10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

    For the quarterly period ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

    For the transition period from ________________ to ________________

Commission file number: 001-35972

BRAEMAR HOTELS & RESORTS INC.

(Exact name of registrant as specified in its charter)

Maryland	46-2488594
(State or other jurisdiction of incorporation or organization)	(IRS employer identification number)
14185 Dallas Parkway
Suite 1200
Dallas
Texas	75254
(Address of principal executive offices)	(Zip code)

(972) 490-9600

(Registrant’s telephone number, including area code)

    Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No

    Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No

    Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “small reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☑
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

    Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

    Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	BHR	New York Stock Exchange
Preferred Stock, Series B	BHR-PB	New York Stock Exchange
Preferred Stock, Series D	BHR-PD	New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, $0.01 par value per share	65,993,893
(Class)	Outstanding at August 3, 2023

BRAEMAR HOTELS & RESORTS INC.

FORM 10-Q

FOR THE QUARTER ENDED June 30, 2023

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (unaudited)
Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	2
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and 2022	3
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2023 and 2022	4
Condensed Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2023 and 2022	5
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022	7
Notes to Condensed Consolidated Financial Statements	9
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	32
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	55
ITEM 4. CONTROLS AND PROCEDURES	56
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	56
ITEM 1A. RISK FACTORS	57
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	57
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	57
ITEM 4. MINE SAFETY DISCLOSURES	58
ITEM 5. OTHER INFORMATION	58
ITEM 6. EXHIBITS	58
SIGNATURES	60

PART I. FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS (unaudited)

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except share and per share amounts)

	June 30, 2023		December 31, 2022
ASSETS
Investments in hotel properties, gross	$	2,360,842	$	2,325,093
Accumulated depreciation	(470,484)		(440,492)
Investments in hotel properties, net	1,890,358		1,884,601
Cash and cash equivalents	128,025		261,541
Restricted cash	63,439		54,155
Accounts receivable, net of allowance of $200 and $339, respectively	32,864		51,448
Inventories	5,119		5,238
Prepaid expenses	18,172		7,044
Deferred costs, net	75		—
Investment in unconsolidated entity	1,699		1,689
Derivative assets	6,308		6,482
Operating lease right-of-use assets	78,917		79,449
Other assets	17,078		14,621
Intangible assets, net	3,693		3,883
Due from related parties, net	333		938
Due from third-party hotel managers	15,430		26,625
Total assets	$	2,261,510	$	2,397,714
LIABILITIES AND EQUITY
Liabilities:
Indebtedness, net	$	1,135,958	$	1,334,130
Accounts payable and accrued expenses	135,096		133,978
Dividends and distributions payable	8,917		8,184
Due to Ashford Inc.	4,558		10,005
Due to third-party hotel managers	1,579		2,096
Operating lease liabilities	60,538		60,692
Other liabilities	22,508		22,343
Derivative liabilities	165		284
Total liabilities	1,369,319		1,571,712
Commitments and contingencies (note 15)
5.50% Series B cumulative convertible preferred stock, $0.01 par value, 3,078,017 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	65,426		65,426
Series E redeemable preferred stock, $0.01 par value, 16,485,987 and 12,656,529 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	379,403		291,076
Series M redeemable preferred stock, $0.01 par value, 1,959,622 and 1,428,332 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	48,405		35,182
Redeemable noncontrolling interests in operating partnership	35,174		40,555
Equity:
Preferred stock, $0.01 par value, 80,000,000 shares authorized:
8.25% Series D cumulative preferred stock, 1,600,000 shares issued and outstanding at June 30, 2023 and December 31, 2022	16		16
Common stock, $0.01 par value, 250,000,000 shares authorized, 65,993,893 and 69,919,065 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	659		699
Additional paid-in capital	716,987		734,134
Accumulated deficit	(341,210)		(324,740)
Total stockholders’ equity of the Company	376,452		410,109
Noncontrolling interest in consolidated entities	(12,669)		(16,346)
Total equity	363,783		393,763
Total liabilities and equity	$	2,261,510	$	2,397,714

See Notes to Condensed Consolidated Financial Statements.

2

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
REVENUE
Rooms	$	117,137	$	112,527	$	254,664	$	217,719
Food and beverage	47,776		42,269		100,004		78,976
Other	21,794		20,098		47,340		40,079
Total hotel revenue	186,707		174,894		402,008		336,774
EXPENSES
Hotel operating expenses:
Rooms	26,705		24,134		54,063		44,318
Food and beverage	36,365		31,894		76,104		59,922
Other expenses	56,297		52,087		118,592		98,294
Management fees	5,880		5,538		12,585		9,686
Total hotel operating expenses	125,247		113,653		261,344		212,220
Property taxes, insurance and other	9,396		5,277		17,512		13,880
Depreciation and amortization	22,567		19,571		45,088		38,012
Advisory services fee	8,215		6,305		16,163		13,627
(Gain) loss on legal settlements	—		(114)		—		(114)
Corporate general and administrative	3,896		3,438		6,716		5,933
Total operating expenses	169,321		148,130		346,823		283,558
OPERATING INCOME (LOSS)	17,386		26,764		55,185		53,216
Equity in earnings (loss) of unconsolidated entity	(75)		(74)		(148)		(146)
Interest income	2,295		162		4,403		187
Interest expense and amortization of discounts and loan costs	(23,600)		(10,281)		(46,473)		(18,803)
Write-off of loan costs and exit fees	(248)		(22)		(260)		(98)
Gain (loss) on extinguishment of debt	—		—		2,318		—
Realized and unrealized gain (loss) on derivatives	1,029		1,208		695		1,616
INCOME (LOSS) BEFORE INCOME TAXES	(3,213)		17,757		15,720		35,972
Income tax (expense) benefit	75		(1,077)		(2,254)		(3,688)
NET INCOME (LOSS)	(3,138)		16,680		13,466		32,284
(Income) loss attributable to noncontrolling interest in consolidated entities	367		(1,468)		58		(1,442)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	925		(846)		664		(1,813)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	(1,846)		14,366		14,188		29,029
Preferred dividends	(10,877)		(4,064)		(21,227)		(7,367)
Deemed dividends on preferred stock	(301)		—		(2,755)		—
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(13,024)	$	10,302	$	(9,794)	$	21,662
INCOME (LOSS) PER SHARE - BASIC:
Net income (loss) attributable to common stockholders	$	(0.20)	$	0.14	$	(0.14)	$	0.31
Weighted average common shares outstanding – basic	65,806		70,740		68,378		68,325
INCOME (LOSS) PER SHARE - DILUTED:
Net income (loss) attributable to common stockholders	$	(0.20)	$	0.12	$	(0.14)	$	0.27
Weighted average common shares outstanding – diluted	65,806		107,669		68,378		98,798

See Notes to Condensed Consolidated Financial Statements.

3

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited, in thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
NET INCOME (LOSS)	$	(3,138)	$	16,680	$	13,466	$	32,284
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Total other comprehensive income (loss)	—		—		—		—
TOTAL COMPREHENSIVE INCOME (LOSS)	(3,138)		16,680		13,466		32,284
Comprehensive (income) loss attributable to noncontrolling interest in consolidated entities	367		(1,468)		58		(1,442)
Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership	925		(846)		664		(1,813)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	$	(1,846)	$	14,366	$	14,188	$	29,029

See Notes to Condensed Consolidated Financial Statements.

4

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(unaudited, in thousands except per share amounts)

	8.25% Series D Cumulative Preferred Stock			Common Stock			Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interest in Consolidated Entities		Total		5.50% Series B Cumulative Convertible Preferred Stock			Series E Redeemable Preferred Stock			Series M Redeemable Preferred Stock			Redeemable Noncontrolling Interests in Operating Partnership
	Shares	Amount		Shares	Amount										Shares	Amount		Shares	Amount		Shares	Amount
Balance at March 31, 2023	1,600	$	16	65,950	$	659	$	715,729	$	(324,840)	$	(14,013)	$	377,551	3,078	$	65,426	16,474	$	378,906	1,960	$	48,294	$	34,820
Purchase of common stock	—	—		(1)	—		(4)		—		—		(4)		—	—		—	—		—	—		—
Equity-based compensation	—	—		—	—		1,262		—		—		1,262		—	—		—	—		—	—		1,752
Issuance of restricted shares/units	—	—		45	—		—		—		—		—		—	—		—	—		—	—		—
Issuance of preferred stock	—	—		—	—		—		—		—		—		—	—		32	828		4	76		—
Dividends declared – common stock ($0.05/share)	—	—		—	—		—		(3,335)		—		(3,335)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series B ($0.34/share)	—	—		—	—		—		(1,058)		—		(1,058)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series D ($0.52/share)	—	—		—	—		—		(825)		—		(825)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series E ($0.50/share)	—	—		—	—		—		(7,986)		—		(7,986)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series M ($0.52/share)	—	—		—	—		—		(1,008)		—		(1,008)		—	—		—	—		—	—		—
Contributions from noncontrolling interests	—	—		—	—		—		—		2,026		2,026		—	—		—	—		—	—		—
Distributions to noncontrolling interests	—	—		—	—		—		—		(315)		(315)		—	—		—	—		—	—		(361)
Redemption/conversion of operating partnership units	—	—		—	—		—		—		—		—		—	—		—	—		—	—		(123)
Net income (loss)	—	—		—	—		—		(1,846)		(367)		(2,213)		—	—		—	—		—	—		(925)
Redemption of preferred stock	—	—		—	—		—		—		—		—		—	—		(21)	(507)		(4)	(90)		—
Redemption value adjustment – preferred stock	—	—		—	—		—		(301)		—		(301)		—	—		—	176		—	125		—
Redemption value adjustment	—	—		—	—		—		(11)		—		(11)		—	—		—	—		—	—		11
Balance at June 30, 2023	1,600	$	16	65,994	$	659	$	716,987	$	(341,210)	$	(12,669)	$	363,783	3,078	$	65,426	16,485	$	379,403	1,960	$	48,405	$	35,174

	8.25% Series D Cumulative Preferred Stock			Common Stock			Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interest in Consolidated Entities		Total		5.50% Series B Cumulative Convertible Preferred Stock			Series E Redeemable Preferred Stock			Series M Redeemable Preferred Stock			Redeemable Noncontrolling Interests in Operating Partnership
	Shares	Amount		Shares	Amount										Shares	Amount		Shares	Amount		Shares	Amount
Balance at December 31, 2022	1,600	$	16	69,919	$	699	$	734,134	$	(324,740)	$	(16,346)	$	393,763	3,078	$	65,426	12,657	$	291,076	1,428	$	35,182	$	40,555
Purchase of common stock	—	—		(3,969)	(40)		(19,214)		—		—		(19,254)		—	—		—	—		—	—		—
Equity-based compensation	—	—		—	—		2,067		—		—		2,067		—	—		—	—		—	—		3,160
Issuance of preferred stock	—	—		—	—		—		—		—		—		—	—		3,860	86,744		537	12,955		—
Issuance of restricted shares/units	—	—		45	—		—		—		—		—		—	—		—	—		—	—		—
Forfeiture of restricted common shares	—	—		(1)	—		—		—		—		—		—	—		—	—		—	—		—
Dividends declared – common stock ($0.10 /share)	—	—		—	—		—		(6,669)		—		(6,669)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series B ($0.69/share)	—	—		—	—		—		(2,116)		—		(2,116)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series D ($1.03/share)	—	—		—	—		—		(1,650)		—		(1,650)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series E ($1.00/share)	—	—		—	—		—		(15,520)		—		(15,520)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series M ($1.03/share)	—	—		—	—		—		(1,941)		—		(1,941)		—	—		—	—		—	—		—
Contributions from noncontrolling interests	—	—		—	—		—		—		4,050		4,050		—	—		—	—		—	—		—
Distributions to noncontrolling interests	—	—		—	—		—		—		(315)		(315)		—	—		—	—		—	—		(722)
Redemption/conversion of operating partnership units	—	—		—	—		—		—		—		—		—	—		—	—		—	—		(7,162)
Net income (loss)	—	—		—	—		—		14,188		(58)		14,130		—	—		—	—		—	—		(664)
Redemption of preferred stock	—	—		—	—		—		—		—		—		—	—		(32)	(789)		(5)	(115)		—
Redemption value adjustment – preferred stock	—	—		—	—		—		(2,755)		—		(2,755)		—	—		—	2,372		—	383		—
Redemption value adjustment	—	—		—	—		—		(7)		—		(7)		—	—		—	—		—	—		7
Balance at June 30, 2023	1,600	$	16	65,994	$	659	$	716,987	$	(341,210)	$	(12,669)	$	363,783	3,078	$	65,426	16,485	$	379,403	1,960	$	48,405	$	35,174

5

	8.25% Series D Cumulative Preferred Stock			Common Stock			Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interest in Consolidated Entities		Total		5.50% Series B Cumulative Convertible  Preferred Stock			Series E Redeemable  Preferred Stock				Series M Redeemable  Preferred Stock			Redeemable Noncontrolling Interests in Operating Partnership
	Shares	Amount		Shares	Amount										Shares	Amount		Shares	Amount			Shares	Amount
Balance at March 31, 2022	1,600	$	16	71,270	$	712	$	736,911	$	(303,323)	$	(16,411)	$	417,905	3,078	$	65,426	3,191	$	73,404		62	$	1,538	$	42,291
Purchase of common stock	—	—		—	—		5		—		—		5		—	—		—	—			—	—		—
Equity-based compensation	—	—		—	—		1,464		—		—		1,464		—	—		—	—			—	—		1,832
Common stock issuance costs	—	—		—	—		(27)		—		—		(27)		—	—		—	—			—	—		—
Issuance of restricted shares/units	—	—		45	—		—		—		—		—		—	—		—	—			—	—		—
Forfeiture of restricted common shares	—	—		(5)	—		—		—		—		—		—	—		—	—			—	—		—
Issuance of preferred stock	—	—		—	—		—		—		—		—		—	—		1,319	29,392			334	8,003		—
Dividends declared – common stock ($0.01/share)	—	—		—	—		—		(720)		—		(720)		—	—		—	—		—	—	—		—
Dividends declared – preferred stock - Series B ($0.34/share)	—	—		—	—		—		(1,058)		—		(1,058)		—	—		—	—			—	—		—
Dividends declared – preferred stock-Series D ($0.52/share)	—	—		—	—		—		(825)		—		(825)		—	—		—	—			—	—		—
Dividends declared – preferred stock - Series E ($0.50 /share)	—	—		—	—		—		(2,053)		—		(2,053)		—	—		—	—			—	—		—
Dividends declared – preferred stock - Series M ($0.51 /share)	—	—		—	—		—		(128)		—		(128)		—	—		—	—			—	—		—
Distributions to noncontrolling interests	—	—		—	—		—		—		—		—		—	—		—	—			—	—		(84)
Net income (loss)	—	—		—	—		—		14,366		1,468		15,834		—	—		—	—			—	—		846
Redemption of preferred stock	—	—		—	—		—		—		—		—		—	—		(2)	(50)			—	—		—
Redemption value adjustment – preferred stock	—	—		—	—		—		(1,160)		—		(1,160)		—	—		—	951			—	209		—
Redemption value adjustment	—	—		—	—		—		4,594		—		4,594		—	—		—	—			—	—		(4,594)
Balance at June 30, 2022	1,600	$	16	71,310	$	712	$	738,353	$	(290,307)	$	(14,943)	$	433,831	3,078	$	65,426	4,508	$	103,697		396	$	9,750	$	40,291

	8.25% Series D Cumulative Preferred Stock			Common Stock			Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interest in Consolidated Entities		Total		5.50% Series B Cumulative Convertible Preferred Stock			Series E Redeemable Preferred Stock			Series M Redeemable Preferred Stock			Redeemable Noncontrolling Interests in Operating Partnership
	Shares	Amount		Shares	Amount										Shares	Amount		Shares	Amount		Shares	Amount
Balance at December 31, 2021	1,600	$	16	65,365	$	653	$	707,418	$	(309,240)	$	(16,549)	$	382,298	3,078	$	65,426	1,710	$	39,339	29	$	715	$	36,087
Impact of adoption of new accounting standard	—	—		—	—		(6,257)		656		—		(5,601)		—	—		—	—		—	—		—
Purchase of common stock	—	—		(93)	(1)		(546)		—		—		(547)		—	—		—	—		—	—		—
Equity-based compensation	—	—		—	—		2,784		—		—		2,784		—	—		—	—		—	—		2,766
Issuance of common stock	—	—		6,000	60		34,981		—		—		35,041		—	—		—	—		—	—		—
Common stock issuance costs	—	—		—	—		(27)		—		—		(27)		—	—		—	—		—	—
Issuance of preferred stock	—	—		—	—		—		—		—		—		—	—		2,800	62,485		367	8,805		—
Issuance of restricted shares/units	—	—		45	—		—		—		—		—		—	—		—	—		—	—		—
Forfeiture of restricted common shares	—	—		(7)	—		—		—		—		—		—	—		—	—		—	—		—
Dividends declared – common stock - ($0.02/share)	—			—	—		—		(1,440)		—		(1,440)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series B ($0.69/share)	—	—		—	—		—		(2,116)		—		(2,116)		—	—		—	—		—	—		—
Dividends declared – preferred stock-Series D ($1.03/share)	—	—		—	—		—		(1,650)		—		(1,650)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series E ($1.00/share)	—	—		—	—		—		(3,452)		—		(3,452)		—	—		—	—		—	—		—
Dividends declared – preferred stock - Series M ($1.02/share)	—	—		—	—		—		(149)		—		(149)		—	—		—	—		—	—		—
Distributions to noncontrolling interests	—	—		—	—		—		—		—		—		—	—		—	—		—	—		(167)
Contributions from noncontrolling interests	—	—		—	—		—		—		164		164		—	—		—	—		—	—		1,813
Net income (loss)	—	—		—	—		—		29,029		1,442		30,471		—	—		—	—		—	—		—
Redemption of preferred stock	—	—		—	—		—		—		—		—		—	—		(2)	(50)		—	—		—
Redemption value adjustment – preferred stock	—	—		—	—		—		(2,153)		—		(2,153)		—	—		—	1,923		—	230		—
Redemption value adjustment	—	—		—	—		—		208		—		208		—	—		—	—		—	—		(208)
Balance at June 30, 2022	1,600	$	16	71,310	$	712	738,353		$	(290,307)	$	(14,943)	$	433,831	3,078	$	65,426	4,508	$	103,697	396	$	9,750	$	40,291

See Notes to Condensed Consolidated Financial Statements.

6

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	Six Months Ended June 30,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	13,466	$	32,284
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	45,088		38,012
Equity-based compensation	5,227		5,550
Bad debt expense	327		560
(Gain) loss on extinguishment of debt	(2,318)		—
Amortization of loan costs, discounts and capitalized default interest	868		(246)
Write-off of loan costs and exit fees	260		98
Amortization of intangibles	237		237
Amortization of non-refundable membership initiation fees	(839)		(710)
Interest expense accretion on refundable membership club deposits	342		368
Realized and unrealized (gain) loss on derivatives	(695)		(1,616)
Equity in (earnings) loss of unconsolidated entity	148		146
Deferred income tax expense (benefit)	127		—
Changes in operating assets and liabilities, exclusive of the effect of hotel acquisitions:
Accounts receivable and inventories	18,215		(5,069)
Prepaid expenses and other assets	(13,448)		(1,464)
Accounts payable and accrued expenses	(9,664)		(202)
Operating lease right-of-use assets	295		296
Due to/from related parties, net	605		702
Due to/from third-party hotel managers	10,678		9,018
Due to/from Ashford Inc.	(7,464)		1,122
Operating lease liabilities	(154)		(147)
Other liabilities	662		898
Net cash provided by (used in) operating activities	61,963		79,837
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from property insurance	327		36
Payments for initial franchise fee	(75)		—
Acquisition of hotel properties, net of cash and restricted cash acquired	—		(86,798)
Investment in unconsolidated entity	(158)		(164)
Improvements and additions to hotel properties	(36,199)		(19,910)
Net cash provided by (used in) investing activities	(36,105)		(106,836)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on indebtedness	—		70,500
Repayments of indebtedness	(196,355)		(68,000)
Payments of loan costs and exit fees	(790)		(1,728)
Payments for derivatives	(3,400)		(1,145)
Proceeds from derivatives	4,010		—
Purchase of common stock	(19,306)		(547)
Payments for dividends and distributions	(26,139)		(7,334)
Net proceeds from issuance of preferred stock	97,930		71,016
Common stock offering costs	—		(102)
Contributions from noncontrolling interest in consolidated entities	4,050		164
Redemption of operating partnership units	(7,162)		—
Distributions to noncontrolling interest in consolidated entities	(2,024)		—
Redemption of preferred stock	(904)		(50)
Net cash provided by (used in) financing activities	(150,090)		62,774
Net change in cash, cash equivalents and restricted cash	(124,232)		35,775
Cash, cash equivalents and restricted cash at beginning of period	315,696		263,374
Cash, cash equivalents and restricted cash at end of period	$	191,464	$	299,149

7

	Six Months Ended June 30,
	2023		2022
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid	$	53,297	$	17,036
Income taxes paid (refunded)	2,920		(991)
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Dividends and distributions declared but not paid	$	8,917	$	3,535
Assumption of debt in hotel acquisition	—		58,601
Capital expenditures accrued but not paid	21,011		5,363
Issuance of common stock for hotel acquisition	—		35,040
Accrued preferred stock offering expenses	—		105
Non-cash preferred stock dividends	1,747		278
Unsettled proceeds from derivatives	470		—
SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents at beginning of period	$	261,541	$	215,998
Restricted cash at beginning of period	54,155		47,376
Cash, cash equivalents and restricted cash at beginning of period	$	315,696	$	263,374
Cash and cash equivalents at end of period	$	128,025	$	251,032
Restricted cash at end of period	63,439		48,117
Cash, cash equivalents and restricted cash at end of period	$	191,464	$	299,149

See Notes to Condensed Consolidated Financial Statements.

8

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Organization and Description of Business

Braemar Hotels & Resorts Inc., together with its subsidiaries (“Braemar”), is a Maryland corporation that invests primarily in high revenue per available room (“RevPAR”) luxury hotels and resorts. High RevPAR, for purposes of our investment strategy, means RevPAR of at least twice the then-current U.S. national average RevPAR for all hotels as determined by STR, LLC. Braemar has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). Braemar conducts its business and owns substantially all of its assets through its operating partnership, Braemar Hospitality Limited Partnership (“Braemar OP”). Terms such as the “Company,” “we,” “us” or “our” refer to Braemar Hotels & Resorts Inc. and, as the context may require, all entities included in its condensed consolidated financial statements.

We are advised by Ashford Hospitality Advisors LLC (“Ashford LLC” or the “Advisor”) through an advisory agreement. Ashford LLC is a subsidiary of Ashford Inc. All of the hotel properties in our portfolio are currently asset-managed by Ashford LLC. We do not have any employees. All of the services that might be provided by employees are provided to us by Ashford LLC.

We do not operate any of our hotel properties directly; instead we employ hotel management companies to operate them for us under management contracts. Remington Lodging & Hospitality, LLC (“Remington Hospitality”), a subsidiary of Ashford Inc., manages four of our 16 hotel properties. Third-party management companies manage the remaining hotel properties.

Ashford Inc. also provides other products and services to us or our hotel properties through certain entities in which Ashford Inc. has an ownership interest. These products and services include, but are not limited to, design and construction services, debt placement and related services, broker-dealer and distribution services, audio visual services, real estate advisory and brokerage services, insurance claims services, hypoallergenic premium rooms, watersport activities, travel/transportation services and mobile key technology.

The accompanying condensed consolidated financial statements include the accounts of wholly-owned and majority-owned subsidiaries of Braemar OP that as of June 30, 2023, own 16 hotel properties in seven states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands (“USVI”). The portfolio includes 14 wholly-owned hotel properties and two hotel properties that are owned through a partnership in which Braemar OP has a controlling interest. These hotel properties represent 4,192 total rooms, or 3,957 net rooms, excluding those attributable to our partner. As a REIT, Braemar is required to comply with limitations imposed by the Code related to operating hotels. As of June 30, 2023, 15 of our 16 hotel properties were leased by wholly-owned or majority-owned subsidiaries that are treated as taxable REIT subsidiaries (“TRS”) for federal income tax purposes (collectively the TRS entities are referred to as “Braemar TRS”). One hotel property, located in the USVI, is owned by our USVI TRS. Braemar TRS then engages third-party or affiliated hotel management companies to operate the hotel properties under management contracts. Hotel operating results related to the hotel properties are included in the condensed consolidated statements of operations.

As of June 30, 2023, 13 of the 16 hotel properties were leased by Braemar’s wholly-owned TRS, and the two hotel properties majority-owned through a consolidated partnership were leased to a TRS wholly-owned by such consolidated partnership. Each leased hotel is leased under a percentage lease that provides for each lessee to pay in each calendar month the base rent plus, in each calendar quarter, percentage rent, if any, based on hotel revenues. Lease revenue from Braemar TRS is eliminated in consolidation. The hotel properties are operated under management contracts with Marriott Hotel Services, LLC (“Marriott”), Hilton Management LLC (“Hilton”), Accor Management US Inc. (“Accor”), Four Seasons Hotels Limited (“Four Seasons”), Hyatt Corporation (“Hyatt”), The Ritz-Carlton Hotel Company, L.L.C. and its affiliates, each of which is also an affiliate of Marriott (“Ritz-Carlton”), and Remington Hospitality, which are eligible independent contractors under the Code.

2. Significant Accounting Policies

Basis of Presentation and Principles of Consolidation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These condensed consolidated financial statements include the accounts of Braemar Hotels & Resorts Inc., its majority-owned subsidiaries, and its majority-owned entities in which it has a controlling interest. All intercompany accounts and transactions between consolidated entities have been eliminated in these condensed consolidated financial statements. We have condensed

9

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made herein are adequate to prevent the information presented from being misleading. However, the financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 10, 2023.

Braemar OP is considered to be a variable interest entity (“VIE”), as defined by authoritative accounting guidance. A VIE must be consolidated by a reporting entity if the reporting entity is the primary beneficiary because it has (i) the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. All major decisions related to Braemar OP that most significantly impact its economic performance, including but not limited to operating procedures with respect to business affairs and any acquisitions, dispositions, financings, restructurings or other transactions with sellers, purchasers, lenders, brokers, agents and other applicable representatives, are subject to the approval of our wholly-owned subsidiary, Braemar OP General Partner LLC, its general partner. As such, we consolidate Braemar OP.

The following items affect reporting comparability of our historical condensed consolidated financial statements:

•Historical seasonality patterns at some of our hotel properties cause fluctuations in our overall operating results. Consequently, operating results for the three and six months ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023;

•On March 11, 2022, we acquired The Ritz-Carlton Reserve Dorado Beach hotel located in Dorado, Puerto Rico. The operating results of the hotel property have been included in the results of operations from its acquisition date; and

•On December 1, 2022, we acquired the Four Seasons Resort Scottsdale at Troon North located in Scottsdale, Arizona. The operating results of the hotel property have been included in the results of operations from its acquisition date.

Use of Estimates—The preparation of these condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Recently Adopted Accounting Standards—In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”), which provides optional guidance through December 31, 2022 to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which further clarified the scope of the reference rate reform optional practical expedients and exceptions outlined in Topic 848. The amendments in ASU Nos. 2020-04 and 2021-01 apply to contract modifications that replace a reference rate affected by reference rate reform, providing optional expedients regarding the measurement of hedge effectiveness in hedging relationships that have been modified to replace a reference rate. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) (“ASU 2022-06”), which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company applied the optional expedient in evaluating debt modifications converting from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”). The Company adopted the standards upon the respective effective dates. There was no material impact as a result of this adoption.

10

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

3. Revenue

The following tables present our revenue disaggregated by geographical areas (dollars in thousands):

	Three Months Ended June 30, 2023
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	31,004	$	10,630	$	5,066	$	46,700
Puerto Rico	1	12,870		5,060		3,087		21,017
Arizona	1	7,924		5,268		2,043		15,235
Colorado	1	1,866		1,811		1,689		5,366
Florida	2	15,290		8,630		5,665		29,585
Illinois	1	7,738		1,947		412		10,097
Pennsylvania	1	7,643		1,650		349		9,642
Washington	1	8,193		1,337		411		9,941
Washington, D.C.	1	11,433		5,721		426		17,580
USVI	1	13,176		5,722		2,646		21,544
Total	16	$	117,137	$	47,776	$	21,794	$	186,707

	Three Months Ended June 30, 2022
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	34,313	$	11,560	$	4,226	$	50,099
Puerto Rico	1	11,927		4,700		2,908		19,535
Colorado	1	2,306		2,713		1,633		6,652
Florida	2	19,631		9,742		6,589		35,962
Illinois	1	7,542		2,209		411		10,162
Pennsylvania	1	6,158		1,120		309		7,587
Washington	1	5,587		887		316		6,790
Washington, D.C.	1	9,719		3,403		572		13,694
USVI	1	15,344		5,935		3,134		24,413
Total	15	$	112,527	$	42,269	$	20,098	$	174,894

	Six Months Ended June 30, 2023
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	65,570	$	21,940	$	10,756	$	98,266
Puerto Rico	1	28,300		9,935		6,224		44,459
Arizona	1	22,081		11,786		4,659		38,526
Colorado	1	16,207		8,172		4,672		29,051
Florida	2	36,939		19,129		12,336		68,404
Illinois	1	11,304		2,930		767		15,001
Pennsylvania	1	12,163		2,646		631		15,440
Washington	1	12,414		2,037		823		15,274
Washington, D.C.	1	20,210		11,209		859		32,278
USVI	1	29,476		10,220		5,613		45,309
Total	16	$	254,664	$	100,004	$	47,340	$	402,008

	Six Months Ended June 30, 2022
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	65,284	$	22,429	$	9,169	$	96,882
Puerto Rico	1	17,403		5,832		3,796		27,031
Colorado	1	14,483		8,846		4,764		28,093
Florida	2	44,714		19,264		13,632		77,610
Illinois	1	10,301		3,006		740		14,047
Pennsylvania	1	9,233		1,626		520		11,379
Washington	1	8,175		1,298		625		10,098
Washington, D.C.	1	13,600		5,733		992		20,325
USVI	1	34,526		10,942		5,841		51,309
Total	15	$	217,719	$	78,976	$	40,079	$	336,774

11

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

4. Investments in Hotel Properties, net

Investments in hotel properties, net consisted of the following (in thousands):

	June 30, 2023		December 31, 2022
Land	$	630,842	$	630,489
Buildings and improvements	1,520,184		1,511,949
Furniture, fixtures and equipment	157,626		147,019
Construction in progress	39,444		22,890
Residences	12,746		12,746
Total cost	2,360,842		2,325,093
Accumulated depreciation	(470,484)		(440,492)
Investments in hotel properties, net	$	1,890,358	$	1,884,601

Impairment Charges

During the three and six months ended June 30, 2023 and 2022, no impairment charges were recorded.

5. Investment in Unconsolidated Entity

OpenKey, Inc. (“OpenKey”), which is controlled and consolidated by Ashford Inc., is a hospitality-focused mobile key platform that provides a universal smart phone app and related hardware and software for keyless entry into hotel guest rooms. As of June 30, 2023, the Company has made equity investments in OpenKey totaling $2.9 million. All investments were recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors.

Our investment is recorded as “investment in unconsolidated entity” in our condensed consolidated balance sheets and is accounted for under the equity method of accounting as we have significant influence over the entity under the applicable accounting guidance. We review our investment in OpenKey for impairment in each reporting period pursuant to the applicable authoritative accounting guidance. An investment is impaired when its estimated fair value is less than the carrying amount of the investment. Any impairment is recorded in equity in earnings (loss) of unconsolidated entity. No such impairment was recorded for the three and six months ended June 30, 2023 and 2022.

The following table summarizes our carrying value and ownership interest in OpenKey:

	June 30, 2023			December 31, 2022
Carrying value of the investment in OpenKey (in thousands)	$	1,535		$	1,689
Ownership interest in OpenKey	7.9		%	7.9		%

The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2023		2022		2023		2022
Equity in earnings (loss) of unconsolidated entity	$	(80)	$	(74)	$	(154)	$	(146)

On February 2, 2023, the Company entered into a loan funding agreement with Ashford Inc. and OpenKey. Per the agreement, Ashford Inc. and the Company will provide OpenKey with a maximum loan amount of $5.0 million to be allocated on a pro-rata basis based on current ownership interests and funded quarterly, over the course of 2023. The loan bears interest at an annual rate of 15%. Additionally, repayment of the loan principal and all accrued interest is due upon certain events. On June 9, 2023, the Company funded approximately $59,000. As of June 30, 2023, the Company has funded approximately $158,000.

The following table summarizes our note receivable from OpenKey (in thousands):

Line Item	June 30, 2023		December 31, 2022
Investment in unconsolidated entity	$	164	$	—

12

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following table summarizes the interest income associated with the loan to OpenKey (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
Line Item	2023		2023
Equity in earnings (loss) of unconsolidated entity	$	5	$	6

6. Indebtedness, net

Indebtedness, net consisted of the following (dollars in thousands):

Indebtedness	Collateral	Current Maturity	Final Maturity (11)	Interest Rate	June 30, 2023		December 31, 2022
Mortgage loan (3)	The Ritz-Carlton Sarasota	April 2023	April 2023	LIBOR (1) + 2.65%	$	—	$	98,500
Mortgage loan (4)	Hotel Yountville	May 2023	May 2023	LIBOR (1) + 2.55%	—		51,000
Mortgage loan	Bardessono Hotel and Spa	August 2023	August 2023	SOFR (2) + 2.65%	40,000		40,000
Mortgage loan (5)	The Ritz-Carlton St. Thomas	August 2023	August 2024	LIBOR (1) + 3.95%	42,500		42,500
Mortgage loan (3)	The Ritz-Carlton Sarasota	October 2023	April 2024	SOFR (2) + 3.60%	98,000		—
Mortgage loan (4)	Hotel Yountville	November 2023	May 2024	SOFR (2) + 2.65%	51,000		—
Mortgage loan	The Ritz-Carlton Lake Tahoe	January 2024	January 2024	SOFR (2) + 2.20%	54,000		54,000
Mortgage loan	Capital Hilton	February 2024	February 2024	LIBOR (1) + 1.70%	195,000		195,000
	Hilton La Jolla Torrey Pines
Mortgage loan (6)	Park Hyatt Beaver Creek Resort & Spa	February 2024	February 2027	SOFR (2) + 2.86%	70,500		70,500
Mortgage loan (7)	The Ritz-Carlton Reserve Dorado Beach	March 2024	March 2026	LIBOR (1) + 6.00%	—		54,000
Mortgage loan (8)	The Notary Hotel	June 2024	June 2025	LIBOR (1) + 2.61%	293,180		435,000
	The Clancy
	Sofitel Chicago Magnificent Mile
	Marriott Seattle Waterfront
Mortgage loan (9)	Mr. C Beverly Hills Hotel	August 2024	August 2024	LIBOR (1) + 3.60%	30,000		30,000
Mortgage loan	Pier House Resort & Spa	September 2024	September 2024	SOFR (2) + 1.95%	80,000		80,000
Mortgage loan (10)	Four Seasons Resort Scottsdale	December 2025	December 2027	SOFR (2) + 3.75%	100,000		100,000
Convertible Senior Notes	Equity	June 2026	June 2026	4.50%	86,250		86,250
					1,140,430		1,336,750
Capitalized default interest and late charges, net					1,046		1,934
Deferred loan costs, net					(3,616)		(5,054)
Premiums/(discounts), net					(1,902)		500
Indebtedness, net					$	1,135,958	$	1,334,130

__________________

(1)LIBOR rates were 5.22% and 4.39% at June 30, 2023 and December 31, 2022, respectively.

(2)SOFR rates were 5.14% and 4.36% at June 30, 2023 and December 31, 2022, respectively.

(3)On April 4, 2023, we amended this mortgage loan. Terms of the amendment replaced the variable interest rate of LIBOR + 2.65% with SOFR + 2.75%, extended the current maturity date to October 2023, and added one six-month extension option, subject to satisfaction of certain conditions. Effective June 1, 2023, the variable interest rate increased from SOFR + 2.75% to SOFR + 3.60% in accordance with the loan agreement.

(4)On April 18, 2023, we amended this mortgage loan. Terms of the amendment replaced the variable interest rate of LIBOR + 2.55% with SOFR + 2.65%, extended the current maturity date to November 2023, and added one six-month extension option, subject to satisfaction of certain conditions.

(5)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the second was exercised in August 2022. This mortgage loan has a LIBOR floor of 1.00%.

(6)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions.

(7)On January 18, 2023, we repaid this mortgage loan.

(8)This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions, of which the fourth was exercised in June 2023. In accordance with exercising the fourth one-year extension option, we repaid $142.0 million of principal and the variable interest rate increased from LIBOR + 2.16% to LIBOR + 2.61%.

(9)This mortgage loan has a LIBOR floor of 1.50%.

(10)This mortgage loan has a SOFR floor of 1.00%.

(11)The final maturity date assumes all available extension options will be exercised.

During the second and third quarters of 2020, we reached forbearance and other agreements with our lenders relating to loans secured by certain of our hotels. The Company determined that all of the forbearance and other agreements evaluated

13

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

were considered troubled debt restructurings due to terms that allowed for deferred interest and the forgiveness of default interest and late charges.

As a result of the troubled debt restructurings, all accrued default interest and late charges were capitalized into the applicable loan balances and are being amortized over the remaining term of the loans using the effective interest method. The amount of principal that was amortized was approximately $420,000 and $888,000, respectively, for the three and six months ended June 30, 2023. For the three and six months ended June 30, 2022, the amount of principal amortization was $500,000 and $1.0 million, respectively.

On January 18, 2023, the Company repaid its $54.0 million mortgage loan secured by The Ritz-Carlton Reserve Dorado Beach, which resulted in a gain on extinguishment of debt of $2.3 million for the six months ended June 30, 2023. The gain was primarily attributable to the premium that was recorded upon the assumption of the mortgage loan when the hotel was acquired.

Convertible Senior Notes

In May 2021, the Company issued $86.25 million aggregate principal amount of 4.50% Convertible Senior Notes due June 2026 (the “Convertible Senior Notes”). The net proceeds from this offering of the Convertible Senior Notes were approximately $82.8 million after deducting the underwriting fees and other expenses paid by the Company.

The Convertible Senior Notes are governed by an indenture between the Company and U.S. Bank National Association, as trustee. The Convertible Senior Notes bear interest at a rate of 4.50% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2021. The Convertible Senior Notes will mature on June 1, 2026. For the three and six months ended June 30, 2023, the Company recorded coupon interest expense of $970,000 and $1.9 million, respectively. For the three and six months ended June 30, 2022, the Company recorded coupon interest expense of $970,000 and $1.9 million, respectively.

For the three and six months ended June 30, 2023, the Company recorded discount amortization of $146,000 and $290,000, respectively, related to the initial purchase discount, with the remaining discount balance to be amortized through June 2026. For the three and six months ended June 30, 2022, the discount amortization was $139,000 and $271,000, respectively.

The Convertible Senior Notes are convertible at any time prior to the close of business on the business day immediately preceding the maturity date for cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the election of the Company, based on an initial conversion rate of 157.7909 shares of the Company’s common stock per $1,000 principal amount of notes (equivalent to a conversion price of approximately $6.34 per share of common stock), subject to adjustment of the conversion rate under certain circumstances. In addition, following the occurrence of certain corporate events, if the Company provides notice of redemption or if it exercises its option to convert the Convertible Senior Notes, the Company will, in certain circumstances, increase the conversion rate for a holder that converts its Convertible Senior Notes in connection with such corporate event, such notice of redemption, or such issuer conversion option, as the case may be.

The Company may redeem the Convertible Senior Notes at the Company’s option, in whole or in part, on any business day on or after the date of issuance if the last reported sale price per share of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the Convertible Senior Notes to be redeemed subject to certain adjustments, plus accrued and unpaid interest to, but excluding, the redemption date.

Effective June 30, 2023, LIBOR is no longer published. Accordingly all variable interest rate mortgage loans held by the Company that used the LIBOR index transitioned to SOFR beginning on July 1, 2023. Not all lenders will execute loan amendment documents and instead will defer to original loan documents that dictate changes in index rates.

If we violate covenants in any debt agreement, we could be required to repay all or a portion of our indebtedness before maturity at a time when we might be unable to arrange financing for such repayment on attractive terms, if at all. The assets of certain of our subsidiaries are pledged under non-recourse indebtedness and are not available to satisfy the debts and other obligations of the consolidated group. As of June 30, 2023, we were in compliance with all covenants.

14

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

7. Derivative Instruments

Interest Rate Derivatives—We are exposed to risks arising from our business operations, economic conditions and financial markets. To manage these risks, we primarily use interest rate derivatives to hedge our debt and our cash flows, which include interest rate caps. All derivatives are recorded at fair value. Payments from counterparties on in-the-money interest rate caps are recognized as realized gains on our consolidated statements of operations.

The following table summarizes the interest rate derivatives we entered into over the applicable periods:

	Six Months Ended June 30,
Interest rate caps:(1)	2023			2022
Notional amount (in thousands)	$	496,180		$	556,500
Strike rate low end of range	3.50		%	3.50		%
Strike rate high end of range	5.25		%	4.00		%
Effective date range	January 2023 - June 2023			February 2022-May 2022
Termination date range	October 2023 - June 2024			May 2023- February 2024
Total cost of interest rate caps (in thousands)	$	3,400		$	1,145

_______________

(1)    No instruments were designated as cash flow hedges.

Interest rate derivatives consisted of the following:

Interest rate caps: (1)	June 30, 2023			December 31, 2022
Notional amount (in thousands)	$	816,680		$	960,500
Strike rate low end of range	2.00		%	2.00		%
Strike rate high end of range	5.25		%	4.50		%
Termination date range	August 2023 - January 2025			January 2023- January 2025
Aggregate principal balance on corresponding mortgage loans (in thousands)	$	816,680		$	959,000

_______________

(1)No instruments were designated as cash flow hedges.

Warrants—On August 5, 2021, as part of the consideration paid to acquire the Mr. C Beverly Hills Hotel and five adjacent luxury residences, the Company issued 500,000 warrants for the purchase of Braemar common stock with a $6.00 strike price on or after August 5, 2021 until August 5, 2024. The holder can choose to exercise the warrants by cash or by net issue exercise, in which event the Company shall issue to the holder a number of warrant shares which reflect the fair market value of the Company’s common stock. As of June 30, 2023, no warrants have been exercised.

The initial fair value of the warrants was calculated using a Black-Scholes option pricing model with the following assumptions: three-year contractual term; 97.93% volatility; 0% dividend rate; and a risk-free interest rate of 0.38%. The estimated fair value of the warrants was approximately $1.5 million on the date of issuance. The warrants are re-valued at each reporting period with the change in fair value recorded through earnings.

In applying the guidance in ASC 815, it was determined that the warrants should be classified as a liability as a result of certain settlement provisions. The warrants are included in derivative liabilities on the condensed consolidated balance sheets and changes in value are reported as a component of “realized and unrealized gain (loss) on derivatives” on the condensed consolidated statements of operations. This is a Level 2 valuation technique.

8. Fair Value Measurements

Fair Value Hierarchy—Our financial instruments measured at fair value either on a recurring or a non-recurring basis are classified in a hierarchy for disclosure purposes consisting of three levels based on the observability of inputs in the marketplace as discussed below:

•Level 1: Fair value measurements that are quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets.

•Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

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BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

•Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability.

The fair value of interest rate caps are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rose above the strike rates of the caps. Variable interest rates used in the calculation of projected receipts and payments on the caps are based on an expectation of future interest rates derived from observable market interest rate curves (SOFR forward curves) and volatilities (Level 2 inputs). We also incorporate credit valuation adjustments (Level 3 inputs) to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk.

