on luxury hotel and resort properties, Braemar specializes in high-performance assets that consistently outperform national revenue per available room (RevPAR) averages. The company's portfolio spans luxurious properties across the United States and Caribbean territories, a testament to its strategic market positioning.
Braemar Hotels & Resorts is externally advised by Ashford Hospitality Advisors LLC, leveraging industry expertise and diligent asset management to enhance operational performance.
Going forward, Braemar reaffirmed its commitment to keeping shareholders informed regarding any further updates related to its dividend policies or business operations. By maintaining transparency and addressing shareholder concerns, the company aims to strengthen its position in the competitive luxury hotel market.
With these significant policy updates, Braemar Hotels & Resorts not only reinforces its standing in the market but also prioritizes shareholder relations, offering a clearer picture of its strategic direction in an ever-evolving economic landscape.
The company revealed that its Series B and Series D preferred stock will now have their dividends 'reserved' on a monthly basis, aligning with the existing Series E and Series M monthly dividend declarations. This change ensures equitable treatment among varying series of preferred stocks— a crucial consideration since Series B and Series D are pari passu with Series E and M regarding distributions. By doing so, Braemar can maintain compliance with all parity requirements, securing the interests of its shareholders while preserving flexibility in potential strategic transactions.
"We are updating our preferred equity securities dividend declaration process to align the dividend cycles of our different preferred stock share classes in conjunction with the Company's previously announced Company Sale process," stated Stockton. The adjustments to the dividend declaration schedule, now set to be made around the 15th of the month following a quarterly end, will not affect the dividend calculation rates; these will remain consistent according to the Articles Supplementary for each series of preferred stock.
As for common equity dividends, the company has opted not to declare a policy for 2026 at this time. Given the complexities associated with the ongoing Company Sale process, which may involve multiple asset transactions, shareholders' distributions will occur only after fulfilling other company obligations. This decision exemplifies Braemar's commitment to ensuring long-term shareholder value while navigating through the sales process.
Founded with a strong focus on luxury hotel and resort properties, Braemar specializes in high-performance assets that consistently outperform national revenue per available room (RevPAR) averages. The company's portfolio spans luxurious properties across the United States and Caribbean territories, a testament to its strategic market positioning.
Braemar Hotels & Resorts is externally advised by Ashford Hospitality Advisors LLC, leveraging industry expertise and diligent asset management to enhance operational performance.
Going forward, Braemar reaffirmed its commitment to keeping shareholders informed regarding any further updates related to its dividend policies or business operations. By maintaining transparency and addressing shareholder concerns, the company aims to strengthen its position in the competitive luxury hotel market.
With these significant policy updates, Braemar Hotels & Resorts not only reinforces its standing in the market but also prioritizes shareholder relations, offering a clearer picture of its strategic direction in an ever-evolving economic landscape.
Topics Financial Services & Investing）
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