#Bermuda #Braemar Hotels #Pembroke #Ashford Inc. #Al Shams Investments

Al Shams Investments Urges Action from Braemar's Board

Al Shams Investments Limited, the predominant shareholder of Braemar Hotels & Resorts Inc., has taken a decisive step by reaching out to the hotel chain's board of directors with an urgent call for change. In a recent open letter dated June 2, 2026, Al Shams has expressed profound concerns regarding the decision to appoint another executive from Ashford Inc. to the board, following the resignations of two outside directors. This latest move has raised alarms about the ongoing conflicts of interest within the board and calls into question the board's ability to act in the best interests of shareholders.

The context behind this situation stems from the potential conflicts surrounding Ashford Inc., which serves as Braemar's external advisor. Al Shams has highlighted that with the new appointee, executives from Ashford now occupy over 40% of the board's seats, leading to significant concerns regarding unbiased decision-making. The letter emphasized that this growing influence jeopardizes shareholders' interests and undermines the board's integrity, given the evident ties and loyalties to Ashford's controlling shareholders, Archie and Monty Bennett.

In light of these conflicts, Al Shams has urgently requested the outside directors to convene the Annual Meeting of Shareholders for 2026 without delay, enabling shareholders to elect new, trustworthy directors. This request follows their prior appeal on May 8, which asked the board to halt any hotel divestitures until a new board was elected—underlining the pressing need for genuine leadership that is independent of Ashford's influence.

The letter from Al Shams asserts that the board currently lacks a mandate to govern effectively, especially in light of recent voting results from the 2025 Annual Meeting, where major proxy advisory firms recommended against numerous directors due to their growing unpopularity among shareholders. It is clear that a shift is necessary, as shareholders demand substantial changes that reflect their interests and restore confidence in the board's governance.

Moreover, Al Shams underscores that the resignation of two pivotal directors, particularly those overseeing related party transactions and audit committees, exacerbates the risk of Ashford benefitting unfairly from strategic decisions being made at Braemar. At stake are potential transactions valued at over $480 million which could disproportionately favor Ashford. Al Shams insists that the board must act swiftly to appoint credible fiduciaries who can reclaim confidence and direction for the company—a call to not only preserve governance integrity but to protect shareholder interests amidst rising conflicts.

In conclusion, Al Shams insists that action cannot be delayed, as the Board's attempt to refresh themselves with yet another Ashford executive will not appease shareholders demanding substantive change. They are adamant that new leadership should be elected promptly, enabling a reconstitution of the board that prioritizes shareholders' unwavering interests. The pressure is on for Braemar's Board to respond to these calls, as the clock ticks towards an Annual Meeting that could redefine the company's future.

Al Shams Investments Limited operates from Bermuda and focuses on a diverse range of global investments, aiming to ensure robust governance practices that reflect shareholder interests. The current situation at Braemar Hotels & Resorts remains a pivotal issue for shareholders as they continue pushing for necessary reforms and leadership changes.