When a majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. However, when the valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparties, which we consider significant (10% or more) to the overall valuation of our derivatives, the derivative valuations in their entirety are classified in Level 3 of the fair value hierarchy. Transfers of inputs between levels are determined at the end of each reporting period. In determining the fair values of our derivatives at June 30, 2023, the SOFR interest rate forward curve (Level 2 inputs) assumed a downtrend from 5.141% to 3.686% for the remaining term of our derivatives. Credit spreads (Level 3 inputs) used in determining the fair values derivatives assumed an uptrend in nonperformance risk for us and all of our counterparties through the maturity dates.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):

	Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 30, 2023
Assets
Derivative assets:
Interest rate derivatives - caps	$	—	$	6,308	$	—	$	6,308
Total	$	—	$	6,308	$	—	$	6,308	(1)
Liabilities
Derivative liabilities:
Warrants	$	—	$	(165)	$	—	$	(165)	(2)
Net	$	—	$	6,143	$	—	$	6,143

	Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
December 31, 2022
Assets
Derivative assets:
Interest rate derivatives - caps	$	—	$	6,482	$	—	$	6,482
	$	—	$	6,482	$	—	$	6,482	(1)
Liabilities
Derivative liabilities:
Warrants	$	—	$	(284)	$	—	$	(284)	(2)
Net	$	—	$	6,198	$	—	$	6,198

__________________

(1)Reported as “derivative assets” in our condensed consolidated balance sheets.

(2)Reported as “derivative liabilities” in our condensed consolidated balance sheets.

16

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Effect of Fair Value Measured Assets and Liabilities on Condensed Consolidated Statements of Operations

The following table summarizes the effect of fair value measured assets and liabilities on our condensed consolidated statements of operations (in thousands):

	Gain (Loss) Recognized in Income
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Assets
Derivative assets:
Interest rate derivatives - caps	$	1,013		$	43		$	576		$	886
Total	$	1,013		$	43		$	576		$	886
Liabilities
Derivative liabilities:
Warrants	$	16		$	1,165		$	119		$	730
Net	$	1,029		$	1,208		$	695		$	1,616
Total combined
Interest rate derivatives - caps	$	(1,269)		$	43		$	(3,573)		$	886
Warrants	16			1,165			119			730
Unrealized gain (loss) on derivatives	$	(1,253)	(1)	$	1,208	(1)	$	(3,454)	(1)	$	1,616	(1)
Realized gain (loss) on interest rate caps	2,282		(1) (2)	—			4,149		(1) (2)	—
Net	$	1,029		$	1,208		$	695		$	1,616

________

(1)Reported in “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations.

(2)Represents settled and unsettled payments from counterparties on interest rate caps.

9. Summary of Fair Value of Financial Instruments

Determining the estimated fair values of certain financial instruments such as indebtedness requires considerable judgment to interpret market data. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Accordingly, the estimates presented are not necessarily indicative of the amounts at which these instruments could be purchased, sold or settled.

The carrying amounts and estimated fair values of financial instruments were as follows (in thousands):

	June 30, 2023				December 31, 2022
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets measured at fair value:
Derivative assets	$	6,308	$	6,308	$	6,482	$	6,482
Financial liabilities measured at fair value:
Derivative liabilities	$	165	$	165	$	284	$	284
Financial assets not measured at fair value:
Cash and cash equivalents	$	128,025	$	128,025	$	261,541	$	261,541
Restricted cash	63,439		63,439		54,155		54,155
Accounts receivable, net	32,864		32,864		51,448		51,448
Due from related parties, net	333		333		938		938
Due from third-party hotel managers	15,430		15,430		26,625		26,625
Financial liabilities not measured at fair value:
Indebtedness	$	1,138,528	$1,050,061 to $1,160,595		$	1,337,250	$1,229,671 to $1,359,110
Accounts payable and accrued expenses	135,096		135,096		133,978		133,978
Dividends and distributions payable	8,917		8,917		8,184		8,184
Due to Ashford Inc.	4,558		4,558		10,005		10,005
Due to third-party hotel managers	1,579		1,579		2,096		2,096

17

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Cash, cash equivalents and restricted cash. These financial assets have maturities of less than 90 days and most bear interest at market rates. The carrying value approximates fair value due to their short-term nature. This is considered a Level 1 valuation technique.

Accounts receivable, net, due from related parties, net, accounts payable and accrued expenses, dividends and distributions payable, due to Ashford Inc. and due to/from third-party hotel managers. The carrying values of these financial instruments approximate their fair values due to the short-term nature of these financial instruments. This is considered a Level 1 valuation technique.

Derivative assets and derivative liabilities. See notes 7 and 8 for a complete description of the methodology and assumptions utilized in determining fair values.

Indebtedness, net. Fair value of indebtedness is determined using future cash flows discounted at current replacement rates for these instruments. Cash flows are determined using a forward interest rate yield curve. The current replacement rates are determined by using the U.S. Treasury yield curve or the index to which these financial instruments are tied, and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral. We estimated the fair value of the total indebtedness to be approximately 92.2% to 101.9% of the carrying value of $1.1 billion at June 30, 2023, and approximately 92.0% to 101.6% of the carrying value of $1.3 billion at December 31, 2022. These fair value estimates are considered a Level 2 valuation technique.

10. Income (Loss) Per Share

The following table reconciles the amounts used in calculating basic and diluted income (loss) per share (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss) attributable to common stockholders - basic and diluted:
Net income (loss) attributable to the Company	$	(1,846)	$	14,366	$	14,188	$	29,029
Less: dividends on preferred stock	(10,877)		(4,064)		(21,227)		(7,367)
Less: deemed dividends on preferred stock	(301)		—		(2,755)		—
Less: dividends on common stock	(3,291)		(707)		(6,580)		(1,414)
Less: dividends on unvested performance stock units	(36)		(7)		(72)		(14)
Less: dividends on unvested restricted shares	(8)		(6)		(17)		(12)
Less: net (income) loss allocated to performance stock units	—		(95)		—		(207)
Less: net (income) loss allocated to unvested restricted shares	—		(74)		—		(161)
Undistributed net income (loss) allocated to common stockholders	(16,359)		9,413		(16,463)		19,854
Add back: dividends on common stock	3,291		707		6,580		1,414
Distributed and undistributed net income (loss) - basic	$	(13,068)	$	10,120	$	(9,883)	$	21,268
Interest expense on Convertible Senior Notes	—		1,108		—		2,211
Dividends on preferred stock - Series E (inclusive of deemed dividends)	—		2,053		—		3,452
Dividends on preferred stock - Series M (inclusive of deemed dividends)	—		128		—		149
Distributed and undistributed net income (loss) - diluted	$	(13,068)	$	13,409	$	(9,883)	$	27,080
Weighted average common shares outstanding:
Weighted average common shares outstanding – basic	65,806		70,740		68,378		68,325
Effect of assumed exercise of warrants	—		—		—		1
Effect of assumed conversion of Convertible Senior Notes	—		13,610		—		13,610
Effect of assumed conversion of preferred stock - Series E	—		22,207		—		16,232
Effect of assumed conversion of preferred stock - Series M	—		1,112		—		630
Weighted average common shares outstanding – diluted	65,806		107,669		68,378		98,798
Income (loss) per share - basic:
Net income (loss) allocated to common stockholders per share	$	(0.20)	$	0.14	$	(0.14)	$	0.31
Income (loss) per share - diluted:
Net income (loss) allocated to common stockholders per share	$	(0.20)	$	0.12	$	(0.14)	$	0.27

18

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Due to their anti-dilutive effect, the computation of diluted income (loss) per share does not reflect the adjustments for the following items (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss) allocated to common stockholders is not adjusted for:
Income (loss) allocated to unvested restricted shares	$	8	$	80	$	17	$	173
Income (loss) allocated to unvested performance stock units	36		102		72		221
Income (loss) attributable to redeemable noncontrolling interests in operating partnership	(925)		846		(664)		1,813
Dividends on preferred stock - Series B	1,058		1,058		2,116		2,116
Interest expense on Convertible Senior Notes	1,117		—		2,231		—
Dividends on preferred stock - Series E (inclusive of deemed dividends)	8,162		—		17,892		—
Dividends on preferred stock - Series M (inclusive of deemed dividends)	1,133		—		2,324		—
Total	$	10,589	$	2,086	$	23,988	$	4,323
Weighted average diluted shares are not adjusted for:
Effect of unvested restricted shares	—		34		—		25
Effect of unvested performance stock units	340		—		346		1
Effect of assumed conversion of operating partnership units	5,172		5,868		5,576		5,862
Effect of assumed conversion of preferred stock - Series B	4,116		4,116		4,116		4,116
Effect of assumed conversion of Convertible Senior Notes	13,609		—		13,609		—
Effect of assumed conversion of preferred stock - Series E	102,751		—		101,478		—
Effect of assumed conversion of preferred stock - Series M	12,219		—		11,945		—
Total	138,207		10,018		137,070		10,004

11. Redeemable Noncontrolling Interests in Operating Partnership

Redeemable noncontrolling interests in the operating partnership represents the limited partners’ proportionate share of equity and their allocable share of equity in earnings/losses of Braemar OP, which is an allocation of net income/loss attributable to the common unitholders based on the weighted average ownership percentage of these limited partners’ common units of limited partnership interest in the operating partnership (the “common units”) and units issued under our Long-Term Incentive Plan (the “LTIP” units) that are vested. Each common unit may be redeemed, by the holder, for either cash or, at our sole discretion, up to one share of our REIT common stock, which is either: (i) issued pursuant to an effective registration statement; (ii) included in an effective registration statement providing for the resale of such common stock; or (iii) issued subject to a registration rights agreement.

LTIP units, which are issued to certain executives and employees of Ashford LLC as compensation, generally have vesting periods of three years. Additionally, certain independent members of the board of directors have elected to receive LTIP units as part of their compensation, which are fully vested upon grant. Upon reaching economic parity with common units, each vested LTIP unit can be converted by the holder into one common unit which can then be redeemed for cash or, at our election, settled in our common stock. An LTIP unit will achieve parity with the common units upon the sale or deemed sale of all or substantially all of the assets of our operating partnership at a time when our stock is trading at a level in excess of the price it was trading on the date of the LTIP issuance. More specifically, LTIP units will achieve full economic parity with common units in connection with (i) the actual sale of all or substantially all of the assets of our operating partnership; or (ii) the hypothetical sale of such assets, which results from a capital account revaluation, as defined in the partnership agreement, for our operating partnership.

The compensation committee of the board of directors of the Company may authorize the issuance of Performance LTIP units to certain executive officers and directors from time to time. The award agreements provide for the grant of a target number of Performance LTIP units that will be settled in common units of Braemar OP, if, when and to the extent the applicable vesting criteria have been achieved following the end of the performance and service period, which is generally three years from the grant date. As of June 30, 2023, there were approximately 2.4 million Performance LTIP units, representing 200% of the target, outstanding.

With respect to the 2021, 2022 and 2023 award agreements, the compensation committee shifted to a new performance metric, pursuant to which, the performance awards will be eligible to vest, from 0% to 200% of target, based on achievement of certain performance targets over the three-year performance period. The performance criteria for the 2021, 2022 and 2023 performance grants are based on performance conditions under the relevant literature. The corresponding compensation cost is recognized ratably over the service period for the award as the service is rendered, based on the applicable measurement date

19

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

fair value of the award. The grant date fair value of the award may vary from period to period, as the number of performance grants earned may vary since the estimated probable achievement of certain performance targets may vary from period to period.

In March 2023, the Company granted approximately 353,000 Performance LTIP units, representing 200% of the target, with an initial grant date fair value of $3.86 per share and a vesting period of approximately three years. During the second quarter, the Company’s stockholders approved an increase to the stock incentive plan, which is sufficient to cover the expected settlements as of June 30, 2023. The 2023 awards, which were originally classified as liability awards, are now classified as equity awards, within temporary equity, which resulted in a remeasurement of the award at a new fair value of $4.07 per share.

On May 10, 2023, approximately 45,000 LTIP units were issued to independent directors, with a fair value of approximately $182,000, which vested immediately upon grant and have been expensed during the three and six months ended June 30, 2023.

As of June 30, 2023, we have issued a total of approximately 3.8 million LTIP and Performance LTIP units, net of Performance LTIP cancellations. All LTIP and Performance LTIP units, other than approximately 614,000 LTIP units and 1.2 million Performance LTIP units issued from March 2015 to May 2023, had reached full economic parity with, and are convertible into, common units.

The following table presents the redeemable noncontrolling interests in Braemar OP and the corresponding approximate ownership percentage of our operating partnership:

	June 30, 2023			December 31, 2022
Redeemable noncontrolling interests in Braemar OP (in thousands)	$	35,174		$	40,555
Adjustments to redeemable noncontrolling interests (1) (in thousands)	$	77		$	70
Ownership percentage of operating partnership	6.63		%	7.69		%

____________________________________

(1)    Reflects the excess of the redemption value over the accumulated historical cost.

We allocated net (income) loss to the redeemable noncontrolling interests as illustrated in the table below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	$	925	$	(846)	$	664	$	(1,813)
Distributions declared to holders of common units, LTIP units and Performance LTIP units	$	361	$	84	$	722	$	167

On February 24, 2023, at the option of Mr. Monty J. Bennett, Mr. Bennett’s 169,523 vested LTIP units that achieved economic parity with his common units were redeemed for common units on a one-for-one basis. On February 24, 2023, the Company received a Notice of Exercise of Redemption Right (the “Redemption Notice”), pursuant to which Mr. Bennett elected to redeem the common units and such redemption was settled in cash at the Company’s election based on the average of the closing price of the Company’s common stock for the ten consecutive trading days ending on February 23, 2023. Additionally, on February 24, 2023, Mr. Bennett elected to redeem an additional 1,254,254 common units and following receipt of the Redemption Notice, such redemption was settled in cash at the Company’s election at a price per common unit based on the average of the closing price of the Company’s common stock for the ten consecutive trading days ending on February 23, 2023. The cash redemption for the 1,423,777 common units totaled approximately $7.0 million.

On May 12, 2023, the Company received a Notice of Redemption with respect to 32,500 vested common units, and such redemption was settled in cash at the Company’s election for approximately $123,000.

20

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

12. Equity and Stock-Based Compensation

Common Stock Dividends—The following table summarizes the common stock dividends declared during the period (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Common stock dividends declared	$	3,335	$	720	$	6,669	$	1,440

Restricted Stock—We incur stock-based compensation expense in connection with restricted stock awarded to certain employees of Ashford LLC and its affiliates. We also issue common stock to certain of our independent directors, which vests immediately upon issuance.

In May 2023, approximately 45,000 shares of common stock were issued to independent directors with a fair value of approximately $182,000, which vested immediately upon grant and have been expensed during the three and six months ended June 30, 2023.

Performance Stock Units—The compensation committee of the board of directors of the Company may authorize the issuance of grants of performance stock units (“PSUs”) to certain executive officers and directors from time to time. The award agreements provide for the grant of a target number of PSUs that will be settled in shares of common stock of the Company, if, when and to the extent the applicable vesting criteria have been achieved following the end of the performance and service period, which is generally three years from the grant date.

With respect to the 2021, 2022 and 2023 award agreements, the compensation committee shifted to a new performance metric, pursuant to which, the performance awards will be eligible to vest, from 0% to 200% of target, based on achievement of certain performance targets over the three-year performance period. The performance criteria for the 2021, 2022 and 2023 performance grants are based on performance conditions under the relevant literature, and the 2021, 2022 and 2023 performance grants were issued to non-employees. The corresponding compensation cost is recognized ratably over the service period for the award as the service is rendered, based on the corresponding measurement date fair value of the award, which may vary from period to period, as the number of performance grants earned may vary since the estimated probable achievement of certain performance targets may vary from period to period.

In March 2023, 383,000 PSUs with a vesting period of approximately three years were granted. The 2023 awards may be settled in cash or shares of the Company’s common stock solely at the option of the Company. During the second quarter, the Company’s stockholders approved an increase to the stock incentive plan, which is sufficient to cover the expected settlements as of June 30, 2023. The 2023 awards, which were originally classified as liability awards, are now classified as equity awards, which resulted in a remeasurement of the award at a new fair value of $1.6 million.

8.25% Series D Cumulative Preferred Stock—The dividend for all issued and outstanding shares of the Company’s Series D Cumulative Preferred Stock (the “Series D Preferred Stock”) is set at $2.0625 per annum per share.

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series D Cumulative Preferred Stock	$	825	$	825	$	1,650	$	1,650

Stock Repurchases—On December 7, 2022, our board of directors approved a new stock repurchase program pursuant to which the board granted a repurchase authorization to acquire shares of the Company’s common stock, par value $0.01 per share, having an aggregate value of up to $25 million. The board of directors’ authorization replaced any previous repurchase authorizations. During the six months ended June 30, 2023, we repurchased 3.9 million shares of our common stock for approximately $18.9 million. As of June 30, 2023, the Company has completed the $25.0 million repurchase authorization.

21

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

13. Redeemable Preferred Stock

5.50% Series B Cumulative Convertible Preferred Stock

Each share of our 5.50% Series B Cumulative Convertible Preferred Stock (the “Series B Convertible Preferred Stock”) is convertible at any time, at the option of the holder, into a number of whole shares of common stock at a conversion price of $18.70 (which represents a conversion rate of 1.3372 shares of our common stock, subject to certain adjustments). The Series B Convertible Preferred Stock is also subject to conversion upon certain events constituting a change of control. Holders of the Series B Convertible Preferred Stock have no voting rights, subject to certain exceptions. The Series B Convertible Preferred Stock dividend for all issued and outstanding shares is set at $1.375 per annum per share.

The Company may, at its option, cause the Series B Convertible Preferred Stock to be converted in whole or in part, on a pro-rata basis, into fully paid and nonassessable shares of the Company’s common stock at the conversion price, provided that the “Closing Bid Price” (as defined in the Articles Supplementary) of the Company’s common stock shall have equaled or exceeded 110% of the conversion price for the immediately preceding 45 consecutive trading days ending three days prior to the date of notice of conversion.

Additionally, the Series B Convertible Preferred Stock contains cash redemption features that consist of: 1) an optional redemption in which on or after June 11, 2020, the Company may redeem shares of the Series B Convertible Preferred Stock, in whole or in part, for cash at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid dividends; 2) a special optional redemption, in which on or prior to the occurrence of a Change of Control (as defined in the Articles Supplementary), the Company may redeem shares of the Series B Convertible Preferred Stock, in whole or in part, for cash at a redemption price of $25.00 per share; and 3) a “REIT Termination Event” and “Listing Event Redemption,” in which at any time (i) a REIT Termination Event (as defined below) occurs or (ii) the Company’s common stock fails to be listed on the NYSE, NYSE American, or NASDAQ, or listed or quoted on an exchange or quotation system that is a successor thereto (each a “National Exchange”), the holder of Series B Convertible Preferred Stock shall have the right to require the Company to redeem any or all shares of Series B Convertible Preferred Stock at 103% of the liquidation preference ($25.00 per share, plus any accumulated, accrued, and unpaid dividends) in cash.

A “REIT Termination Event,” shall mean the earliest of:

(i)    filing of a federal income tax return where the Company does not compute its income as a REIT;

(ii)    stockholders’ approval on ceasing to be qualified as a REIT;

(iii)    board of directors’ approval on ceasing to be qualified as a REIT;

(iv)    board’s determination based on the advice of counsel to cease to be qualified as a REIT; or

(v)    determination within the meaning of Section 1313(a) of the Code to cease to be qualified as a REIT.

Series B Convertible Preferred Stock does not meet the requirements for permanent equity classification prescribed by the authoritative guidance because of certain cash redemption features that are outside our control. As such, the Series B Convertible Preferred Stock is classified outside of permanent equity.

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series B Convertible Preferred Stock	$	1,058	$	1,058	$	2,116	$	2,116

Series E Redeemable Preferred Stock

On April 2, 2021, the Company entered into equity distribution agreements with certain sales agents to sell, from time to time, shares of the Series E Redeemable Preferred Stock (the “Series E Preferred Stock”). Pursuant to such equity distribution agreements, the Company offered a maximum of 20,000,000 shares of Series E Preferred Stock in a primary offering at a price of $25.00 per share. On February 21, 2023, the Company announced the closing of its Series E Preferred Stock offering. The Company is also offering a maximum of 8,000,000 shares of the Series E Preferred Stock pursuant to a dividend reinvestment plan (the “DRIP”) at $25.00 per share (the “Stated Value”).

22

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The Series E Preferred Stock ranks senior to all classes or series of the Company’s common stock and future junior securities, on a parity with each series of the Company’s outstanding preferred stock (the Series B Convertible Preferred stock, the Series D Preferred Stock and the Series M Preferred Stock (as defined below)) and with any future parity securities and junior to future senior securities and to all of the Company’s existing and future indebtedness, with respect to the payment of dividends and the distribution of amounts upon liquidation, dissolution or winding up of the Company’s affairs.

Holders of the Series E Preferred Stock shall have the right to vote for the election of directors of the Company and on all other matters requiring stockholder action by the holders of the common stock, each share being entitled to vote to the same extent as one share of the Company’s common stock, and all such shares voting together as a single class. If and whenever dividends on any shares of the Series E Preferred Stock shall be in arrears for 18 or more monthly periods, whether or not such quarterly periods are consecutive, the number of directors then constituting the board shall be increased by two and the holders of such shares of Series E Preferred Stock (voting together as a single class with all other classes or series of capital stock ranking on a parity with the Series E Preferred Stock) shall be entitled to vote for the election of the additional directors of the Company who shall each be elected for one-year terms.

Each share is redeemable at any time, at the option of the holder, at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid dividends, less a redemption fee. Starting on the second anniversary, each share is redeemable at any time, at the option of the Company, at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid dividends (with no redemption fee). The Series E Preferred Stock is also subject to conversion upon certain events constituting a change of control. Upon such change of control events, holders have the option to convert their shares of Series E Preferred Stock into a maximum of 5.69476 shares of our common stock.

The redemption fee shall be an amount equal to:

•8.0% of the stated value of $25.00 per share (the “Stated Value”) beginning on the Original Issue Date (as defined in the Articles Supplementary) of the shares of the Series E Preferred Stock to be redeemed;

•5.0% of the Stated Value beginning on the second anniversary from the Original Issue Date of the shares of the Series E Preferred Stock to be redeemed; and

•0% of the Stated Value beginning on the third anniversary from the Original Issue Date of the shares of the Series E Preferred Stock to be redeemed.

The Company has the right, in its sole discretion, to redeem the shares in cash, or in an equal number of shares of common stock or any combination thereof, calculated based on the closing price per share for the single trading day prior to the date of redemption.

The Series E Preferred Stock cash dividends are as follows:

•8.0% per annum of the Stated Value beginning on the date of the first settlement of the Series E Preferred Stock (the “Date of Initial Closing”);

•7.75% per annum of the Stated Value beginning on the first anniversary from the Date of Initial Closing; and

•7.5% per annum of the Stated Value beginning on the second anniversary from the Date of Initial Closing.

Dividends are payable on a monthly basis in arrears on the 15th day of each month (or, if such payment date is not a business day, the next succeeding business day) to holders of record at the close of business on the last business day of each month immediately preceding the applicable dividend payment date. Dividends will be computed on the basis of twelve 30-day months and a 360-day year.

The Company has a DRIP that allows participating holders to have their Series E Preferred Stock dividend distributions automatically reinvested in additional shares of the Series E Preferred Stock at a price of $25.00 per share.

The issuance activity of the Series E Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series E Preferred Stock shares issued (1)	—		1,312		3,798		2,789
Net proceeds	$	—	$	29,518	$	85,444	$	62,754

__________________

(1)Exclusive of shares issued under the DRIP.

23

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The Series E Preferred Stock does not meet the requirements for permanent equity classification prescribed by the authoritative guidance because of certain cash redemption features that are outside of the Company’s control. As such, the Series E Preferred Stock is classified outside of permanent equity.

At the date of issuance, the carrying amount of the Series E Preferred Stock was less than the redemption value. As a result of the Company’s determination that redemption is probable the carrying value will be adjusted to the redemption amount each reporting period.

The redemption value adjustment of Series E Preferred Stock is summarized below (in thousands):

	June 30, 2023		December 31, 2022
Series E Preferred Stock	$	379,403	$	291,076
Cumulative adjustments to Series E Preferred Stock (1)	$	11,775	$	9,403

________

(1)    Reflects the excess of the redemption value over the accumulated carrying value.

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series E Preferred Stock	$	7,986	$	2,053	$	15,520	$	3,452

The redemption activities of Series E Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series E Preferred Stock shares redeemed	21		2		32		2
Redemption amount, net of redemption fees	$	507	$	50	$	789	$	50

Series M Redeemable Preferred Stock

On April 2, 2021, the Company entered into equity distribution agreements with certain sales agents to sell, from time to time, shares of the Series M Redeemable Preferred Stock (the “Series M Preferred Stock”). Pursuant to such equity distribution agreements, the Company offered a maximum of 20,000,000 shares of the Series M Preferred Stock (par value $0.01) in a primary offering at a price of $25.00 per share (or “Stated Value”). On February 21, 2023, the Company announced the closing of its Series M Preferred Stock offering. The Company is also offering a maximum of 8,000,000 shares of Series M Preferred Stock pursuant to the DRIP at $25.00 per share.

The Series M Preferred Stock ranks senior to all classes or series of the Company’s common stock and future junior securities, on a parity with each series of the Company’s outstanding preferred stock (the Series B Convertible Preferred Stock, the Series D Preferred Stock and the Series E Preferred Stock) and with any future parity securities and junior to future senior securities and to all of the Company’s existing and future indebtedness, with respect to the payment of dividends and the distribution of amounts upon liquidation, dissolution or winding up of the Company’s affairs.

Holders of the Series M Preferred Stock shall have the right to vote for the election of directors of the Company and on all other matters requiring stockholder action by the holders of the common stock, each share being entitled to vote to the same extent as one share of the Company’s common stock, and all such shares voting together as a single class. If and whenever dividends on any shares of Series E Preferred Stock shall be in arrears for 18 or more monthly periods, whether or not such quarterly periods are consecutive, the number of directors then constituting the board shall be increased by two and the holders of such shares of Series M Preferred Stock (voting together as a single class with all other classes or series of capital stock ranking on a parity with the Series M Preferred Stock) shall be entitled to vote for the election of the additional directors of the Company who shall each be elected for one-year terms.

Each share is redeemable at any time, at the option of the holder, at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid dividends, less a redemption fee. Starting on the second anniversary, each share is redeemable at any time, at the option of the Company, at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid

24

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

dividends (with no redemption fee). The Series M Preferred Stock is also subject to conversion upon certain events constituting a change of control. Upon such change of control events, holders have the option to convert their shares of Series M Preferred Stock into a maximum of 5.69476 shares of our common stock.

The redemption fee shall be an amount equal to:

•1.5% of the Stated Value of $25.00 per share beginning on the Series M Original Issue Date (as defined in the Articles Supplementary) of the shares of Series M Preferred Stock to be redeemed; and

•0% of the Stated Value beginning on the first anniversary from the Series M Original Issue Date of the shares of Series M Preferred Stock to be redeemed.

The Company has the right, in its sole discretion, to redeem the shares in cash, or in an equal number of shares of common stock or any combination thereof, calculated based on the closing price per share for the single trading day prior to the date of redemption.

Holders of Series M Preferred Stock are entitled to receive cumulative cash dividends at the initial rate of 8.2% per annum of the Stated Value of $25.00 per share (equivalent to an annual dividend rate of $2.05 per share). Beginning one year from the date of original issuance of each share of Series M Preferred Stock and on each one-year anniversary thereafter for such share of Series M Preferred Stock, the dividend rate shall increase by 0.10% per annum; provided, however that the dividend rate for any share of Series M Preferred Stock shall not exceed 8.7% per annum of the Stated Value.

Dividends are payable on a monthly basis and in arrears on the 15th day of each month (or, if such payment date is not a business day, on the next succeeding business day) to holders of record at the close of business on the last business day of each month immediately preceding the applicable dividend payment date. Dividends will be computed on the basis of twelve 30-day months and a 360-day year.

The Company has a DRIP that allows participating holders to have their Series M Preferred Stock dividend distributions automatically reinvested in additional shares of the Series M Preferred Stock at a price of $25.00 per share.

The issuance activity of Series M Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series M Preferred Stock shares issued (1)	—		334		531		367
Net proceeds	$	—	$	8,087	$	12,869	$	8,897

__________________

(1)Exclusive of shares issued under the DRIP.

The Series M Preferred Stock does not meet the requirements for permanent equity classification prescribed by the authoritative guidance because of certain cash redemption features that are outside the Company’s control. As such, the Series M Preferred Stock is classified outside of permanent equity.

At the date of issuance, the carrying amount of the Series M Preferred Stock was less than the redemption value. As a result of the Company’s determination that redemption is probable the carrying value will be adjusted to the redemption amount each reporting period.

The redemption value adjustment of Series M Preferred stock is summarized below (in thousands):

	June 30, 2023		December 31, 2022
Series M Preferred Stock	$	48,405	$	35,182
Cumulative adjustments to Series M Preferred Stock (1)	$	1,195	$	812

__________________

(1)    Reflects the excess of the redemption value over the accumulated carrying value.

25

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series M Preferred Stock	$	1,008	$	128	$	1,941	$	149

The redemption activities of Series M Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series M Preferred Stock shares redeemed	4		—		5		—
Redemption amount, net of redemption fees	$	90	$	—	$	115	$	—

14. Related Party Transactions

Ashford Inc.

Advisory Agreement

Ashford LLC, a subsidiary of Ashford Inc., acts as our advisor. Our chairman, Mr. Monty Bennett, also serves as chairman of the board of directors and chief executive officer of Ashford Inc. Under our advisory agreement, we pay advisory fees to Ashford LLC. We pay a monthly base fee equal to 1/12th of the sum of (i) 0.70% of the total market capitalization of our company for the prior month, plus (ii) the Net Asset Fee Adjustment (as defined in our advisory agreement), if any, on the last day of the prior month during which our advisory agreement was in effect; provided, however, in no event shall the base fee for any month be less than the minimum base fee as provided by our advisory agreement. The base fee is payable on the fifth business day of each month.

The minimum base fee for Braemar for each month will be equal to the greater of:

▪90% of the base fee paid for the same month in the prior year; and

▪1/12th of the G&A Ratio (as defined) multiplied by the total market capitalization of Braemar.

We are also required to pay Ashford LLC an incentive fee that is measured annually (or for a stub period if the advisory agreement is terminated at other than year-end). Each year that our annual total stockholder return exceeds the average annual total stockholder return for our peer group we pay Ashford LLC an incentive fee over the following three years, subject to the Fixed Charge Coverage Ratio (“FCCR”) Condition, as defined in the advisory agreement, which relates to the ratio of adjusted EBITDA to fixed charges. We also reimburse Ashford LLC for certain reimbursable overhead and internal audit, risk management advisory and asset management services, as specified in the advisory agreement. We also recorded equity-based compensation expense for equity grants of common stock, PSUs and LTIP units awarded to officers and employees of Ashford LLC in connection with providing advisory services.

The following table summarizes the advisory services fees incurred (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Advisory services fee
Base advisory fee	$	3,667	$	3,226	$	7,307	$	6,165
Reimbursable expenses (1)	2,042		1,173		4,064		2,269
Equity-based compensation (2)	2,506		2,637		4,792		4,947
Incentive fee	—		(731)		—		246
Total	$	8,215	$	6,305	$	16,163	$	13,627

________

(1)Reimbursable expenses include overhead, internal audit, risk management advisory, asset management services and deferred cash awards.

(2)    Equity-based compensation is associated with equity grants of Braemar’s common stock, PSUs, LTIP units and Performance LTIP units awarded to officers and employees of Ashford LLC.

26

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Pursuant to the Company’s hotel management agreements with each hotel management company, the Company bears the economic burden for casualty insurance coverage. Under the advisory agreement, Ashford Inc. secures casualty insurance policies to cover Braemar, Ashford Hospitality Trust, Inc. (“Ashford Trust”), their hotel managers, as needed, and Ashford Inc. The total loss estimates included in such policies are based on the collective pool of risk exposures from each party. Ashford Inc.’s risk management department manages the casualty insurance program. Each year Ashford Inc.’s risk management department collects funds from Braemar, Ashford Trust and their respective hotel management companies, to fund the casualty insurance program as needed, on an allocated basis.

On September 27, 2022, an agreement was entered into by Ashford Inc., Ashford Trust and Braemar pursuant to which the Advisor is to implement the REITs’ cash management strategies. This will include actively managing the REITs excess cash by primarily investing in short-term U.S. Treasury securities. The annual fee is equal to the lesser of (i) 20 bps of the average daily balance of the funds managed by the Advisor and (ii) the actual rate of return realized by the cash management strategies; provided that in no event will the cash management fee be less than zero. The fee is payable monthly in arrears.

As of June 30, 2023, “due to Ashford Inc.” includes a $365,000 security deposit paid to Remington Hotel Corporation (“RHC”) for office space allocated to us under our advisory agreement. It will be held as security for the payment of our allocated share of the office space rental. If unused it will be returned to us upon lease expiration or earlier termination. As of December 31, 2022, RHC was indirectly owned by Mr. Monty J. Bennett and Mr. Archie Bennett, Jr. and the $365,000 was included in “due from related parties, net.” On January 3, 2023, Ashford Inc. acquired RHC.

On March 10, 2022, the Company entered into a Limited Waiver Under Advisory Agreement (the “2022 Limited Waiver”) with Braemar OP, Braemar TRS and its advisor. The advisory agreement (i) allocates responsibility for certain employee costs between the Company and its advisor and (ii) permits the Company’s board of directors to issue annual equity awards in the Company or Braemar OP to employees and other representatives of its advisor based on achievement by the Company of certain financial or other objectives or otherwise as the Company’s board of directors sees fit. Pursuant to the 2022 Limited Waiver, the Company, Braemar OP, Braemar TRS and the Company’s advisor waived the operation of any provision in the advisory agreement that would otherwise have limited our ability, in our discretion and at our cost and expense, to award during the first and second fiscal quarters of calendar year 2022 cash incentive compensation to employees and other representatives of our advisor.

On March 2, 2023, the Company entered into a second Limited Waiver Under Advisory Agreement (the “2023 Limited Waiver”) with Braemar OP, Braemar TRS and its advisor. Pursuant to the 2023 Limited Waiver, the Company, Braemar OP, Braemar TRS and the Company’s advisor waived the operation of any provision in the advisory agreement that would otherwise limit our ability, in our discretion and at our cost and expense, to award during the first and second fiscal quarters of calendar year 2023 cash incentive compensation to employees and other representatives of our advisor.

Lismore

We engage Lismore or its subsidiaries to provide debt placement services and assist with loan modifications on our behalf.

In June 2023, we entered into various 12-month agreements with Lismore to seek modifications or refinancings of certain mortgage debt of the Company. For the three and six months ended June 30, 2023, we incurred fees of approximately $150,000 to Lismore in nonrefundable work fees. The unamortized fees are included in “other assets” on the condensed consolidated balance sheet, and are amortized on a straight line basis over the term of the agreement.

In addition to the fees described above, we incurred fees from Lismore or its subsidiaries of $98,000 for both three and six months ended June 30, 2023 and $0 and $637,000 for the three and six months ended June 30, 2022.

Ashford Securities

On December 31, 2020, an Amended and Restated Contribution Agreement (the “Amended and Restated Contribution Agreement”) was entered into by Ashford Inc., Ashford Trust and Braemar (collectively, the “Parties” and each individually a “Party”) with respect to funding certain expenses of Ashford Securities LLC, a subsidiary of Ashford Inc. (“Ashford Securities”). Beginning on the effective date of the Amended and Restated Contribution Agreement, costs were allocated based upon an allocation percentage of 50% to Ashford Inc., 50% to Braemar and 0% to Ashford Trust. Upon reaching the earlier of $400 million in aggregate capital raised, or June 10, 2023, there will be a true up (the “Amended and Restated True-Up Date”) among Ashford Inc., Ashford Trust and Braemar whereby the actual amount contributed by each company will be based on the actual amount of capital raised by Ashford Inc., Ashford Trust and Braemar, respectively, through Ashford Securities (the

27

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

resulting ratio of contributions among the Parties, the “Initial True-up Ratio”). On January 27, 2022, Ashford Trust, Braemar and Ashford Inc. entered into a Second Amended and Restated Contribution Agreement which provided for an additional $18 million in expenses to be reimbursed with all expenses allocated 45% to Ashford Trust, 45% to Braemar and 10% to Ashford Inc.

On February 1, 2023, Braemar entered into a Third Amended and Restated Contribution Agreement with Ashford Inc. and Ashford Trust. The Third Amended and Restated Contribution Agreement states that after the Amended and Restated True-Up Date occurs, capital contributions for the remainder of fiscal year 2023 will be divided between each Party based on the Initial True-Up Ratio. Thereafter on a yearly basis at year-end, starting with the year-end of 2023, there will be a true-up between the Parties whereby there will be adjustments so that the capital contributions made by each Party will be based on the cumulative amount of capital raised by each Party through Ashford Securities as a percentage of the total amount raised by the Parties collectively through Ashford Securities since June 10, 2019 (the resulting ratio of capital contributions among Braemar, Ashford Inc. and Ashford Trust following this true-up, the “Cumulative Ratio”). Thereafter, the capital contributions will be divided among each Party in accordance with the Cumulative Ratio, as recalculated at the end of each year.

During the year ended December 31, 2022, the funding estimate was revised based on the latest capital raise estimates of the aggregate capital raised through Ashford Securities. As of December 31, 2022, Braemar had funded approximately $5.8 million and had a payable, included in “due to Ashford Inc., net” on the condensed consolidated balance sheet, of approximately $6.6 million. In March 2023, Braemar paid Ashford Inc. $8.7 million as a result of the contribution true-up between entities described above. As of June 30, 2023, Braemar has funded approximately $17.9 million. As of June 30, 2023, Braemar has a pre-funded balance of approximately $1.9 million that is included in “other assets” and approximately $1.5 million that is included in “due to Ashford Inc., net” on the condensed consolidated balance sheet.

The table below summarizes the amount Braemar has expensed related to reimbursed operating expenses of Ashford Securities (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2023		2022		2023		2022
Corporate, general and administrative	$	1,024	$	664	$	2,219	$	1,191

Design and Construction Services

Premier Project Management LLC (“Premier”), a subsidiary of Ashford Inc., provides design and construction services to our hotels, including construction management, interior design, architectural services, and the purchasing, freight management and supervision of installation of FF&E and related services. Pursuant to the design and construction services agreement, we pay Premier: (a) design and construction fees of up to 4% of project costs; and (b) for the following services: (i) architectural (6.5% of total construction costs); (ii) construction management for projects without a general contractor (10% of total construction costs); (iii) interior design (6% of the purchase price of the FF&E designed or selected by Premier); and (iv) FF&E purchasing (8% of the purchase price of FF&E purchased by Premier; provided that if the purchase price exceeds $2.0 million for a single hotel in a calendar year, then the purchasing fee is reduced to 6% of the FF&E purchase price in excess of $2.0 million for such hotel in such calendar year).

Hotel Management Services

At June 30, 2023, Remington Hospitality managed four of our 16 hotel properties.

We pay monthly hotel management fees equal to the greater of approximately $16,000 per hotel (increased annually based on consumer price index adjustments) or 3% of gross revenues as well as annual incentive management fees, if certain operational criteria were met and other general and administrative expense reimbursements primarily related to accounting services.

15. Commitments and Contingencies

Restricted Cash—Under certain management and debt agreements for our hotel properties existing at June 30, 2023, escrow payments are required for insurance, real estate taxes and debt service. In addition, for certain properties based on the terms of the underlying debt and management agreements, we escrow 3% to 5% of gross revenues for capital improvements.

28

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Licensing Fees—In conjunction with the Mr. C Beverly Hills Hotel acquisition on August 5, 2021, we entered into an Intellectual Property Sublicense Agreement, which allows us to continue to use certain proprietary marks associated with the Mr. C brand name. In return, we pay licensing fees of: (i) 1% of total operating revenue; (ii) 2% of gross food and beverage revenues; and (iii) 25% of food and beverage profits. The agreement expired on August 5, 2023.

The table below summarizes the licensing fees incurred (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2023		2022		2023		2022
Other hotel expenses	$	172	$	189	$	374	$	291

Management Fees—Under hotel management agreements for our hotel properties existing at June 30, 2023, we pay a monthly hotel management fee equal to the greater of approximately $16,000 per hotel (increased annually based on consumer price index adjustments) or 3% of gross revenues, or in some cases 3.0% to 5.0% of gross revenues, as well as annual incentive management fees, if applicable. These management agreements expire from December 2027 through December 2065, with renewal options. If we terminate a management agreement prior to its expiration, we may be liable for estimated management fees through the remaining term, liquidated damages or, in certain circumstances, we may substitute a new management agreement.

Income Taxes—We and our subsidiaries file income tax returns in the federal jurisdiction and various states. Tax years 2018 through 2022 remain subject to potential examination by certain federal and state taxing authorities.

Litigation—On December 20, 2016, a class action lawsuit was filed against one of the Company’s hotel management companies in the Superior Court of the State of California in and for the County of Contra Costa alleging violations of certain California employment laws, which class action affects two hotels owned by subsidiaries of the Company. The court has entered an order granting class certification with respect to: (i) a statewide class of non-exempt employees of our manager who were allegedly deprived of rest breaks as a result of our manager’s previous written policy requiring its employees to stay on premises during rest breaks; and (ii) a derivative class of non-exempt former employees of our manager who were not paid for allegedly missed breaks upon separation from employment. Notices to potential class members were sent out on February 2, 2021. Potential class members had until April 4, 2021 to opt out of the class; however, the total number of employees in the class has not been definitively determined and is the subject of continuing discovery. The opt out period has been extended until such time that discovery has concluded. In May 2023 the trial court requested additional briefing from the parties to determine whether the case should be maintained, dismissed, or the class de-certified. The trial court set a due date of August 7, 2023 for the briefs. If this litigation goes to trial, we expect that the earliest the trial would occur is the last quarter of 2023, based on various extensions to which the parties have agreed. While we believe it is reasonably possible that we may incur a loss associated with this litigation, because there remains uncertainty under California law with respect to a significant legal issue, discovery relating to class members continues, and the trial judge retains discretion to award lower penalties than set forth in the applicable California employment laws, we do not believe that any potential loss to the Company is reasonably estimable at this time. As of June 30, 2023, no amounts have been accrued.

We are also engaged in other legal proceedings that have arisen but have not been fully adjudicated. To the extent the claims giving rise to these legal proceedings are not covered by insurance, they relate to the following general types of claims: employment matters, tax matters and matters relating to compliance with applicable law (for example, the Americans with Disability Act and similar state laws). The likelihood of loss from these legal proceedings is based on the definitions within contingency accounting literature. We recognize a loss when we believe the loss is both probable and reasonably estimable. Based on the information available to us relating to these legal proceedings and/or our experience in similar legal proceedings, we do not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial position, results of operations or cash flow. However, our assessment may change depending upon the development of these legal proceedings, and the final results of these legal proceedings cannot be predicted with certainty. If we do not prevail in one or more of these legal matters, and the associated realized losses exceed our current estimates of the range of potential losses, our consolidated financial position, results of operations or cash flows could be materially adversely affected in future periods.

16. Segment Reporting

We operate in one business segment within the hotel lodging industry: direct hotel investments. Direct hotel investments refers to owning hotel properties through either acquisition or new development. We report operating results of direct hotel

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BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

investments on an aggregate basis as substantially all of our hotel investments have similar economic characteristics and exhibit similar long-term financial performance. As of June 30, 2023 and December 31, 2022, all of our hotel properties were in the U.S. and its territories.

17. Subsequent Events

On July 31, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with Braemar OP (the “Borrower”), the lenders party thereto (the “Lenders”) and Bank of America, N.A., as administrative agent and L/C Issuer (as defined in the Credit Agreement). Bank of America, N.A. acted as administrative agent and lead arranger on the transaction. Syndicate bank participants include TBK Bank and MidFirst Bank.

The Credit Agreement evidences a $200 million senior secured credit facility (the “Facility”) comprised of a senior secured term loan facility of $150 million (the “Term Loan Facility”) and a senior secured revolving credit facility of $50 million (the “Revolving Credit Facility”). Upon satisfaction of certain conditions, including the addition of new Borrowing Base Properties (as defined in the Credit Agreement), the Facility may be increased to a size of not more than $400 million in the aggregate. The maximum availability under the Facility is determined on a quarterly basis and limited to the lesser of (i) $200 million (subject to increase of up to $400 million in the aggregate); (ii) 55% of the appraised value of all Borrowing Base Properties; and (iii) the DSC Amount (as defined below). The initial Borrowing Base Properties include the Company’s Ritz-Carlton Sarasota, Bardessono Hotel and Spa and Hotel Yountville hotel properties (the “Initial Borrowing Base Properties”). The “DSC Amount” means the maximum principal amount that can be supported from the Adjusted NOI (as defined in the Credit Agreement) from the Borrowing Base Properties assuming (i) a 30-year amortization and an interest rate which is the greater of (a) the ten (10) year U.S. Treasury Rate plus 2.50% and (b) 7.50%; and (ii) a minimum debt service coverage of 1.75 to 1.00.

