Braemar Hotels & Resorts announces portfolio update and 2027 outlook

Forward booking trends across the go-forward portfolio remain strong and rate-led. As of September 2026, next-twelve-months revenue pace is up approximately 25% year-over-year, driven by an approximately 27% increase in ADR, with on-the-books occupancy modestly behind the prior year. As a self-managed REIT, the Company expects to reduce total annual corporate general and administrative expenses, inclusive of advisory and related fees, from approximately $42 million to approximately $15 million, representing over $25 million in annual cost savings following the termination of its external advisory relationship with Ashford. The Company also intends to pursue a series of targeted refinancing transactions over the next three to six months, which are expected to reduce the weighted-average interest rate for those assets by more than 150 basis points, generate estimated 2027 interest savings of approximately $4.8 million to $5.5 million based on current outstanding loan balances, and significantly extend its debt maturities. On a pro forma basis, September 2026 net debt as a percentage of gross assets is expected to decline from approximately 50% to approximately 36%, providing greater financial flexibility. While the transition results in a near-term reduction in EBITDA, primarily reflecting the recently completed asset sales, the Company believes the resulting permanent cost savings and improved capital structure create a more profitable and scalable platform positioned for long-term earnings growth and value creation. Financial Outlook The Company is providing one-time financial guidance so that shareholders can more fully understand the future of Braemar on a pro forma basis as it undergoes its transition. The Company's full-year 2027 outlook assumes a projected net debt balance of approximately $405 million(1) and projected preferred equity outstanding of approximately $407 million(2) as of December 31, 2026, and expects the following results for the year ending December 31, 2027: Full Year 2027 Guidance Low-end of High-end of Middle of range range range ------------------------------------------ ---------- ----------- --------- RevPAR Growth +4.5% +6.5% +5.5% Comparable RevPAR $ 354 $ 361 $ 358 Comparable total RevPAR $ 535 $ 542 $ 539 Total revenues (millions) $ 407 $ 412 $ 409 Operating profit margin under GAAP 7.1% 8.2% 7.7% Comparable hotel EBITDA margin 24.5% 25.4% 24.9% Capital Expenditures (% of total Revenue) 7.0% 9.0% 8.0% Based upon the above parameters, the Company estimates its 2027 guidance as follows: Low-end of High-end of Middle of range range range ------------------------------------------ ---------- ----------- --------- Net income under GAAP (millions)(3) ($ 11) ($ 6) ($ 9) Adjusted EBITDAre (millions) $ 85 $ 90 $ 88 Diluted earnings per common share under GAAP(3) ($ 0.50) ($ 0.43) ($ 0.47) NAREIT FFO per diluted share $ 0.23 $ 0.30 $ 0.26 Adjusted FFO per diluted share $ 0.25 $ 0.31 $ 0.28 These estimates assume a