The proceeds of the Term Loan Facility were used to repay the mortgage debt associated with The Ritz-Carlton Sarasota, Bardessono Hotel and Spa and Hotel Yountville, which will serve as the Initial Borrowing Base Properties for the financing. In addition, at closing, the Company drew down approximately $46 million under the Revolving Credit Facility.

The Facility is a three-year interest-only facility with all outstanding principal due at maturity, with a one-year extension option, subject to the satisfaction of certain conditions including the payment of an Extension Fee (as defined in the Credit Agreement) equal to 20 basis points (0.20%) of the outstanding Facility amount.

The Credit Agreement is guaranteed by the Company, the Borrower and certain other eligible subsidiaries of the Company and secured by: (i) perfected lien mortgages or deeds of trust and security interests in the Borrowing Base Properties (as defined in the Credit Agreement); (ii) assignments of leases and rents with respect to the Borrowing Base Properties; (iii) assignments of all management agreements, franchise agreements, licenses and other material agreements relating to the Borrowing Base Properties; (iv) perfected first priority liens on all reserve accounts and all operating accounts related to each Borrowing Base Property; and (v) perfected first priority liens on and security interests in each subsidiary guarantor owning a Borrowing Base Property.

Borrowings under the Credit Agreement will bear interest at Daily SOFR or Term SOFR plus 10 basis points (with a 0% floor) plus the applicable margin. Depending on the Company’s Net Debt to EBITDA ratio, the applicable margin for SOFR ranges from 2.25% to 3.00%. Default interest would accrue at the applicable rate plus 2.0%.

The Facility contains customary terms, covenants, negative covenants, events of default, limitations and other conditions for credit facilities of this type. Subject to certain exceptions, the Company and the Borrower are subject to restrictions on incurring additional indebtedness and liens, investments, mergers and fundamental changes, sales or other dispositions of property, dividends and stock redemptions, changes in the nature of the Borrower’s business, transactions with affiliates and burdensome agreements.

Financial covenants are generally based on the financial condition and results of operations of the Company and its consolidated subsidiaries and include, among others, the following:

(i) a Consolidated Leverage Ratio (i.e., Consolidated Net Debt to the Consolidated Total Asset Value) of not more than 55%; and

(ii) a Consolidated Fixed Charge Coverage Ratio (FCCR) (i.e., the ratio of Consolidated Adjusted EBITDA to Consolidated Fixed Charges) of not less than (i) prior to December 31, 2024, 1.1 to 1.0 and (ii) thereafter, 1.25 to 1.0.

30

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The Credit Agreement includes customary events of default, and the occurrence of an event of default will permit the Lenders to terminate commitments to lend under the Credit Agreement and accelerate payments of all amounts outstanding thereunder.

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ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

As used in this Quarterly Report on Form 10-Q, unless the context otherwise indicates, the references to “we,” “us,” “our,” the “Company” or “Braemar” refer to Braemar Hotels & Resorts Inc., a Maryland corporation, and, as the context may require, its consolidated subsidiaries, including Braemar Hospitality Limited Partnership, a Delaware limited partnership, which we refer to as “our operating partnership” or “Braemar OP.” “Our TRSs” refers to our taxable REIT subsidiaries, including Braemar TRS Corporation, a Delaware corporation, which we refer to as “Braemar TRS,” and its subsidiaries, together with the two taxable REIT subsidiaries that lease our two hotels held in a consolidated joint venture and are wholly-owned by the joint venture and the U.S. Virgin Islands’ (“USVI”) taxable REIT subsidiary that owns The Ritz-Carlton St. Thomas hotel. “Ashford Trust” refers to Ashford Hospitality Trust, Inc., a Maryland corporation, and, as the context may require, its consolidated subsidiaries, including Ashford Hospitality Limited Partnership, a Delaware limited partnership and Ashford Trust’s operating partnership, which we refer to as “Ashford Trust OP.” “Ashford Inc.” refers to Ashford Inc., a Nevada corporation and, as the context may require, its consolidated subsidiaries. “Ashford LLC” or our “advisor” refers to Ashford Hospitality Advisors LLC, a Delaware limited liability company and a subsidiary of Ashford Inc. “Premier” refers to Premier Project Management LLC, a Maryland limited liability company and a subsidiary of Ashford LLC. “Remington Hospitality” refers to the same entity after the acquisition was completed resulting in Remington Lodging & Hospitality, LLC becoming a subsidiary of Ashford Inc.

This Quarterly Report on Form 10-Q (this “Form 10-Q”) contains registered trademarks that are the exclusive property of their respective owners, which are companies other than us, including Marriott International®, Hilton Worldwide®, Sofitel®, Hyatt® and Accor®.

FORWARD-LOOKING STATEMENTS

Throughout this Form 10-Q, we make forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “anticipate,” “estimate,” “approximately,” “believe,” “could,” “project,” “predict,” or other similar words or expressions. Additionally, statements regarding the following subjects are forward-looking by their nature:

•our business and investment strategy;

•anticipated or expected purchases or sales of assets;

•our projected operating results;

•completion of any pending transactions;

•our understanding of our competition;

•projected capital expenditures; and

•the impact of technology on our operations and business.

Such forward-looking statements are based on our beliefs, assumptions and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. Additionally, the following factors could cause actual results to vary from our forward-looking statements:

•the factors discussed in our Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2023 (the “2022 10-K”), including those set forth under the sections entitled “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Business,” and “Properties;” and other filings under the Exchange Act;

•rising interest rates and inflation;

•macroeconomic conditions, such as a prolonged period of weak economic growth, and volatility in capital markets;

•uncertainty in the business sector and market volatility due to the recent failures of Silicon Valley Bank, New York Signature Bank and First Republic Bank;

•extreme weather conditions may cause property damage or interrupt business;

•our ability to raise sufficient capital and/or take other actions to improve our liquidity position or otherwise meet our liquidity requirements;

•general volatility of the capital markets and the market price of our common and preferred stock;

•general business and economic conditions affecting the lodging and travel industry;

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•changes in our business or investment strategy;

•availability, terms and deployment of capital;

•unanticipated increases in financing and other costs, including a rise in interest rates;

•changes in our industry and the markets in which we operate, interest rates, or local economic conditions;

•the degree and nature of our competition;

•actual and potential conflicts of interest with Ashford Trust, Ashford Inc. and its subsidiaries (including Ashford LLC, Remington Hospitality and Premier) and our executive officers and our non-independent director;

•changes in personnel of Ashford LLC or the lack of availability of qualified personnel;

•changes in governmental regulations, accounting rules, tax rates and similar matters;

•legislative and regulatory changes, including changes to the Internal Revenue Code of 1986, as amended (the “Code”) and related rules, regulations and interpretations governing the taxation of REITs;

•limitations imposed on our business and our ability to satisfy complex rules in order for us to qualify as a REIT for U.S. federal income tax purposes; and

•future sales and issuances of our common stock or other securities might result in dilution and could cause the price of our common stock to decline.

When considering forward-looking statements, you should keep in mind the matters summarized under “Item 1A. Risk Factors” in Part I of our 2022 10-K and this Form 10-Q, and the discussion in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, could cause our actual results and performance to differ significantly from those contained in our forward-looking statements. Accordingly, we cannot guarantee future results or performance. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect our views as of the date of this Form 10-Q. Furthermore, we do not intend to update any of our forward-looking statements after the date of this Form 10-Q to conform these statements to actual results and performance, except as may be required by applicable law.

Overview

We are a Maryland corporation formed in April 2013 that invests primarily in high revenue per available room (“RevPAR”), luxury hotels and resorts. High RevPAR, for purposes of our investment strategy, means RevPAR of at least twice the then-current U.S. national average RevPAR for all hotels as determined by STR, LLC. Two times the U.S. national average was $187 for the year ended December 31, 2022. We have elected to be taxed as a REIT under the Code. We conduct our business and own substantially all of our assets through our operating partnership, Braemar OP.

We operate in the direct hotel investment segment of the hotel lodging industry. As of June 30, 2023, we owned interests in 16 hotel properties in seven states, the District of Columbia, Puerto Rico and St. Thomas, U.S. Virgin Islands with 4,192 total rooms, or 3,957 net rooms, excluding those attributable to our joint venture partner. The hotel properties in our current portfolio are predominantly located in U.S. urban markets and resort locations with favorable growth characteristics resulting from multiple demand generators. We own 14 of our hotel properties directly, and the remaining two hotel properties through an investment in a majority-owned consolidated entity.

We are advised by Ashford LLC, a subsidiary of Ashford Inc., through an advisory agreement. All of the hotel properties in our portfolio are currently asset-managed by Ashford LLC. We do not have any employees. All of the services that might be provided by employees are provided to us by Ashford LLC.

We do not operate any of our hotel properties directly; instead we employ hotel management companies to operate them for us under management contracts. As of June 30, 2023, Remington Hospitality, a subsidiary of Ashford Inc., managed four of our 16 hotel properties. Third-party management companies managed the remaining hotel properties.

Ashford Inc. also provides other products and services to us or our hotel properties through certain entities in which Ashford Inc. has an ownership interest. These products and services include, but are not limited to design and construction services, debt placement and related services, broker-dealer and distribution services, audio visual services, real estate advisory and brokerage services, insurance claims services, hypoallergenic premium rooms, watersport activities, travel/transportation services and mobile key technology.

Mr. Monty J. Bennett is chairman and chief executive officer of Ashford Inc. and, together with Mr. Archie Bennett, Jr., as of June 30, 2023, owned approximately 610,261 shares of Ashford Inc. common stock, which represented an approximate 19.0% ownership interest in Ashford Inc., and owned 18,758,600 shares of Ashford Inc. Series D Convertible Preferred Stock, which, along with all unpaid accrued and accumulated dividends thereon, was convertible (at a conversion price of $117.50 per share) into an additional approximate 4,151,054 shares of Ashford Inc. common stock, which if converted as of June 30, 2023

33

would have increased the Bennetts’ ownership interest in Ashford Inc. to 64.6%, provided that prior to August 8, 2023, the voting power of the holders of the Ashford Inc. Series D Convertible Preferred Stock is limited to 40% of the combined voting power of all of the outstanding voting securities of Ashford Inc. entitled to vote on any given matter. The 18,758,600 shares of Series D Convertible Preferred Stock owned by Mr. Monty J. Bennett and Mr. Archie Bennett, Jr. include 360,000 shares owned by trusts.

As of June 30, 2023, Mr. Monty J. Bennett, chairman of our board of directors and his father, Mr. Archie Bennett, Jr., together owned approximately 3,059,526 shares of our common stock (including common units, long-term incentive plan (“LTIP”) units and performance LTIP units), which represented an approximate 4.2% ownership in the Company.

Recent Developments

On April 4, 2023, the Company amended the mortgage loan secured by The Ritz-Carlton Sarasota. Terms of the amendment replaced the variable interest rate of LIBOR + 2.65% with SOFR + 2.75%, extended the current maturity date to October 2023, and added one six-month extension option, subject to satisfaction of certain conditions. Effective June 1, 2023, the variable interest rate increased from SOFR + 2.75% to SOFR + 3.60% in accordance with the loan agreement. The Company paid Lismore approximately $98,000 for the successful execution of The Ritz-Carlton Sarasota loan modification and extension.

On April 18, 2023, the Company amended the mortgage loan secured by Hotel Yountville. Terms of the amendment replaced the variable interest rate of LIBOR + 2.55% with SOFR + 2.65%, extended the current maturity date to November 2023, and added one six-month extension option, subject to satisfaction of certain conditions.

On June 13, 2023, the Company finalized an extension of its $435 million mortgage loan secured by four properties: The Notary Hotel, The Clancy, Sofitel Chicago Magnificent Mile, and Marriott Seattle Waterfront. The loan is being extended beyond its original initial maturity in June 2023 for an additional twelve months. In conjunction with the extension, the Company paid down $142 million of the loan utilizing corporate cash on hand, which reduced the balance to approximately $293 million. As part of the extension the Company also purchased an interest rate cap through June 2024 with a strike rate of 4.69%.

Effective June 30, 2023, LIBOR is no longer published. Accordingly all variable interest rate mortgage loans held by the Company that used the LIBOR index transitioned to SOFR beginning on July 1, 2023. Not all lenders will execute loan amendment documents and instead will defer to original loan documents that dictate changes in index rates.

On July 31, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with Braemar OP (the “Borrower”), the lenders party thereto (the “Lenders”) and Bank of America, N.A., as administrative agent and L/C Issuer (as defined in the Credit Agreement). Bank of America, N.A. acted as administrative agent and lead arranger on the transaction. Syndicate bank participants include TBK Bank and MidFirst Bank.

The Credit Agreement evidences a $200 million senior secured credit facility (the “Facility”) comprised of a senior secured term loan facility of $150 million (the “Term Loan Facility”) and a senior secured revolving credit facility of $50 million (the “Revolving Credit Facility”). Upon satisfaction of certain conditions, including the addition of new Borrowing Base Properties (as defined in the Credit Agreement), the Facility may be increased to a size of not more than $400 million in the aggregate. The maximum availability under the Facility is determined on a quarterly basis and limited to the lesser of (i) $200 million (subject to increase of up to $400 million in the aggregate); (ii) 55% of the appraised value of all Borrowing Base Properties; and (iii) the DSC Amount (as defined below). The initial Borrowing Base Properties include the Company’s Ritz-Carlton Sarasota, Bardessono Hotel and Spa and Hotel Yountville hotel properties (the “Initial Borrowing Base Properties”). The “DSC Amount” means the maximum principal amount that can be supported from the Adjusted NOI (as defined in the Credit Agreement) from the Borrowing Base Properties assuming (i) a 30-year amortization and an interest rate which is the greater of (a) the ten (10) year U.S. Treasury Rate plus 2.50% and (b) 7.50%; and (ii) a minimum debt service coverage of 1.75 to 1.00.

The proceeds of the Term Loan Facility were used to repay the mortgage debt associated with The Ritz-Carlton Sarasota, Bardessono Hotel and Spa and Hotel Yountville, which will serve as the Initial Borrowing Base Properties for the financing. In addition, at closing, the Company drew down approximately $46 million under the Revolving Credit Facility.

The Facility is a three-year interest-only facility with all outstanding principal due at maturity, with a one-year extension option, subject to the satisfaction of certain conditions including the payment of an Extension Fee (as defined in the Credit Agreement) equal to 20 basis points (0.20%) of the outstanding Facility amount.

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The Credit Agreement is guaranteed by the Company, the Borrower and certain other eligible subsidiaries of the Company and secured by: (i) perfected lien mortgages or deeds of trust and security interests in the Borrowing Base Properties (as defined in the Credit Agreement); (ii) assignments of leases and rents with respect to the Borrowing Base Properties; (iii) assignments of all management agreements, franchise agreements, licenses and other material agreements relating to the Borrowing Base Properties; (iv) perfected first priority liens on all reserve accounts and all operating accounts related to each Borrowing Base Property; and (v) perfected first priority liens on and security interests in each subsidiary guarantor owning a Borrowing Base Property.

Borrowings under the Credit Agreement will bear interest at Daily SOFR or Term SOFR plus 10 basis points (with a 0% floor) plus the applicable margin. Depending on the Company’s Net Debt to EBITDA ratio, the applicable margin for SOFR ranges from 2.25% to 3.00%. Default interest would accrue at the applicable rate plus 2.0%.

The Facility contains customary terms, covenants, negative covenants, events of default, limitations and other conditions for credit facilities of this type. Subject to certain exceptions, the Company and the Borrower are subject to restrictions on incurring additional indebtedness and liens, investments, mergers and fundamental changes, sales or other dispositions of property, dividends and stock redemptions, changes in the nature of the Borrower’s business, transactions with affiliates and burdensome agreements.

Financial covenants are generally based on the financial condition and results of operations of the Company and its consolidated subsidiaries and include, among others, the following:

(i) a Consolidated Leverage Ratio (i.e., Consolidated Net Debt to the Consolidated Total Asset Value) of not more than 55%; and

(ii) a Consolidated Fixed Charge Coverage Ratio (FCCR) (i.e., the ratio of Consolidated Adjusted EBITDA to Consolidated Fixed Charges) of not less than (i) prior to December 31, 2024, 1.1 to 1.0 and (ii) thereafter, 1.25 to 1.0.

The Credit Agreement includes customary events of default, and the occurrence of an event of default will permit the Lenders to terminate commitments to lend under the Credit Agreement and accelerate payments of all amounts outstanding thereunder.

On August 1, 2023 the Company announced the rebranding and planned conversion of its Mr. C Beverly Hills Hotel in Los Angeles, California to the Cameo Beverly Hills. Effective August 4, 2023, Cameo Beverly Hills became available for booking on Hilton’s website at hilton.com and joined Hilton Honors, Hilton’s award-winning guest loyalty program. Following an extensive renovation, which is expected to be completed by the end of 2025, the hotel will join LXR Hotels & Resorts (“LXR”). One of Hilton’s iconic luxury brands, LXR is a collection of unique, independent luxury properties around the world that focuses on individualized service and one-of-a-kind stays.

The conversion of the hotel, which was built in 1965, will reflect its unique history and distinctive location in the heart of West Los Angeles near iconic amenities and high-end shopping on Rodeo Drive. The Company is planning an approximately $25 million renovation to further elevate this distinctive hotel that will enable a revitalized luxury guest experience when it is completed. Added amenities and enhanced design elements will include upgrades to the guestrooms, guest bathrooms, restaurant, lobby, pool, fitness area, and meeting spaces.

Remington Hospitality will continue to manage the hotel after the conversion under a management agreement.

On August 4, 2023, the board of directors of the Company approved amendments to the Company’s Fourth Amended and Restated Bylaws, as amended. See Part II, Item 5 for a description of the amendments.

Key Indicators of Operating Performance

We use a variety of operating and other information to evaluate the operating performance of our business. These key indicators include financial information that is prepared in accordance with GAAP as well as other financial measures that are non-GAAP measures. In addition, we use other information that may not be financial in nature, including statistical information and comparative data. We use this information to measure the operating performance of our individual hotels, groups of hotels and/or business as a whole. We also use these metrics to evaluate the hotels in our portfolio and potential acquisitions to determine each hotel’s contribution to cash flow and its potential to provide attractive long-term total returns. These key indicators include:

•Occupancy. Occupancy means the total number of hotel rooms sold in a given period divided by the total number of rooms available. Occupancy measures the utilization of our hotels’ available capacity. We use occupancy to measure demand at a specific hotel or group of hotels in a given period.

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•ADR. ADR means average daily rate and is calculated by dividing total hotel rooms revenues by total number of rooms sold in a given period. ADR measures average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. We use ADR to assess the pricing levels that we are able to generate.

•RevPAR. RevPAR means revenue per available room and is calculated by multiplying ADR by the average daily occupancy. RevPAR is one of the commonly used measures within the hotel industry to evaluate hotel operations. RevPAR does not include revenues from food and beverage sales or parking, telephone or other non-rooms revenues generated by the property. Although RevPAR does not include these ancillary revenues, it is generally considered the leading indicator of core revenues for many hotels. We also use RevPAR to compare the results of our hotels between periods and to analyze results of our comparable hotels (comparable hotels represent hotels we have owned for the entire period). RevPAR improvements attributable to increases in occupancy are generally accompanied by increases in most categories of variable operating costs. RevPAR improvements attributable to increases in ADR are generally accompanied by increases in limited categories of operating costs, such as management fees and franchise fees.

RevPAR changes that are primarily driven by changes in occupancy have different implications for overall revenues and profitability than changes that are driven primarily by changes in ADR. For example, an increase in occupancy at a hotel would lead to additional variable operating costs (including housekeeping services, utilities and room supplies) and could also result in increased other operating department revenue and expense. Changes in ADR typically have a greater impact on operating margins and profitability as they do not have a substantial effect on variable operating costs.

Occupancy, ADR and RevPAR are commonly used measures within the lodging industry to evaluate operating performance. RevPAR is an important statistic for monitoring operating performance at the individual hotel level and across our entire business. We evaluate individual hotel RevPAR performance on an absolute basis with comparisons to budget and prior periods, as well as on a regional and company-wide basis. ADR and RevPAR include only rooms revenue. Rooms revenue is dictated by demand (as measured by occupancy), pricing (as measured by ADR) and our available supply of hotel rooms.

We also use funds from operations (“FFO”), Adjusted FFO, earnings before interest, taxes, depreciation and amortization for real estate (“EBITDAre”) and Adjusted EBITDAre as measures of the operating performance of our business. See “Non-GAAP Financial Measures.”

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RESULTS OF OPERATIONS

Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2022

The following table summarizes changes in key line items from our condensed consolidated statements of operations for three months ended June 30, 2023 and 2022 (in thousands except percentages):

	Three Months Ended June 30,				Favorable (Unfavorable)
	2023		2022		$ Change		% Change
Revenue
Rooms	$	117,137	$	112,527	$	4,610	4.1	%
Food and beverage	47,776		42,269		5,507		13.0
Other	21,794		20,098		1,696		8.4
Total revenue	186,707		174,894		11,813		6.8
Expenses
Hotel operating expenses:
Rooms	26,705		24,134		(2,571)		(10.7)
Food and beverage	36,365		31,894		(4,471)		(14.0)
Other expenses	56,297		52,087		(4,210)		(8.1)
Management fees	5,880		5,538		(342)		(6.2)
Total hotel operating expenses	125,247		113,653		(11,594)		(10.2)
Property taxes, insurance and other	9,396		5,277		(4,119)		(78.1)
Depreciation and amortization	22,567		19,571		(2,996)		(15.3)
Advisory services fee	8,215		6,305		(1,910)		(30.3)
(Gain) loss on legal settlements	—		(114)		(114)		(100.0)
Corporate general and administrative	3,896		3,438		(458)		(13.3)
Total expenses	169,321		148,130		(21,191)		(14.3)
Operating income (loss)	17,386		26,764		(9,378)		(35.0)
Equity in earnings (loss) of unconsolidated entity	(75)		(74)		(1)		(1.4)
Interest income	2,295		162		2,133		1,316.7
Interest expense and amortization of loan costs	(23,600)		(10,281)		(13,319)		(129.5)
Write-off of loan costs and exit fees	(248)		(22)		(226)		(1,027.3)
Realized and unrealized gain (loss) on derivatives	1,029		1,208		(179)		(14.8)
Income (loss) before income taxes	(3,213)		17,757		(20,970)		(118.1)
Income tax (expense) benefit	75		(1,077)		1,152		107.0
Net income (loss)	(3,138)		16,680		(19,818)		(118.8)
(Income) loss attributable to noncontrolling interest in consolidated entities	367		(1,468)		1,835		125.0
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	925		(846)		1,771		209.3
Net income (loss) attributable to the Company	$	(1,846)	$	14,366	$	(16,212)	(112.8)	%

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All hotel properties owned for the three months ended June 30, 2023 and 2022 have been included in our results of operations during the respective periods in which they were owned. Based on when a hotel property was acquired or disposed of, operating results for certain hotel properties are not comparable for the three months ended June 30, 2023 and 2022. The hotel property listed below is not a comparable hotel property for the periods indicated and all other hotel properties are considered comparable hotel properties. The following acquisition affects reporting comparability related to our condensed consolidated financial statements:

Hotel Property	Location	Type	Date
Four Seasons Resort Scottsdale	Scottsdale, Arizona	Acquisition	December 1, 2022

The following table illustrates the key performance indicators of all hotel properties owned for the periods indicated:

	Three Months Ended June 30,
	2023			2022
Occupancy	70.91		%	71.15		%
ADR (average daily rate)	$	430.68		$	435.24
RevPAR (revenue per available room)	$	305.39		$	309.68
Rooms revenue (in thousands)	$	117,137		$	112,527
Total hotel revenue (in thousands)	$	186,707		$	174,894

The following table illustrates the key performance indicators of the 15 hotel properties that were owned for the full three months ended June 30, 2023 and 2022:

	Three Months Ended June 30,
	2023			2022
Occupancy	72.08		%	71.15		%
ADR (average daily rate)	$	415.76		$	435.24
RevPAR (revenue per available room)	$	299.66		$	309.68
Rooms revenue (in thousands)	$	109,213		$	112,527
Total hotel revenue (in thousands)	$	171,471		$	174,894

Net Income (Loss) Attributable to the Company. Net income (loss) attributable to the Company changed $16.2 million, from net income of $14.4 million for the three months ended June 30, 2022 (the “2022 quarter”) to net a loss of $1.8 million for the three months ended June 30, 2023 (the “2023 quarter”), as a result of the factors discussed below.

Rooms Revenue. Rooms revenue increased $4.6 million, or 4.1%, to $117.1 million during the 2023 quarter compared to the 2022 quarter. During the 2023 quarter, we experienced a 24 basis point decrease in occupancy and a 1.0% decrease in room rates.

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Fluctuations in rooms revenue between the 2023 quarter and the 2022 quarter are a result of the changes in occupancy and ADR between the 2023 quarter and the 2022 quarter as reflected in the table below (dollars in thousands):

Hotel Property	Favorable (Unfavorable)
	Rooms Revenue		Occupancy (change in bps)	ADR (change in %)
Comparable
Capital Hilton(1)	$	1,713	620	8.7	%
Marriott Seattle Waterfront (2)	2,606		2,162	4.0	%
The Notary Hotel	1,485		847	9.2	%
The Clancy	(1,536)		(396)	(11.3)	%
Sofitel Chicago Magnificent Mile	196		28	2.2	%
Pier House Resort & Spa	(1,111)		(323)	(12.0)	%
The Ritz-Carlton St. Thomas	(2,167)		(748)	(5.6)	%
Park Hyatt Beaver Creek Resort & Spa	(441)		(1,096)	5.3	%
Hotel Yountville	(1,055)		(277)	(20.9)	%
The Ritz-Carlton Sarasota(1)	(3,229)		(2,244)	0.8	%
Hilton La Jolla Torrey Pines	(396)		(317)	(1.5)	%
Bardessono Hotel and Spa	(938)		101	(17.6)	%
The Ritz-Carlton Lake Tahoe	729		778	2.6	%
Mr. C Beverly Hills Hotel	(113)		65	(4.1)	%
The Ritz-Carlton Reserve Dorado Beach	941		(169)	10.7	%
Total	$	(3,316)	93	(4.5)	%
Non-comparable
Four Seasons Resort Scottsdale	$	7,924	n/a	n/a

________

(1)This hotel was under renovation during the 2023 quarter.

(2)This hotel was under renovation during the 2022 quarter.

Food and Beverage Revenue. Food and beverage revenue increased $5.5 million, or 13.0%, to $47.8 million during the 2023 quarter compared to the 2022 quarter. This increase is attributable to an aggregate increase of $4.2 million at five comparable hotel properties and an increase of $5.3 million from the acquisition of the Four Seasons Resort Scottsdale on December 1, 2022. These increases were partially offset by an aggregate decrease of $3.9 million at The Clancy, Sofitel Chicago Magnificent Mile, Pier House Resort & Spa, The Ritz-Carlton St. Thomas, Park Hyatt Beaver Creek Resort & Spa, Hotel Yountville, The Ritz-Carlton Sarasota, Hilton La Jolla Torrey Pines, Bardessono Hotel and Spa and Mr. C Beverly Hills Hotel.

Other Hotel Revenue. Other hotel revenue, which consists mainly of condo management fees, health center fees, resort fees, golf, telecommunications, parking and rentals, increased $1.7 million, or 8.4%, to $21.8 million during the 2023 quarter compared to the 2022 quarter. This increase is attributable to an aggregate increase in other hotel revenue of $1.3 million at ten comparable hotel properties and an increase of $2.0 million at the Four Seasons Resort Scottsdale, partially offset by an aggregate decrease of $1.6 million at the Capital Hilton, Pier House Resort & Spa, The Ritz-Carlton St. Thomas, The Ritz-Carlton Sarasota and Hilton La Jolla Torrey Pines.

Rooms Expense. Rooms expense increased $2.6 million, or 10.7%, to $26.7 million in the 2023 quarter compared to the 2022 quarter. This increase is primarily attributable to an aggregate increase of $1.9 million at eight comparable hotel properties and an increase of $1.9 million at the Four Seasons Resort Scottsdale, partially offset by a decrease of $1.2 million at the Pier House Resort & Spa, The Ritz-Carlton St. Thomas, Hotel Yountville, The Ritz-Carlton Sarasota, Hilton La Jolla Torrey Pines, Bardessono Hotel and Spa and The Ritz-Carlton Reserve Dorado Beach.

Food and Beverage Expense. Food and beverage expense increased $4.5 million, or 14.0%, to $36.4 million during the 2023 quarter compared to the 2022 quarter. This increase is attributable to an aggregate increase of $2.1 million at seven comparable hotel properties and an increase of $3.7 million at the Four Seasons Resort Scottsdale, partially offset by a decrease of $1.4 million at the Sofitel Chicago Magnificent Mile, Pier House Resort & Spa, Park Hyatt Beaver Creek Resort & Spa, Hotel Yountville, The Ritz-Carlton Sarasota, Hilton La Jolla Torrey Pines, The Ritz-Carlton Lake Tahoe and Mr. C Beverly Hills Hotel.

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Other Operating Expenses. Other operating expenses increased $4.2 million, or 8.1%, to $56.3 million in the 2023 quarter compared to the 2022 quarter. Hotel operating expenses consist of direct expenses from departments associated with revenue streams and indirect expenses associated with support departments and incentive management fees.

We experienced an increase of $710,000 in direct expenses and $3.5 million in indirect expenses and incentive management fees in the 2023 quarter as compared to the 2022 quarter. Direct expenses were 4.3% of total hotel revenue in the 2023 quarter and 4.2% in the 2022 quarter. The increase in direct expenses includes an increase of approximately $714,000 at the Four Seasons Resort Scottsdale.

The increase in indirect expenses comprises increases in: (i) general and administrative costs of $1.0 million comprising an increase $1.6 million at the one acquired hotel property offset by a decrease of $652,000 at our 15 comparable hotel properties; (ii) marketing costs of $2.3 million comprising an increase of $1.2 million at our 15 comparable hotel properties and $1.1 million at the one acquired hotel property; (iii) repairs and maintenance of $1.2 million, comprising an increase of $493,000 at our 15 comparable hotel properties and $664,000 at one acquired hotel property; and (iv) energy costs of $704,000 comprising an increase of $428,000 at our 15 comparable hotel properties and $276,000 at the one acquired hotel property. The increases were partially offset by decreases in (i) incentive management fees of $1.6 million comprising an aggregate decrease of $1.9 million from our 15 comparable hotel properties partially offset by an increase of $232,000 at the one acquired hotel property, and (ii) lease expense of $9,000 at our 15 comparable hotel properties.

Management Fees. Base management fees increased $342,000, or 6.2%, to $5.9 million in the 2023 quarter compared to the 2022 quarter. Base management fees increased $408,000 at five comparable hotel properties and $450,000 at the one acquired hotel property, partially offset by an aggregate decrease of $516,000 at the Sofitel Chicago Magnificent Mile, Hilton La Jolla Torrey Pines, Park Hyatt Beaver Creek Resort & Spa, The Clancy, Pier House Resort & Spa, Hotel Yountville, Bardessono Hotel and Spa, , Mr. C Beverly Hills Hotel, The Ritz-Carlton St. Thomas and The Ritz-Carlton Sarasota.

Property Taxes, Insurance and Other. Property taxes, insurance and other increased $4.1 million, or 78.1%, to $9.4 million in the 2023 quarter compared to the 2022 quarter. The increase is primarily attributable to an aggregate increase of approximately $3.9 million at 13 comparable hotel properties, including $2.3 million at the Sofitel Chicago Magnificent Mile and $249,000 at the one acquired hotel property. During the 2022 quarter, we received a real estate assessment reduction for the Sofitel Chicago Magnificent Mile. These increases were partially offset by an aggregate decrease of $27,000 at The Notary Hotel and The Ritz-Carlton St. Thomas.

Depreciation and Amortization. Depreciation and amortization increased $3.0 million, or 15.3%, to $22.6 million in the 2023 quarter compared to the 2022 quarter. The increase comprised $2.4 million at Four Seasons Resort Scottsdale as a result of its acquisition and an aggregate increase of $1.6 million at nine comparable hotel properties. These increases were partially offset by an aggregate decrease of $1.0 million at the Sofitel Chicago Magnificent Mile, The Clancy, Pier House Resort & Spa, Hotel Yountville, Bardessono Hotel and Spa and Mr. C Beverly Hills Hotel due to fully depreciated assets.

Advisory Services Fee. Advisory services fee increased $1.9 million, or 30.3%, to $8.2 million in the 2023 quarter compared to the 2022 quarter due to increases in the base advisory fee of $441,000, reimbursable expenses of $869,000, and incentive fee of $731,000 which was due to a credit in the 2022 quarter related to the reversal of the incentive fee, partially offset by a decrease of $131,000 in equity-based compensation.

In the 2023 quarter, we recorded an advisory services fee of $8.2 million, which included a base advisory fee of $3.7 million, reimbursable expenses of $2.0 million, $2.5 million associated with equity grants of our common stock and LTIP units awarded to the officers and employees of Ashford Inc.

In the 2022 quarter, we recorded an advisory services fee of $6.3 million, which included a base advisory fee of $3.2 million, reimbursable expenses of $1.2 million, $2.6 million associated with equity grants of our common stock and LTIP units awarded to the officers and employees of Ashford Inc. and a credit to incentive fee of $731,000.

Gain on Legal Settlements. During the 2022 quarter, the Company received an additional payment of approximately $114,000 related to accrued interest on the initial settlement amount associated with the City of San Francisco transfer tax matter. There was no such gain during the 2023 quarter.

Corporate General and Administrative. Corporate general and administrative expense was $3.9 million in the 2023 quarter and $3.4 million in the 2022 quarter. The increase in corporate general and administrative expense is due to higher reimbursed operating expenses of Ashford Securities of $361,000 and higher miscellaneous expenses of $413,000 partially offset by lower public company costs of $193,000 and lower professional fees of $123,000.

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Equity in Earnings (Loss) of Unconsolidated Entity. In the 2023 quarter and 2022 quarter, we recorded equity in loss of unconsolidated entity of $75,000 and $74,000, respectively, related to our investment in OpenKey.

Interest Income. Interest income was $2.3 million and $162,000 in 2023 quarter and 2022 quarter, respectively. The increase in interest income in the 2023 quarter was primarily attributable to higher short-term interest rates on excess cash and the Company’s cash management agreement with Ashford LLC.

Interest Expense and Amortization of Loan Costs. Interest expense and amortization of loan costs increased $13.3 million, or 129.5%, to $23.6 million in the 2023 quarter compared to the 2022 quarter. This increase is primarily due to higher interest expense from higher average interest rates, as well as higher interest expense associated with the mortgage loan secured by the Four Seasons Resort Scottsdale as a result of its acquisition. The average LIBOR rates for the 2023 quarter and the 2022 quarter were 5.10% and 1.02%, respectively. The average SOFR rates for the 2023 quarter and the 2022 quarter were 4.74% and 0.67%, respectively.

Write-off of Loan Costs and Exit Fees. Write-off of loan costs and exit fees was $248,000 in the 2023 quarter, primarily related to various loan modifications. Write-off of loan costs and exit fees consisted of $137,000 from third parties and $111,000 from Lismore.

Write-off of loan costs and exit fees was $22,000 in the 2022 quarter, primarily related to third party costs from the acquisition of The Ritz-Carlton Reserve Dorado Beach.

Realized and Unrealized Gain (Loss) on Derivatives. Realized and unrealized gain on derivatives of $1.0 million for 2023 quarter consisted of an unrealized gain on warrants of approximately $16,000 and a realized gain of $2.3 million associated with payments received from counterparties on in-the-money interest rate caps. These gains were partially offset by an unrealized loss on interest rate caps of approximately $1.3 million.

Realized and unrealized gain on derivatives of $1.2 million in the 2022 quarter consisted of an unrealized gain of approximately $1.2 million on warrants and approximately $43,000 on interest rate caps.

Income Tax (Expense) Benefit. Income tax (expense) benefit changed $1.2 million, from expense of $1.1 million in the 2022 quarter to a benefit of $75,000 in the 2023 quarter. This change was primarily due to a decrease in the taxable income of certain of our TRS entities in the 2023 quarter compared to the 2022 quarter.

(Income) Loss Attributable to Noncontrolling Interest in Consolidated Entities. Our noncontrolling interest partner in consolidated entities was allocated a loss of $367,000 and income of $1.5 million in the 2023 quarter and the 2022 quarter, respectively. At both June 30, 2023 and 2022, noncontrolling interest in consolidated entities represented an ownership interest of 25% in two hotel properties held by one entity.

Net (Income) Loss Attributable to Redeemable Noncontrolling Interests in Operating Partnership. Noncontrolling interests in operating partnership were allocated a net loss of $925,000 and net income of $846,000 in the 2023 quarter and the 2022 quarter, respectively. Redeemable noncontrolling interests in Braemar OP represented ownership interests of 6.63% and 7.59% as of June 30, 2023 and 2022, respectively.

41

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

The following table summarizes changes in key line items from our condensed consolidated statements of operations for the six months ended June 30, 2023 and 2022 (in thousands except percentages):

	Six Months Ended June 30,				Favorable (Unfavorable)
	2023		2022		$ Change		% Change
Revenue
Rooms	$	254,664	$	217,719	$	36,945	17.0	%
Food and beverage	100,004		78,976		21,028		26.6
Other	47,340		40,079		7,261		18.1
Total hotel revenue	402,008		336,774		65,234		19.4
Expenses
Hotel operating expenses:
Rooms	54,063		44,318		(9,745)		(22.0)
Food and beverage	76,104		59,922		(16,182)		(27.0)
Other expenses	118,592		98,294		(20,298)		(20.7)
Management fees	12,585		9,686		(2,899)		(29.9)
Total hotel operating expenses	261,344		212,220		(49,124)		(23.1)
Property taxes, insurance and other	17,512		13,880		(3,632)		(26.2)
Depreciation and amortization	45,088		38,012		(7,076)		(18.6)
Advisory services fee	16,163		13,627		(2,536)		(18.6)
(Gain) loss on legal settlements	—		(114)		(114)		(100.0)
Corporate general and administrative	6,716		5,933		(783)		(13.2)
Total expenses	346,823		283,558		(63,265)		(22.3)
Operating income (loss)	55,185		53,216		1,969		3.7
Equity in earnings (loss) of unconsolidated entity	(148)		(146)		(2)		(1.4)
Interest income	4,403		187		4,216		2,254.5
Interest expense and amortization of discounts and loan costs	(46,473)		(18,803)		(27,670)		(147.2)
Write-off of loan costs and exit fees	(260)		(98)		(162)		(165.3)
Gain (loss) on extinguishment of debt	2,318		—		2,318
Realized and unrealized gain (loss) on derivatives	695		1,616		(921)		(57.0)
Income (loss) before income taxes	15,720		35,972		(20,252)		(56.3)
Income tax (expense) benefit	(2,254)		(3,688)		1,434		38.9
Net income (loss)	13,466		32,284		(18,818)		(58.3)
(Income) loss attributable to noncontrolling interest in consolidated entities	58		(1,442)		1,500		104.0
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	664		(1,813)		2,477		136.6
Net income (loss) attributable to the Company	$	14,188	$	29,029	$	(14,841)	(51.1)	%

All hotel properties owned for the six months ended June 30, 2023 and 2022 have been included in our results of operations during the respective periods in which they were owned. Based on when a hotel property was acquired or disposed of operating results for certain hotel properties are not comparable for the six months ended June 30, 2023 and 2022. The hotel properties listed below are not comparable hotel properties for the periods indicated and all other hotel properties are considered comparable hotel properties. The following acquisitions affect reporting comparability related to our condensed consolidated financial statements:

Hotel Property	Location	Type	Date
The Ritz-Carlton Reserve Dorado Beach	Dorado, Puerto Rico	Acquisition	March 11, 2022
Four Seasons Resort Scottsdale	Scottsdale, Arizona	Acquisition	December 1, 2022

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The following table illustrates the key performance indicators of all hotel properties owned for the periods indicated:

	Six Months Ended June 30,
	2023			2022
Occupancy	67.90		%	63.18		%
ADR (average daily rate)	$	491.69		$	481.70
RevPAR (revenue per available room)	$	333.84		$	304.32
Rooms revenue (in thousands)	$	254,664		$	217,719
Total hotel revenue (in thousands)	$	402,008		$	336,774

The following table illustrates the key performance indicators of the 14 hotel properties that were owned for the full six months ended June 30, 2023 and 2022:

	Six Months Ended June 30,
	2023			2022
Occupancy	69.02		%	61.05		%
ADR (average daily rate)	$	419.48		$	451.18
RevPAR (revenue per available room)	$	289.51		$	284.72
Rooms revenue (in thousands)	$	204,283		$	200,316
Total hotel revenue (in thousands)	$	319,022		$	309,743

Net Income (Loss) Attributable to the Company. Net income attributable to the Company decreased $14.8 million, from $29.0 million for the six months ended June 30, 2022 (the “2022 period”), to $14.2 million for the six months ended June 30, 2023 (the “2023 period”), as a result of the factors discussed below.

Rooms Revenue. Rooms revenue increased $36.9 million, or 17.0%, to $254.7 million during the 2023 period compared to the 2022 period. During the 2023 period, we experienced a 472 basis point increase in occupancy and a 2.1% increase in room rates compared to the 2022 period.

43

Fluctuations in rooms revenue between the 2023 period and the 2022 period are a result of the changes in occupancy and ADR between the 2023 period and the 2022 period as reflected in the table below (dollars in thousands):

Hotel Property	Favorable (Unfavorable)
	Rooms Revenue		Occupancy (change in bps)	ADR (change in %)
Comparable
Capital Hilton (1)	$	6,610	1,951	10.8	%
Marriott Seattle Waterfront (2)	4,239		1,930	6.9	%
The Notary Hotel	2,929		1,014	9.7	%
The Clancy	1,979		332	8.2	%
Sofitel Chicago Magnificent Mile	1,003		550	0.4	%
Pier House Resort & Spa	(2,464)		(422)	(10.4)	%
The Ritz-Carlton St. Thomas	(5,050)		(733)	(6.3)	%
Park Hyatt Beaver Creek Resort & Spa	1,724		(365)	17.5	%
Hotel Yountville	(1,134)		343	(22.9)	%
The Ritz-Carlton Sarasota (1)	(5,311)		(1,267)	(3.9)	%
Hilton La Jolla Torrey Pines	1,008		272	4.1	%
Bardessono Hotel and Spa	(1,771)		(354)	(14.6)	%
The Ritz-Carlton Lake Tahoe	407		491	(6.3)	%
Mr. C Beverly Hills Hotel	(202)		496	(9.2)	%
Total	$	3,967	797	(7.0)	%
Non-comparable
The Ritz-Carlton Reserve Dorado Beach	$	10,896	n/a	n/a
Four Seasons Resort Scottsdale	22,081		n/a	n/a
Total	$	32,977

________

(1)This hotel was under renovation during the 2023 period.

(2)This hotel was under renovation during the 2022 period.

Food and Beverage Revenue. Food and beverage revenue increased $21.0 million, or 26.6%, to $100.0 million during the 2023 period compared to the 2022 period. We experienced an aggregate increase in food and beverage revenue of $8.1 million at six comparable hotel properties as well as increases of $4.1 million and $11.8 million at The Ritz-Carlton Reserve Dorado Beach and the Four Seasons Resort Scottsdale, respectively. These increases were partially offset by an aggregate decrease of approximately $2.9 million at The Ritz-Carlton St. Thomas, The Ritz-Carlton Sarasota, Pier House Resort & Spa, Bardessono Hotel and Spa, Hotel Yountville, Sofitel Chicago Magnificent Mile, Park Hyatt Beaver Creek Resort & Spa and Mr. C Beverly Hills Hotel.

Other Hotel Revenue. Other hotel revenue, which consists mainly of condo management fees, health center fees, resort fees, golf, telecommunications, parking and rentals, increased $7.3 million, or 18.1%, to $47.3 million during the 2023 period compared to the 2022 period.

This increase is attributable to higher other hotel revenue of $1.9 million at nine comparable hotel properties, $2.4 million at The Ritz-Carlton Reserve Dorado Beach and $4.7 million at the Four Seasons Resort Scottsdale. These increases were partially offset by an aggregate decrease of approximately $1.7 million at The Ritz-Carlton St. Thomas, The Ritz-Carlton Sarasota, Pier House Resort & Spa, Park Hyatt Beaver Creek Resort & Spa and Capital Hilton.

Rooms Expense. Rooms expense increased $9.7 million, or 22.0%, to $54.1 million in the 2023 period compared to the 2022 period. This increase is attributable to an aggregate increase in rooms expense of $5.1 million at nine comparable hotel properties, an increase of $1.6 million at The Ritz-Carlton Reserve Dorado Beach and an increase of $4.2 million at the Four Seasons Resort Scottsdale. These increases were partially offset by an aggregate decrease of approximately $1.1 million at The Ritz-Carlton St. Thomas, The Ritz-Carlton Sarasota, Pier House Resort & Spa, Bardessono Hotel and Spa and Hotel Yountville.

Food and Beverage Expense. Food and beverage expense increased $16.2 million, or 27.0%, to $76.1 million during the 2023 period compared to the 2022 period. This increase is attributable to higher food and beverage expense of $5.4 million at eight comparable hotel properties, $3.7 million at The Ritz-Carlton Reserve Dorado Beach and $8.4 million at the Four Seasons Resort Scottsdale. These increases were partially offset by an aggregate decrease of approximately $1.3 million at The Ritz-Carlton St. Thomas, The Ritz-Carlton Lake Tahoe, Pier House Resort & Spa, Hotel Yountville, Park Hyatt Beaver Creek Resort & Spa and Mr. C Beverly Hills Hotel.

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Other Operating Expenses. Other operating expenses increased $20.3 million, or 20.7%, to $118.6 million in the 2023 period compared to the 2022 period. Hotel operating expenses consist of direct expenses from departments associated with revenue streams and indirect expenses associated with support departments and incentive management fees. We experienced an increase of $2.9 million in direct expenses and $17.4 million in indirect expenses and incentive management fees in the 2023 period compared to the 2022 period.

Direct expenses were 4.3% of total hotel revenue in the 2023 period and 4.2% in the 2022 period. The increase in direct expenses is associated with higher direct expenses of approximately $732,000 at nine comparable hotel properties, $1.3 million at The Ritz-Carlton Reserve Dorado Beach and $1.5 million at the Four Seasons Resort Scottsdale. These increases were partially offset by lower direct expenses of $616,000 at the Sofitel Chicago Magnificent Mile, Marriott Seattle Waterfront, Mr. C Beverly Hills Hotel, The Ritz-Carlton St. Thomas and The Ritz-Carlton Sarasota.

The increase in indirect expenses is attributable to increases in (i) general and administrative costs of $6.8 million comprising an increase of $2.0 million at our 14 comparable hotel properties and $4.8 million at the two acquired hotel properties; (ii) marketing costs of $6.6 million comprising an increase of $3.3 million at our 14 comparable hotel properties and $3.3 million at the two acquired hotel properties; (iii) repairs and maintenance of $2.6 million comprising an increase of $544,000 at our 14 comparable hotel properties and $2.1 million at the two acquired hotel properties; (iv) lease expense of $158,000 comprising an increase of $147,000 at our 14 comparable hotel properties and $11,000 at the two acquired hotel properties; and (v) energy costs of $2.3 million comprised of an increase of $960,000 at our 14 comparable hotel properties and $1.4 million at our two acquired hotel properties. These increases in indirect expenses were partially offset by an aggregate decrease of $1.1 million in incentive management fees, comprising of an aggregate decrease of $2.7 million at our 14 comparable hotel properties, offset by an aggregate increase of $1.5 million at the two acquired hotel properties.

Management Fees. Base management fees increased $2.9 million, or 29.9%, to $12.6 million in the 2023 period compared to the 2022 period. Management fees increased $1.9 million at seven comparable hotel properties, $537,000 at The Ritz-Carlton Reserve Dorado Beach and $1.2 million at the Four Seasons Resort Scottsdale. These increases were partially offset by an aggregate decrease of $683,000 at the Pier House Resort & Spa, Hotel Yountville, Bardessono Hotel and Spa, Mr. C Beverly Hills Hotel, The Ritz-Carlton St. Thomas, The Ritz-Carlton Sarasota and The Ritz-Carlton Lake Tahoe.

Property Taxes, Insurance and Other. Property taxes, insurance and other increased $3.6 million, or 26.2%, to $17.5 million in the 2023 period compared to the 2022 period. This increase is primarily attributable to an aggregate increase of $2.6 million at twelve comparable hotel properties, including $36,000 at the Sofitel Chicago Magnificent Mile, $590,000 at The Ritz-Carlton Reserve Dorado Beach and $506,000 at the Four Seasons Resort Scottsdale. These increases were partially offset by an aggregate decrease of approximately $94,000 at The Notary Hotel and The Ritz-Carlton St. Thomas.

Depreciation and Amortization. Depreciation and amortization increased $7.1 million, or 18.6%, to $45.1 million for the 2023 period compared to the 2022 period. This increase is comprised of $1.4 million at The Ritz-Carlton Reserve Dorado Beach, $4.7 million at the Four Seasons Resort Scottsdale and an aggregate increase of $3.3 million at eight comparable hotel properties. These increases were partially offset by an aggregate decrease of $2.3 million at the Sofitel Chicago Magnificent Mile, The Clancy, Pier House Resort & Spa, Hotel Yountville, Bardessono Hotel and Spa and Mr. C Beverly Hills Hotel primarily due to fully depreciated assets.

Advisory Services Fee. Advisory services fee increased $2.5 million, or 18.6%, to $16.2 million in the 2023 period compared to the 2022 period due to increases in the base advisory fee of $1.1 million, reimbursable expenses of $1.8 million, partially offset by decreases in equity-based compensation of $155,000 and incentive fee of $246,000.

In the 2023 period, we recorded an advisory services fee of $16.2 million, which included a base advisory fee of $7.3 million, reimbursable expenses of $4.1 million and $4.8 million associated with equity grants of our common stock and LTIP units awarded to the officers and employees of Ashford Inc.

In the 2022 period, we recorded an advisory services fee of $13.6 million, which included a base advisory fee of $6.2 million, reimbursable expenses of $2.3 million, $4.9 million associated with equity grants of our common stock and LTIP units awarded to the officers and employees of Ashford Inc. and an incentive fee of $246,000.

Gain on Legal Settlements. During the 2022 period, the Company received an additional payment of approximately $114,000 related to accrued interest on the initial settlement amount associated with the City of San Francisco transfer tax matter. There was no such gain during the 2023 period.

Corporate General and Administrative. Corporate general and administrative expense was $6.7 million in the 2023 period compared to $5.9 million in the 2022 period. The increase in corporate general and administrative expenses is primarily due to

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higher reimbursed operating expenses of Ashford Securities of $1.0 million and higher miscellaneous expenses of $382,000, partially offset by lower professional fees of $221,000 and lower public company costs of $406,000.

Equity in Earnings (Loss) of Unconsolidated Entity. In the 2023 period and the 2022 period, we recorded equity in loss of unconsolidated entity of $148,000 and $146,000, respectively, related to our investment in OpenKey.

Interest Income. Interest income was $4.4 million and $187,000 in the 2023 period and the 2022 period, respectively. The increase in interest income in the 2023 period was primarily attributable to higher short-term interest rates on excess cash and the Company’s cash management agreement with Ashford LLC.

Interest Expense and Amortization of Discounts and Loan Costs. Interest expense and amortization of discounts and loan costs increased $27.7 million, or 147.2%, to $46.5 million for the 2023 period compared to the 2022 period. The increase is primarily due to higher interest expense from higher average interest rates and the mortgage loan secured by the Four Seasons Resort Scottsdale as a result of its acquisition. The average LIBOR rates for the 2023 period and the 2022 period were 4.85% and 0.62%, respectively. The average SOFR rates for the 2023 period and the 2022 period were 4.62% and 0.39%, respectively.

Write-off of Loan Costs and Exit Fees. Write-off of loan costs and exit fees was $260,000 in the 2023 period related to various loan modifications. Write-off of loan costs and exit fees consisted of $149,000 from third parties and $111,000 from Lismore.

Write-off of loan costs and exit fees was $98,000 in the 2022 period primarily resulting from third party cost from the refinance of the Park Hyatt Beaver Creek Resort & Spa in February 2022.

Gain (loss) on Extinguishment of Debt. Gain on extinguishment of debt was $2.3 million in the 2023 period due to the payoff of The Ritz-Carlton Reserve Dorado Beach mortgage loan. The gain was primarily attributable to the premium that was recorded upon the assumption of the mortgage loan when the hotel was acquired. There was no such gain or loss in the 2022 period.

Realized and Unrealized Gain (Loss) on Derivatives. Realized and unrealized gain on derivatives of $695,000 for the 2023 period consisted of unrealized gain on warrants of $119,000 and a realized gain of $4.1 million associated with payments received from counterparties on in-the-money interest rate caps. These gains were partially offset by an unrealized loss on interest rate caps of approximately $3.6 million.

Unrealized gain on derivatives of $1.6 million for the 2022 period consisted of an unrealized gain of approximately $886,000 on interest rate caps, and approximately $730,000 on warrants.

Income Tax (Expense) Benefit. Income tax expense decreased $1.4 million, from $3.7 million in the 2022 period to $2.3 million in the 2023 period. This decrease was primarily due to a decrease in the taxable income of certain of our TRS entities in the 2023 period compared to the 2022 period.

(Income) Loss Attributable to Noncontrolling Interest in Consolidated Entities. Our noncontrolling interest partner in consolidated entities was allocated a loss of $58,000 and income of $1.4 million in the 2023 period and the 2022 period, respectively. At both June 30, 2023 and 2022, noncontrolling interest in consolidated entities represented an ownership interest of 25% in two hotel properties held by one entity.

Net (Income) Loss Attributable to Redeemable Noncontrolling Interests in Operating Partnership. Noncontrolling interests in operating partnership were allocated net loss of $664,000 in the 2023 period and net income of $1.8 million in the 2022 period. Redeemable noncontrolling interests represented ownership interests in Braemar OP of approximately 6.63% and 7.59% as of June 30, 2023 and 2022, respectively.

LIQUIDITY AND CAPITAL RESOURCES

Our short-term liquidity requirements consist primarily of funds necessary to pay for operating expenses and other expenditures directly associated with our hotel properties, including:

•advisory fees payable to Ashford LLC;

•recurring maintenance necessary to maintain our hotel properties in accordance with brand standards;

•interest expense and scheduled principal payments on outstanding indebtedness;

•dividends on our common stock;

•dividends on our preferred stock; and

•capital expenditures to improve our hotel properties.

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We expect to meet our short-term liquidity requirements generally through net cash provided by operations, capital market activities, our Revolving Credit Facility and existing cash balances.

Pursuant to the advisory agreement between us and our advisor, we must pay our advisor on a monthly basis a base advisory fee, subject to a minimum base advisory fee. The minimum base advisory fee is equal to the greater of: (i) 90% of the base fee paid for the same month in the prior fiscal year; and (ii) 1/12th of the “G&A Ratio” for the most recently completed fiscal quarter multiplied by our total market capitalization on the last balance sheet date included in the most recent quarterly report on Form 10-Q or annual report on Form 10-K that we file with the SEC. Thus, even if our total market capitalization and performance decline, we will still be required to make payments to our advisor equal to the minimum base advisory fee, which could adversely impact our liquidity and financial condition.

Our long-term liquidity requirements consist primarily of funds necessary to pay for the costs of acquiring additional hotel properties and redevelopments, renovations, expansions and other capital expenditures that need to be made periodically with respect to our hotel properties and scheduled debt payments. We expect to meet our long-term liquidity requirements through various sources of capital, including future common and preferred equity issuances, existing working capital, net cash provided by operations, hotel mortgage indebtedness and other secured and unsecured borrowings. However, there are a number of factors that may have a material adverse effect on our ability to access these capital sources, the state of overall equity and credit markets, our degree of leverage, our unencumbered asset base and borrowing restrictions imposed by lenders (including as a result of any failure to comply with financial covenants in our existing and future indebtedness), general market conditions for REITs, our operating performance and liquidity and market perceptions about us. The success of our business strategy will depend, in part, on our ability to access these various capital sources. While management cannot provide any assurances, management believes that our cash flow from operations and our existing cash balances will be adequate to meet upcoming anticipated requirements for interest and principal payments on debt (excluding any potential final maturity principal payments and paydowns for extension tests), working capital, and capital expenditures for the next 12 months and dividends required to maintain our status as a REIT for U.S. federal income tax purposes.

Our hotel properties will require periodic capital expenditures and renovation to remain competitive. In addition, acquisitions, redevelopments or expansions of hotel properties may require significant capital outlays. We may not be able to fund such capital improvements solely from net cash provided by operations because we must distribute annually at least 90% of our REIT taxable income, determined without regard to the deductions for dividends paid and excluding net capital gains, to qualify and maintain our qualification as a REIT, and we are subject to tax on any retained income and gains. As a result, our ability to fund capital expenditures, acquisitions or hotel redevelopment through retained earnings is very limited. Consequently, we expect to rely heavily upon the availability of debt or equity capital for these purposes. If we are unable to obtain the necessary capital on favorable terms, or at all, our financial condition, liquidity, results of operations and prospects could be materially and adversely affected.

Certain of our loan agreements contain cash trap provisions that may be triggered if the performance of our hotel properties declines. When these provisions are triggered, substantially all of the profit generated by the hotel properties securing such loan is deposited directly into lockbox accounts and then swept into cash management accounts for the benefit of our various lenders. This could affect our liquidity and our ability to make distributions to our stockholders until such time that a cash trap is no longer in effect for such loan. These cash trap provisions have been triggered on one mortgage loan, as discussed below. Our loan that is in a cash trap may remain subject to the cash trap provisions for a substantial period of time which could limit our flexibility and adversely affect our financial condition or our qualification as a REIT. As of June 30, 2023, our $293.2 million mortgage loan was in a cash trap and approximately $1.1 million of our restricted cash was subject to this cash trap.

As of June 30, 2023, the Company held cash and cash equivalents of $128.0 million and restricted cash of $63.4 million, the vast majority of which is comprised of lender and manager-held reserves. As of June 30, 2023, $15.4 million was also due to the Company from third-party hotel managers, most of which is held by one of the Company’s managers and is available to fund hotel operating costs. At June 30, 2023, our net debt to gross assets was 37.3%.

The Company's cash and cash equivalents are primarily comprised of corporate cash invested in short-term U.S. Treasury securities with maturity dates of less than 90 days and corporate cash held at commercial banks in Insured Cash Sweep (“ICS”) accounts, which are fully insured by the FDIC. The Company’s cash and cash equivalents also includes property-level operating cash deposited with commercial banks that have been designated as a Global Systemically Important Bank (“G-SIB”) by the Financial Stability Board (“FSB”) and a small amount deposited with other commercial banks.

Equity Transactions

On December 7, 2022, our board of directors approved a new stock repurchase program pursuant to which the board of directors granted a repurchase authorization to acquire shares of the Company’s common stock, par value $0.01 per share,

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having an aggregate value of up to $25 million. The board of directors’ authorization replaced any previous repurchase authorizations. During the six months ended June 30, 2023, we repurchased 3.9 million shares of our common stock for approximately $18.9 million. As of June 30, 2023, the Company has completed the $25.0 million repurchase authorization.

On November 13, 2019, we filed an initial registration statement with the SEC, as amended on January 24, 2020, for shares of our non-traded Series E Redeemable Preferred Stock (the “Series E Preferred Stock”) and our non-traded Series M Redeemable Preferred Stock (the “Series M Preferred Stock”). The registration statement became effective on February 21, 2020, and contemplates the issuance and sale of up to 20,000,000 shares of Series E Preferred Stock or Series M Preferred Stock in a primary offering and up to 8,000,000 shares of Series E Preferred Stock or Series M Preferred Stock pursuant to a dividend reinvestment plan. On February 25, 2020, we filed our prospectus with the SEC. Ashford Securities, a subsidiary of Ashford Inc., serves as the dealer manager and wholesaler of the Series E Preferred Stock and Series M Preferred Stock. On April 2, 2021, the Company filed with the State Department of Assessments and Taxation of the State of Maryland (the “SDAT”) articles supplementary to the Company’s Articles of Amendment and Restatement that provided for: (i) reclassifying the existing 28,000,000 shares of Series E Preferred Stock and 28,000,000 shares of Series M Preferred Stock as unissued shares of preferred stock; (ii) reclassifying and designating 28,000,000 shares of the Company’s authorized capital stock as shares of the Series E Preferred Stock (the “Series E Articles Supplementary”); and (iii) reclassifying and designating 28,000,000 shares of the Company’s authorized capital stock as shares of the Series M Preferred Stock (the “Series M Articles Supplementary”). The Series E Articles Supplementary and Series M Articles Supplementary were filed to revise the preferred stock terms related to the dividend rate, our optional redemption right and certain other voting rights. The Company also caused its operating partnership to execute Amendment No. 5 to the Third Amended and Restated Agreement of Limited Partnership to amend the terms of its operating partnership agreement to conform to the terms of the Series E Articles Supplementary and Series M Articles Supplementary. On February 21, 2023, the Company announced the closing of its offering of the Series E Preferred Stock and Series M Preferred Stock. The Company issued approximately 16.4 million shares of Series E Preferred Stock and received net proceeds of approximately $369.5 million and issued approximately 2.0 million shares of Series M Preferred Stock and received net proceeds of approximately $47.6 million.

On February 4, 2021, the Company entered into a Standby Equity Distribution Agreement (the “SEDA”) with YA II PN, Ltd. (“YA”), pursuant to which the Company will be able to sell up to 7,780,786 shares of its common stock (the “Commitment Amount”) at the Company’s request any time during the commitment period commencing on February 4, 2021, and terminating on the earliest of (i) the first day of the month next following the 36-month anniversary of the SEDA or (ii) the date on which YA shall have made payment of Advances (as defined in the SEDA) pursuant to the SEDA for shares of the Company’s common stock equal to the Commitment Amount (the “Commitment Period”). Other than with respect to the Initial Advance (as defined below) the shares sold to YA pursuant to the SEDA would be purchased at 95% of the Market Price (as defined below) and would be subject to certain limitations, including that YA could not purchase any shares that would result in it owning more than 4.99% of the Company’s common stock. “Market Price” means the lowest daily VWAP of the Company’s common stock during the five consecutive trading days commencing on the trading day following the date the Company submits an advance notice to YA. “VWAP” means, for any trading day, the daily volume weighted average price of the Company’s common stock for such date on the principal market as reported by Bloomberg L.P. during regular trading hours.

At any time during the Commitment Period the Company may require YA to purchase shares of the Company’s common stock by delivering a written notice to YA setting forth the Advance Shares (as defined in the SEDA) that the Company desires to issue and sell to YA (the “Advance Notice”). The Company may deliver an Advance Notice for an initial Advance for up to 1,200,000 Advance Shares (the “Initial Advance”). The preliminary purchase price per share for such shares shall be 100% of the average daily VWAP for the five consecutive trading days immediately prior to the date of the Advance Notice.

Pursuant to the SEDA, we currently intend to use the net proceeds from any sale of the shares for working capital purposes, including the repayment of outstanding debt. There are no other restrictions on future financing transactions. The SEDA does not contain any right of first refusal, participation rights, penalties or liquidated damages. We are not required to pay any additional amounts to reimburse or otherwise compensate YA in connection with the transaction except for a $10,000 structuring fee. As of August 3, 2023, the Company has sold approximately 1.7 million shares of common stock and received proceeds of approximately $10.0 million under the SEDA.

On April 21, 2021, the Company entered into a purchase agreement (the “Lincoln Park Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to which the Company may issue or sell to Lincoln Park up to 8,893,565 shares of the Company’s common stock from time to time during the term of the Lincoln Park Purchase Agreement. The issuance of the shares of common stock pursuant to the Lincoln Park Purchase Agreement has been registered pursuant to the Company’s shelf registration statement on Form S-3 (the “Registration Statement”), and the related base prospectus included in the Registration Statement, as supplemented by a prospectus supplement filed with the SEC on April 21, 2021. The Company and Lincoln Park also entered into a registration rights agreement, pursuant to which the Company agreed to maintain the

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effectiveness of the Registration Statement. Upon entering into the Lincoln Park Purchase Agreement, the Company issued 15,000 shares of the Company’s common stock as consideration for Lincoln Park’s execution and delivery of the Lincoln Park Purchase Agreement. As of August 3, 2023, the Company has issued approximately 766,000 shares of common stock for gross proceeds of approximately $4.2 million under the Lincoln Park Purchase Agreement.

On July 12, 2021, the Company entered into an equity distribution agreement (the “Virtu July 2021 EDA”) with Virtu to sell from time to time shares of our common stock having an aggregate offering price of up to $100 million. We will pay Virtu a commission of approximately 1.0% of the gross sales price of the shares of our common stock sold. The Company may also sell some or all of the shares of our common stock to Virtu as principal for its own account at a price agreed upon at the time of sale. As of August 3, 2023, the Company has sold approximately 4.7 million shares of common stock under the Virtu July 2021 EDA and received gross proceeds of approximately $24.0 million.

Debt Transactions

On January 18, 2023, the Company repaid its $54.0 million mortgage loan secured by The Ritz-Carlton Reserve Dorado Beach, which resulted in a gain on extinguishment of debt of $2.3 million for the three and six months ended June 30, 2023. The gain was primarily attributable to the premium that was recorded upon the assumption of the mortgage loan when the hotel was acquired.

On April 4, 2023, the Company amended the mortgage loan secured by The Ritz-Carlton Sarasota. Terms of the amendment replaced the variable interest rate of LIBOR + 2.65% with SOFR + 2.75%, extended the current maturity date to October 2023, and added one six-month extension option, subject to satisfaction of certain conditions. Effective June 1, 2023, the variable interest rate increased from SOFR + 2.75% to SOFR + 3.60% in accordance with the loan agreement. The Company paid Lismore approximately $98,000 for the successful execution of The Ritz-Carlton Sarasota loan modification and extension.

On April 18, 2023, the Company amended the mortgage loan secured by Hotel Yountville. Terms of the amendment replaced the variable interest rate of LIBOR + 2.55% with SOFR + 2.65%, extended the current maturity date to November 2023, and added one six-month extension option, subject to satisfaction of certain conditions.

On June 13, 2023, the Company finalized an extension of its $435 million mortgage loan secured by four properties: The Notary Hotel, The Clancy, Sofitel Chicago Magnificent Mile, and Marriott Seattle Waterfront. The loan is being extended beyond its original initial maturity in June 2023 for an additional twelve months. In conjunction with the extension, the Company paid down $142 million of the loan utilizing corporate cash on hand, which reduced the balance to approximately $293 million. As part of the extension the Company also purchased an interest rate cap through June 2024 with a strike rate of 4.69%.

Effective June 30, 2023, LIBOR is no longer published. Accordingly all variable interest rate mortgage loans held by the Company that used the LIBOR index transitioned to SOFR beginning on July 1, 2023. Not all lenders will execute loan amendment documents and instead will defer to original loan documents that dictate changes in index rates.

On July 31, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with Braemar OP (the “Borrower”), the lenders party thereto (the “Lenders”) and Bank of America, N.A., as administrative agent and L/C Issuer (as defined in the Credit Agreement). Bank of America, N.A. acted as administrative agent and lead arranger on the transaction. Syndicate bank participants include TBK Bank and MidFirst Bank.

The Credit Agreement evidences a $200 million senior secured credit facility (the “Facility”) comprised of a senior secured term loan facility of $150 million (the “Term Loan Facility”) and a senior secured revolving credit facility of $50 million (the “Revolving Credit Facility”). Upon satisfaction of certain conditions, including the addition of new Borrowing Base Properties (as defined in the Credit Agreement), the Facility may be increased to a size of not more than $400 million in the aggregate. The maximum availability under the Facility is determined on a quarterly basis and limited to the lesser of (i) $200 million (subject to increase of up to $400 million in the aggregate); (ii) 55% of the appraised value of all Borrowing Base Properties; and (iii) the DSC Amount (as defined below). The initial Borrowing Base Properties include the Company’s Ritz-Carlton Sarasota, Bardessono Hotel and Spa and Hotel Yountville hotel properties (the “Initial Borrowing Base Properties”). The “DSC Amount” means the maximum principal amount that can be supported from the Adjusted NOI (as defined in the Credit Agreement) from the Borrowing Base Properties assuming (i) a 30-year amortization and an interest rate which is the greater of (a) the ten (10) year U.S. Treasury Rate plus 2.50% and (b) 7.50%; and (ii) a minimum debt service coverage of 1.75 to 1.00.

The proceeds of the Term Loan Facility were used to repay the mortgage debt associated with The Ritz-Carlton Sarasota, Bardessono Hotel and Spa and Hotel Yountville, which will serve as the Initial Borrowing Base Properties for the financing. In addition, at closing, the Company drew down approximately $46 million under the Revolving Credit Facility.

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The Facility is a three-year interest-only facility with all outstanding principal due at maturity, with a one-year extension option, subject to the satisfaction of certain conditions including the payment of an Extension Fee (as defined in the Credit Agreement) equal to 20 basis points (0.20%) of the outstanding Facility amount.

The Credit Agreement is guaranteed by the Company, the Borrower and certain other eligible subsidiaries of the Company and secured by: (i) perfected lien mortgages or deeds of trust and security interests in the Borrowing Base Properties (as defined in the Credit Agreement); (ii) assignments of leases and rents with respect to the Borrowing Base Properties; (iii) assignments of all management agreements, franchise agreements, licenses and other material agreements relating to the Borrowing Base Properties; (iv) perfected first priority liens on all reserve accounts and all operating accounts related to each Borrowing Base Property; and (v) perfected first priority liens on and security interests in each subsidiary guarantor owning a Borrowing Base Property.

Borrowings under the Credit Agreement will bear interest at Daily SOFR or Term SOFR plus 10 basis points (with a 0% floor) plus the applicable margin. Depending on the Company’s Net Debt to EBITDA ratio, the applicable margin for SOFR ranges from 2.25% to 3.00%. Default interest would accrue at the applicable rate plus 2.0%.

The Facility contains customary terms, covenants, negative covenants, events of default, limitations and other conditions for credit facilities of this type. Subject to certain exceptions, the Company and the Borrower are subject to restrictions on incurring additional indebtedness and liens, investments, mergers and fundamental changes, sales or other dispositions of property, dividends and stock redemptions, changes in the nature of the Borrower’s business, transactions with affiliates and burdensome agreements.

Financial covenants are generally based on the financial condition and results of operations of the Company and its consolidated subsidiaries and include, among others, the following:

(i) a Consolidated Leverage Ratio (i.e., Consolidated Net Debt to the Consolidated Total Asset Value) of not more than 55%; and

(ii) a Consolidated Fixed Charge Coverage Ratio (FCCR) (i.e., the ratio of Consolidated Adjusted EBITDA to Consolidated Fixed Charges) of not less than (i) prior to December 31, 2024, 1.1 to 1.0 and (ii) thereafter, 1.25 to 1.0.

The Credit Agreement includes customary events of default, and the occurrence of an event of default will permit the Lenders to terminate commitments to lend under the Credit Agreement and accelerate payments of all amounts outstanding thereunder.

Sources and Uses of Cash

We had approximately $128.0 million and $261.5 million of cash and cash equivalents at June 30, 2023 and December 31, 2022, respectively.

We anticipate that our principal sources of funds to meet our cash requirements will include cash on hand, positive cash flow from operations and capital market activities.

Net Cash Flows Provided by (Used in) Operating Activities. Net cash flows provided by operating activities were $62.0 million and $79.8 million for the six months ended June 30, 2023 and 2022, respectively. Cash flows from operations were impacted by changes in hotel operations of our 14 comparable hotel properties, The Ritz-Carlton Reserve Dorado Beach, acquired on March 11, 2022, and the Four Seasons Resort Scottsdale, acquired on December 1, 2022. Cash flows from operations are also impacted by the timing of working capital cash flows such as collecting receivables from hotel guests, paying vendors, settling with derivative counterparties, settling with related parties and settling with hotel managers.

Net Cash Flows Provided by (Used in) Investing Activities. For the six months ended June 30, 2023, net cash flows used in investing activities were $36.1 million. These cash outflows were primarily attributable to $36.2 million of capital improvements made to various hotel properties and a $158,000 loan to OpenKey partially offset by cash inflows of $327,000 related to proceeds from property insurance. Our capital improvements consisted of approximately $24.3 million of return on investment capital projects and approximately $11.9 million of renewal and replacement capital projects.

For the six months ended June 30, 2022, net cash flows used in investing activities were $106.8 million. These cash outflows were primarily attributable to $19.9 million of capital improvements made to various hotel properties and approximately $86.8 million associated with the acquisition of The Ritz-Carlton Reserve Dorado Beach. Our capital improvements consisted of $13.4 million of return on investment capital projects and $6.5 million of renewal and replacement capital projects.

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Return on investment capital projects are designed to improve the positioning of our hotel properties within their markets and competitive sets. Renewal and replacement capital projects are designed to maintain the quality and competitiveness of our hotels.

Net Cash Flows Provided by (Used in) Financing Activities. For the six months ended June 30, 2023, net cash flows used in financing activities were $150.1 million. Cash outflows primarily consisted of repayments of indebtedness of $196.4 million, $26.1 million of dividend and distribution payments, $19.3 million of payments to repurchase common stock, payments of $7.2 million for the redemption of operating partnership units, $3.4 million to purchase interest rate caps, $2.0 million of distributions to a noncontrolling interest in consolidated entities and $904,000 for cash redemptions of Series E and Series M preferred stock. These cash outflows were partially offset by cash inflows of $97.9 million from the issuance of preferred stock, $4.0 million of contributions from a noncontrolling interest in consolidated entities and $4.0 million of proceeds from in-the-money interest rate caps.

For the six months ended June 30, 2022, net cash flows provided by financing activities were $62.8 million. Cash inflows primarily consisted of debt borrowings of $70.5 million, $71.0 million from the issuance of preferred stock and contributions of $164,000 from a noncontrolling interest in consolidated entities. The cash inflows were partially offset by repayments of indebtedness of $68.0 million, $7.3 million of dividend and distribution payments, $1.7 million of payments for loan costs and fees and $1.1 million of payments for derivatives.

Dividend Policy. On December 8, 2022, our board of directors approved the Company’s dividend policy for 2023. The Company expects to pay a quarterly cash dividend of $0.05 per share for the Company’s common stock for 2023, or $0.20 per share on an annualized basis. On April 5, 2023, our board of directors declared a quarterly cash dividend of $0.05 per diluted share for the second quarter of 2023. The approval of our dividend policy does not commit our board of directors to declare future dividends with respect to any quantity or the amount thereof. The board will continue to review our dividend policy on a quarter-to-quarter basis and make announcements with respect thereto. For income tax purposes, distributions paid consist of ordinary income, capital gains, return of capital or a combination thereof.

Seasonality

Our properties’ operations historically have been seasonal as certain properties maintain higher occupancy rates during the summer months and some during the winter months. This seasonality pattern can cause fluctuations in our quarterly lease revenue under our percentage leases. Quarterly revenue also may be adversely affected by renovations and repositionings, our managers’ effectiveness in generating business and by events beyond our control, such as pandemics, extreme weather conditions, natural disasters, terrorist attacks or alerts, civil unrest, government shutdowns, airline strikes or reduced airline capacity, economic factors and other considerations affecting travel. To the extent that cash flows from operations and cash on hand are insufficient during any quarter due to temporary or seasonal fluctuations in lease revenue, we expect to utilize borrowings to fund distributions required to maintain our REIT status. However, we cannot make any assurances that we will make distributions in the future.

Critical Accounting Policies

The preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Our accounting policies that are critical or most important to understanding our financial condition and results of operations and that require management to make the most difficult judgments are described in the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2022 Form 10-K. There have been no material changes in these critical accounting policies.

Non-GAAP Financial Measures

The following non-GAAP presentations of EBITDA, EBITDAre, Adjusted EBITDAre, FFO and Adjusted FFO are presented to help our investors evaluate our operating performance.

EBITDA is defined as net income (loss) before interest expense and amortization of loan costs, depreciation and amortization, income taxes, equity in (earnings) loss of unconsolidated entity and after the Company’s portion of EBITDA of OpenKey. In addition, we exclude impairment on real estate, (gain) loss on disposition of assets and Company’s portion of EBITDAre of OpenKey from EBITDA to calculate EBITDA for real estate, or EBITDAre, as defined by NAREIT.

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We then further adjust EBITDAre to exclude certain additional items such as amortization of favorable (unfavorable) contract assets (liabilities), transaction and conversion costs, write-off of loan costs and exit fees, advisory and settlement costs, advisory services incentive fee, gain/loss on extinguishment of debt, stock/unit-based compensation and the Company’s portion of adjustments to EBITDAre of OpenKey and non-cash items such as unrealized gain/ loss on derivatives.

We present EBITDA, EBITDAre and Adjusted EBITDAre because we believe they are useful to an investor in evaluating our operating performance because it provides investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe it helps investors meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our asset base (primarily depreciation and amortization) from our operating results. Our management team also uses EBITDA as one measure in determining the value of acquisitions and dispositions. EBITDA, EBITDAre and Adjusted EBITDAre as calculated by us may not be comparable to EBITDA, EBITDAre and Adjusted EBITDAre reported by other companies that do not define EBITDA, EBITDAre and Adjusted EBITDAre exactly as we define the terms. EBITDA, EBITDAre and Adjusted EBITDAre do not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to operating income or net income determined in accordance with GAAP as an indicator of performance or as an alternative to cash flows from operating activities as determined by GAAP as an indicator of liquidity.

The following table reconciles net income (loss) to EBITDA, EBITDAre and Adjusted EBITDAre (in thousands) (unaudited):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss)	$	(3,138)	$	16,680	$	13,466	$	32,284
Interest expense and amortization of loan costs	23,600		10,281		46,473		18,803
Depreciation and amortization	22,567		19,571		45,088		38,012
Income tax expense (benefit)	(75)		1,077		2,254		3,688
Equity in (earnings) loss of unconsolidated entity	75		74		148		146
Company’s portion of EBITDA of OpenKey	(80)		(75)		(157)		(146)
EBITDA and EBITDAre	42,949		47,608		107,272		92,787
Amortization of favorable (unfavorable) contract assets (liabilities)	118		118		237		226
Transaction and conversion costs	1,056		771		2,251		1,326
Write-off of premiums, loan costs and exit fees	248		22		260		98
Realized and unrealized (gain) loss on derivatives	(1,029)		(1,208)		(695)		(1,616)
Stock/unit-based compensation	2,899		3,185		5,227		5,550
Legal, advisory and settlement costs	12		315		81		632
Advisory services incentive fee	—		(731)		—		246
(Gain) loss on extinguishment of debt	—		—		(2,318)		—
Company’s portion of adjustments to EBITDAre of OpenKey	—		(1)		—		5
Adjusted EBITDAre	$	46,253	$	50,079	$	112,315	$	99,254

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FFO is calculated on the basis defined by NAREIT, which is net income (loss) attributable to common stockholders, computed in accordance with GAAP, excluding gains or losses on disposition of assets, plus impairment charges on real estate, depreciation and amortization of real estate assets, and after redeemable noncontrolling interests in the operating partnership and adjustments for unconsolidated entities. NAREIT developed FFO as a relative measure of performance of an equity REIT to recognize that income-producing real estate historically has not depreciated on the basis determined by GAAP. Our calculation of Adjusted FFO excludes transaction and conversion costs, write-off of loan costs and exit fees, legal, advisory and settlement costs, advisory services incentive fee, stock/unit-based compensation, gain/loss on extinguishment of debt and non-cash items such as deemed dividends on redeemable preferred stock, interest expense accretion on refundable membership club deposits, amortization of loan costs, unrealized gain/loss on derivatives and the Company’s portion of adjustments to FFO of OpenKey. FFO and Adjusted FFO exclude amounts attributable to the portion of a partnership owned by the third-party. We present FFO and Adjusted FFO because we consider FFO and Adjusted FFO important supplemental measures of our operational performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO and Adjusted FFO when reporting their results. FFO and Adjusted FFO are intended to exclude GAAP historical cost depreciation and amortization, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO and Adjusted FFO exclude depreciation and amortization related to real estate assets, gains and losses from real property dispositions and impairment losses on real estate assets, FFO and Adjusted FFO provide performance measures that, when compared year over year, reflect the effect to operations from trends in occupancy, guestroom rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. We consider FFO and Adjusted FFO to be appropriate measures of our ongoing normalized operating performance as a REIT. We compute FFO in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that either do not define the term in accordance with the current NAREIT definition or interpret the NAREIT definition differently than us. FFO and Adjusted FFO do not represent cash generated from operating activities as determined by GAAP and should not be considered as an alternative to GAAP net income or loss as an indication of our financial performance or GAAP cash flows from operating activities as a measure of our liquidity. FFO and Adjusted FFO are also not indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, to facilitate a clear understanding of our historical operating results, we believe that FFO and Adjusted FFO should be considered along with our net income or loss and cash flows reported in our condensed consolidated financial statements.

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The following table reconciles net income (loss) to FFO and Adjusted FFO (in thousands) (unaudited):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss)	$	(3,138)	$	16,680	$	13,466	$	32,284
(Income) loss attributable to noncontrolling interest in consolidated entities	367		(1,468)		58		(1,442)
Net (Income) loss attributable to redeemable noncontrolling interests in operating partnership	925		(846)		664		(1,813)
Preferred dividends	(10,877)		(4,064)		(21,227)		(7,367)
Deemed dividends on preferred stock	(301)		—		(2,755)		—
Net income (loss) attributable to common stockholders	(13,024)		10,302		(9,794)		21,662
Depreciation and amortization on real estate (1)	21,763		18,927		43,548		36,722
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership	(925)		846		(664)		1,813
Equity in (earnings) loss of unconsolidated entity	75		74		148		146
Company’s portion of FFO of OpenKey	(85)		(74)		(163)		(146)
FFO available to common stockholders and OP unitholders	7,804		30,075		33,075		60,197
Deemed dividends on preferred stock	301		—		2,755		—
Transaction and conversion costs	1,056		771		2,251		1,326
Write-off of premiums, loan costs and exit fees	248		22		260		98
Unrealized (gain) loss on derivatives	1,253		(1,208)		3,454		(1,616)
Stock/unit-based compensation	2,899		3,185		5,227		5,550
Legal, advisory and settlement costs	12		315		81		632
Interest expense accretion on refundable membership club deposits	164		178		342		368
Amortization of loan costs	661		553		1,400		1,195
Advisory services incentive fee	—		(731)		—		246
(Gain) loss on extinguishment of debt	—		—		(2,318)		—
Company’s portion of adjustments to FFO of OpenKey	—		(1)		—		5
Adjusted FFO available to common stockholders and OP unitholders	$	14,398	$	33,159	$	46,527	$	68,001

____________________

(1)Net of adjustment for noncontrolling interest in consolidated entities. The following table presents the amounts of the adjustments for noncontrolling interests for each line item:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Depreciation and amortization on real estate	$	(804)	$	(644)	$	(1,540)	$	(1,290)
Amortization of loan costs	(24)		(23)		(47)		(45)

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Hotel Properties

The following table presents certain information related to our hotel properties:

Hotel Property	Location	Total Rooms	% Owned		Owned Rooms
Fee Simple Properties
Capital Hilton	Washington, D.C.	550	75	%	413
Marriott Seattle Waterfront	Seattle, WA	369	100	%	369
The Notary Hotel	Philadelphia, PA	499	100	%	499
The Clancy	San Francisco, CA	410	100	%	410
Sofitel Chicago Magnificent Mile	Chicago, IL	415	100	%	415
Pier House Resort & Spa	Key West, FL	142	100	%	142
The Ritz-Carlton St. Thomas	St. Thomas, USVI	180	100	%	180
Park Hyatt Beaver Creek Resort & Spa	Beaver Creek, CO	193	100	%	193
Hotel Yountville	Yountville, CA	80	100	%	80
The Ritz-Carlton Sarasota	Sarasota, FL	276	100	%	276
The Ritz-Carlton Lake Tahoe (1)	Truckee, CA	170	100	%	170
Mr. C Beverly Hills Hotel (2)	Los Angeles, CA	143	100	%	143
The Ritz-Carlton Reserve Dorado Beach (3)	Dorado, Puerto Rico	96	100	%	96
Four Seasons Resort Scottsdale	Scottsdale, AZ	210	100	%	210
Ground Lease Properties (4)
Hilton La Jolla Torrey Pines (5)	La Jolla, CA	394	75	%	296
Bardessono Hotel and Spa (6)	Yountville, CA	65	100	%	65
Total		4,192			3,957

________

(1)    The above information does not include the operations of the voluntary rental program with respect to condominium units not owned by the Company.

(2)    Includes 138 hotel rooms and five residences adjacent to the hotel.

(3)    The above information does not include the operations of the voluntary rental program with respect to residential units not owned by the Company.

(4)    Some of our hotel properties are on land subject to ground leases, two of which cover the entire property.

(5)    The ground lease expires in 2067. The ground lease contains one extension option of either 10 or 20 years dependent upon capital investment during the lease term.

(6)    The initial ground lease expires in 2065. The ground lease contains two 25-year extension options, at our election.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Our primary market risk exposure consists of changes in interest rates on borrowings under our debt instruments that bear interest at variable rates that fluctuate with market interest rates. To the extent that we acquire assets or conduct operations in an international jurisdiction, we will also have currency exchange risk. We may enter into certain hedging arrangements in order to manage interest rate and currency fluctuations. The analysis below presents the sensitivity of the market value of our financial instruments to selected changes in market interest rates.

At June 30, 2023, our total indebtedness of approximately $1.1 billion included approximately $1.1 billion of variable-rate debt. The impact on the results of operations of a 25-basis point change in the interest rate on the outstanding balance of variable-rate debt at June 30, 2023, would be approximately $2.6 million per year. However, we currently have various interest rate caps in place that limit this exposure. Interest rate changes have no impact on the remaining $86.3 million of fixed-rate debt.

The above amounts were determined based on the impact of hypothetical interest rates on our borrowings and assume no changes in our capital structure. The information presented above includes those exposures that existed at June 30, 2023, but it does not consider exposures or positions that could arise after that date. Accordingly, the information presented herein has limited predictive value. As a result, the ultimate realized gain or loss with respect to interest rate fluctuations will depend on exposures that arise during the period, the hedging strategies at the time, and the related interest rates.

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ITEM 4.CONTROLS AND PROCEDURES

Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2023. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2023, as a result of the material weakness in our internal control over financial reporting related to the accounting for earnings per share described below, and for which it was not possible for the Company to remediate during the second quarter of 2023 because there were no similar transactions to evaluate, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports that we file or submit under the Exchange Act (i) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and (ii) is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

There have been no changes in our internal controls over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

During our financial statement close process for the period ended December 31, 2022, a material weakness was identified in the Company’s control over the evaluation of complex transactions as a result of the error identified in the treatment of deemed dividends on redeemable preferred stock in arriving at net income (loss) attributable to common stockholders, which impacted the calculation of earnings per share. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

The Company is evaluating remediation steps, which could include: (1) arranging for additional training for our associates and (2) designing new or enhanced controls whereby management evaluates the nature of equity transactions and where appropriate engages third-party accounting experts to assist management in assessing the accounting in its consolidated financial statements. The material weakness will not be considered remediated until management designs and implements effective controls that operate for a sufficient period of time and management has concluded, through testing, that these controls are effective.

We reviewed the results of management’s assessment with the audit committee of our board of directors.

Notwithstanding the material weakness described above, management has concluded that our condensed consolidated financial statements included in this quarterly report are fairly stated in all material respects in accordance with GAAP.

PART II. OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

On December 20, 2016, a class action lawsuit was filed against one of the Company’s hotel management companies in the Superior Court of the State of California in and for the County of Contra Costa alleging violations of certain California employment laws, which class action affects two hotels owned by subsidiaries of the Company. The court has entered an order granting class certification with respect to: (i) a statewide class of non-exempt employees of our manager who were allegedly deprived of rest breaks as a result of our manager’s previous written policy requiring its employees to stay on premises during rest breaks; and (ii) a derivative class of non-exempt former employees of our manager who were not paid for allegedly missed breaks upon separation from employment. Notices to potential class members were sent out on February 2, 2021. Potential class members had until April 4, 2021 to opt out of the class; however, the total number of employees in the class has not been definitively determined and is the subject of continuing discovery. The opt out period has been extended until such time that discovery has concluded. In May 2023 the trial court requested additional briefing from the parties to determine whether the case should be maintained, dismissed, or the class de-certified. The trial court set a due date of August 7, 2023 for the briefs. If this litigation goes to trial, we expect that the earliest the trial would occur is the last quarter of 2023, based on various extensions to which the parties have agreed. While we believe it is reasonably possible that we may incur a loss associated with this litigation, because there remains uncertainty under California law with respect to a significant legal issue, discovery relating to class members continues, and the trial judge retains discretion to award lower penalties than set forth in the applicable California employment laws, we do not believe that any potential loss to the Company is reasonably estimable at this time. As of June 30, 2023, no amounts have been accrued.

We are also engaged in other legal proceedings that have arisen but have not been fully adjudicated. To the extent the claims giving rise to these legal proceedings are not covered by insurance, they relate to the following general types of claims: employment matters, tax matters and matters relating to compliance with applicable law (for example, the Americans with Disability Act and similar state laws). The likelihood of loss from these legal proceedings is based on the definitions within

56

contingency accounting literature. We recognize a loss when we believe the loss is both probable and reasonably estimable. Based on the information available to us relating to these legal proceedings and/or our experience in similar legal proceedings, we do not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial position, results of operations, or cash flow. However, our assessment may change depending upon the development of these legal proceedings, and the final results of these legal proceedings cannot be predicted with certainty. If we do not prevail in one or more of these legal matters, and the associated realized losses exceed our current estimates of the range of potential losses, our consolidated financial position, results of operations, or cash flows could be materially adversely affected in future periods.

ITEM 1A.RISK FACTORS

The discussion of our business and operations should be read together with the risk factors contained in Item 1A to Part I of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC, which describe various risks and uncertainties to which we are or may become subject. These risks and uncertainties have the potential to affect our business, financial condition, results of operations, cash flows, strategies, or prospects in a material and adverse manner. In addition to the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2022, the following risk factor should be carefully considered in evaluating us and our business.

Our cash, cash equivalents and investments could be adversely affected if the financial institutions in which we hold our cash, cash equivalents and investments fail.

We regularly maintain cash balances at third-party financial institutions in excess of the Federal Deposit Insurance Corporation (the “FDIC”) insurance limit. The FDIC took control and was appointed receiver of Silicon Valley Bank, New York Signature Bank and First Republic Bank on March 10, 2023, March 12, 2023 and May 1, 2023, respectively. The Company does not have any direct exposure to Silicon Valley Bank, New York Signature Bank or First Republic Bank. However, if other banks and financial institutions enter receivership or become insolvent in the future in response to financial conditions affecting the banking system and financial markets, our ability to access our existing cash, cash equivalents and investments may be threatened and could have a material adverse effect on our business and financial condition.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchases of Equity Securities by the Issuer

On December 7, 2022, our board of directors approved a new stock repurchase program pursuant to which the board granted a repurchase authorization to acquire shares of the Company’s common stock, par value $0.01 per share, having an aggregate value of up to $25 million. The Board’s authorization replaced any previous repurchase authorizations.

As of June 30, 2023, we repurchased approximately 5.4 million shares of our common stock for approximately $25.0 million and have completed the $25.0 million repurchase authorization.

The following table provides the information with respect to purchases and forfeitures of our common stock during each of the months in the second quarter of 2023:

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of a Publicly Announced Plan	Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plan
Common stock:
April 1 to April 30	485	(1)	$	3.77	—	$	7
May 1 to May 31	—		$	—	—	$	7
June 1 to June 30	88	(1)	$	3.92	—	$	7
Total	573		$	3.79	—

__________________

(1)Represents 485 and 88 shares in April and June, respectively, that were withheld to cover tax-withholding requirements related to the vesting of restricted shares of our common stock issued to employees of our advisor pursuant to the Company’s stockholder-approved stock incentive plan.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

57

ITEM 4.MINE SAFETY DISCLOSURES

None.

ITEM 5.OTHER INFORMATION

Fourth Amended and Restated Bylaws

On August 4, 2023, the board of directors (the “Board”) of the Company approved amendments to the Fourth Amended and Restated Bylaws, as amended, of the Company (the “Bylaws”), effective immediately. The amendments to the Bylaws provide, among other things, that:

•the notice to be furnished to the Company by a stockholder seeking to bring a proposed director nomination before a meeting of the Company’s stockholders must include the information required pursuant to Rule 14a-19(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) if the stockholder intends to engage in a solicitation in support of director nominees other than the Company’s nominees;

•no stockholder may solicit proxies in support of any nominees other than individuals nominated by the Board unless such stockholder has complied with Rule 14a-19 under the Exchange Act in connection with the solicitation of such proxies, including the provision to the Company of notices required thereunder in a timely manner;

•if any stockholder provides notice pursuant to Rule 14a-19(b) under the Exchange Act and subsequently fails to comply with any of the requirements of Rule 14a-19 under the Exchange Act, then the Company will disregard any proxies or votes solicited for such stockholder’s nominee; and

•at the request of the Company, if any stockholder provides notice pursuant to Rule 14a-19(b) under the Exchange Act, such stockholder must deliver to the Company, no later than five business days prior to the applicable meeting of stockholders, reasonable evidence that such stockholder has met the requirements of Rule 14a-19 under the Exchange Act.

In addition, the amendments to the Bylaws include enhancements to certain advance notice procedures and disclosure requirements for a stockholder nomination of directors and the submission of proposals for consideration at annual meetings of the stockholders of the Company (other than proposals to be included in the Company’s proxy statement pursuant to Rule 14a-8 of the Exchange Act). The above summary does not purport to be complete and is qualified in its entirety by reference to the Fourth Amended and Restated Bylaws, as amended on August 4, 2023, a copy of which is filed as Exhibit 3.7 to this Quarterly Report on Form 10-Q and is incorporated herein by reference.

Rule 10b5-1 Trading Agreements

During the three months ended June 30, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading agreement” or “non-Rule 10b5-1 trading agreement,” as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6.EXHIBITS

Exhibit	Description
3.1	Articles of Amendment and Restatement of Braemar Hotels & Resorts Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on April 29, 2016) (File No. 001-35972).
3.2	Articles Supplementary of Braemar Hotels & Resorts Inc. (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on May 18, 2015) (File No. 001-35972).
3.3	Articles of Amendment of Braemar Hotels & Resorts Inc. (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on April 29, 2016) (File No. 001-35972).
3.4	Amendment Number One to the Articles of Amendment and Restatement of Braemar Hotels & Resorts Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on December 8, 2017) (File No. 001-35972).
3.5	Amendment Number Two to Articles of Amendment and Restatement of Braemar Hotels & Resorts Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on April 23, 2018) (File No. 001-35972).
3.6	Articles of Amendment of Braemar Hotels & Resorts Inc., accepted for record and certified by the SDAT on January 23, 2020 (incorporated by reference to Exhibit 3.13 to Amendment No. 1 to the Registration Statement on Form S-3 filed with the SEC on January 24, 2020) (File No. 333-234663).
3.7*	Fourth Amended and Restated Bylaws, as amended by Amendment No. 1 on March 17, 2022, by Amendment No. 2 on February 23, 2023 and by Amendment No. 3 on August 4, 2023, adopted on August 4, 2023.

58

Exhibit	Description
10.1	Limited Waiver Under Advisory Agreement, dated as of March 2, 2023, by and among Braemar Hotels & Resorts Inc., Braemar Hospitality Limited Partnership, Braemar TRS Corporation, Ashford Inc., and Ashford Hospitality Advisors LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed March 3, 2023) (File No. 001-35972).
10.2	Amendment No. 4 to the Braemar Hotels & Resorts, Inc. Second Amended and Restated 2013 Equity Incentive Plan (incorporated by reference to Annex B to the Company’s Proxy Statement on Schedule 14A filed March 28, 2023) (File No. 001-35972)
10.3	Credit Agreement, dated as of July 31, 2023, by and among Braemar Hospitality Limited Partnership, Braemar Hotels & Resorts Inc., the lenders party thereto and Bank of America, N.A.(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed August 1, 2023) (File No. 001-35972).
31.1*	Certifications of Chief Executive Officer Pursuant to Rule 13a-14(a) and Rule 15d-14(a) of Securities Exchange Act of 1934, as amended.
31.2*	Certifications of Chief Financial Officer Pursuant to Rule 13a-14(a) and Rule 15d-14(a) of Securities Exchange Act of 1934, as amended.
32.1**	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 are formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements Comprehensive Income; (iv) Consolidated Statements of Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to the Consolidated Financial Statements. In accordance with Rule 402 of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be part of any registration statement or other document filed under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document	Submitted electronically with this report.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	Submitted electronically with this report.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document	Submitted electronically with this report.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.	Submitted electronically with this report.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.	Submitted electronically with this report.
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

___________________________________

* Filed herewith.

** Furnished herewith.

59

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

    BRAEMAR HOTELS & RESORTS INC.

Date:	August 7, 2023	By:	/s/ RICHARD J. STOCKTON
			Richard J. Stockton
			President and Chief Executive Officer
Date:	August 7, 2023	By:	/s/ DERIC S. EUBANKS
			Deric S. Eubanks
			Chief Financial Officer

60

EX-3.7

EXHIBIT 3.7

BRAEMAR HOTELS & RESORTS INC.

FOURTH AMENDED AND RESTATED BYLAWS

August 4, 2023
as amended by
Amendment No. 1 on March 17, 2022
by
Amendment No. 2 on February 23, 2023

and by

Amendment No. 3 on August 4, 2023

BRAEMAR HOTELS & RESORTS INC.

FOURTH AMENDED AND RESTATED BYLAWS

ARTICLE I

STOCKHOLDERS

Section 1.    Place. All meetings of stockholders shall be held at the principal executive office of Braemar Hotels & Resorts Inc. (the “Corporation”) or at such other place as shall be set by the Board of Directors (the “Board”) in accordance with these Bylaws and stated in the notice of the meeting.

Section 2.    Annual Meeting. An annual meeting of stockholders for the election of directors and the transaction of any business within the powers of the Corporation shall be held on the date and at the time and place set by the Board of Directors. The Corporation shall hold its first annual meeting of stockholders beginning with the year 2014.

Section 3.    Special Meetings.

(a)    General. Each of the Chairman of the Board, Chief Executive Officer and Board of Directors may call a special meeting of stockholders. Except as provided in subsection (b)(4) of this Section 3, a special meeting of stockholders shall be held on the date and at the time and place set by the Chairman of the Board, Chief Executive Officer or Board of Directors, whoever has called the meeting. Subject to subsection (b) of this Section 3, a special meeting of stockholders shall also be called by the secretary of the Corporation to act on any matter that may properly be considered at a meeting of stockholders upon the written request of stockholders entitled to cast not less than a majority of all the votes entitled to be cast on such matter at such meeting.

(b)    Stockholder-Requested Special Meetings.

(1)    Any stockholder of record seeking to have stockholders request a special meeting shall, by sending written notice to the secretary (the “Record Date Request Notice”) by registered mail, return receipt requested, request the Board of Directors to fix a record date to determine the stockholders entitled to request a special meeting (the “Request Record Date”). The Record Date Request Notice shall set forth the purpose of the meeting and the matters proposed to be acted on at it, shall be signed by one or more stockholders of record as of the date of signature (or their agents duly authorized in a writing accompanying the Record Date Request Notice), shall bear the date of signature of each such stockholder (or such agent) and shall set forth all information relating to each such stockholder and each matter proposed to be acted on at the meeting that would be required to be disclosed in connection with the solicitation of proxies for the election of directors in an election contest (even if an election contest is not involved), or would otherwise be required in connection with such a solicitation, in each case pursuant to Regulation 14A (or any successor provision) under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”). Upon receiving the Record Date Request Notice, the Board of Directors may fix a Request Record Date. The Request Record Date shall not precede and shall not be

more than ten days after the close of business on the date on which the resolution fixing the Request Record Date is adopted by the Board of Directors. If the Board of Directors, within ten days after the date on which a valid Record Date Request Notice is received, fails to adopt a resolution fixing the Request Record Date, the Request Record Date shall be the close of business on the tenth day after the first date on which a Record Date Request Notice is received by the secretary.

(2)    In order for any stockholder to request a special meeting to act on any matter that may properly be considered at a meeting of stockholders, one or more written requests for a special meeting (collectively, the “Special Meeting Request”) signed by stockholders of record (or their agents duly authorized in a writing accompanying the request) as of the Request Record Date entitled to cast not less than a majority of all of the votes entitled to be cast on such matter at such meeting (the “Special Meeting Percentage”) shall be delivered to the secretary. In addition, the Special Meeting Request shall (a) set forth the purpose of the meeting and the matters proposed to be acted on at it (which shall be limited to those lawful matters set forth in the Record Date Request Notice received by the secretary), (b) bear the date of signature of each such stockholder (or such agent) signing the Special Meeting Request, (c) set forth (i) the name and address, as they appear in the Corporation’s books, of each stockholder signing such request (or on whose behalf the Special Meeting Request is signed), (ii) the class, series and number of all shares of stock of the Corporation which are owned (beneficially or of record) by each such stockholder and (iii) the nominee holder for, and number of, shares of stock of the Corporation owned beneficially but not of record by such stockholder, (d) be sent to the secretary by registered mail, return receipt requested, and (e) be received by the secretary within 30 days after the Request Record Date. Any requesting stockholder (or agent duly authorized in a writing accompanying the revocation of the Special Meeting Request) may revoke his, her or its request for a special meeting at any time by written revocation delivered to the secretary.

(3)    The secretary shall inform the requesting stockholders of the reasonably estimated cost of preparing and mailing or delivering the notice of the meeting (including the Corporation’s proxy materials). The secretary shall not be required to call a special meeting upon stockholder request and such meeting shall not be held unless, in addition to the documents required by paragraph (2) of this Section 3(b), the secretary receives payment of such reasonably estimated cost prior to the preparation and mailing or delivery of such notice of the meeting.

(4)    In the case of any special meeting called by the secretary upon the request of stockholders (a “Stockholder-Requested Meeting”), such meeting shall be held at such place, date and time as may be designated by the Board of Directors; provided, however, that the date of any Stockholder-Requested Meeting shall be not more than 90 days after the record date for such meeting (the “Meeting Record Date”); and provided further that if the Board of Directors fails to designate, within ten days after the date that a valid Special Meeting Request is actually received by the secretary (the “Delivery Date”), a date and time for a Stockholder-Requested Meeting, then such meeting shall be held at

    -2-

2:00 p.m., local time, on the 90th day after the Meeting Record Date or, if such 90th day is not a Business Day (as defined below), on the first preceding Business Day; and provided further that in the event that the Board of Directors fails to designate a place for a Stockholder-Requested Meeting within ten days after the Delivery Date, then such meeting shall be held at the principal executive office of the Corporation. In fixing a date for a Stockholder‑Requested Meeting, the Board of Directors may consider such factors as it deems relevant, including, without limitation, the nature of the matters to be considered, the facts and circumstances surrounding any request for the meeting and any plan of the Board of Directors to call an annual meeting or a special meeting. In the case of any Stockholder-Requested Meeting, if the Board of Directors fails to fix a Meeting Record Date that is a date within 30 days after the Delivery Date, then the close of business on the 30th day after the Delivery Date shall be the Meeting Record Date. The Board of Directors may revoke the notice for any Stockholder‑Requested Meeting in the event that the requesting stockholders fail to comply with the provisions of paragraph (3) of this Section 3(b).

(5)    If written revocations of the Special Meeting Request have been delivered to the secretary and the result is that stockholders of record (or their agents duly authorized in writing), as of the Request Record Date, entitled to cast less than the Special Meeting Percentage have delivered, and not revoked, requests for a special meeting on the matter to the secretary: (i) if the notice of meeting has not already been delivered, the secretary shall refrain from delivering the notice of the meeting and send to all requesting stockholders who have not revoked such requests written notice of any revocation of a request for a special meeting on the matter, or (ii) if the notice of meeting has been delivered and if the secretary first sends to all requesting stockholders who have not revoked requests for a special meeting on the matter written notice of any revocation of a request for the special meeting and written notice of the Corporation’s intention to revoke the notice of the meeting or for the chairman of the meeting to adjourn the meeting without action on the matter, (A) the secretary may revoke the notice of the meeting at any time before ten days before the commencement of the meeting or (B) the chairman of the meeting may call the meeting to order and adjourn the meeting without acting on the matter. Any request for a special meeting received after a revocation by the secretary of a notice of a meeting shall be considered a request for a new special meeting.

(6)    The Chairman of the Board, Chief Executive Officer or Board of Directors may appoint regionally or nationally recognized independent inspectors of elections to act as the agent of the Corporation for the purpose of promptly performing a ministerial review of the validity of any purported Special Meeting Request received by the secretary. For the purpose of permitting the inspectors to perform such review, no such purported Special Meeting Request shall be deemed to have been received by the secretary until the earlier of (i) five Business Days after actual receipt by the secretary of such purported request and (ii) such date as the independent inspectors certify to the Corporation that the valid requests received by the secretary represent, as of the Request Record Date, stockholders of record entitled to cast not less than the Special Meeting Percentage. Nothing contained in this paragraph (6) shall in any way be

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construed to suggest or imply that the Corporation or any stockholder shall not be entitled to contest the validity of any request, whether during or after such five Business Day period, or to take any other action (including, without limitation, the commencement, prosecution or defense of any litigation with respect thereto, and the seeking of injunctive relief in such litigation).

(7)    For purposes of these Bylaws, “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the State of New York are authorized or obligated by law or executive order to close.

Section 4.    Notice. A written notice of all annual meetings of stockholders stating the hour, date and place of such annual meetings and, to the extent required by the Maryland General Corporation Law, the purpose for which the meeting has been called shall be given by the Secretary or an Assistant Secretary (or other person authorized by these Bylaws or by law) not less than 10 days nor more than 90 days before the meeting, unless any provisions of the Maryland General Corporation Law prescribe a different period of notice, to each stockholder entitled to vote at such meeting or to each stockholder who, under the Corporation’s charter, as amended from time to time (the “Charter”) or under these Bylaws, is entitled to such notice, by delivering such notice, by mailing it, postage prepaid, addressed to such stockholder at the address of such stockholder as it appears on the Corporation’s stock transfer books, by electronic transmission or by any other means permitted by Maryland law. If mailed, such notice shall be deemed to be given when deposited in the United States mail addressed to the stockholder at the stockholder’s address as it appears on the records of the Corporation, with postage thereon prepaid. If transmitted electronically, such notice shall be deemed to be given when transmitted to the stockholder by an electronic transmission to any address or number of the stockholder at which the stockholder receives electronic transmissions. The Corporation may give a single notice to all stockholders who share an address, which single notice shall be effective as to any stockholder at such address, unless such stockholder objects to receiving such single notice or revokes a prior consent to receiving such single notice. Failure to give notice of any meeting to one or more stockholders, or any irregularity in such notice, shall not affect the validity of any meeting fixed in accordance with this Article I or the validity of any proceedings at any such meeting.

Subject to Section 11(a) of this Article I, any business of the Corporation may be transacted at an annual meeting of stockholders without being specifically designated in the notice, except such business as is required by any statute to be stated in such notice. No business shall be transacted at a special meeting of stockholders except as specifically designated in the notice. The Corporation may postpone or cancel a meeting of stockholders by making a public announcement (as defined in Section 11(c)(3) of this Article I) of such postponement or cancellation prior to the meeting. Notice of the date, time and place to which the meeting is postponed shall be given not less than ten days prior to such date and otherwise in the manner set forth in this section.

Section 5.    Organization and Conduct. Every meeting of stockholders shall be conducted by the Chairman of the Board or, in the case of a vacancy in the office or absence of the Chairman of the Board, by one of the following officers present at the meeting in the following order: the Vice Chairman of the Board, if there is one, the Chief Executive Officer, the President, the Vice Presidents in their order of rank and seniority, the Secretary, or, in the absence of such officers, a chairman chosen by the stockholders by the vote of a majority of the votes cast by stockholders present in person or by proxy. The Secretary, or, in the Secretary’s absence, an Assistant Secretary, or, in the absence of both the Secretary and Assistant Secretaries, an individual appointed by the Board of Directors or, in the absence of such

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appointment, an individual appointed by the chairman of the meeting shall act as secretary. In the event that the Secretary presides at a meeting of stockholders, an Assistant Secretary, or, in the absence of all Assistant Secretaries, an individual appointed by the Board of Directors or the chairman of the meeting, shall record the minutes of the meeting. The order of business and all other matters of procedure at any meeting of stockholders shall be determined by the chairman of the meeting. The chairman of the meeting may prescribe such rules, regulations and procedures and take such action as, in the discretion of the chairman and without any action by the stockholders, are appropriate for the proper conduct of the meeting, including, without limitation, (a) restricting admission to the time set for the commencement of the meeting; (b) limiting attendance at the meeting to stockholders of record of the Corporation, their duly authorized proxies and such other individuals as the chairman of the meeting may determine; (c) limiting participation at the meeting on any matter to stockholders of record of the Corporation entitled to vote on such matter, their duly authorized proxies and other such individuals as the chairman of the meeting may determine; (d) limiting the time allotted to questions or comments; (e) determining when and for how long the polls should be opened and when the polls should be closed; (f) maintaining order and security at the meeting; (g) removing any stockholder or any other individual who refuses to comply with meeting procedures, rules or guidelines as set forth by the chairman of the meeting;

(a)    concluding a meeting or recessing or adjourning the meeting to a later date and time and at a place announced at the meeting; and (i) complying with any state and local laws and regulations concerning safety and security. Unless otherwise determined by the chairman of the meeting, meetings of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.

Section 6.    Quorum. At any meeting of stockholders, the presence in person or by proxy of stockholders entitled to cast a majority (but solely for the 2023 annual meeting of stockholders and any postponement or adjournment thereof, at least one third) of all the votes entitled to be cast at such meeting on any matter shall constitute a quorum; but this section shall not affect any requirement under any statute or the charter of the Corporation for the vote necessary for the approval of any matter. If such quorum is not established at any meeting of the stockholders, the chairman of the meeting may adjourn the meeting sine die or from time to time to a date not more than 120 days after the original record date without notice other than announcement at the meeting. At such adjourned meeting at which a quorum shall be present, any business may be transacted which might have been transacted at the meeting as originally notified.

The stockholders present either in person or by proxy, at a meeting which has been duly called and at which a quorum has been established, may continue to transact business until adjournment, notwithstanding the withdrawal from the meeting of enough stockholders to leave fewer than would be required to establish a quorum.

Section 7.    Voting. Directors of the Corporation shall be elected by a plurality of the votes cast at any meeting of stockholders at which directors are to be elected and at which a quorum is present; provided, however, subject to the stockholders’ approval of the amendment to the Corporation’s charter at the next meeting of the Corporation’s stockholders and the filing and acceptance for record of Articles of Amendment and Restatement implementing such amendment with the Maryland State Department of Assessments and Taxation, effective as of the date on which the Corporation’s stockholders approve the amendment to the Corporation’s charter, a nominee for director shall be elected to the Board of Directors if the votes cast for such nominee’s election exceed the votes cast against such nominee’s election (with “withholds,” “abstentions” and “broker nonvotes” not counted as a vote cast either “for” or “against” that nominee’s election); provided, however, that in the case of a contested election, directors shall be elected by a plurality of the votes cast (in which case stockholders shall not be permitted to cast

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votes against the election of directors). In the election of directors, each share may be voted for as many individuals as there are directors to be elected and for whose election the share is entitled to be voted. Cumulative voting is not permitted. For purposes of this Bylaw provision, a “contested election” shall mean any election of directors with respect to which (i) the Corporation receives notice that any stockholder has nominated an individual for election as a director in compliance with the requirements set forth in these Bylaws and (ii) all such nominations have not been withdrawn by such stockholder(s) on or prior to the date the Corporation first mails its notice of meeting for such meeting to the stockholders, and, as a result of which, there are more nominees than directorships.

A majority of the votes cast at a meeting of stockholders duly called and at which a quorum is present shall be sufficient to approve any other matter which may properly come before the meeting, unless more than a majority of the votes cast is required by law or by the charter of the Corporation. Unless otherwise provided by statute or by the charter, each outstanding share, regardless of class, shall be entitled to one vote on each matter submitted to a vote at a meeting of stockholders. Voting on any question or in any election may be viva voce unless the chairman of the meeting shall order that voting be by ballot or otherwise.

Section 8.    Proxies. A holder of record of shares of stock of the Corporation may cast votes in person or by proxy executed by the stockholder or by the stockholder’s duly authorized agent in any manner permitted by law. Such proxy or evidence of authorization of such proxy shall be filed with the secretary of the Corporation before or at the meeting. No proxy shall be valid more than eleven months after its date unless otherwise provided in the proxy.

Section 9.    Voting of Stock by Certain Holders. Stock of the Corporation registered in the name of a corporation, partnership, trust, limited liability company or other entity, if entitled to be voted, may be voted by the president or a vice president, general partner, trustee or managing member thereof, as the case may be, or a proxy appointed by any of the foregoing individuals, unless some other person who has been appointed to vote such stock pursuant to a bylaw or a resolution of the governing body of such corporation or other entity or agreement of the partners of a partnership presents a certified copy of such bylaw, resolution or agreement, in which case such person may vote such stock. Any director or fiduciary may vote stock registered in the name of such person in the capacity of such director or fiduciary, either in person or by proxy.

Shares of stock of the Corporation directly or indirectly owned by it shall not be voted at any meeting and shall not be counted in determining the total number of outstanding shares entitled to be voted at any given time, unless they are held by it in a fiduciary capacity, in which case they may be voted and shall be counted in determining the total number of outstanding shares at any given time.

The Board of Directors may adopt by resolution a procedure by which a stockholder may certify in writing to the Corporation that any shares of stock registered in the name of the stockholder are held for the account of a specified person other than the stockholder. The resolution shall set forth the class of stockholders who may make the certification, the purpose for which the certification may be made, the form of certification and the information to be contained in it; if the certification is with respect to a record date, the time after the record date within which the certification must be received by the Corporation; and any other provisions with respect to the procedure which the Board of Directors considers necessary or desirable. On receipt by the Corporation of such certification, the person specified in the certification shall be regarded as, for the purposes set forth in the certification, the holder of record of the specified stock in place of the stockholder who makes the certification.

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Section 10.    Inspectors. The Board of Directors or the chairman of the meeting may appoint, before or at the meeting, one or more inspectors for the meeting and any successor to the inspector. Except as otherwise provided by the chairman of the meeting, the inspectors, if any, shall (i) determine the number of shares of stock represented at the meeting, in person or by proxy, and the validity and effect of proxies, (ii) receive and tabulate all votes, ballots or consents, (iii) report such tabulation to the chairman of the meeting, (iv) hear and determine all challenges and questions arising in connection with the right to vote, and (v) do such acts as are proper to fairly conduct the election or vote. Each such report shall be in writing and signed by the inspector or by a majority of them if there is more than one inspector acting at such meeting. If there is more than one inspector, the report of a majority shall be the report of the inspectors. The report of the inspector or inspectors on the number of shares represented at the meeting and the results of the voting shall be prima facie evidence thereof.

Section 11.    Advance Notice of Stockholder Nominees for Director and Other Stockholder Proposals.

(a)    Annual Meetings of Stockholders.

(1)    Nominations of individuals for election to the Board of Directors and the proposal of other business to be considered by the stockholders may be made at an annual meeting of stockholders (i) pursuant to the Corporation’s notice of meeting, (ii) by or at the direction of the Board of Directors, (iii) by any stockholder of the Corporation who was a stockholder of record both at the time of giving of notice by the stockholder as provided for in this Section 11(a) and at the time of the annual meeting, who is entitled to vote at the meeting in the election of each individual so nominated or on any such other business and who has complied with this Section 11(a), or (iv) by any Eligible Holder (as defined in Article I, Section 12 below) whose Nominee (as defined in Article I, Section 12 below) is included in the Corporation’s proxy materials for the relevant annual meeting. For the avoidance of doubt, the foregoing clauses (iii) and (iv) shall be the exclusive means for a stockholder to make director nominations, and the foregoing clause (iii) shall be the exclusive means for a stockholder to propose other business (other than a proposal included in the Corporation’s proxy materials pursuant to and in compliance with Exchange Act Rule 14a-8), at an annual meeting of stockholders.

(2)    For any nomination or other business to be properly brought before an annual meeting by a stockholder pursuant to clause (iii) of paragraph (a)(1) of this Section 11, the stockholder must have given timely notice thereof in writing to the secretary of the Corporation and any such other business must otherwise be a proper matter for action by the stockholders. To be timely, a stockholder’s notice shall set forth all information required under this Section 11 and shall be delivered to the secretary at the principal executive office of the Corporation not earlier than the 90th day nor later than 5:00 p.m., Eastern Time, on the 60th day prior to the first anniversary of the date of the preceding year’s annual meeting; provided, however, that in the event that the date of the annual meeting is advanced or delayed by more than 30 days from the first anniversary of the date of the preceding year’s annual meeting, in order for notice by the stockholder to be timely, such notice must be so delivered not earlier than the 90th day prior to the date of such annual meeting and not later than 5:00 p.m., Eastern Time, on the later of the 60th day prior to

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the date of such annual meeting or the tenth day following the day on which public announcement of the date of such meeting is first made. The postponement or adjournment of an annual meeting, or the public announcement thereof, shall not commence a new time period for the giving of a stockholder’s notice as described above.

(3)    Such stockholder’s notice shall set forth:

(A)    as to each individual whom the stockholder proposes to nominate for election or reelection as a director (each, a “Proposed Nominee”), all information relating to the Proposed Nominee that would be required to be disclosed in connection with the solicitation of proxies for the election of the Proposed Nominee as a director in an election contest (even if an election contest is not involved), or would otherwise be required in connection with such solicitation, in each case pursuant to Regulation 14A (or any successor provision) under the Exchange Act;

(B)    as to any other business that the stockholder proposes to bring before the meeting, a description of such business, the stockholder’s reasons for proposing such business at the meeting and any material interest in such business of such stockholder or any Stockholder Associated Person (as defined below), individually or in the aggregate, including any anticipated benefit to the stockholder or the Stockholder Associated Person therefrom;

(C)    as to the stockholder giving notice and any Stockholder Associated Person, the information required pursuant to Rule 14a-19(b) promulgated under the Exchange Act if the stockholder, such Stockholder Associated Person or any of their respective affiliates, associates or others acting in concert intends to engage in a solicitation in support of director nominees other than the Corporation’s nominees;

(D)    as to the stockholder giving the notice, any Proposed Nominee and any Stockholder Associated Person:

(i)    the class, series and number of all shares of stock or other securities of the Corporation or any affiliate thereof (collectively, the “Company Securities”), if any, which are owned (beneficially or of record) by such stockholder, Proposed Nominee or Stockholder Associated Person, the date on which each such Company Security was acquired and the investment intent of such acquisition, and any short interest (including any opportunity to profit or share in any benefit from any decrease in the price of such stock or other security) in any Company Securities of any such person,

(ii)    the nominee holder for, and number of, any Company Securities owned beneficially but not of record by such stockholder, Proposed Nominee or Stockholder Associated Person,

(iii)    whether and the extent to which such stockholder, Proposed Nominee or Stockholder Associated Person, directly or indirectly (through brokers, nominees or otherwise), is subject to or during the last six months has engaged in any hedging,

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derivative or other transaction or series of transactions or entered into any other agreement, arrangement or understanding (including any short interest, any borrowing or lending of securities or any proxy or voting agreement), the effect or intent of which is to (I) manage risk or benefit from changes in the price of Company Securities for such stockholder, Proposed Nominee or Stockholder Associated Person or (II) increase or decrease the voting power of such stockholder, Proposed Nominee or Stockholder Associated Person in the Corporation or any affiliate thereof disproportionately to such person’s economic interest in the Company Securities, and

(iv)    any substantial interest, direct or indirect (including, without limitation, any existing or prospective commercial, business or contractual relationship with the Corporation), by security holdings or otherwise, of such stockholder, Proposed Nominee or Stockholder Associated Person, in the Corporation or any affiliate thereof, other than an interest arising from the ownership of Company Securities where such stockholder, Proposed Nominee or Stockholder Associated Person receives no extra or special benefit not shared on a pro rata basis by all other holders of the same class or series;

(E)    as to the stockholder giving the notice, any Stockholder Associated Person with an interest or ownership referred to in clauses (ii) or (iii) of this paragraph (3) of this Section 11(a) and any Proposed Nominee:

(i)    the name and address of such stockholder, as they appear on the Corporation’s stock ledger, and the current name and business address, if different, of each such Stockholder Associated Person and any Proposed Nominee and;

(ii)    (i) a description of the investment strategy or objective, if any, of such stockholder and each such Stockholder Associated Person who is not an individual and (ii) a copy of the prospectus, offering memorandum or similar document and any presentation, document or marketing material provided to third parties (including investors and potential investors) to solicit an investment in such stockholder and each such Stockholder Associated Person that contains or describes such stockholder’s and each such Stockholder Associated Person’s performance, personnel or investment thesis or plans or proposals with respect to the Corporation;

(F)    the name and address of any person who contacted or was contacted by the stockholder giving the notice or any Stockholder Associated Person about the Proposed Nominee or other business proposal prior to the date of such stockholder’s notice and;

(G)    to the extent known by the stockholder giving the notice, the name and address of any other stockholder supporting the nominee for election or reelection as a director or the proposal of other business on the date of such stockholder’s notice.

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(4)    Such stockholder’s notice shall, with respect to any Proposed Nominee, be accompanied by a certificate executed by the Proposed Nominee (i) certifying that such Proposed Nominee (a) is not, and will not become, a party to any agreement, arrangement or understanding with any person or entity other than the Corporation in connection with service or action as a director that has not been disclosed to the Corporation and (b) will serve as a director of the Corporation if elected; and (ii) attaching a completed Proposed Nominee questionnaire (which questionnaire shall be provided by the Corporation, upon request, to the stockholder providing the notice and shall include all information relating to the Proposed Nominee that would be required to be disclosed in connection with the solicitation of proxies for the election of the Proposed Nominee as a director in an election contest (even if an election contest is not involved), or would otherwise be required in connection with such solicitation, in each case pursuant to Regulation 14A (or any successor provision) under the Exchange Act and the rules thereunder, or would be required pursuant to the rules of any national securities exchange on which any securities of the Corporation are listed or over-the-counter market on which any securities of the Corporation are traded).

(5)    Notwithstanding anything in this subsection (a) of this Section 11 to the contrary, in the event that the number of directors to be elected to the Board of Directors is increased, and there is no public announcement of such action at least 130 days prior to the first anniversary of the date of the proxy statement (as defined in Section 11(c)(3) of this Article I) for the preceding year’s annual meeting, a stockholder’s notice required by this Section 1(a) shall also be considered timely, but only with respect to nominees for any new positions created by such increase, if it shall be delivered to the secretary at the principal executive office of the Corporation not later than 5:00 p.m., Eastern Time, on the tenth day following the day on which such public announcement is first made by the Corporation.

(6)    For purposes of this Section 11, “Stockholder Associated Person” of any stockholder shall mean (i) any person acting in concert with such stockholder, (ii) any beneficial owner of shares of stock of the Corporation owned of record or beneficially by such stockholder (other than a stockholder that is a depositary) and (iii) any person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such stockholder or such Stockholder Associated Person.

(b)    Special Meetings of Stockholders. Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to the Corporation’s notice of meeting. Nominations of individuals for election to the Board of Directors may be made at a special meeting of stockholders at which directors are to be elected only (i) by or at the direction of the Board of Directors or (ii) provided that the special meeting has been called in accordance with Section 3(a) of this Article I for the purpose of electing directors, by any stockholder of the Corporation who is a stockholder of record both at the time of giving of notice provided for in this Section 11 and at the time of the special meeting, who is entitled to vote at the meeting in the election of each individual so nominated and who has complied with the notice procedures set forth in this Section 11. In the event the Corporation calls a special meeting of stockholders for the purpose of electing one or more individuals to the Board

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of Directors, any stockholder may nominate an individual or individuals (as the case may be) for election as a director as specified in the Corporation’s notice of meeting, if the stockholder’s notice, containing the information required by paragraphs (a)(3) and (4) of this Section 11, is delivered to the secretary at the principal executive office of the Corporation not earlier than the 90th day prior to such special meeting and not later than 5:00 p.m., Eastern Time, on the later of the 60th day prior to such special meeting or the tenth day following the day on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting. The public announcement of a postponement or adjournment of a special meeting shall not commence a new time period for the giving of a stockholder’s notice as described above.

(c)    General.

(1)    If information submitted pursuant to this Section 11 by any stockholder proposing a nominee for election as a director or any proposal for other business at a meeting of stockholders shall be inaccurate in any material respect, such information may be deemed not to have been provided in accordance with this Section 11. Any such stockholder shall notify the Corporation of any inaccuracy or change (within two Business Days of becoming aware of such inaccuracy or change) in any such information. Upon written request by the secretary or the Board of Directors, any such stockholder shall provide, within five Business Days of delivery of such request (or such other period as may be specified in such request), (A) written verification, satisfactory, in the discretion of the Board of Directors or any authorized officer of the Corporation, to demonstrate the accuracy of any information submitted by the stockholder pursuant to this Section 11, and (B) a written update of any information (including, if requested by the Corporation, written confirmation by such stockholder that it continues to intend to bring such nomination or other business proposal before the meeting) submitted by the stockholder pursuant to this Section 11 as of an earlier date. If a stockholder fails to provide such written verification or written update within such period, the information as to which written verification or a written update was requested may be deemed not to have been provided in accordance with this Section 11.

(2)    Only such individuals who are nominated in accordance with this Section 11 shall be eligible for election by stockholders as directors, and only such business shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with this Section 11. The chairman of the meeting shall have the power to determine whether a nomination or any other business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with this Section 11.

(3)    For purposes of this Section 11, “the date of the proxy statement” shall have the same meaning as “the date of the company’s proxy statement released to shareholders” as used in Rule 14a-8(e) promulgated under the Exchange Act, as interpreted by the Securities and Exchange Commission (the “SEC”) from time to time. “Public announcement” shall mean disclosure (A) in a press release reported by the Dow Jones News Service, Associated Press, Business Wire, PR Newswire or other widely circulated news or wire service or (B) in a

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document publicly filed by the Corporation with the SEC pursuant to the Exchange Act.

(4)    Notwithstanding the foregoing provisions of this Section 11, (i) a stockholder shall also comply with all applicable requirements of state law and of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Section 11, (ii) no stockholder, Stockholder Associated Person, or any of their respective affiliates, associates and other persons acting in concert therewith shall solicit proxies in support of any nominees other than the nominees of the Board of Directors unless such person has complied with Rule 14a-19 promulgated under the Exchange Act in connection with the solicitation of such proxies, including the provision to the Corporation of notices required thereunder in a timely manner and (iii) if such stockholder, Stockholder Associated Person, or any of their respective affiliates, representatives or others acting in concert therewith (1) provides notice pursuant to Rule 14a-19(b) promulgated under the Exchange Act as required by Article I, Section 11(a)(3)(C) and (2) subsequently fails to comply with any of the requirements of Rule 14a-19 promulgated under the Exchange Act, then the Corporation shall disregard any proxies or votes solicited for such stockholder’s nominees. Upon request by the Corporation, if any stockholder, Stockholder Associated Person, or any of their respective affiliates, associates and other persons acting in concert therewith provides notice pursuant to Rule 14a-19(b) promulgated under the Exchange Act, such stockholder shall deliver to the Corporation, no later than five (5) business days prior to the applicable meeting, reasonable evidence that such stockholder, Stockholder Associated Person, and any of their respective affiliates, associates or other persons acting in concert therewith have met the requirements of Rule 14a-19 promulgated under the Exchange Act. Except to the extent provided by Rule 14a-19 promulgated under the Exchange Act with respect to a nomination made pursuant to Article I, Section 11(a) and that otherwise complies with the applicable provisions of these Bylaws, nothing in these Bylaws shall be construed to grant any stockholder the right to include or have disseminated or described in the Corporation’s proxy statement any such nomination of directors or directors. Nothing in this Section 11 shall be deemed to affect any right of a stockholder to request inclusion of a proposal in, or the right of the Corporation to omit a proposal from, the Corporation’s proxy statement pursuant to Rule 14a-8 (or any successor provision) under the Exchange Act. Nothing in this Section 11 shall require disclosure of revocable proxies received by the stockholder or Stockholder Associated Person pursuant to a solicitation of proxies after the filing of an effective Schedule 14A by such stockholder or Stockholder Associated Person under Section 14(a) of the Exchange Act.

Section 12.    Proxy Access for Director Nominations.

(a)    Inclusion of Stockholder Nominee in Proxy Materials. Subject to the provisions of this Section 12, if expressly requested in the relevant Nomination Notice (as defined below), the Corporation shall include in its proxy statement for any annual meeting of stockholders:

(1)    the names of any person or persons nominated for election for whom notice is provided in accordance with this Section 12 (each such

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nominee, a “Stockholder Nominee”), which shall also be included on the Corporation’s form of proxy and ballot, by any Eligible Holder (as defined below) or group of up to 20 Eligible Holders that has (individually and collectively, in the case of a group) satisfied, as determined by the Board of Directors or any committee thereof, all applicable conditions and complied with all applicable procedures set forth in this Section 12 (such Eligible Holder or group of Eligible Holders being a “Nominating Stockholder”);

(2)    disclosure about each Stockholder Nominee and the Stockholder required under the rules of the SEC in the proxy statement;

(3)    any statement included by the Nominating Stockholder in the Nomination Notice for inclusion in the proxy statement in support of each Stockholder Nominee’s election to the Board of Directors (subject, without limitation, to Section 12(e)(2)), if such statement does not exceed 500 words and fully complies with Section 14 of the Exchange Act and the rules and regulations thereunder, including Rule 14a-9 (the “Supporting Statement”); and

(4)    nothing in this Section 12 shall limit the Corporation’s ability to solicit against and include in its proxy materials any statement in opposition to the nomination, any of the information provided pursuant to this Section 12 and any solicitation materials or related information with respect to a Stockholder Nominee.

For purposes of this Section 12, any determination to be made by the Board of Directors may be made by the Board of Directors, a committee of the Board of Directors or any officer of the Corporation designated by the Board of Directors or a committee of the Board of Directors, and any such determination shall be final and binding on the Corporation, any Eligible Holder, any Nominating Stockholder, any Stockholder Nominee and any other person so long as made in good faith (without any further requirements). The chairman of any annual meeting of stockholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting, shall have the power and duty to determine whether a Stockholder Nominee has been nominated in accordance with the requirements of this Section 12 and, if not so nominated, shall direct and declare at the meeting that such Stockholder Nominee shall not be considered. This Section 12 shall be the exclusive method for stockholders to include nominees for Director election in the Corporation’s proxy materials.

(b)    Maximum Number of Stockholder Nominees.

(1)    The Corporation shall not be required to include in the proxy statement for an annual meeting of stockholders more Stockholder Nominees than that number of directors constituting the greater of (i) two or (ii) 20% of the total number of directors of the Corporation on the last day on which a Nomination Notice may be submitted pursuant to this Section 12 (rounded down to the nearest whole number) (the “Maximum Number”). The Maximum Number for a particular annual meeting shall be reduced by: (i) Stockholder Nominees who the Board of Directors itself decides to nominate for election at such annual meeting; (ii) Stockholder Nominees who cease to satisfy, or Stockholder Nominees of Nominating Stockholders that cease to satisfy, the eligibility

    -13-

requirements in this Section 12, as determined by the Board of Directors; (iii) Stockholder Nominees whose nomination is withdrawn by the Nominating Stockholder or who become unwilling to serve on the Board of Directors; and (iv) the number of incumbent directors who had been Stockholder Nominees with respect to any of the preceding two annual meetings of stockholders and whose reelection at the upcoming annual meeting is being recommended by the Board of Directors. In the event that one or more vacancies for any reason occurs on the Board of Directors after the deadline for submitting a Nomination Notice as set forth in Section 12(d) below but before the date of the annual meeting, and the Board of Directors resolves to reduce the size of the board in connection therewith, the Maximum Number shall be calculated based on the number of directors in office as so reduced.

(2)    If the number of Stockholder Nominees pursuant to this Section 12 for any annual meeting of stockholders exceeds the Maximum Number then, promptly upon notice from the Corporation, each Nominating Stockholder will select one Stockholder Nominee for inclusion in the proxy statement until the Maximum Number is reached, going in order of the amount (largest to smallest) of the ownership position as disclosed in each Nominating Stockholder’s Nomination Notice and if the amount of the ownership position is tied, in the order of the date of the Nominating Stockholder’s Nomination Notice (earliest to latest), with the process repeated if the Maximum Number is not reached after each Nominating Stockholder has selected one Stockholder Nominee. If, after the deadline for submitting a Nomination Notice as set forth in Section 12(d), a Nominating Stockholder or a Stockholder Nominee ceases to satisfy the eligibility requirements in this Section 12, as determined by the Board of Directors, a Nominating Stockholder withdraws its nomination or a Stockholder Nominee becomes unwilling to serve on the Board of Directors, whether before or after the mailing or other distribution of the definitive proxy statement, then the nomination shall be disregarded, and the Corporation: (i) shall not be required to include in its proxy statement or on any ballot or form of proxy the disregarded Stockholder Nominee or any successor or replacement nominee proposed by the Nominating Stockholder or by any other Nominating Stockholder and (ii) may otherwise communicate to its stockholders, including without limitation by amending or supplementing its proxy statement or ballot or form of proxy, that a Stockholder Nominee will not be included as a nominee in the proxy statement or on any ballot or form of proxy and will not be voted on at the annual meeting.

(c)    Eligibility of Nominating Stockholder.

(1)    An “Eligible Holder” is a person who has either (i) been a record holder of the shares of common stock used to satisfy the eligibility requirements in this Section 12(c) continuously for the three-year period specified in Subsection (2) below or (ii) provides to the Secretary of the Corporation, within the time period referred to in Section 12(d), evidence of continuous ownership (as defined below) of such shares for such three-year period from one or more securities intermediaries in a form that the Board of Directors or any committee thereof determines would be deemed acceptable for purposes of a stockholder proposal under Rule 14a‑8(b)(2) under the Exchange Act (or any successor rule).

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(2)    An Eligible Holder or group of up to 20 Eligible Holders may submit a nomination in accordance with this Section 12 only if the person or group (in the aggregate) has continuously owned at least the Minimum Number (as defined below) of shares of the Corporation’s common stock throughout the three-year period preceding and including the date of submission of the Nomination Notice, and continues to own at least the Minimum Number through the date of the annual meeting. Two or more funds that are (x) under common management and investment control, (y) under common management and funded primarily by a single employer or (z) a “group of investment companies,” as such term is defined in Section 12(d)(1)(G)(ii) of the Investment Company Act of 1940, as amended, shall be treated as one Eligible Holder if such Eligible Holder shall provide together with the Nomination Notice documentation reasonably satisfactory to the Corporation that demonstrates that the funds meet the criteria set forth in (x), (y) or (z) hereof. For the avoidance of doubt, in the event of a nomination by a group of Eligible Holders, any and all requirements and obligations for an individual Eligible Holder that are set forth in this Section 12, including the minimum holding period, shall apply to each member of such group; provided, however, that the Minimum Number shall apply to the ownership of the group in the aggregate. Should any stockholder cease to satisfy the eligibility requirements in this Section 12, as determined by the Board of Directors, or withdraw from a group of Eligible Holders at any time prior to the annual meeting of stockholders, the group of Eligible Stockholders shall only be deemed to own the shares held by the remaining members of the group.

(3)    The “Minimum Number” of shares of the Corporation’s common stock means 3% of the number of outstanding shares of common stock as of the most recent date for which such amount is given in any filing by the Corporation with the SEC prior to the submission of the Nomination Notice.

(4)    For purposes of this Section 12, an Eligible Holder “owns” only those outstanding shares of the Corporation as to which the Eligible Holder possesses both:

(A)    the full voting and investment rights pertaining to the shares; and

(B)    the full economic interest in (including the opportunity for profit and risk of loss on) such shares; provided that the number of shares calculated in accordance with clauses (A) and (B) shall not include any shares: (1) purchased or sold by such Eligible Holder or any of its affiliates in any transaction that has not been settled or closed, (2) sold short by such Eligible Holder, (3) borrowed by such Eligible Holder or any of its affiliates for any purpose or purchased by such Eligible Holder or any of its affiliates pursuant to an agreement to resell or subject to any other obligation to resell to another person, or (4) subject to any option, warrant, forward contract, swap, contract of sale, other derivative or similar agreement entered into by such Eligible Holder or any of its affiliates, whether any such instrument or agreement is to be settled with shares or with cash based on the notional amount or value of outstanding shares of the Corporation, in any such case which instrument or agreement

    -15-

has, or is intended to have, the purpose or effect of: (x) reducing in any manner, to any extent or at any time in the future, such Eligible Holder’s or any of its affiliates’ full right to vote or direct the voting of any such shares, and/or (y) hedging, offsetting, or altering to any degree, gain or loss arising from the full economic ownership of such shares by such Eligible Holder or any of its affiliates.

An Eligible Holder “owns” shares held in the name of a nominee or other intermediary so long as the Eligible Holder retains the right to instruct how the shares are voted with respect to the election of directors and possesses the full economic interest in the shares. An Eligible Holder’s ownership of shares shall be deemed to continue during any period in which the Eligible Holder has delegated any voting power by means of a proxy, power of attorney, or other similar instrument or arrangement that is revocable at any time by the Eligible Holder. An Eligible Holder’s ownership of shares shall be deemed to continue during any period in which the Eligible Holder has loaned such shares provided that the Eligible Holder has the power to recall such loaned shares on three business days’ notice, has recalled such loaned shares as of the date of the Nomination Notice and continues to hold such shares through the date of the annual meeting. The terms “owned,” “owning” and other variations of the word “own” shall have correlative meanings. Whether outstanding shares of the Corporation are “owned” for these purposes shall be determined by the Board.

(5)    No Eligible Holder shall be permitted to be in more than one group constituting a Nominating Stockholder, and if any Eligible Holder appears as a member of more than one group, it shall be deemed to be a member of the group that has the largest ownership position as reflected in the Nomination Notice.

(d)    Nomination Notice. To nominate a Stockholder Nominee, the Nominating Stockholder must, no earlier than the 120th day and no later than 5:00 p.m., Eastern Time, on the 90th day prior to the first anniversary of the date of the proxy statement for the preceding year’s annual meeting, submit to the Secretary of the Corporation at the principal executive office of the Corporation all of the following information and documents (collectively, the “Nomination Notice”); provided, however, that in the event that the date of the annual meeting is advanced or delayed by more than 30 days from the first anniversary of the date of the preceding year’s annual meeting, the Nomination Notice shall be given in the manner provided herein not earlier than the 120th day prior to the date of such annual meeting and not later than 5:00 p.m., Eastern Time, on the later of the 90th day prior to the date of such annual meeting or the tenth day following the day on which public announcement of the date of such meeting is first made:

(1)    A Schedule 14N (or any successor form) relating to each Stockholder Nominee, completed and filed with the SEC by the Nominating Stockholder as applicable, in accordance with SEC rules;

(2)    A written notice, in a form deemed satisfactory by the Board of Directors, of the nomination of each Stockholder Nominee that includes the following additional information, agreements, representations and warranties by the Nominating Stockholder (including each group member):

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(A)    the information required with respect to the nomination of directors pursuant to Section 11 of these Bylaws;

(B)    the details of any relationship that existed within the past three years and that would have been described pursuant to Item 6(e) of Schedule 14N (or any successor item) if it existed on the date of submission of the Schedule 14N;

(C)    a representation and warranty that the Nominating Stockholder acquired the securities of the Corporation in the ordinary course of business and did not acquire, and is not holding, securities of the Corporation for the purpose or with the effect of influencing or changing control of the Corporation;

(D)    a representation and warranty that each Stockholder Nominee’s candidacy or, if elected, Board membership would not violate applicable state or federal law or the rules of any stock exchange on which the Corporation’s securities are traded;

(E)    a representation and warranty that each Stockholder Nominee:

(i)    does not have any direct or indirect relationship with the Corporation that would cause the Stockholder Nominee to be considered not independent pursuant to the Corporation’s policy on director independence contained in the Corporation’s Corporate Governance Guidelines as most recently published on its website and otherwise qualifies as independent under the rules of the New York Stock Exchange;

(ii)    meets the audit committee and compensation committee independence requirements under the rules of the New York Stock Exchange;

(iii)    is a “non-employee director” for the purposes of Rule 16b-3 under the Exchange Act (or any successor rule);

(iv)    is an “outside director” for the purposes of Section 162(m) of the Internal Revenue Code (or any successor provision);

(v)    meets the director qualifications set forth in Article II, Section 4 of these Bylaws; and

(vi)    is not and has not been subject to any event specified in Rule 506(d)(1) of Regulation D (or any successor rule) under the Securities Act of 1933 or Item 401(f) of Regulation S-K (or any successor rule) under the Exchange Act, without reference to whether the event is material to an evaluation of the ability or integrity of such Stockholder Nominee;

(F)    a representation and warranty that the Nominating Stockholder satisfies the eligibility requirements set forth in Section 12(c)

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and has provided evidence of ownership to the extent required by Section 12(c)(1);

(G)    a representation and warranty that the Nominating Stockholder intends to continue to satisfy the eligibility requirements described in Section 12(c) through the date of the annual meeting and intends to continue to hold the Minimum Number of shares for at least one year following the annual meeting;

(H)    details of any position of a Stockholder Nominee as an officer or director of any competitor (that is, any entity that produces products or provides services that compete with or are alternatives to the principal products produced or services provided by the Corporation or its affiliates) of the Corporation, within the three years preceding the submission of the Nomination Notice;

(I)    a representation and warranty that the Nominating Stockholder will not engage in a “solicitation” within the meaning of Rule 14a-1(l) (without reference to the exception in Section 14a-(l)(2)(iv)) (or any successor rules) with respect to the annual meeting, other than with respect to a Stockholder Nominee or any nominee of the Board of the Directors;

(J)    a representation and warranty that the Nominating Stockholder will not use any proxy card other than the Corporation’s proxy card in soliciting stockholders in connection with the election of a Stockholder Nominee at the annual meeting;

(K)    if desired, a Supporting Statement; and

(L)    in the case of a nomination by a group, the designation by all group members or one group member that is authorized to act on behalf of all group members with respect to matters relating to the nomination, including withdrawal of the nomination;

(3)    An executed agreement, in a form deemed satisfactory by the Board of Directors or any committee thereof pursuant to which the Nominating Stockholder (including each group member) agrees:

(A)    to comply with all applicable laws, rules and regulations in connection with the nomination, solicitation and election;

(B)    to file any written solicitation or other communication with the Corporation’s stockholders relating to one or more of the Corporation’s directors or director nominees or any Stockholder Nominee with the SEC, regardless of whether any such filing is required under rule or regulation or whether any exemption from filing is available for such materials under any rule or regulation;

(C)    to assume all liability stemming from an action, suit or proceeding concerning any actual or alleged legal or regulatory violation arising out of any communication by the Nominating Stockholder or any of its Stockholder Nominees with the Corporation, its stockholders or any

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other person in connection with the nomination or election of directors, including, without limitation, the Nomination Notice;

(D)    to indemnify and hold harmless (jointly with all other group members, in the case of a group member) the Corporation and each of its directors, officers and employees individually against any liability, loss, damages, expenses or other costs (including attorneys’ fees) incurred in connection with any threatened or pending action, suit or proceeding, whether legal, administrative or investigative, against the Corporation or any of its directors, officers or employees arising out of or relating to a failure or alleged failure of the Nominating Stockholder or any of its Stockholder Nominees to comply with, or any breach or alleged breach of, it or their obligations, agreements or representations under this Section 12;

(E)    in the event that any information included in the Nomination Notice, or any other communication by the Nominating Stockholder (including with respect to any group member), with the Corporation, its stockholders or any other person in connection with the nomination or election ceases to be true and accurate in all material respects (or omits a material fact necessary to make the statements made not misleading), or that the Nominating Stockholder (including any group member) has failed to continue to satisfy the eligibility requirements described in Section 12(c), to promptly (and in any event within 48 hours of discovering such misstatement, omission or failure) notify the Corporation and any other recipient of such communication of (A) the misstatement or omission in such previously provided information and of the information that is required to correct the misstatement or omission or (B) such failure; and

(4)    An executed agreement, in a form deemed satisfactory by the Board of Directors or any committee thereof or by each Stockholder Nominee:

(A)    to provide to the Corporation such other information and certifications, including completion of the Corporation’s director questionnaire, as it may reasonably request;

(B)    at the reasonable request of the Nominating and Corporate Governance Committee, to meet with the Nominating and Corporate Governance Committee to discuss matters relating to the nomination of such Stockholder Nominee to the Board of Directors, including the information provided by such Stockholder Nominee to the Corporation in connection with his or her nomination and such Stockholder Nominee’s eligibility to serve as a member of the Board of Directors;

(C)    that such Stockholder Nominee has read and agrees, if elected, to serve as a member of the Board of Directors, to adhere to the Corporation’s Corporate Governance Guidelines and Code of Business Conduct and Ethics and any other Corporation policies and guidelines applicable to directors; and

(D)    that such Stockholder Nominee is not and will not become a party to (i) any compensatory, payment or other financial agreement, arrangement or understanding with any person or entity in connection with

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his or her nomination, service or action as a director of the Corporation that has not been disclosed to the Corporation, (ii) any agreement, arrangement or understanding with any person or entity as to how such Stockholder Nominee would vote or act on any issue or question as a director (a “Voting Commitment”) that has not been disclosed to the Corporation or (iii) any Voting Commitment that could limit or interfere with such Stockholder Nominee’s ability to comply, if elected as a director of the Corporation, with its director duties under applicable law.

The information and documents required by this Section 12(d) to be provided by the Nominating Stockholder shall be: (i) provided with respect to and executed by each group member, in the case of information applicable to group members; and (ii) provided with respect to the persons specified in Instruction 1 to Items 6(c) and (d) of Schedule 14N (or any successor item) in the case of a Nominating Stockholder or group member that is an entity. The Nomination Notice shall be deemed submitted on the date on which all the information and documents referred to in this Section 12(d) (other than such information and documents contemplated to be provided after the date the Nomination Notice is provided) have been delivered to or, if sent by mail, received by the Secretary of the Corporation.

(e)    Exceptions.

(1)    Notwithstanding anything to the contrary contained in this Section 12, the Corporation may omit from its proxy statement any Stockholder Nominee and any information concerning such Stockholder Nominee (including a Nominating Stockholder’s Supporting Statement) and no vote on such Stockholder Nominee will occur (notwithstanding that proxies in respect of such vote may have been received by the Corporation), and the Nominating Stockholder may not, after the last day on which a Nomination Notice would be timely, cure in any way any defect preventing the nomination of such Stockholder Nominee, if:

(A)    the Corporation receives a notice pursuant to Section 11 of these Bylaws that a stockholder intends to nominate a candidate for director at the annual meeting, whether or not such notice is subsequently withdrawn or made the subject of a settlement with the Corporation;

(B)    the Nominating Stockholder or the designated lead group member, as applicable, or any qualified representative thereof, does not appear at the meeting of stockholders to present the nomination submitted pursuant to this Section 12 or the Nominating Stockholder withdraws its nomination or the chairman of the annual meeting declares that such nomination was not made in accordance with the procedures prescribed by this Section 12 and shall therefore be disregarded;

(C)    the Board of Directors determines that such Stockholder Nominee’s nomination or election to the Board of Directors would result in the Corporation violating or failing to be in compliance with the Corporation’s bylaws or charter or any applicable law, rule or regulation to which the Corporation is subject, including any rules or regulations of the New York Stock Exchange;

(D)    such Stockholder Nominee was nominated for election to the Board of Directors pursuant to this Section 12 at one of the Corporation’s two preceding annual meetings of stockholders and either

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withdrew or became ineligible or received a vote of less than 25% of the votes cast in favor of such Stockholder Nominee’s election;

(E)    such Stockholder Nominee has been, within the past three years, an officer or director of a competitor, as defined for purposes of Section 8 of the Clayton Antitrust Act of 1914, as amended; or

(F)    the Corporation is notified, or the Board of Directors determines, that the Nominating Stockholder or the Stockholder Nominee has failed to continue to satisfy the eligibility requirements described in Section 12(c), any of the representations and warranties made in the Nomination Notice ceases to be true and accurate in all material respects (or omits a material fact necessary to make the statements made not misleading), such Stockholder Nominee becomes unwilling or unable to serve on the Board of Directors or any material violation or breach occurs of the obligations, agreements, representations or warranties of the Nominating Stockholder or such Stockholder Nominee under this Section 12.

(2)    Notwithstanding anything to the contrary contained in this Section 12, the Corporation may omit from its proxy statement, or may supplement or correct, any information, including all or any portion of the Supporting Statement or any other statement in support of a Stockholder Nominee included in the Nomination Notice, if the Board of Directors determines that:

(A)    such information is not true in all material respects or omits a material statement necessary to make the statements made not misleading; or

(B)    the inclusion of such information in the proxy statement would otherwise violate the SEC proxy rules or any other applicable law, rule or regulation.

The Corporation may solicit against, and include in the proxy statement its own statement relating to, any Stockholder Nominee.

ARTICLE II

DIRECTORS

Section 1.    Powers. All of the powers of the Corporation shall be exercised by or under the direction of the Board of Directors except as otherwise provided by the Charter or required by law.

Section 2.    Number and Terms. The Board of Directors shall establish and may increase or decrease the number of directors of the Corporation, provided, that the number thereof shall never be less than the minimum number permitted under the Maryland General Corporation Law nor more than 15, and further provided, that the tenure of office of a director shall not be affected by any decrease in the number of directors. A majority of the directors shall have been affirmatively determined by the Board to be independent, as defined and to the extent required in the applicable rules of the SEC and the listing standards of the New York Stock Exchange. The directors shall be elected at the annual meeting of the stockholders and each

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director shall be elected to serve for a term of one year and until his successor shall be elected and shall qualify or until his earlier resignation or removal.

Section 3.    Director Nominations. Nomination of candidates for election as directors of the Corporation at any annual or special meeting of stockholders may be made (a) by, or at the direction of, a majority of the Board of Directors or (b) by any stockholder entitled to vote at such annual meeting and has complied with Article 1, Section 11.

Section 4.    Qualification. No Director need be a stockholder of the Corporation. Unless waived by a vote of the Board of Directors, no individual may serve as a director of the Corporation if he has reached the age of 70 years at the time of election. Upon attaining the age of 70, and annually thereafter, a director shall tender a letter of proposed retirement from the Board, effective upon the expiration of such director’s then-current term, and the Board shall determine whether, in light of all the circumstances, the Board should accept such proposed retirement or request that the director continue to serve on the Board of Directors.

Section 5.    Vacancies. Any vacancy occurring on the Board of Directors, including any vacancy created by reason of an increase in the number of directors, shall be filled in the manner provided in Article VII, Section 6 of the Charter.

Section 6.    Resignation. Any Director may resign at any time by giving written notice to the Board of Directors, effective upon execution and delivery to the Corporation of such written notice or upon any future date specified in the notice, unless the resignation otherwise provides.

Section 7.    Regular Meetings. The regular annual meeting of the Board of Directors shall be held, without other notice than this Bylaw, on the same date and at the same place as the annual meeting of stockholders following the close of such meeting of stockholders. Other regular meetings of the Board of Directors may be held at such hour, date and place as the Board of Directors may by resolution from time to time determine without other notice than such resolution.

Section 8.    Executive Sessions. To ensure free and open discussion and communication among the non‑management directors, the non-management directors shall meet in executive session at least twice a year with no members of management present.

Section 9.    Special Meetings. Special meetings of the Board of Directors may be called, orally or in writing, by or at the request of a majority of the Directors, the Chairman of the Board, if one is elected, the Lead Director, if one is elected, or the Chief Executive Officer. The person calling any such special meeting of the Board of Directors may fix the hour, date and place thereof.

Section 10.    Notice of Meetings. Notice of the hour, date and place of all special meetings of the Board of Directors shall be given to each Director by the Secretary or an Assistant Secretary, or in case of the death, absence, incapacity or refusal of such persons, by the Chairman of the Board, if one is elected, or the Chief Executive Officer or such other officer designated by the Chairman of the Board, if one is elected, or the Chief Executive Officer. Notice of any special meeting of the Board of Directors shall be given to each Director in person or by telephone, electronic mail, facsimile transmission or by telegram sent to his business or home address at least 24 hours in advance of the meeting, or by written notice mailed to his business or home address at least 48 hours in advance of the meeting. Such notice shall be deemed to be delivered when hand delivered to such address, when read to such Director by telephone, when deposited in the mail so addressed with postage thereon prepaid, upon transmission of the message by electronic mail, upon completion of transmission of a facsimile

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message and receipt of a completed answer back indicating receipt or when delivered to the telegraph company if sent by telegram.

When any Board of Directors meeting, either regular or special, is adjourned for more than 30 days, notice of the adjourned meeting shall be given as in the case of an original meeting. It shall not be necessary to give any notice of the hour, date or place of any meeting adjourned for 30 days or less or of the business to be transacted at such meeting, other than an announcement at the meeting at which such adjournment is taken of the hour, date and place to which the meeting is adjourned.

A written waiver of notice executed before or after a meeting by a director and filed with the records of the meeting shall be deemed to be equivalent to an effective notice of the meeting. The attendance of a director at a meeting shall constitute a waiver of notice of such meeting. Except as otherwise required by law, by the Charter or by these Bylaws, neither the business to be transacted at, nor the purpose of, any meeting of the Board of Directors need be specified in the notice or waiver of notice of such meeting.

Section 11.    Quorum. At any meeting of the Board of Directors, a majority of the Directors then in office shall constitute a quorum for the transaction of business, but if less than a quorum is present at a meeting, a majority of the directors present may adjourn the meeting from time to time, and the meeting may be held as adjourned without further notice, except as provided in Section 10 of this Article II. Any business which might have been transacted at the meeting as originally noticed may be transacted at such adjourned meeting at which a quorum is present.

Section 12.    Action at Meeting. At any meeting of the Board of Directors at which a quorum is present and subject to Section 8 of Article VII of the Charter, a majority of the Directors present may take any action on behalf of the Board of Directors, unless otherwise required by law, by the Charter or these Bylaws.

Section 13.    Action by Consent. Any action required or permitted to be taken at any meeting of the Board of Directors may be taken without a meeting if all members of the Board of Directors consent thereto in writing. Such written consent shall be filed with the records of the proceedings of the Board of Directors and shall be treated for all purposes as a vote at a meeting of the Board of Directors.

Section 14.    Manner of Participation. Members of the Board of Directors or of committees elected by the Board pursuant to Section 15 of this Article II may participate in meetings of the Board or of such committees by means of telephone conference or similar communications equipment by means of which all directors participating in the meeting can hear each other at the same time, and participation in a meeting in accordance herewith shall constitute presence in person at such meeting for purposes of these Bylaws.

Section 15.    Committees. The Board of Directors, by the affirmative vote of a majority of the directors then in office may elect from its number directors to serve on one or more committees, including an Audit Committee, a Compensation Committee and an Nominating/Corporate Governance Committee, and may delegate thereto some or all of its powers except those which by law, by the Charter or by these Bylaws, may not be delegated. Except as the Board of Directors may otherwise determine or as required by law, by the Charter or by these Bylaws, any such committee may make rules for conduct of its business, but unless otherwise provided by the Board of Directors or in such rules, its business shall be conducted so far as possible in the same manner as is provided by the Charter and by these Bylaws for the Board of Directors. Any committee to which the Board of Directors delegates any of its powers or duties shall keep records of its meetings and shall report its action to the Board of Directors.

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The Board of Directors shall have power to rescind any action of any committee, other than the Audit Committee, but no such rescission shall have retroactive effect. With the approval of the Board of Directors, the Chief Executive Officer may appoint such other committees consisting of such directors as the Chief Executive Officer shall select. Any recommendations of such committees appointed by the Chief Executive Officer shall be submitted to the Board of Directors.

Section 16.    Compensation of Directors. Directors shall receive compensation for their services as shall be determined by a majority of the Board of Directors, provided that Directors who are serving the Corporation as officers or employees and who receive compensation for their services as such (“Employee Directors”) shall not receive any salary or other compensation for their services as Directors of the Corporation; provided, however, that such Employee Directors may be paid their reasonable expenses incurred as a director.

ARTICLE III

OFFICERS

Section 1.    Enumeration. The officers of the Corporation shall consist of a Chief Executive Officer, a President, a Secretary and a Treasurer and such other officers, including without limitation a Chairman of the Board, a Chief Operating Officer, a Chief Legal Officer, a Chief Financial Officer, a Chief Accounting Officer, one or more Vice Presidents (including Executive Vice Presidents or Senior Vice Presidents), Assistant Vice Presidents, Assistant Treasurers and Assistant Secretaries, as the Board of Directors may determine. Effective on the date on which the Corporation hires a Chief Executive Officer that is not also the Chairman of the Board, any number of offices may be held by the same person, except the offices of Chairman of the Board and the Chief Executive Officer.

Section 2.    Election and Appointment. At the regular annual meeting of the Board of Directors following the annual meeting of stockholders, the Board of Directors shall elect the Chief Executive Officer, the President, the Treasurer and the Secretary. Other officers may be appointed by the Board of Directors at such regular annual meeting of the Board of Directors or at any other regular or special meeting, or other officers may be appointed by the Chief Executive Officer.

Section 3.    Qualification. No officer need be a stockholder or a director. Any person may occupy more than one office of the Corporation at any time except the offices of President and Vice President. Any officer may be required by the Board of Directors to give bond, at the Corporation’s expense, for the faithful performance of his duties in such amount and with such sureties as the Board of Directors may determine.

Section 4.    Tenure. Except as otherwise provided by the Charter or by these Bylaws, each of the officers of the Corporation shall hold office until the regular annual meeting of the Board of Directors following the next annual meeting of stockholders and until his successor is elected and qualified or until his earlier resignation or removal. Election or appointment of an officer, employee or agent shall not of itself create contract rights. The Board of Directors may, however, authorize the Corporation to enter into an employment contract with any officer in accordance with law, but no such contract right shall prohibit the right of the Board of Directors to remove any officer at any time in accordance with Section 6 of this Article III.

Section 5.    Resignation. Any officer may resign by delivering his written resignation to the Corporation addressed to the Chief Executive Officer or the Secretary, and

    -24-

such resignation shall be effective upon receipt unless it is specified to be effective at some other time or upon the happening of some other event.

Section 6.    Removal. If the Board of Directors in its judgment finds that the best interests of the Corporation will be served, the Board of Directors may remove any officer by the affirmative vote of a majority of the Directors then in office. Such removal shall be without prejudice to the contract rights, if any, of the person so removed.

Section 7.    Absence or Disability. In the event of the absence or disability of any officer, the Board of Directors may designate another officer to act temporarily in place of such absent or disabled officer.

Section 8.    Vacancies. Any vacancy in any office may be filled for the unexpired portion of the term by the Board of Directors.

Section 9.    Chief Executive Officer. The President may be the Chief Executive Officer or the Board of Directors may elect another person to be the Chief Executive Officer. In the absence of the Chairman of the Board, the Chief Executive Officer shall preside, when present, at all meetings of the Board of Directors. The Chief Executive Officer shall, subject to the direction of the Board of Directors, have general supervision and control of the Corporation’s business and shall preside, if the Chairman of the Board is not present, at all meetings of the stockholders. Effective on the date on which the Corporation hires a Chief Executive Officer that is not also the Chairman of the Board, the Chief Executive Officer shall not concurrently serve as the Chairman of the Board.

Section 10.    Chairman of the Board. The Chairman of the Board shall preside at all meetings of the Board of Directors and at all meetings of stockholders. If the Chairman of the Board is absent, the Chief Executive Officer shall preside at meetings of the Board of Directors and at meetings of stockholders. The Chairman of the Board shall have such other powers and shall perform such other duties as the Board of Directors may from time to time designate and shall act as an officer of the Corporation if so designated by the Board.

Section 11.    President. If the President is not the Chief Executive Officer or Chairman of the Board and in the absence of such persons, the President shall preside, when present, at all meetings of the stockholders. If the President is not the Chief Executive Officer, he shall have such powers and perform such duties as the Board of Directors or the Chief Executive Officer may from time to time designate.

Section 12.    Chief Operating Officer, Chief Legal Officer, Chief Financial Officer and Chief Accounting Officer. Any Chief Operating Officer, Chief Legal Officer, Chief Financial Officer or Chief Accounting Officer shall have such powers and shall perform such duties as the Board of Directors or the Chief Executive Officer may from time to time designate.

Section 13.    Vice Presidents and Assistant Vice Presidents. Any Vice President (including any Executive Vice President or Senior Vice President) and Assistant Vice President shall have such powers and shall perform such duties as the Board of Directors or the Chief Executive Officer may from time to time designate.

Section 14.    Treasurer and Assistant Treasurers. The Chief Financial Officer shall be the Treasurer, unless the Board of Directors shall elect another officer to be the Treasurer. The Treasurer shall, subject to the direction of the Board of Directors and except as the Board of Directors or the Chief Executive Officer may otherwise provide, have general charge of the financial affairs of the Corporation and shall cause to be kept accurate books of account. He shall have custody of all funds, securities and valuable documents of the

    -25-

Corporation. He shall have such other duties and powers as may be designated from time to time by the Board of Directors or the Chief Executive Officer. In the absence of a Chief Financial Officer, the office of the Treasurer shall be deemed to be the office of the Chief Financial Officer of the Corporation whenever the signature of the Chief Financial Officer is required on any document or instrument, by the laws of the United States or any state, or elsewhere in the Bylaws, and the Treasurer shall have authority to affix his signature in such capacity.

The office of the Chief Accounting Officer shall be deemed an Assistant Treasurer of the Corporation whenever the signature of an Assistant Treasurer is required on any document or instrument, by the laws of the United States or any state, or elsewhere in these Bylaws, and the Vice President of Finance and Accounting shall have authority to affix his signature in such capacity. Any Treasurer or Assistant Treasurer shall have such powers and perform such duties as the Board of Directors or the Chief Executive Officer may from time to time designate.

Section 15.    Secretary and Assistant Secretaries. The Secretary shall record all the proceedings of the meetings of the stockholders and the Board of Directors (including committees of the Board) in books kept for that purpose. In the absence of the Secretary from any such meeting, a temporary secretary chosen at the meeting shall record the proceedings thereof. The Secretary shall have charge of the stock ledger (which may, however, be kept by any transfer or other agent of the Corporation). The secretary shall have custody of the seal of the Corporation, and the Secretary, or an Assistant Secretary, shall have authority to affix it to any instrument requiring it, and, when so affixed, the seal may be attested by the signature of the Secretary or an Assistant Secretary. The Secretary shall have such other duties and powers as may be designated from time to time by the Board of Directors or the Chief Executive Officer. In the absence of the Secretary, any Assistant Secretary may perform the duties and responsibilities of the Secretary.

Any Assistant Secretary shall have such powers and perform such duties as the Board of Directors or the Chief Executive Officer may from time to time designate.

Section 16.    Other Powers and Duties. Subject to these Bylaws and to such limitations as the Board of Directors may from time to time prescribe, the officers of the Corporation shall each have such powers and duties as generally pertain to their respective offices, as well as such powers and duties as from time to time may be conferred by the Board of Directors or the Chief Executive Officer.

ARTICLE IV

STOCK

Section 1.    Certificates of Stock. Unless otherwise provided by the Board of Directors or by law, each stockholder shall be entitled to a certificate of the stock of the Corporation in such form as may from time to time be prescribed by the Board of Directors. Such certificate shall bear the seal of the Corporation, if one has been adopted, and shall be signed by the Chairman of the Board of Directors, Chief Executive Officer or President and countersigned by the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary. The seal of the Corporation, if one has been adopted, and any and all signatures on the certificate may be a facsimile, including those of any transfer agent or registrar. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed on such certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if he were such officer, transfer agent or registrar at the time of its issue. Every certificate for shares of stock

    -26-

which are subject to any restriction on transfer and every certificate issued when the Corporation is authorized to issue more than one class or series of stock shall contain such legend with respect thereto as is required by law.

Section 2.    Transfers. Subject to any restrictions on transfer and unless otherwise provided by the Board of Directors, shares of stock may be transferred only on the books of the Corporation by the surrender to the Corporation or its transfer agent of the certificate therefor properly endorsed or accompanied by a written assignment or power of attorney properly executed, with transfer stamps (if necessary) affixed, and with such proof of the authenticity of signature as the Corporation or its transfer agent may reasonably require.

Section 3.    Record Holders. Except as may otherwise be required by law, by the Charter or by these Bylaws, the Corporation shall be entitled to treat the record holder of stock as shown on its books as the owner of such stock for all purposes, including the payment of dividends and the right to vote with respect thereto, regardless of any transfer, pledge or other disposition of such stock, until the shares have been transferred on the books of the Corporation in accordance with the requirements of these Bylaws.

It shall be the duty of each stockholder to notify the Corporation or its transfer agent of his post office address and any changes thereto.

Section 4.    Record Date. In order that the Corporation may determine the stockholders entitled to receive notice of or to vote at any meeting of stockholders or any adjournments thereof, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board of Directors may fix, in advance, a record date, which shall not be more than 90 days nor less than 10 days before the date of such meeting, nor more than 90 days prior to any other action. In such case, only stockholders of record on such record date shall be so entitled, notwithstanding any transfer of stock on the stock transfer books of the Corporation after the record date.

If no record date is fixed:

(a)    the record date for determining stockholders entitled to receive notice of or to vote at a meeting of stockholders shall be the later of (i) the close of business on the day on which notice is mailed or (ii) the 30th day before the meeting; and

(b)    the record date for determining stockholders entitled to receive payment of a dividend or an allotment of any rights shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

Section 5.    Replacement of Certificates. In case of the alleged loss, destruction or mutilation of a certificate of stock, a duplicate certificate may be issued in place thereof upon such terms as the Corporation or its transfer agent may prescribe.

Section 6.    Transfer Agents and Registrars. The Corporation may serve as the transfer agent and registrar of the shares of stock, or the Board of Directors may, in its discretion, appoint one or more responsible bank, trust company or other entity as the Board of Directors may deem advisable, from time to time, to act as transfer agent and registrar of shares of stock. No certificate for shares of stock shall be valid until countersigned by the transfer agent and registered by the registrar.

Section 7.    Stockholders’ Addresses. Every stockholder or transferee shall furnish the Secretary or a transfer agent with the address to which notice of meetings and all

    -27-

other notices may be served upon or mailed to such stockholder or transferee, and in default thereof, such stockholder or transferee shall not be entitled to service or mailing of any such notice.

Section 8.    Repurchase of Shares of Stock. The Corporation may purchase its shares of stock and invest its assets in its own shares of stock, provided that in each case the consent of the Board of Directors shall have been obtained.

ARTICLE V

INDEMNIFICATION

Section 1.    Right to Indemnification. The Corporation shall, to the maximum extent permitted by the Maryland General Corporation Law in effect from time to time, indemnify, and, without a preliminary determination of the ultimate entitlement to indemnification, pay or reimburse reasonable expenses in advance of final disposition of a proceeding to (a) any individual who is a present or former director or officer of the Corporation or (b) any individual who, while a director or officer of the Corporation and at the request of the Corporation, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan or any other enterprise as a director, officer, partner or trustee and, in each case, shall indemnify such person from and against any claim or liability to which such person may become subject or which such person may incur by reason of his status as a present or former director or officer of the Corporation or director, officer, partner or trustee of such other entity (each, an “Indemnitee”). The Corporation shall, to the maximum extent permitted by the Maryland General Corporation Law in effect from time to time, provide such indemnification and advancement of expenses to a person who served a predecessor of the Corporation in any of the capacities described above (any such person shall also be deemed to be an “Indemnitee”).

Section 2.    Indemnification of Employees and Agents of the Corporation. With the approval of the Board of Directors, the Corporation shall, to the maximum extent permitted by the Maryland General Corporation Law in effect from time to time, and to such further extent as it shall deem appropriate under the circumstances, provide such indemnification and advancement of expenses as described in Section 1 above, to any employee or agent of the Corporation or a predecessor of the Corporation (each such person shall also be deemed to be an “Indemnitee”).

Section 3.    Right of Indemnitee to Bring Suit. If a claim under this Article V is not paid in full by the Corporation within 60 days after a written claim has been received by the Corporation, except in the case of a claim for an advancement of expenses, in which case the applicable period shall be 20 days, the Indemnitee may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim. If the Indemnitee is successful in whole or in part in any such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Indemnitee shall also be entitled to be paid the expense of prosecuting or defending such suit. In any suit brought by an Indemnitee who is a present or former director to enforce a right to indemnification hereunder (but not in a suit brought by the Indemnitee to enforce a right to an advancement of expenses), it shall be a defense that such Indemnitee has not met the applicable standard of conduct set forth in the Maryland General Corporation Law. In addition, in any suit by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Corporation shall be entitled to recover such expenses upon a final adjudication that the Indemnitee who is a present or former director has not met the applicable standard of conduct set forth in the Maryland General Corporation Law. Neither the failure of the Corporation (including its Board of

    -28-

Directors, independent legal counsel, or stockholders) to have made a determination prior to the commencement of such suit that indemnification of the Indemnitee is proper in the circumstances because the Indemnitee has met the applicable standard of conduct set forth in the Maryland General Corporation Law, nor an actual determination by the Corporation (including its Board of Directors, independent legal counsel or stockholders) that the Indemnitee has not met such applicable standard of conduct, shall create a presumption that the Indemnitee has not met the applicable standard of conduct. In any suit brought by the Indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the Indemnitee is not entitled to be indemnified, or to such advancement of expenses, under this Article V or otherwise shall be on the Corporation.

Section 4.    Non-Exclusivity of Rights. The rights to indemnification and to advancement of expenses conferred in this Article V shall not be exclusive of any other right that any person may have or hereafter acquire under these Bylaws, the Charter or any statute, agreement, vote of stockholders or disinterested directors or otherwise.

Section 5.    Insurance. The Corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Corporation or any director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the Maryland General Corporation Law.

ARTICLE VI

MISCELLANEOUS PROVISIONS

Section 1.    Fiscal Year. The fiscal year of the Corporation shall end on December 31 of each year or on such other date as may be fixed by the Board of Directors.

Section 2.    Seal. The seal of the Corporation shall be in the form of a circle and shall have inscribed thereon the name of the Corporation and the year of its organization. The seal may be used by causing it or a facsimile thereof to be impressed or affixed or reproduced.

Section 3.    Investment Policies. The directors may from time to time adopt, amend, revise or terminate any policy or policies with respect to investments by the Corporation as they shall deem appropriate in their sole discretion.

Section 4.    Execution of Instruments. All deeds, leases, transfers, contracts, bonds, notes and other obligations to be entered into by the Corporation in the ordinary course of its business without director action may be executed on behalf of the Corporation by the Chairman of the Board, if one is elected, the Chief Executive Officer, the President or the Treasurer or any other officer, employee or agent of the Corporation as the Board of Directors may authorize.

Section 5.    Voting of Securities. Unless the Board of Directors otherwise provides, the Chairman of the Board, if one is elected, the Chief Executive Officer, the President or the Treasurer may waive notice of and act on behalf of this Corporation, or appoint another person or persons to act as proxy or attorney in fact for this Corporation with or without discretionary power and/or power of substitutions at any meeting of stockholders or stockholders of any other corporation or organization, any of whose securities are held by this Corporation.

    -29-

Section 6.    Resident Agent. The Board of Directors may appoint a resident agent upon whom legal process may be served in any action or proceeding against the Corporation.

Section 7.    Corporate Records. The original or attested copies of the Charter, Bylaws and records of all meetings of the incorporators, stockholders and the Board of Directors and the stock transfer books, which shall contain the names of all stockholders, their record addresses and the amount of stock held by each, may be kept outside the State of Maryland and shall be kept at the principal office of the Corporation, at the office of its counselor at an office of its transfer agent.

Section 8.    Amendments. The exclusive power to alter, amend or repeal these bylaws, and to adopt new bylaws, shall be vested in the Board of Directors.

Section 9.    Offices. The principal office of the Corporation within the State of Maryland shall be located at such place as the Board of Directors may designate. The Corporation may have additional offices, including a principal executive office, at such place or places both within and without the State of Maryland as the Board of Directors may from time to time determine or the business of the Corporation may require.

    -30-

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Richard J. Stockton, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Braemar Hotels & Resorts Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2023

/s/ RICHARD J. STOCKTON

Richard J. Stockton

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Deric S. Eubanks, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Braemar Hotels & Resorts Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2023

/s/ DERIC S. EUBANKS

Deric S. Eubanks

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Braemar Hotels & Resorts Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard J. Stockton, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 7, 2023

/s/ RICHARD J. STOCKTON

Richard J. Stockton

President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Braemar Hotels & Resorts Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Deric S. Eubanks, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 7, 2023

/s/ DERIC S. EUBANKS

Deric S. Eubanks

Chief Financial Officer

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Aug. 03, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-35972
Entity Registrant Name	BRAEMAR HOTELS & RESORTS INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	46-2488594
Entity Address, Address Line One	14185 Dallas Parkway
Entity Address, Address Line Two	Suite 1200
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75254
City Area Code	972
Local Phone Number	490-9600
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		65,993,893
Entity Central Index Key	0001574085
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	BHR
Security Exchange Name	NYSE
Preferred Stock, Series B
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock, Series B
Trading Symbol	BHR-PB
Security Exchange Name	NYSE
Preferred Stock, Series D
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock, Series D
Trading Symbol	BHR-PD
Security Exchange Name	NYSE

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Investments in hotel properties, gross	$ 2,360,842	$ 2,325,093
Accumulated depreciation	(470,484)	(440,492)
Investments in hotel properties, net	1,890,358	1,884,601
Cash and cash equivalents	128,025	261,541
Restricted cash	63,439	54,155
Accounts receivable, net of allowance of $200 and $339, respectively	32,864	51,448
Inventories	5,119	5,238
Prepaid expenses	18,172	7,044
Deferred costs, net	75	0
Investment in unconsolidated entity	1,699	1,689
Derivative assets	6,308	6,482
Operating lease right-of-use assets	78,917	79,449
Other assets	17,078	14,621
Intangible assets, net	3,693	3,883
Total assets	2,261,510	2,397,714
Liabilities:
Indebtedness, net	1,135,958	1,334,130
Accounts payable and accrued expenses	135,096	133,978
Dividends and distributions payable	8,917	8,184
Operating lease liabilities	60,538	60,692
Other liabilities	22,508	22,343
Derivative liabilities	165	284
Total liabilities	1,369,319	1,571,712
Commitments and contingencies (note 15)
Redeemable noncontrolling interests in operating partnership	35,174	40,555
Preferred stock, $0.01 par value, 80,000,000 shares authorized:
8.25% Series D cumulative preferred stock, 1,600,000 shares issued and outstanding at June 30, 2023 and December 31, 2022	16	16
Common stock, $0.01 par value, 250,000,000 shares authorized, 65,993,893 and 69,919,065 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	659	699
Additional paid-in capital	716,987	734,134
Accumulated deficit	(341,210)	(324,740)
Total stockholders’ equity of the Company	376,452	410,109
Noncontrolling interest in consolidated entities	(12,669)	(16,346)
Total equity	363,783	393,763
Total liabilities and equity	2,261,510	2,397,714
Related Party
ASSETS
Due from related parties and nonrelated parties	333	938
Liabilities:
Due to related parties and nonrelated parties	4,558	10,005
Nonrelated Party
ASSETS
Due from related parties and nonrelated parties	15,430	26,625
Liabilities:
Due to related parties and nonrelated parties	1,579	2,096
Series B Preferred Stock
Liabilities:
Series preferred stock	65,426	65,426
Series E Preferred Stock
Liabilities:
Series preferred stock	379,403	291,076
Series M Preferred Stock
Liabilities:
Series preferred stock	$ 48,405	$ 35,182

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Allowance for doubtful notes receivable	$ 200	$ 200	$ 339
Preferred stock, $0.01 par value, 80,000,000 shares authorized:
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	80,000,000	80,000,000	80,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	250,000,000	250,000,000	250,000,000
Common stock, shares issued (in shares)	65,993,893	65,993,893	69,919,065
Common stock, shares outstanding (in shares)	65,993,893	65,993,893	69,919,065
Series B Preferred Stock
Liabilities [Abstract]
Temporary equity, dividend rate (as a percent)	5.50%	5.50%	5.50%
Temporary equity, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Temporary equity, shares issued (in shares)	3,078,017	3,078,017	3,078,017
Temporary equity, shares outstanding (in shares)	3,078,017	3,078,017	3,078,017
Series E Preferred Stock
Liabilities [Abstract]
Temporary equity, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Temporary equity, shares issued (in shares)	16,485,987	16,485,987	12,656,529
Temporary equity, shares outstanding (in shares)	16,485,987	16,485,987	12,656,529
Series M Preferred Stock
Liabilities [Abstract]
Temporary equity, dividend rate (as a percent)		0.00082%
Temporary equity, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Temporary equity, shares issued (in shares)	1,959,622	1,959,622	1,428,332
Temporary equity, shares outstanding (in shares)	1,959,622	1,959,622	1,428,332
Series D Preferred Stock
Preferred stock, $0.01 par value, 80,000,000 shares authorized:
Preferred stock dividend rate (as a percent)	8.25%	8.25%	8.25%
Preferred stock, shares issued (in shares)	1,600,000	1,600,000	1,600,000
Preferred stock, shares outstanding (in shares)	1,600,000	1,600,000	1,600,000

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUE
Total revenue	$ 186,707	$ 174,894	$ 402,008	$ 336,774
Hotel operating expenses:
Total hotel operating expenses	125,247	113,653	261,344	212,220
Property taxes, insurance and other	9,396	5,277	17,512	13,880
Depreciation and amortization	22,567	19,571	45,088	38,012
Advisory services fee	8,215	6,305	16,163	13,627
Gain on legal settlements	0	(114)	0	(114)
Corporate general and administrative	3,896	3,438	6,716	5,933
Total operating expenses	169,321	148,130	346,823	283,558
OPERATING INCOME (LOSS)	17,386	26,764	55,185	53,216
Equity in earnings (loss) of unconsolidated entity	(75)		(148)	(146)
Interest income	2,295	162	4,403	187
Interest expense and amortization of discounts and loan costs	(23,600)	(10,281)	(46,473)	(18,803)
Write-off of loan costs and exit fees	(248)	(22)	(260)	(98)
Gain (loss) on extinguishment of debt	0	0	2,318	0
Realized and unrealized gain (loss) on derivatives	1,029	1,208	695	1,616
INCOME (LOSS) BEFORE INCOME TAXES	(3,213)	17,757	15,720	35,972
Income tax (expense) benefit	75	(1,077)	(2,254)	(3,688)
NET INCOME (LOSS)	(3,138)	16,680	13,466	32,284
(Income) loss attributable to noncontrolling interest in consolidated entities	367	(1,468)	58	(1,442)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	925	(846)	664	(1,813)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	(1,846)	14,366	14,188	29,029
Preferred dividends	(10,877)	(4,064)	(21,227)	(7,367)
Deemed dividends on preferred stock	(301)	0	(2,755)	0
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (13,024)	$ 10,302	$ (9,794)	$ 21,662
INCOME (LOSS) PER SHARE - BASIC:
Net income (loss) attributable to common stockholders (in dollars per share)	$ (0.20)	$ 0.14	$ (0.14)	$ 0.31
Weighted average common shares outstanding – basic (in shares)	65,806	70,740	68,378	68,325
INCOME (LOSS) PER SHARE - DILUTED:
Net income (loss) attributable to common stockholders (in dollars per share)	$ (0.20)	$ 0.12	$ (0.14)	$ 0.27
Weighted average common shares outstanding – diluted (in shares)	65,806	107,669	68,378	98,798
Total hotel revenue
REVENUE
Total revenue	$ 186,707	$ 174,894	$ 402,008	$ 336,774
Rooms
REVENUE
Total revenue	117,137	112,527	254,664	217,719
Hotel operating expenses:
Total hotel operating expenses	26,705	24,134	54,063	44,318
Food and beverage
REVENUE
Total revenue	47,776	42,269	100,004	78,976
Hotel operating expenses:
Total hotel operating expenses	36,365	31,894	76,104	59,922
Other hotel
REVENUE
Total revenue	21,794	20,098	47,340	40,079
Hotel operating expenses:
Total hotel operating expenses	56,297	52,087	118,592	98,294
Management fees
Hotel operating expenses:
Total hotel operating expenses	$ 5,880	$ 5,538	$ 12,585	$ 9,686

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ (3,138)	$ 16,680	$ 13,466	$ 32,284
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Total other comprehensive income (loss)	0	0	0	0
TOTAL COMPREHENSIVE INCOME (LOSS)	(3,138)	16,680	13,466	32,284
Comprehensive (income) loss attributable to noncontrolling interest in consolidated entities	367	(1,468)	58	(1,442)
Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership	925	(846)	664	(1,813)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	$ (1,846)	$ 14,366	$ 14,188	$ 29,029

XML

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($)	Total	Impact of adoption of new accounting standard	Series D Preferred Stock	Series B Preferred Stock	Series E Preferred Stock	Series M Preferred Stock	Preferred Stock Series D Preferred Stock	Preferred Stock Series B Preferred Stock	Preferred Stock Series E Preferred Stock	Preferred Stock Series M Preferred Stock	Common Stock	Additional Paid-in Capital	Additional Paid-in Capital Impact of adoption of new accounting standard	Accumulated Deficit	Accumulated Deficit Impact of adoption of new accounting standard	Accumulated Deficit Series D Preferred Stock	Accumulated Deficit Series B Preferred Stock	Accumulated Deficit Series E Preferred Stock	Accumulated Deficit Series M Preferred Stock	Noncontrolling Interest in Consolidated Entities	Redeemable Noncontrolling Interests in Operating Partnership
Beginning balance (in shares) at Dec. 31, 2021							1,600,000				65,365,000
Beginning balance at Dec. 31, 2021	$ 382,298,000	$ (5,601,000)					$ 16,000				$ 653,000	$ 707,418,000	$ (6,257,000)	$ (309,240,000)	$ 656,000					$ (16,549,000)	$ 36,087,000
Ending balance (in shares) at Mar. 31, 2022							1,600,000				71,270,000
Ending balance at Mar. 31, 2022	$ 417,905,000						$ 16,000				$ 712,000	736,911,000		(303,323,000)						(16,411,000)	42,291,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2020-06 [Member]
Units outstanding at beginning of year (in shares) at Dec. 31, 2021								3,078,000	1,710,000	29,000
Beginning balance, temporary equity at Dec. 31, 2021								$ 65,426,000	$ 39,339,000	$ 715,000
Ending balance, temporary equity at Mar. 31, 2022								$ 65,426,000	$ 73,404,000	$ 1,538,000
Units outstanding at end of year (in shares) at Mar. 31, 2022								3,078,000	3,191,000	62,000
Beginning balance (in shares) at Dec. 31, 2021							1,600,000				65,365,000
Beginning balance at Dec. 31, 2021	$ 382,298,000	(5,601,000)					$ 16,000				$ 653,000	707,418,000	(6,257,000)	(309,240,000)	656,000					(16,549,000)	36,087,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of common stock (in shares)											(93,000)
Purchase of common stock	(547,000)										$ (1,000)	(546,000)
Equity-based compensation	2,784,000											2,784,000
Issuance of restricted shares/units (in shares)											45,000
Equity-based compensation, redeemable noncontrolling interests																					2,766,000
Issuance of common stock (in shares)											6,000,000
Issuance of common stock	35,041,000										$ 60,000	34,981,000
Common stock issuance costs	(27,000)											(27,000)
Forfeiture of restricted common shares (in shares)											(7,000)
Dividends declared - common stock	(1,440,000)													(1,440,000)
Dividends declared - preferred stock			$ (1,650,000)	$ (2,116,000)	$ (3,452,000)	$ (149,000)										$ (1,650,000)	$ (2,116,000)	$ (3,452,000)	$ (149,000)
Contributions from noncontrolling interests	164,000																			164,000	1,813,000
Distributions to noncontrolling interests																					(167,000)
Net income (loss)	30,471,000													29,029,000						1,442,000
Redemption value adjustment – preferred stock	(2,153,000)													(2,153,000)
Redemption value adjustment – preferred stock									$ 1,923,000	$ 230,000
Redemption value adjustment	208,000													208,000							(208,000)
Ending balance (in shares) at Jun. 30, 2022							1,600,000				71,310,000
Ending balance at Jun. 30, 2022	$ 433,831,000						$ 16,000				$ 712,000	738,353,000		(290,307,000)						(14,943,000)	40,291,000
Units outstanding at beginning of year (in shares) at Dec. 31, 2021								3,078,000	1,710,000	29,000
Beginning balance, temporary equity at Dec. 31, 2021								$ 65,426,000	$ 39,339,000	$ 715,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Units issued (in shares)					2,789,000	367,000			2,800,000	367,000
Issuance of preferred stock									$ 62,485,000	$ 8,805,000
Redemptions of preferred stock					$ (50,000)	$ 0			$ (50,000)
Redemption of preferred stock (in shares)					(2,000)	0			(2,000)
Ending balance, temporary equity at Jun. 30, 2022								$ 65,426,000	$ 103,697,000	$ 9,750,000
Units outstanding at end of year (in shares) at Jun. 30, 2022								3,078,000	4,508,000	396,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Dividends declared per common share (in dollars per share)	$ 0.02
Beginning balance (in shares) at Dec. 31, 2021							1,600,000				65,365,000
Beginning balance at Dec. 31, 2021	$ 382,298,000	$ (5,601,000)					$ 16,000				$ 653,000	707,418,000	$ (6,257,000)	(309,240,000)	$ 656,000					(16,549,000)	36,087,000
Ending balance (in shares) at Dec. 31, 2022							1,600,000				69,919,000
Ending balance at Dec. 31, 2022	393,763,000						$ 16,000				$ 699,000	734,134,000		(324,740,000)						(16,346,000)	40,555,000
Units outstanding at beginning of year (in shares) at Dec. 31, 2021								3,078,000	1,710,000	29,000
Beginning balance, temporary equity at Dec. 31, 2021								$ 65,426,000	$ 39,339,000	$ 715,000
Ending balance, temporary equity at Dec. 31, 2022				$ 65,426,000	$ 291,076,000	$ 35,182,000		$ 65,426,000	$ 291,076,000	$ 35,182,000
Units outstanding at end of year (in shares) at Dec. 31, 2022				3,078,017	12,656,529	1,428,332		3,078,000	12,657,000	1,428,000
Beginning balance (in shares) at Mar. 31, 2022							1,600,000				71,270,000
Beginning balance at Mar. 31, 2022	417,905,000						$ 16,000				$ 712,000	736,911,000		(303,323,000)						(16,411,000)	42,291,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of common stock	5,000											5,000
Equity-based compensation	1,464,000											1,464,000									1,832,000
Issuance of restricted shares/units (in shares)											45,000
Common stock issuance costs	(27,000)											(27,000)
Forfeiture of restricted common shares (in shares)											(5,000)
Dividends declared - common stock	(720,000)													(720,000)
Dividends declared - preferred stock			(825,000)	$ (1,058,000)	$ (2,053,000)	$ (128,000)										(825,000)	(1,058,000)	(2,053,000)	(128,000)
Distributions to noncontrolling interests																					(84,000)
Net income (loss)	15,834,000													14,366,000						1,468,000	846,000
Redemption value adjustment – preferred stock	(1,160,000)													(1,160,000)
Redemption value adjustment – preferred stock									$ 951,000	$ 209,000
Redemption value adjustment	4,594,000													4,594,000							(4,594,000)
Ending balance (in shares) at Jun. 30, 2022							1,600,000				71,310,000
Ending balance at Jun. 30, 2022	$ 433,831,000						$ 16,000				$ 712,000	738,353,000		(290,307,000)						(14,943,000)	40,291,000
Units outstanding at beginning of year (in shares) at Mar. 31, 2022								3,078,000	3,191,000	62,000
Beginning balance, temporary equity at Mar. 31, 2022								$ 65,426,000	$ 73,404,000	$ 1,538,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Units issued (in shares)					1,312,000	334,000			1,319,000	334,000
Issuance of preferred stock									$ 29,392,000	$ 8,003,000
Redemptions of preferred stock					$ (50,000)	$ 0			$ (50,000)
Redemption of preferred stock (in shares)					(2,000)	0			(2,000)
Ending balance, temporary equity at Jun. 30, 2022								$ 65,426,000	$ 103,697,000	$ 9,750,000
Units outstanding at end of year (in shares) at Jun. 30, 2022								3,078,000	4,508,000	396,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Dividends declared per common share (in dollars per share)	$ 0.01
Beginning balance (in shares) at Dec. 31, 2022							1,600,000				69,919,000
Beginning balance at Dec. 31, 2022	$ 393,763,000						$ 16,000				$ 699,000	734,134,000		(324,740,000)						(16,346,000)	40,555,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of common stock (in shares)											(3,969,000)
Purchase of common stock	(19,254,000)										$ (40,000)	(19,214,000)
Equity-based compensation	2,067,000											2,067,000
Issuance of restricted shares/units (in shares)											45,000
Equity-based compensation, redeemable noncontrolling interests																					3,160,000
Forfeiture of restricted common shares (in shares)											(1,000)
Dividends declared - common stock	(6,669,000)													(6,669,000)
Dividends declared - preferred stock			(1,650,000)	$ (2,116,000)	$ (15,520,000)	$ (1,941,000)										(1,650,000)	(2,116,000)	(15,520,000)	(1,941,000)
Contributions from noncontrolling interests	4,050,000																			4,050,000
Distributions to noncontrolling interests	(315,000)																			(315,000)	(722,000)
Redemption/conversion of operating partnership units																					(7,162,000)
Net income (loss)	14,130,000													14,188,000						(58,000)	(664,000)
Redemption value adjustment – preferred stock	(2,755,000)													(2,755,000)
Redemption value adjustment – preferred stock									$ 2,372,000	$ 383,000
Redemption value adjustment	(7,000)													(7,000)							7,000
Ending balance (in shares) at Jun. 30, 2023							1,600,000				65,994,000
Ending balance at Jun. 30, 2023	$ 363,783,000						$ 16,000				$ 659,000	716,987,000		(341,210,000)						(12,669,000)	35,174,000
Units outstanding at beginning of year (in shares) at Dec. 31, 2022				3,078,017	12,656,529	1,428,332		3,078,000	12,657,000	1,428,000
Beginning balance, temporary equity at Dec. 31, 2022				$ 65,426,000	$ 291,076,000	$ 35,182,000		$ 65,426,000	$ 291,076,000	$ 35,182,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Units issued (in shares)					3,798,000	531,000			3,860,000	537,000
Issuance of preferred stock									$ 86,744,000	$ 12,955,000
Redemptions of preferred stock					$ (789,000)	$ (115,000)			$ (789,000)	$ (115,000)
Redemption of preferred stock (in shares)					(32,000)	(5,000)			(32,000)	(5,000)
Ending balance, temporary equity at Jun. 30, 2023				$ 65,426,000	$ 379,403,000	$ 48,405,000		$ 65,426,000	$ 379,403,000	$ 48,405,000
Units outstanding at end of year (in shares) at Jun. 30, 2023				3,078,017	16,485,987	1,959,622		3,078,000	16,485,000	1,960,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Dividends declared per common share (in dollars per share)	$ 0.10
Beginning balance (in shares) at Mar. 31, 2023							1,600,000				65,950,000
Beginning balance at Mar. 31, 2023	$ 377,551,000						$ 16,000				$ 659,000	715,729,000		(324,840,000)						(14,013,000)	34,820,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of common stock (in shares)											(1,000)
Purchase of common stock	(4,000)										$ 0	(4,000)
Equity-based compensation	1,262,000											1,262,000									1,752,000
Issuance of restricted shares/units (in shares)											45,000
Dividends declared - common stock	(3,335,000)													(3,335,000)
Dividends declared - preferred stock			$ (825,000)	$ (1,058,000)	$ (7,986,000)	$ (1,008,000)										$ (825,000)	$ (1,058,000)	$ (7,986,000)	$ (1,008,000)
Contributions from noncontrolling interests	2,026,000																			2,026,000
Distributions to noncontrolling interests	(315,000)																			(315,000)	(361,000)
Redemption/conversion of operating partnership units																					(123,000)
Net income (loss)	(2,213,000)													(1,846,000)						(367,000)	(925,000)
Redemption value adjustment – preferred stock	(301,000)													(301,000)
Redemption value adjustment – preferred stock									$ 176,000	$ 125,000
Redemption value adjustment	(11,000)													(11,000)							11,000
Ending balance (in shares) at Jun. 30, 2023							1,600,000				65,994,000
Ending balance at Jun. 30, 2023	$ 363,783,000						$ 16,000				$ 659,000	$ 716,987,000		$ (341,210,000)						$ (12,669,000)	$ 35,174,000
Units outstanding at beginning of year (in shares) at Mar. 31, 2023								3,078,000	16,474,000	1,960,000
Beginning balance, temporary equity at Mar. 31, 2023								$ 65,426,000	$ 378,906,000	$ 48,294,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Units issued (in shares)					0	0			32,000	4,000
Issuance of preferred stock									$ 828,000	$ 76,000
Redemptions of preferred stock					$ (507,000)	$ (90,000)			$ (507,000)	$ (90,000)
Redemption of preferred stock (in shares)					(21,000)	(4,000)			(21,000)	(4,000)
Ending balance, temporary equity at Jun. 30, 2023				$ 65,426,000	$ 379,403,000	$ 48,405,000		$ 65,426,000	$ 379,403,000	$ 48,405,000
Units outstanding at end of year (in shares) at Jun. 30, 2023				3,078,017	16,485,987	1,959,622		3,078,000	16,485,000	1,960,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Dividends declared per common share (in dollars per share)	$ 0.05

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Dividends declared per common share (in dollars per share)	$ 0.05	$ 0.01	$ 0.10	$ 0.02
Series B Preferred Stock
Temporary equity, dividend rate (as a percent)	5.50%	5.50%	5.50%	5.50%
Dividends declared per preferred share (in dollars per share)	$ 0.34	$ 0.34	$ 0.69	$ 0.69
Series D Preferred Stock
Preferred stock dividend rate (as a percent)	8.25%	8.25%	8.25%	8.25%
Dividends declared per preferred share (in dollars per share)	$ 0.52	$ 0.52	$ 1.03	$ 1.03
Series E Preferred Stock
Dividends declared per preferred share (in dollars per share)	0.50	0.50	$ 1.00	1.00
Series M Preferred Stock
Temporary equity, dividend rate (as a percent)			0.00082%
Dividends declared per preferred share (in dollars per share)	$ 0.52	$ 0.51	$ 1.03	$ 1.02

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 13,466	$ 32,284
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	45,088	38,012
Equity-based compensation	5,227	5,550
Bad debt expense	327	560
(Gain) loss on extinguishment of debt	(2,318)	0
Amortization of loan costs, discounts and capitalized default interest	868	(246)
Write-off of loan costs and exit fees	260	98
Amortization of intangibles	237	237
Amortization of non-refundable membership initiation fees	(839)	(710)
Interest expense accretion on refundable membership club deposits	342	368
Realized and unrealized (gain) loss on derivatives	(695)	(1,616)
Equity in (earnings) loss of unconsolidated entity	148	146
Deferred income tax expense (benefit)	127	0
Changes in operating assets and liabilities, exclusive of the effect of hotel acquisitions:
Accounts receivable and inventories	18,215	(5,069)
Prepaid expenses and other assets	(13,448)	(1,464)
Accounts payable and accrued expenses	(9,664)	(202)
Operating lease right-of-use assets	295	296
Due to/from related parties, net	605	702
Due to/from third-party hotel managers	10,678	9,018
Operating lease liabilities	(154)	(147)
Other liabilities	662	898
Net cash provided by (used in) operating activities	61,963	79,837
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from property insurance	327	36
Payments for initial franchise fee	(75)	0
Acquisition of hotel properties, net of cash and restricted cash acquired	0	(86,798)
Investment in unconsolidated entity	(158)	(164)
Improvements and additions to hotel properties	(36,199)	(19,910)
Net cash provided by (used in) investing activities	(36,105)	(106,836)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on indebtedness	0	70,500
Repayments of indebtedness	(196,355)	(68,000)
Payments of loan costs and exit fees	(790)	(1,728)
Payments for derivatives	(3,400)	(1,145)
Proceeds from derivatives	4,010	0
Purchase of common stock	(19,306)	(547)
Payments for dividends and distributions	(26,139)	(7,334)
Net proceeds from issuance of preferred stock	97,930	71,016
Common stock offering costs	0	(102)
Contributions from noncontrolling interest in consolidated entities	4,050	164
Redemption of operating partnership units	(7,162)	0
Distributions to noncontrolling interest in consolidated entities	(2,024)	0
Redemption of preferred stock	(904)	(50)
Net cash provided by (used in) financing activities	(150,090)	62,774
Net change in cash, cash equivalents and restricted cash	(124,232)	35,775
Cash, cash equivalents and restricted cash at beginning of period	315,696	263,374
Cash, cash equivalents and restricted cash at end of period	191,464	299,149
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid	53,297	17,036
Income taxes paid (refunded)	2,920	(991)
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Dividends and distributions declared but not paid	8,917	3,535
Assumption of debt in hotel acquisition	0	58,601
Capital expenditures accrued but not paid	21,011	5,363
Issuance of common stock for hotel acquisition	0	35,040
Accrued preferred stock offering expenses	0	105
Dividends and distributions payable	8,917
Unsettled proceeds from derivatives	470	0
SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents	128,025	251,032
Restricted cash	63,439	48,117
Cash, cash equivalents and restricted cash	191,464	299,149
Ashford Inc.
Changes in operating assets and liabilities, exclusive of the effect of hotel acquisitions:
Due to/from Ashford Inc.	(7,464)	1,122
Non-cash preferred stock dividends
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Dividends and distributions payable	$ 1,747	$ 278

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Organization and Description of Business

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

Organization and Description of Business

Braemar Hotels & Resorts Inc., together with its subsidiaries (“Braemar”), is a Maryland corporation that invests primarily in high revenue per available room (“RevPAR”) luxury hotels and resorts. High RevPAR, for purposes of our investment strategy, means RevPAR of at least twice the then-current U.S. national average RevPAR for all hotels as determined by STR, LLC. Braemar has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). Braemar conducts its business and owns substantially all of its assets through its operating partnership, Braemar Hospitality Limited Partnership (“Braemar OP”). Terms such as the “Company,” “we,” “us” or “our” refer to Braemar Hotels & Resorts Inc. and, as the context may require, all entities included in its condensed consolidated financial statements.

We are advised by Ashford Hospitality Advisors LLC (“Ashford LLC” or the “Advisor”) through an advisory agreement. Ashford LLC is a subsidiary of Ashford Inc. All of the hotel properties in our portfolio are currently asset-managed by Ashford LLC. We do not have any employees. All of the services that might be provided by employees are provided to us by Ashford LLC.

We do not operate any of our hotel properties directly; instead we employ hotel management companies to operate them for us under management contracts. Remington Lodging & Hospitality, LLC (“Remington Hospitality”), a subsidiary of Ashford Inc., manages four of our 16 hotel properties. Third-party management companies manage the remaining hotel properties.

Ashford Inc. also provides other products and services to us or our hotel properties through certain entities in which Ashford Inc. has an ownership interest. These products and services include, but are not limited to, design and construction services, debt placement and related services, broker-dealer and distribution services, audio visual services, real estate advisory and brokerage services, insurance claims services, hypoallergenic premium rooms, watersport activities, travel/transportation services and mobile key technology.

The accompanying condensed consolidated financial statements include the accounts of wholly-owned and majority-owned subsidiaries of Braemar OP that as of June 30, 2023, own 16 hotel properties in seven states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands (“USVI”). The portfolio includes 14 wholly-owned hotel properties and two hotel properties that are owned through a partnership in which Braemar OP has a controlling interest. These hotel properties represent 4,192 total rooms, or 3,957 net rooms, excluding those attributable to our partner. As a REIT, Braemar is required to comply with limitations imposed by the Code related to operating hotels. As of June 30, 2023, 15 of our 16 hotel properties were leased by wholly-owned or majority-owned subsidiaries that are treated as taxable REIT subsidiaries (“TRS”) for federal income tax purposes (collectively the TRS entities are referred to as “Braemar TRS”). One hotel property, located in the USVI, is owned by our USVI TRS. Braemar TRS then engages third-party or affiliated hotel management companies to operate the hotel properties under management contracts. Hotel operating results related to the hotel properties are included in the condensed consolidated statements of operations.

As of June 30, 2023, 13 of the 16 hotel properties were leased by Braemar’s wholly-owned TRS, and the two hotel properties majority-owned through a consolidated partnership were leased to a TRS wholly-owned by such consolidated partnership. Each leased hotel is leased under a percentage lease that provides for each lessee to pay in each calendar month the base rent plus, in each calendar quarter, percentage rent, if any, based on hotel revenues. Lease revenue from Braemar TRS is eliminated in consolidation. The hotel properties are operated under management contracts with Marriott Hotel Services, LLC (“Marriott”), Hilton Management LLC (“Hilton”), Accor Management US Inc. (“Accor”), Four Seasons Hotels Limited (“Four Seasons”), Hyatt Corporation (“Hyatt”), The Ritz-Carlton Hotel Company, L.L.C. and its affiliates, each of which is also an affiliate of Marriott (“Ritz-Carlton”), and Remington Hospitality, which are eligible independent contractors under the Code.

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting PoliciesBasis of Presentation and Principles of Consolidation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These condensed consolidated financial statements include the accounts of Braemar Hotels & Resorts Inc., its majority-owned subsidiaries, and its majority-owned entities in which it has a controlling interest. All intercompany accounts and transactions between consolidated entities have been eliminated in these condensed consolidated financial statements. We have condensed

or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made herein are adequate to prevent the information presented from being misleading. However, the financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 10, 2023.

Braemar OP is considered to be a variable interest entity (“VIE”), as defined by authoritative accounting guidance. A VIE must be consolidated by a reporting entity if the reporting entity is the primary beneficiary because it has (i) the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. All major decisions related to Braemar OP that most significantly impact its economic performance, including but not limited to operating procedures with respect to business affairs and any acquisitions, dispositions, financings, restructurings or other transactions with sellers, purchasers, lenders, brokers, agents and other applicable representatives, are subject to the approval of our wholly-owned subsidiary, Braemar OP General Partner LLC, its general partner. As such, we consolidate Braemar OP.

The following items affect reporting comparability of our historical condensed consolidated financial statements:

•Historical seasonality patterns at some of our hotel properties cause fluctuations in our overall operating results. Consequently, operating results for the three and six months ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023;

•On March 11, 2022, we acquired The Ritz-Carlton Reserve Dorado Beach hotel located in Dorado, Puerto Rico. The operating results of the hotel property have been included in the results of operations from its acquisition date; and

•On December 1, 2022, we acquired the Four Seasons Resort Scottsdale at Troon North located in Scottsdale, Arizona. The operating results of the hotel property have been included in the results of operations from its acquisition date.

Use of Estimates—The preparation of these condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Recently Adopted Accounting Standards—In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”), which provides optional guidance through December 31, 2022 to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which further clarified the scope of the reference rate reform optional practical expedients and exceptions outlined in Topic 848. The amendments in ASU Nos. 2020-04 and 2021-01 apply to contract modifications that replace a reference rate affected by reference rate reform, providing optional expedients regarding the measurement of hedge effectiveness in hedging relationships that have been modified to replace a reference rate. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) (“ASU 2022-06”), which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company applied the optional expedient in evaluating debt modifications converting from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”). The Company adopted the standards upon the respective effective dates. There was no material impact as a result of this adoption.

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Revenue

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

RevenueThe following tables present our revenue disaggregated by geographical areas (dollars in thousands):

	Three Months Ended June 30, 2023
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	31,004	$	10,630	$	5,066	$	46,700
Puerto Rico	1	12,870		5,060		3,087		21,017
Arizona	1	7,924		5,268		2,043		15,235
Colorado	1	1,866		1,811		1,689		5,366
Florida	2	15,290		8,630		5,665		29,585
Illinois	1	7,738		1,947		412		10,097
Pennsylvania	1	7,643		1,650		349		9,642
Washington	1	8,193		1,337		411		9,941
Washington, D.C.	1	11,433		5,721		426		17,580
USVI	1	13,176		5,722		2,646		21,544
Total	16	$	117,137	$	47,776	$	21,794	$	186,707

	Three Months Ended June 30, 2022
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	34,313	$	11,560	$	4,226	$	50,099
Puerto Rico	1	11,927		4,700		2,908		19,535
Colorado	1	2,306		2,713		1,633		6,652
Florida	2	19,631		9,742		6,589		35,962
Illinois	1	7,542		2,209		411		10,162
Pennsylvania	1	6,158		1,120		309		7,587
Washington	1	5,587		887		316		6,790
Washington, D.C.	1	9,719		3,403		572		13,694
USVI	1	15,344		5,935		3,134		24,413
Total	15	$	112,527	$	42,269	$	20,098	$	174,894

	Six Months Ended June 30, 2023
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	65,570	$	21,940	$	10,756	$	98,266
Puerto Rico	1	28,300		9,935		6,224		44,459
Arizona	1	22,081		11,786		4,659		38,526
Colorado	1	16,207		8,172		4,672		29,051
Florida	2	36,939		19,129		12,336		68,404
Illinois	1	11,304		2,930		767		15,001
Pennsylvania	1	12,163		2,646		631		15,440
Washington	1	12,414		2,037		823		15,274
Washington, D.C.	1	20,210		11,209		859		32,278
USVI	1	29,476		10,220		5,613		45,309
Total	16	$	254,664	$	100,004	$	47,340	$	402,008

	Six Months Ended June 30, 2022
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	65,284	$	22,429	$	9,169	$	96,882
Puerto Rico	1	17,403		5,832		3,796		27,031
Colorado	1	14,483		8,846		4,764		28,093
Florida	2	44,714		19,264		13,632		77,610
Illinois	1	10,301		3,006		740		14,047
Pennsylvania	1	9,233		1,626		520		11,379
Washington	1	8,175		1,298		625		10,098
Washington, D.C.	1	13,600		5,733		992		20,325
USVI	1	34,526		10,942		5,841		51,309
Total	15	$	217,719	$	78,976	$	40,079	$	336,774

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Investments in Hotel Properties, net

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Investments in Hotel Properties, net

Investments in Hotel Properties, net

Investments in hotel properties, net consisted of the following (in thousands):

	June 30, 2023		December 31, 2022
Land	$	630,842	$	630,489
Buildings and improvements	1,520,184		1,511,949
Furniture, fixtures and equipment	157,626		147,019
Construction in progress	39,444		22,890
Residences	12,746		12,746
Total cost	2,360,842		2,325,093
Accumulated depreciation	(470,484)		(440,492)
Investments in hotel properties, net	$	1,890,358	$	1,884,601

Impairment Charges

During the three and six months ended June 30, 2023 and 2022, no impairment charges were recorded.

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Investment in Unconsolidated Entity

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Entity

Investment in Unconsolidated Entity

OpenKey, Inc. (“OpenKey”), which is controlled and consolidated by Ashford Inc., is a hospitality-focused mobile key platform that provides a universal smart phone app and related hardware and software for keyless entry into hotel guest rooms. As of June 30, 2023, the Company has made equity investments in OpenKey totaling $2.9 million. All investments were recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors.

Our investment is recorded as “investment in unconsolidated entity” in our condensed consolidated balance sheets and is accounted for under the equity method of accounting as we have significant influence over the entity under the applicable accounting guidance. We review our investment in OpenKey for impairment in each reporting period pursuant to the applicable authoritative accounting guidance. An investment is impaired when its estimated fair value is less than the carrying amount of the investment. Any impairment is recorded in equity in earnings (loss) of unconsolidated entity. No such impairment was recorded for the three and six months ended June 30, 2023 and 2022.

The following table summarizes our carrying value and ownership interest in OpenKey:

	June 30, 2023			December 31, 2022
Carrying value of the investment in OpenKey (in thousands)	$	1,535		$	1,689
Ownership interest in OpenKey	7.9		%	7.9		%

The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2023		2022		2023		2022
Equity in earnings (loss) of unconsolidated entity	$	(80)	$	(74)	$	(154)	$	(146)

On February 2, 2023, the Company entered into a loan funding agreement with Ashford Inc. and OpenKey. Per the agreement, Ashford Inc. and the Company will provide OpenKey with a maximum loan amount of $5.0 million to be allocated on a pro-rata basis based on current ownership interests and funded quarterly, over the course of 2023. The loan bears interest at an annual rate of 15%. Additionally, repayment of the loan principal and all accrued interest is due upon certain events. On June 9, 2023, the Company funded approximately $59,000. As of June 30, 2023, the Company has funded approximately $158,000.

The following table summarizes our note receivable from OpenKey (in thousands):

Line Item	June 30, 2023		December 31, 2022
Investment in unconsolidated entity	$	164	$	—

The following table summarizes the interest income associated with the loan to OpenKey (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
Line Item	2023		2023
Equity in earnings (loss) of unconsolidated entity	$	5	$	6

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Indebtedness, net

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Indebtedness, net

Indebtedness, net

Indebtedness, net consisted of the following (dollars in thousands):

Indebtedness	Collateral	Current Maturity	Final Maturity (11)	Interest Rate	June 30, 2023		December 31, 2022
Mortgage loan (3)	The Ritz-Carlton Sarasota	April 2023	April 2023	LIBOR (1) + 2.65%	$	—	$	98,500
Mortgage loan (4)	Hotel Yountville	May 2023	May 2023	LIBOR (1) + 2.55%	—		51,000
Mortgage loan	Bardessono Hotel and Spa	August 2023	August 2023	SOFR (2) + 2.65%	40,000		40,000
Mortgage loan (5)	The Ritz-Carlton St. Thomas	August 2023	August 2024	LIBOR (1) + 3.95%	42,500		42,500
Mortgage loan (3)	The Ritz-Carlton Sarasota	October 2023	April 2024	SOFR (2) + 3.60%	98,000		—
Mortgage loan (4)	Hotel Yountville	November 2023	May 2024	SOFR (2) + 2.65%	51,000		—
Mortgage loan	The Ritz-Carlton Lake Tahoe	January 2024	January 2024	SOFR (2) + 2.20%	54,000		54,000
Mortgage loan	Capital Hilton	February 2024	February 2024	LIBOR (1) + 1.70%	195,000		195,000
	Hilton La Jolla Torrey Pines
Mortgage loan (6)	Park Hyatt Beaver Creek Resort & Spa	February 2024	February 2027	SOFR (2) + 2.86%	70,500		70,500
Mortgage loan (7)	The Ritz-Carlton Reserve Dorado Beach	March 2024	March 2026	LIBOR (1) + 6.00%	—		54,000
Mortgage loan (8)	The Notary Hotel	June 2024	June 2025	LIBOR (1) + 2.61%	293,180		435,000
	The Clancy
	Sofitel Chicago Magnificent Mile
	Marriott Seattle Waterfront
Mortgage loan (9)	Mr. C Beverly Hills Hotel	August 2024	August 2024	LIBOR (1) + 3.60%	30,000		30,000
Mortgage loan	Pier House Resort & Spa	September 2024	September 2024	SOFR (2) + 1.95%	80,000		80,000
Mortgage loan (10)	Four Seasons Resort Scottsdale	December 2025	December 2027	SOFR (2) + 3.75%	100,000		100,000
Convertible Senior Notes	Equity	June 2026	June 2026	4.50%	86,250		86,250
					1,140,430		1,336,750
Capitalized default interest and late charges, net					1,046		1,934
Deferred loan costs, net					(3,616)		(5,054)
Premiums/(discounts), net					(1,902)		500
Indebtedness, net					$	1,135,958	$	1,334,130

__________________

(1)LIBOR rates were 5.22% and 4.39% at June 30, 2023 and December 31, 2022, respectively.

(2)SOFR rates were 5.14% and 4.36% at June 30, 2023 and December 31, 2022, respectively.

(3)On April 4, 2023, we amended this mortgage loan. Terms of the amendment replaced the variable interest rate of LIBOR + 2.65% with SOFR + 2.75%, extended the current maturity date to October 2023, and added one six-month extension option, subject to satisfaction of certain conditions. Effective June 1, 2023, the variable interest rate increased from SOFR + 2.75% to SOFR + 3.60% in accordance with the loan agreement.

(4)On April 18, 2023, we amended this mortgage loan. Terms of the amendment replaced the variable interest rate of LIBOR + 2.55% with SOFR + 2.65%, extended the current maturity date to November 2023, and added one six-month extension option, subject to satisfaction of certain conditions.

(5)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the second was exercised in August 2022. This mortgage loan has a LIBOR floor of 1.00%.

(6)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions.

(7)On January 18, 2023, we repaid this mortgage loan.

(8)This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions, of which the fourth was exercised in June 2023. In accordance with exercising the fourth one-year extension option, we repaid $142.0 million of principal and the variable interest rate increased from LIBOR + 2.16% to LIBOR + 2.61%.

(9)This mortgage loan has a LIBOR floor of 1.50%.

(10)This mortgage loan has a SOFR floor of 1.00%.

(11)The final maturity date assumes all available extension options will be exercised.

During the second and third quarters of 2020, we reached forbearance and other agreements with our lenders relating to loans secured by certain of our hotels. The Company determined that all of the forbearance and other agreements evaluated

were considered troubled debt restructurings due to terms that allowed for deferred interest and the forgiveness of default interest and late charges.

As a result of the troubled debt restructurings, all accrued default interest and late charges were capitalized into the applicable loan balances and are being amortized over the remaining term of the loans using the effective interest method. The amount of principal that was amortized was approximately $420,000 and $888,000, respectively, for the three and six months ended June 30, 2023. For the three and six months ended June 30, 2022, the amount of principal amortization was $500,000 and $1.0 million, respectively.

On January 18, 2023, the Company repaid its $54.0 million mortgage loan secured by The Ritz-Carlton Reserve Dorado Beach, which resulted in a gain on extinguishment of debt of $2.3 million for the six months ended June 30, 2023. The gain was primarily attributable to the premium that was recorded upon the assumption of the mortgage loan when the hotel was acquired.

Convertible Senior Notes

In May 2021, the Company issued $86.25 million aggregate principal amount of 4.50% Convertible Senior Notes due June 2026 (the “Convertible Senior Notes”). The net proceeds from this offering of the Convertible Senior Notes were approximately $82.8 million after deducting the underwriting fees and other expenses paid by the Company.

The Convertible Senior Notes are governed by an indenture between the Company and U.S. Bank National Association, as trustee. The Convertible Senior Notes bear interest at a rate of 4.50% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2021. The Convertible Senior Notes will mature on June 1, 2026. For the three and six months ended June 30, 2023, the Company recorded coupon interest expense of $970,000 and $1.9 million, respectively. For the three and six months ended June 30, 2022, the Company recorded coupon interest expense of $970,000 and $1.9 million, respectively.

For the three and six months ended June 30, 2023, the Company recorded discount amortization of $146,000 and $290,000, respectively, related to the initial purchase discount, with the remaining discount balance to be amortized through June 2026. For the three and six months ended June 30, 2022, the discount amortization was $139,000 and $271,000, respectively.

The Convertible Senior Notes are convertible at any time prior to the close of business on the business day immediately preceding the maturity date for cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the election of the Company, based on an initial conversion rate of 157.7909 shares of the Company’s common stock per $1,000 principal amount of notes (equivalent to a conversion price of approximately $6.34 per share of common stock), subject to adjustment of the conversion rate under certain circumstances. In addition, following the occurrence of certain corporate events, if the Company provides notice of redemption or if it exercises its option to convert the Convertible Senior Notes, the Company will, in certain circumstances, increase the conversion rate for a holder that converts its Convertible Senior Notes in connection with such corporate event, such notice of redemption, or such issuer conversion option, as the case may be.

The Company may redeem the Convertible Senior Notes at the Company’s option, in whole or in part, on any business day on or after the date of issuance if the last reported sale price per share of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the Convertible Senior Notes to be redeemed subject to certain adjustments, plus accrued and unpaid interest to, but excluding, the redemption date.

Effective June 30, 2023, LIBOR is no longer published. Accordingly all variable interest rate mortgage loans held by the Company that used the LIBOR index transitioned to SOFR beginning on July 1, 2023. Not all lenders will execute loan amendment documents and instead will defer to original loan documents that dictate changes in index rates.

If we violate covenants in any debt agreement, we could be required to repay all or a portion of our indebtedness before maturity at a time when we might be unable to arrange financing for such repayment on attractive terms, if at all. The assets of certain of our subsidiaries are pledged under non-recourse indebtedness and are not available to satisfy the debts and other obligations of the consolidated group. As of June 30, 2023, we were in compliance with all covenants.

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Derivative Instruments

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

Interest Rate Derivatives—We are exposed to risks arising from our business operations, economic conditions and financial markets. To manage these risks, we primarily use interest rate derivatives to hedge our debt and our cash flows, which include interest rate caps. All derivatives are recorded at fair value. Payments from counterparties on in-the-money interest rate caps are recognized as realized gains on our consolidated statements of operations.

The following table summarizes the interest rate derivatives we entered into over the applicable periods:

	Six Months Ended June 30,
Interest rate caps:(1)	2023			2022
Notional amount (in thousands)	$	496,180		$	556,500
Strike rate low end of range	3.50		%	3.50		%
Strike rate high end of range	5.25		%	4.00		%
Effective date range	January 2023 - June 2023			February 2022-May 2022
Termination date range	October 2023 - June 2024			May 2023- February 2024
Total cost of interest rate caps (in thousands)	$	3,400		$	1,145

_______________

(1)    No instruments were designated as cash flow hedges.

Interest rate derivatives consisted of the following:

Interest rate caps: (1)	June 30, 2023			December 31, 2022
Notional amount (in thousands)	$	816,680		$	960,500
Strike rate low end of range	2.00		%	2.00		%
Strike rate high end of range	5.25		%	4.50		%
Termination date range	August 2023 - January 2025			January 2023- January 2025
Aggregate principal balance on corresponding mortgage loans (in thousands)	$	816,680		$	959,000

_______________

(1)No instruments were designated as cash flow hedges.

Warrants—On August 5, 2021, as part of the consideration paid to acquire the Mr. C Beverly Hills Hotel and five adjacent luxury residences, the Company issued 500,000 warrants for the purchase of Braemar common stock with a $6.00 strike price on or after August 5, 2021 until August 5, 2024. The holder can choose to exercise the warrants by cash or by net issue exercise, in which event the Company shall issue to the holder a number of warrant shares which reflect the fair market value of the Company’s common stock. As of June 30, 2023, no warrants have been exercised.

The initial fair value of the warrants was calculated using a Black-Scholes option pricing model with the following assumptions: three-year contractual term; 97.93% volatility; 0% dividend rate; and a risk-free interest rate of 0.38%. The estimated fair value of the warrants was approximately $1.5 million on the date of issuance. The warrants are re-valued at each reporting period with the change in fair value recorded through earnings.

In applying the guidance in ASC 815, it was determined that the warrants should be classified as a liability as a result of certain settlement provisions. The warrants are included in derivative liabilities on the condensed consolidated balance sheets and changes in value are reported as a component of “realized and unrealized gain (loss) on derivatives” on the condensed consolidated statements of operations. This is a Level 2 valuation technique.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair Value Hierarchy—Our financial instruments measured at fair value either on a recurring or a non-recurring basis are classified in a hierarchy for disclosure purposes consisting of three levels based on the observability of inputs in the marketplace as discussed below:

•Level 1: Fair value measurements that are quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets.

•Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

•Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability.

The fair value of interest rate caps are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rose above the strike rates of the caps. Variable interest rates used in the calculation of projected receipts and payments on the caps are based on an expectation of future interest rates derived from observable market interest rate curves (SOFR forward curves) and volatilities (Level 2 inputs). We also incorporate credit valuation adjustments (Level 3 inputs) to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk.

When a majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. However, when the valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparties, which we consider significant (10% or more) to the overall valuation of our derivatives, the derivative valuations in their entirety are classified in Level 3 of the fair value hierarchy. Transfers of inputs between levels are determined at the end of each reporting period. In determining the fair values of our derivatives at June 30, 2023, the SOFR interest rate forward curve (Level 2 inputs) assumed a downtrend from 5.141% to 3.686% for the remaining term of our derivatives. Credit spreads (Level 3 inputs) used in determining the fair values derivatives assumed an uptrend in nonperformance risk for us and all of our counterparties through the maturity dates.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):

	Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 30, 2023
Assets
Derivative assets:
Interest rate derivatives - caps	$	—	$	6,308	$	—	$	6,308
Total	$	—	$	6,308	$	—	$	6,308	(1)
Liabilities
Derivative liabilities:
Warrants	$	—	$	(165)	$	—	$	(165)	(2)
Net	$	—	$	6,143	$	—	$	6,143

	Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
December 31, 2022
Assets
Derivative assets:
Interest rate derivatives - caps	$	—	$	6,482	$	—	$	6,482
	$	—	$	6,482	$	—	$	6,482	(1)
Liabilities
Derivative liabilities:
Warrants	$	—	$	(284)	$	—	$	(284)	(2)
Net	$	—	$	6,198	$	—	$	6,198

__________________

(1)Reported as “derivative assets” in our condensed consolidated balance sheets.

(2)Reported as “derivative liabilities” in our condensed consolidated balance sheets.

Effect of Fair Value Measured Assets and Liabilities on Condensed Consolidated Statements of Operations

The following table summarizes the effect of fair value measured assets and liabilities on our condensed consolidated statements of operations (in thousands):

	Gain (Loss) Recognized in Income
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Assets
Derivative assets:
Interest rate derivatives - caps	$	1,013		$	43		$	576		$	886
Total	$	1,013		$	43		$	576		$	886
Liabilities
Derivative liabilities:
Warrants	$	16		$	1,165		$	119		$	730
Net	$	1,029		$	1,208		$	695		$	1,616
Total combined
Interest rate derivatives - caps	$	(1,269)		$	43		$	(3,573)		$	886
Warrants	16			1,165			119			730
Unrealized gain (loss) on derivatives	$	(1,253)	(1)	$	1,208	(1)	$	(3,454)	(1)	$	1,616	(1)
Realized gain (loss) on interest rate caps	2,282		(1) (2)	—			4,149		(1) (2)	—
Net	$	1,029		$	1,208		$	695		$	1,616

________

(1)Reported in “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations.

(2)Represents settled and unsettled payments from counterparties on interest rate caps.

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Summary of Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2023

Investments, All Other Investments [Abstract]

Summary of Fair Value of Financial Instruments

Summary of Fair Value of Financial Instruments

Determining the estimated fair values of certain financial instruments such as indebtedness requires considerable judgment to interpret market data. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Accordingly, the estimates presented are not necessarily indicative of the amounts at which these instruments could be purchased, sold or settled.

The carrying amounts and estimated fair values of financial instruments were as follows (in thousands):

	June 30, 2023				December 31, 2022
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets measured at fair value:
Derivative assets	$	6,308	$	6,308	$	6,482	$	6,482
Financial liabilities measured at fair value:
Derivative liabilities	$	165	$	165	$	284	$	284
Financial assets not measured at fair value:
Cash and cash equivalents	$	128,025	$	128,025	$	261,541	$	261,541
Restricted cash	63,439		63,439		54,155		54,155
Accounts receivable, net	32,864		32,864		51,448		51,448
Due from related parties, net	333		333		938		938
Due from third-party hotel managers	15,430		15,430		26,625		26,625
Financial liabilities not measured at fair value:
Indebtedness	$	1,138,528	$1,050,061 to $1,160,595		$	1,337,250	$1,229,671 to $1,359,110
Accounts payable and accrued expenses	135,096		135,096		133,978		133,978
Dividends and distributions payable	8,917		8,917		8,184		8,184
Due to Ashford Inc.	4,558		4,558		10,005		10,005
Due to third-party hotel managers	1,579		1,579		2,096		2,096

Cash, cash equivalents and restricted cash. These financial assets have maturities of less than 90 days and most bear interest at market rates. The carrying value approximates fair value due to their short-term nature. This is considered a Level 1 valuation technique.

Accounts receivable, net, due from related parties, net, accounts payable and accrued expenses, dividends and distributions payable, due to Ashford Inc. and due to/from third-party hotel managers. The carrying values of these financial instruments approximate their fair values due to the short-term nature of these financial instruments. This is considered a Level 1 valuation technique.

Derivative assets and derivative liabilities. See notes 7 and 8 for a complete description of the methodology and assumptions utilized in determining fair values.

Indebtedness, net. Fair value of indebtedness is determined using future cash flows discounted at current replacement rates for these instruments. Cash flows are determined using a forward interest rate yield curve. The current replacement rates are determined by using the U.S. Treasury yield curve or the index to which these financial instruments are tied, and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral. We estimated the fair value of the total indebtedness to be approximately 92.2% to 101.9% of the carrying value of $1.1 billion at June 30, 2023, and approximately 92.0% to 101.6% of the carrying value of $1.3 billion at December 31, 2022. These fair value estimates are considered a Level 2 valuation technique.

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Income (Loss) Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Income (Loss) Per Share

Income (Loss) Per Share

The following table reconciles the amounts used in calculating basic and diluted income (loss) per share (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss) attributable to common stockholders - basic and diluted:
Net income (loss) attributable to the Company	$	(1,846)	$	14,366	$	14,188	$	29,029
Less: dividends on preferred stock	(10,877)		(4,064)		(21,227)		(7,367)
Less: deemed dividends on preferred stock	(301)		—		(2,755)		—
Less: dividends on common stock	(3,291)		(707)		(6,580)		(1,414)
Less: dividends on unvested performance stock units	(36)		(7)		(72)		(14)
Less: dividends on unvested restricted shares	(8)		(6)		(17)		(12)
Less: net (income) loss allocated to performance stock units	—		(95)		—		(207)
Less: net (income) loss allocated to unvested restricted shares	—		(74)		—		(161)
Undistributed net income (loss) allocated to common stockholders	(16,359)		9,413		(16,463)		19,854
Add back: dividends on common stock	3,291		707		6,580		1,414
Distributed and undistributed net income (loss) - basic	$	(13,068)	$	10,120	$	(9,883)	$	21,268
Interest expense on Convertible Senior Notes	—		1,108		—		2,211
Dividends on preferred stock - Series E (inclusive of deemed dividends)	—		2,053		—		3,452
Dividends on preferred stock - Series M (inclusive of deemed dividends)	—		128		—		149
Distributed and undistributed net income (loss) - diluted	$	(13,068)	$	13,409	$	(9,883)	$	27,080
Weighted average common shares outstanding:
Weighted average common shares outstanding – basic	65,806		70,740		68,378		68,325
Effect of assumed exercise of warrants	—		—		—		1
Effect of assumed conversion of Convertible Senior Notes	—		13,610		—		13,610
Effect of assumed conversion of preferred stock - Series E	—		22,207		—		16,232
Effect of assumed conversion of preferred stock - Series M	—		1,112		—		630
Weighted average common shares outstanding – diluted	65,806		107,669		68,378		98,798
Income (loss) per share - basic:
Net income (loss) allocated to common stockholders per share	$	(0.20)	$	0.14	$	(0.14)	$	0.31
Income (loss) per share - diluted:
Net income (loss) allocated to common stockholders per share	$	(0.20)	$	0.12	$	(0.14)	$	0.27

Due to their anti-dilutive effect, the computation of diluted income (loss) per share does not reflect the adjustments for the following items (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss) allocated to common stockholders is not adjusted for:
Income (loss) allocated to unvested restricted shares	$	8	$	80	$	17	$	173
Income (loss) allocated to unvested performance stock units	36		102		72		221
Income (loss) attributable to redeemable noncontrolling interests in operating partnership	(925)		846		(664)		1,813
Dividends on preferred stock - Series B	1,058		1,058		2,116		2,116
Interest expense on Convertible Senior Notes	1,117		—		2,231		—
Dividends on preferred stock - Series E (inclusive of deemed dividends)	8,162		—		17,892		—
Dividends on preferred stock - Series M (inclusive of deemed dividends)	1,133		—		2,324		—
Total	$	10,589	$	2,086	$	23,988	$	4,323
Weighted average diluted shares are not adjusted for:
Effect of unvested restricted shares	—		34		—		25
Effect of unvested performance stock units	340		—		346		1
Effect of assumed conversion of operating partnership units	5,172		5,868		5,576		5,862
Effect of assumed conversion of preferred stock - Series B	4,116		4,116		4,116		4,116
Effect of assumed conversion of Convertible Senior Notes	13,609		—		13,609		—
Effect of assumed conversion of preferred stock - Series E	102,751		—		101,478		—
Effect of assumed conversion of preferred stock - Series M	12,219		—		11,945		—
Total	138,207		10,018		137,070		10,004

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Redeemable Noncontrolling Interests in Operating Partnership

6 Months Ended

Jun. 30, 2023

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interests in Operating Partnership

Redeemable Noncontrolling Interests in Operating Partnership

Redeemable noncontrolling interests in the operating partnership represents the limited partners’ proportionate share of equity and their allocable share of equity in earnings/losses of Braemar OP, which is an allocation of net income/loss attributable to the common unitholders based on the weighted average ownership percentage of these limited partners’ common units of limited partnership interest in the operating partnership (the “common units”) and units issued under our Long-Term Incentive Plan (the “LTIP” units) that are vested. Each common unit may be redeemed, by the holder, for either cash or, at our sole discretion, up to one share of our REIT common stock, which is either: (i) issued pursuant to an effective registration statement; (ii) included in an effective registration statement providing for the resale of such common stock; or (iii) issued subject to a registration rights agreement.

LTIP units, which are issued to certain executives and employees of Ashford LLC as compensation, generally have vesting periods of three years. Additionally, certain independent members of the board of directors have elected to receive LTIP units as part of their compensation, which are fully vested upon grant. Upon reaching economic parity with common units, each vested LTIP unit can be converted by the holder into one common unit which can then be redeemed for cash or, at our election, settled in our common stock. An LTIP unit will achieve parity with the common units upon the sale or deemed sale of all or substantially all of the assets of our operating partnership at a time when our stock is trading at a level in excess of the price it was trading on the date of the LTIP issuance. More specifically, LTIP units will achieve full economic parity with common units in connection with (i) the actual sale of all or substantially all of the assets of our operating partnership; or (ii) the hypothetical sale of such assets, which results from a capital account revaluation, as defined in the partnership agreement, for our operating partnership.

The compensation committee of the board of directors of the Company may authorize the issuance of Performance LTIP units to certain executive officers and directors from time to time. The award agreements provide for the grant of a target number of Performance LTIP units that will be settled in common units of Braemar OP, if, when and to the extent the applicable vesting criteria have been achieved following the end of the performance and service period, which is generally three years from the grant date. As of June 30, 2023, there were approximately 2.4 million Performance LTIP units, representing 200% of the target, outstanding.

With respect to the 2021, 2022 and 2023 award agreements, the compensation committee shifted to a new performance metric, pursuant to which, the performance awards will be eligible to vest, from 0% to 200% of target, based on achievement of certain performance targets over the three-year performance period. The performance criteria for the 2021, 2022 and 2023 performance grants are based on performance conditions under the relevant literature. The corresponding compensation cost is recognized ratably over the service period for the award as the service is rendered, based on the applicable measurement date

fair value of the award. The grant date fair value of the award may vary from period to period, as the number of performance grants earned may vary since the estimated probable achievement of certain performance targets may vary from period to period.

In March 2023, the Company granted approximately 353,000 Performance LTIP units, representing 200% of the target, with an initial grant date fair value of $3.86 per share and a vesting period of approximately three years. During the second quarter, the Company’s stockholders approved an increase to the stock incentive plan, which is sufficient to cover the expected settlements as of June 30, 2023. The 2023 awards, which were originally classified as liability awards, are now classified as equity awards, within temporary equity, which resulted in a remeasurement of the award at a new fair value of $4.07 per share.

On May 10, 2023, approximately 45,000 LTIP units were issued to independent directors, with a fair value of approximately $182,000, which vested immediately upon grant and have been expensed during the three and six months ended June 30, 2023.

As of June 30, 2023, we have issued a total of approximately 3.8 million LTIP and Performance LTIP units, net of Performance LTIP cancellations. All LTIP and Performance LTIP units, other than approximately 614,000 LTIP units and 1.2 million Performance LTIP units issued from March 2015 to May 2023, had reached full economic parity with, and are convertible into, common units.

The following table presents the redeemable noncontrolling interests in Braemar OP and the corresponding approximate ownership percentage of our operating partnership:

	June 30, 2023			December 31, 2022
Redeemable noncontrolling interests in Braemar OP (in thousands)	$	35,174		$	40,555
Adjustments to redeemable noncontrolling interests (1) (in thousands)	$	77		$	70
Ownership percentage of operating partnership	6.63		%	7.69		%

____________________________________

(1)    Reflects the excess of the redemption value over the accumulated historical cost.

We allocated net (income) loss to the redeemable noncontrolling interests as illustrated in the table below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	$	925	$	(846)	$	664	$	(1,813)
Distributions declared to holders of common units, LTIP units and Performance LTIP units	$	361	$	84	$	722	$	167

On February 24, 2023, at the option of Mr. Monty J. Bennett, Mr. Bennett’s 169,523 vested LTIP units that achieved economic parity with his common units were redeemed for common units on a one-for-one basis. On February 24, 2023, the Company received a Notice of Exercise of Redemption Right (the “Redemption Notice”), pursuant to which Mr. Bennett elected to redeem the common units and such redemption was settled in cash at the Company’s election based on the average of the closing price of the Company’s common stock for the ten consecutive trading days ending on February 23, 2023. Additionally, on February 24, 2023, Mr. Bennett elected to redeem an additional 1,254,254 common units and following receipt of the Redemption Notice, such redemption was settled in cash at the Company’s election at a price per common unit based on the average of the closing price of the Company’s common stock for the ten consecutive trading days ending on February 23, 2023. The cash redemption for the 1,423,777 common units totaled approximately $7.0 million.On May 12, 2023, the Company received a Notice of Redemption with respect to 32,500 vested common units, and such redemption was settled in cash at the Company’s election for approximately $123,000.

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Equity and Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Equity and Stock-Based Compensation

Equity and Stock-Based Compensation

Common Stock Dividends—The following table summarizes the common stock dividends declared during the period (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Common stock dividends declared	$	3,335	$	720	$	6,669	$	1,440

Restricted Stock—We incur stock-based compensation expense in connection with restricted stock awarded to certain employees of Ashford LLC and its affiliates. We also issue common stock to certain of our independent directors, which vests immediately upon issuance.

In May 2023, approximately 45,000 shares of common stock were issued to independent directors with a fair value of approximately $182,000, which vested immediately upon grant and have been expensed during the three and six months ended June 30, 2023.

Performance Stock Units—The compensation committee of the board of directors of the Company may authorize the issuance of grants of performance stock units (“PSUs”) to certain executive officers and directors from time to time. The award agreements provide for the grant of a target number of PSUs that will be settled in shares of common stock of the Company, if, when and to the extent the applicable vesting criteria have been achieved following the end of the performance and service period, which is generally three years from the grant date.

With respect to the 2021, 2022 and 2023 award agreements, the compensation committee shifted to a new performance metric, pursuant to which, the performance awards will be eligible to vest, from 0% to 200% of target, based on achievement of certain performance targets over the three-year performance period. The performance criteria for the 2021, 2022 and 2023 performance grants are based on performance conditions under the relevant literature, and the 2021, 2022 and 2023 performance grants were issued to non-employees. The corresponding compensation cost is recognized ratably over the service period for the award as the service is rendered, based on the corresponding measurement date fair value of the award, which may vary from period to period, as the number of performance grants earned may vary since the estimated probable achievement of certain performance targets may vary from period to period.

In March 2023, 383,000 PSUs with a vesting period of approximately three years were granted. The 2023 awards may be settled in cash or shares of the Company’s common stock solely at the option of the Company. During the second quarter, the Company’s stockholders approved an increase to the stock incentive plan, which is sufficient to cover the expected settlements as of June 30, 2023. The 2023 awards, which were originally classified as liability awards, are now classified as equity awards, which resulted in a remeasurement of the award at a new fair value of $1.6 million.

8.25% Series D Cumulative Preferred Stock—The dividend for all issued and outstanding shares of the Company’s Series D Cumulative Preferred Stock (the “Series D Preferred Stock”) is set at $2.0625 per annum per share.

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series D Cumulative Preferred Stock	$	825	$	825	$	1,650	$	1,650

Stock Repurchases—On December 7, 2022, our board of directors approved a new stock repurchase program pursuant to which the board granted a repurchase authorization to acquire shares of the Company’s common stock, par value $0.01 per share, having an aggregate value of up to $25 million. The board of directors’ authorization replaced any previous repurchase authorizations. During the six months ended June 30, 2023, we repurchased 3.9 million shares of our common stock for approximately $18.9 million. As of June 30, 2023, the Company has completed the $25.0 million repurchase authorization

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Redeemable Preferred Stock

6 Months Ended

Jun. 30, 2023

Temporary Equity Disclosure [Abstract]

Redeemable Preferred Stock

Redeemable Preferred Stock

5.50% Series B Cumulative Convertible Preferred Stock

Each share of our 5.50% Series B Cumulative Convertible Preferred Stock (the “Series B Convertible Preferred Stock”) is convertible at any time, at the option of the holder, into a number of whole shares of common stock at a conversion price of $18.70 (which represents a conversion rate of 1.3372 shares of our common stock, subject to certain adjustments). The Series B Convertible Preferred Stock is also subject to conversion upon certain events constituting a change of control. Holders of the Series B Convertible Preferred Stock have no voting rights, subject to certain exceptions. The Series B Convertible Preferred Stock dividend for all issued and outstanding shares is set at $1.375 per annum per share.

The Company may, at its option, cause the Series B Convertible Preferred Stock to be converted in whole or in part, on a pro-rata basis, into fully paid and nonassessable shares of the Company’s common stock at the conversion price, provided that the “Closing Bid Price” (as defined in the Articles Supplementary) of the Company’s common stock shall have equaled or exceeded 110% of the conversion price for the immediately preceding 45 consecutive trading days ending three days prior to the date of notice of conversion.

Additionally, the Series B Convertible Preferred Stock contains cash redemption features that consist of: 1) an optional redemption in which on or after June 11, 2020, the Company may redeem shares of the Series B Convertible Preferred Stock, in whole or in part, for cash at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid dividends; 2) a special optional redemption, in which on or prior to the occurrence of a Change of Control (as defined in the Articles Supplementary), the Company may redeem shares of the Series B Convertible Preferred Stock, in whole or in part, for cash at a redemption price of $25.00 per share; and 3) a “REIT Termination Event” and “Listing Event Redemption,” in which at any time (i) a REIT Termination Event (as defined below) occurs or (ii) the Company’s common stock fails to be listed on the NYSE, NYSE American, or NASDAQ, or listed or quoted on an exchange or quotation system that is a successor thereto (each a “National Exchange”), the holder of Series B Convertible Preferred Stock shall have the right to require the Company to redeem any or all shares of Series B Convertible Preferred Stock at 103% of the liquidation preference ($25.00 per share, plus any accumulated, accrued, and unpaid dividends) in cash.

A “REIT Termination Event,” shall mean the earliest of:

(i)    filing of a federal income tax return where the Company does not compute its income as a REIT;

(ii)    stockholders’ approval on ceasing to be qualified as a REIT;

(iii)    board of directors’ approval on ceasing to be qualified as a REIT;

(iv)    board’s determination based on the advice of counsel to cease to be qualified as a REIT; or

(v)    determination within the meaning of Section 1313(a) of the Code to cease to be qualified as a REIT.

Series B Convertible Preferred Stock does not meet the requirements for permanent equity classification prescribed by the authoritative guidance because of certain cash redemption features that are outside our control. As such, the Series B Convertible Preferred Stock is classified outside of permanent equity.

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series B Convertible Preferred Stock	$	1,058	$	1,058	$	2,116	$	2,116

Series E Redeemable Preferred Stock

On April 2, 2021, the Company entered into equity distribution agreements with certain sales agents to sell, from time to time, shares of the Series E Redeemable Preferred Stock (the “Series E Preferred Stock”). Pursuant to such equity distribution agreements, the Company offered a maximum of 20,000,000 shares of Series E Preferred Stock in a primary offering at a price of $25.00 per share. On February 21, 2023, the Company announced the closing of its Series E Preferred Stock offering. The Company is also offering a maximum of 8,000,000 shares of the Series E Preferred Stock pursuant to a dividend reinvestment plan (the “DRIP”) at $25.00 per share (the “Stated Value”).

The Series E Preferred Stock ranks senior to all classes or series of the Company’s common stock and future junior securities, on a parity with each series of the Company’s outstanding preferred stock (the Series B Convertible Preferred stock, the Series D Preferred Stock and the Series M Preferred Stock (as defined below)) and with any future parity securities and junior to future senior securities and to all of the Company’s existing and future indebtedness, with respect to the payment of dividends and the distribution of amounts upon liquidation, dissolution or winding up of the Company’s affairs.

Holders of the Series E Preferred Stock shall have the right to vote for the election of directors of the Company and on all other matters requiring stockholder action by the holders of the common stock, each share being entitled to vote to the same extent as one share of the Company’s common stock, and all such shares voting together as a single class. If and whenever dividends on any shares of the Series E Preferred Stock shall be in arrears for 18 or more monthly periods, whether or not such quarterly periods are consecutive, the number of directors then constituting the board shall be increased by two and the holders of such shares of Series E Preferred Stock (voting together as a single class with all other classes or series of capital stock ranking on a parity with the Series E Preferred Stock) shall be entitled to vote for the election of the additional directors of the Company who shall each be elected for one-year terms.

Each share is redeemable at any time, at the option of the holder, at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid dividends, less a redemption fee. Starting on the second anniversary, each share is redeemable at any time, at the option of the Company, at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid dividends (with no redemption fee). The Series E Preferred Stock is also subject to conversion upon certain events constituting a change of control. Upon such change of control events, holders have the option to convert their shares of Series E Preferred Stock into a maximum of 5.69476 shares of our common stock.

The redemption fee shall be an amount equal to:

•8.0% of the stated value of $25.00 per share (the “Stated Value”) beginning on the Original Issue Date (as defined in the Articles Supplementary) of the shares of the Series E Preferred Stock to be redeemed;

•5.0% of the Stated Value beginning on the second anniversary from the Original Issue Date of the shares of the Series E Preferred Stock to be redeemed; and

•0% of the Stated Value beginning on the third anniversary from the Original Issue Date of the shares of the Series E Preferred Stock to be redeemed.

The Company has the right, in its sole discretion, to redeem the shares in cash, or in an equal number of shares of common stock or any combination thereof, calculated based on the closing price per share for the single trading day prior to the date of redemption.

The Series E Preferred Stock cash dividends are as follows:

•8.0% per annum of the Stated Value beginning on the date of the first settlement of the Series E Preferred Stock (the “Date of Initial Closing”);

•7.75% per annum of the Stated Value beginning on the first anniversary from the Date of Initial Closing; and

•7.5% per annum of the Stated Value beginning on the second anniversary from the Date of Initial Closing.

Dividends are payable on a monthly basis in arrears on the 15th day of each month (or, if such payment date is not a business day, the next succeeding business day) to holders of record at the close of business on the last business day of each month immediately preceding the applicable dividend payment date. Dividends will be computed on the basis of twelve 30-day months and a 360-day year.

The Company has a DRIP that allows participating holders to have their Series E Preferred Stock dividend distributions automatically reinvested in additional shares of the Series E Preferred Stock at a price of $25.00 per share.

The issuance activity of the Series E Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series E Preferred Stock shares issued (1)	—		1,312		3,798		2,789
Net proceeds	$	—	$	29,518	$	85,444	$	62,754

__________________

(1)Exclusive of shares issued under the DRIP.

The Series E Preferred Stock does not meet the requirements for permanent equity classification prescribed by the authoritative guidance because of certain cash redemption features that are outside of the Company’s control. As such, the Series E Preferred Stock is classified outside of permanent equity.

At the date of issuance, the carrying amount of the Series E Preferred Stock was less than the redemption value. As a result of the Company’s determination that redemption is probable the carrying value will be adjusted to the redemption amount each reporting period.

The redemption value adjustment of Series E Preferred Stock is summarized below (in thousands):

	June 30, 2023		December 31, 2022
Series E Preferred Stock	$	379,403	$	291,076
Cumulative adjustments to Series E Preferred Stock (1)	$	11,775	$	9,403

________

(1)    Reflects the excess of the redemption value over the accumulated carrying value.

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series E Preferred Stock	$	7,986	$	2,053	$	15,520	$	3,452

The redemption activities of Series E Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series E Preferred Stock shares redeemed	21		2		32		2
Redemption amount, net of redemption fees	$	507	$	50	$	789	$	50

Series M Redeemable Preferred Stock

On April 2, 2021, the Company entered into equity distribution agreements with certain sales agents to sell, from time to time, shares of the Series M Redeemable Preferred Stock (the “Series M Preferred Stock”). Pursuant to such equity distribution agreements, the Company offered a maximum of 20,000,000 shares of the Series M Preferred Stock (par value $0.01) in a primary offering at a price of $25.00 per share (or “Stated Value”). On February 21, 2023, the Company announced the closing of its Series M Preferred Stock offering. The Company is also offering a maximum of 8,000,000 shares of Series M Preferred Stock pursuant to the DRIP at $25.00 per share.

The Series M Preferred Stock ranks senior to all classes or series of the Company’s common stock and future junior securities, on a parity with each series of the Company’s outstanding preferred stock (the Series B Convertible Preferred Stock, the Series D Preferred Stock and the Series E Preferred Stock) and with any future parity securities and junior to future senior securities and to all of the Company’s existing and future indebtedness, with respect to the payment of dividends and the distribution of amounts upon liquidation, dissolution or winding up of the Company’s affairs.

Holders of the Series M Preferred Stock shall have the right to vote for the election of directors of the Company and on all other matters requiring stockholder action by the holders of the common stock, each share being entitled to vote to the same extent as one share of the Company’s common stock, and all such shares voting together as a single class. If and whenever dividends on any shares of Series E Preferred Stock shall be in arrears for 18 or more monthly periods, whether or not such quarterly periods are consecutive, the number of directors then constituting the board shall be increased by two and the holders of such shares of Series M Preferred Stock (voting together as a single class with all other classes or series of capital stock ranking on a parity with the Series M Preferred Stock) shall be entitled to vote for the election of the additional directors of the Company who shall each be elected for one-year terms.

Each share is redeemable at any time, at the option of the holder, at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid dividends, less a redemption fee. Starting on the second anniversary, each share is redeemable at any time, at the option of the Company, at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid

dividends (with no redemption fee). The Series M Preferred Stock is also subject to conversion upon certain events constituting a change of control. Upon such change of control events, holders have the option to convert their shares of Series M Preferred Stock into a maximum of 5.69476 shares of our common stock.

The redemption fee shall be an amount equal to:

•1.5% of the Stated Value of $25.00 per share beginning on the Series M Original Issue Date (as defined in the Articles Supplementary) of the shares of Series M Preferred Stock to be redeemed; and

•0% of the Stated Value beginning on the first anniversary from the Series M Original Issue Date of the shares of Series M Preferred Stock to be redeemed.

The Company has the right, in its sole discretion, to redeem the shares in cash, or in an equal number of shares of common stock or any combination thereof, calculated based on the closing price per share for the single trading day prior to the date of redemption.

Holders of Series M Preferred Stock are entitled to receive cumulative cash dividends at the initial rate of 8.2% per annum of the Stated Value of $25.00 per share (equivalent to an annual dividend rate of $2.05 per share). Beginning one year from the date of original issuance of each share of Series M Preferred Stock and on each one-year anniversary thereafter for such share of Series M Preferred Stock, the dividend rate shall increase by 0.10% per annum; provided, however that the dividend rate for any share of Series M Preferred Stock shall not exceed 8.7% per annum of the Stated Value.

Dividends are payable on a monthly basis and in arrears on the 15th day of each month (or, if such payment date is not a business day, on the next succeeding business day) to holders of record at the close of business on the last business day of each month immediately preceding the applicable dividend payment date. Dividends will be computed on the basis of twelve 30-day months and a 360-day year.

The Company has a DRIP that allows participating holders to have their Series M Preferred Stock dividend distributions automatically reinvested in additional shares of the Series M Preferred Stock at a price of $25.00 per share.

The issuance activity of Series M Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series M Preferred Stock shares issued (1)	—		334		531		367
Net proceeds	$	—	$	8,087	$	12,869	$	8,897

__________________

(1)Exclusive of shares issued under the DRIP.

The Series M Preferred Stock does not meet the requirements for permanent equity classification prescribed by the authoritative guidance because of certain cash redemption features that are outside the Company’s control. As such, the Series M Preferred Stock is classified outside of permanent equity.

At the date of issuance, the carrying amount of the Series M Preferred Stock was less than the redemption value. As a result of the Company’s determination that redemption is probable the carrying value will be adjusted to the redemption amount each reporting period.

The redemption value adjustment of Series M Preferred stock is summarized below (in thousands):

	June 30, 2023		December 31, 2022
Series M Preferred Stock	$	48,405	$	35,182
Cumulative adjustments to Series M Preferred Stock (1)	$	1,195	$	812

__________________

(1)    Reflects the excess of the redemption value over the accumulated carrying value.

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series M Preferred Stock	$	1,008	$	128	$	1,941	$	149

The redemption activities of Series M Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series M Preferred Stock shares redeemed	4		—		5		—
Redemption amount, net of redemption fees	$	90	$	—	$	115	$	—

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Related Party Transactions

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Ashford Inc.

Advisory Agreement

Ashford LLC, a subsidiary of Ashford Inc., acts as our advisor. Our chairman, Mr. Monty Bennett, also serves as chairman of the board of directors and chief executive officer of Ashford Inc. Under our advisory agreement, we pay advisory fees to Ashford LLC. We pay a monthly base fee equal to 1/12th of the sum of (i) 0.70% of the total market capitalization of our company for the prior month, plus (ii) the Net Asset Fee Adjustment (as defined in our advisory agreement), if any, on the last day of the prior month during which our advisory agreement was in effect; provided, however, in no event shall the base fee for any month be less than the minimum base fee as provided by our advisory agreement. The base fee is payable on the fifth business day of each month.

The minimum base fee for Braemar for each month will be equal to the greater of:

▪90% of the base fee paid for the same month in the prior year; and

▪1/12th of the G&A Ratio (as defined) multiplied by the total market capitalization of Braemar.

We are also required to pay Ashford LLC an incentive fee that is measured annually (or for a stub period if the advisory agreement is terminated at other than year-end). Each year that our annual total stockholder return exceeds the average annual total stockholder return for our peer group we pay Ashford LLC an incentive fee over the following three years, subject to the Fixed Charge Coverage Ratio (“FCCR”) Condition, as defined in the advisory agreement, which relates to the ratio of adjusted EBITDA to fixed charges. We also reimburse Ashford LLC for certain reimbursable overhead and internal audit, risk management advisory and asset management services, as specified in the advisory agreement. We also recorded equity-based compensation expense for equity grants of common stock, PSUs and LTIP units awarded to officers and employees of Ashford LLC in connection with providing advisory services.

The following table summarizes the advisory services fees incurred (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Advisory services fee
Base advisory fee	$	3,667	$	3,226	$	7,307	$	6,165
Reimbursable expenses (1)	2,042		1,173		4,064		2,269
Equity-based compensation (2)	2,506		2,637		4,792		4,947
Incentive fee	—		(731)		—		246
Total	$	8,215	$	6,305	$	16,163	$	13,627

________

(1)Reimbursable expenses include overhead, internal audit, risk management advisory, asset management services and deferred cash awards.

(2)    Equity-based compensation is associated with equity grants of Braemar’s common stock, PSUs, LTIP units and Performance LTIP units awarded to officers and employees of Ashford LLC.

Pursuant to the Company’s hotel management agreements with each hotel management company, the Company bears the economic burden for casualty insurance coverage. Under the advisory agreement, Ashford Inc. secures casualty insurance policies to cover Braemar, Ashford Hospitality Trust, Inc. (“Ashford Trust”), their hotel managers, as needed, and Ashford Inc. The total loss estimates included in such policies are based on the collective pool of risk exposures from each party. Ashford Inc.’s risk management department manages the casualty insurance program. Each year Ashford Inc.’s risk management department collects funds from Braemar, Ashford Trust and their respective hotel management companies, to fund the casualty insurance program as needed, on an allocated basis.On September 27, 2022, an agreement was entered into by Ashford Inc., Ashford Trust and Braemar pursuant to which the Advisor is to implement the REITs’ cash management strategies. This will include actively managing the REITs excess cash by primarily investing in short-term U.S. Treasury securities. The annual fee is equal to the lesser of (i) 20 bps of the average daily balance of the funds managed by the Advisor and (ii) the actual rate of return realized by the cash management strategies; provided that in no event will the cash management fee be less than zero. The fee is payable monthly in arrears.As of June 30, 2023, “due to Ashford Inc.” includes a $365,000 security deposit paid to Remington Hotel Corporation (“RHC”) for office space allocated to us under our advisory agreement. It will be held as security for the payment of our allocated share of the office space rental. If unused it will be returned to us upon lease expiration or earlier termination. As of December 31, 2022, RHC was indirectly owned by Mr. Monty J. Bennett and Mr. Archie Bennett, Jr. and the $365,000 was included in “due from related parties, net.” On January 3, 2023, Ashford Inc. acquired RHC.

On March 10, 2022, the Company entered into a Limited Waiver Under Advisory Agreement (the “2022 Limited Waiver”) with Braemar OP, Braemar TRS and its advisor. The advisory agreement (i) allocates responsibility for certain employee costs between the Company and its advisor and (ii) permits the Company’s board of directors to issue annual equity awards in the Company or Braemar OP to employees and other representatives of its advisor based on achievement by the Company of certain financial or other objectives or otherwise as the Company’s board of directors sees fit. Pursuant to the 2022 Limited Waiver, the Company, Braemar OP, Braemar TRS and the Company’s advisor waived the operation of any provision in the advisory agreement that would otherwise have limited our ability, in our discretion and at our cost and expense, to award during the first and second fiscal quarters of calendar year 2022 cash incentive compensation to employees and other representatives of our advisor.

On March 2, 2023, the Company entered into a second Limited Waiver Under Advisory Agreement (the “2023 Limited Waiver”) with Braemar OP, Braemar TRS and its advisor. Pursuant to the 2023 Limited Waiver, the Company, Braemar OP, Braemar TRS and the Company’s advisor waived the operation of any provision in the advisory agreement that would otherwise limit our ability, in our discretion and at our cost and expense, to award during the first and second fiscal quarters of calendar year 2023 cash incentive compensation to employees and other representatives of our advisor.

Lismore

We engage Lismore or its subsidiaries to provide debt placement services and assist with loan modifications on our behalf.

In June 2023, we entered into various 12-month agreements with Lismore to seek modifications or refinancings of certain mortgage debt of the Company. For the three and six months ended June 30, 2023, we incurred fees of approximately $150,000 to Lismore in nonrefundable work fees. The unamortized fees are included in “other assets” on the condensed consolidated balance sheet, and are amortized on a straight line basis over the term of the agreement.

In addition to the fees described above, we incurred fees from Lismore or its subsidiaries of $98,000 for both three and six months ended June 30, 2023 and $0 and $637,000 for the three and six months ended June 30, 2022.

Ashford Securities

On December 31, 2020, an Amended and Restated Contribution Agreement (the “Amended and Restated Contribution Agreement”) was entered into by Ashford Inc., Ashford Trust and Braemar (collectively, the “Parties” and each individually a “Party”) with respect to funding certain expenses of Ashford Securities LLC, a subsidiary of Ashford Inc. (“Ashford Securities”). Beginning on the effective date of the Amended and Restated Contribution Agreement, costs were allocated based upon an allocation percentage of 50% to Ashford Inc., 50% to Braemar and 0% to Ashford Trust. Upon reaching the earlier of $400 million in aggregate capital raised, or June 10, 2023, there will be a true up (the “Amended and Restated True-Up Date”) among Ashford Inc., Ashford Trust and Braemar whereby the actual amount contributed by each company will be based on the actual amount of capital raised by Ashford Inc., Ashford Trust and Braemar, respectively, through Ashford Securities (the

resulting ratio of contributions among the Parties, the “Initial True-up Ratio”). On January 27, 2022, Ashford Trust, Braemar and Ashford Inc. entered into a Second Amended and Restated Contribution Agreement which provided for an additional $18 million in expenses to be reimbursed with all expenses allocated 45% to Ashford Trust, 45% to Braemar and 10% to Ashford Inc.

On February 1, 2023, Braemar entered into a Third Amended and Restated Contribution Agreement with Ashford Inc. and Ashford Trust. The Third Amended and Restated Contribution Agreement states that after the Amended and Restated True-Up Date occurs, capital contributions for the remainder of fiscal year 2023 will be divided between each Party based on the Initial True-Up Ratio. Thereafter on a yearly basis at year-end, starting with the year-end of 2023, there will be a true-up between the Parties whereby there will be adjustments so that the capital contributions made by each Party will be based on the cumulative amount of capital raised by each Party through Ashford Securities as a percentage of the total amount raised by the Parties collectively through Ashford Securities since June 10, 2019 (the resulting ratio of capital contributions among Braemar, Ashford Inc. and Ashford Trust following this true-up, the “Cumulative Ratio”). Thereafter, the capital contributions will be divided among each Party in accordance with the Cumulative Ratio, as recalculated at the end of each year.

During the year ended December 31, 2022, the funding estimate was revised based on the latest capital raise estimates of the aggregate capital raised through Ashford Securities. As of December 31, 2022, Braemar had funded approximately $5.8 million and had a payable, included in “due to Ashford Inc., net” on the condensed consolidated balance sheet, of approximately $6.6 million. In March 2023, Braemar paid Ashford Inc. $8.7 million as a result of the contribution true-up between entities described above. As of June 30, 2023, Braemar has funded approximately $17.9 million. As of June 30, 2023, Braemar has a pre-funded balance of approximately $1.9 million that is included in “other assets” and approximately $1.5 million that is included in “due to Ashford Inc., net” on the condensed consolidated balance sheet.

The table below summarizes the amount Braemar has expensed related to reimbursed operating expenses of Ashford Securities (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2023		2022		2023		2022
Corporate, general and administrative	$	1,024	$	664	$	2,219	$	1,191

Design and Construction Services

Premier Project Management LLC (“Premier”), a subsidiary of Ashford Inc., provides design and construction services to our hotels, including construction management, interior design, architectural services, and the purchasing, freight management and supervision of installation of FF&E and related services. Pursuant to the design and construction services agreement, we pay Premier: (a) design and construction fees of up to 4% of project costs; and (b) for the following services: (i) architectural (6.5% of total construction costs); (ii) construction management for projects without a general contractor (10% of total construction costs); (iii) interior design (6% of the purchase price of the FF&E designed or selected by Premier); and (iv) FF&E purchasing (8% of the purchase price of FF&E purchased by Premier; provided that if the purchase price exceeds $2.0 million for a single hotel in a calendar year, then the purchasing fee is reduced to 6% of the FF&E purchase price in excess of $2.0 million for such hotel in such calendar year).

Hotel Management Services

At June 30, 2023, Remington Hospitality managed four of our 16 hotel properties.

We pay monthly hotel management fees equal to the greater of approximately $16,000 per hotel (increased annually based on consumer price index adjustments) or 3% of gross revenues as well as annual incentive management fees, if certain operational criteria were met and other general and administrative expense reimbursements primarily related to accounting services.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and ContingenciesRestricted Cash—Under certain management and debt agreements for our hotel properties existing at June 30, 2023, escrow payments are required for insurance, real estate taxes and debt service. In addition, for certain properties based on the terms of the underlying debt and management agreements, we escrow 3% to 5% of gross revenues for capital improvements.

Licensing Fees—In conjunction with the Mr. C Beverly Hills Hotel acquisition on August 5, 2021, we entered into an Intellectual Property Sublicense Agreement, which allows us to continue to use certain proprietary marks associated with the Mr. C brand name. In return, we pay licensing fees of: (i) 1% of total operating revenue; (ii) 2% of gross food and beverage revenues; and (iii) 25% of food and beverage profits. The agreement expired on August 5, 2023.

The table below summarizes the licensing fees incurred (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2023		2022		2023		2022
Other hotel expenses	$	172	$	189	$	374	$	291

Management Fees—Under hotel management agreements for our hotel properties existing at June 30, 2023, we pay a monthly hotel management fee equal to the greater of approximately $16,000 per hotel (increased annually based on consumer price index adjustments) or 3% of gross revenues, or in some cases 3.0% to 5.0% of gross revenues, as well as annual incentive management fees, if applicable. These management agreements expire from December 2027 through December 2065, with renewal options. If we terminate a management agreement prior to its expiration, we may be liable for estimated management fees through the remaining term, liquidated damages or, in certain circumstances, we may substitute a new management agreement.

Income Taxes—We and our subsidiaries file income tax returns in the federal jurisdiction and various states. Tax years 2018 through 2022 remain subject to potential examination by certain federal and state taxing authorities.

Litigation—On December 20, 2016, a class action lawsuit was filed against one of the Company’s hotel management companies in the Superior Court of the State of California in and for the County of Contra Costa alleging violations of certain California employment laws, which class action affects two hotels owned by subsidiaries of the Company. The court has entered an order granting class certification with respect to: (i) a statewide class of non-exempt employees of our manager who were allegedly deprived of rest breaks as a result of our manager’s previous written policy requiring its employees to stay on premises during rest breaks; and (ii) a derivative class of non-exempt former employees of our manager who were not paid for allegedly missed breaks upon separation from employment. Notices to potential class members were sent out on February 2, 2021. Potential class members had until April 4, 2021 to opt out of the class; however, the total number of employees in the class has not been definitively determined and is the subject of continuing discovery. The opt out period has been extended until such time that discovery has concluded. In May 2023 the trial court requested additional briefing from the parties to determine whether the case should be maintained, dismissed, or the class de-certified. The trial court set a due date of August 7, 2023 for the briefs. If this litigation goes to trial, we expect that the earliest the trial would occur is the last quarter of 2023, based on various extensions to which the parties have agreed. While we believe it is reasonably possible that we may incur a loss associated with this litigation, because there remains uncertainty under California law with respect to a significant legal issue, discovery relating to class members continues, and the trial judge retains discretion to award lower penalties than set forth in the applicable California employment laws, we do not believe that any potential loss to the Company is reasonably estimable at this time. As of June 30, 2023, no amounts have been accrued.

We are also engaged in other legal proceedings that have arisen but have not been fully adjudicated. To the extent the claims giving rise to these legal proceedings are not covered by insurance, they relate to the following general types of claims: employment matters, tax matters and matters relating to compliance with applicable law (for example, the Americans with Disability Act and similar state laws). The likelihood of loss from these legal proceedings is based on the definitions within contingency accounting literature. We recognize a loss when we believe the loss is both probable and reasonably estimable. Based on the information available to us relating to these legal proceedings and/or our experience in similar legal proceedings, we do not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial position, results of operations or cash flow. However, our assessment may change depending upon the development of these legal proceedings, and the final results of these legal proceedings cannot be predicted with certainty. If we do not prevail in one or more of these legal matters, and the associated realized losses exceed our current estimates of the range of potential losses, our consolidated financial position, results of operations or cash flows could be materially adversely affected in future periods.

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Segment Reporting	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Reporting	Segment ReportingWe operate in one business segment within the hotel lodging industry: direct hotel investments. Direct hotel investments refers to owning hotel properties through either acquisition or new development. We report operating results of direct hotel investments on an aggregate basis as substantially all of our hotel investments have similar economic characteristics and exhibit similar long-term financial performance. As of June 30, 2023 and December 31, 2022, all of our hotel properties were in the U.S. and its territories.

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Subsequent Events

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On July 31, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with Braemar OP (the “Borrower”), the lenders party thereto (the “Lenders”) and Bank of America, N.A., as administrative agent and L/C Issuer (as defined in the Credit Agreement). Bank of America, N.A. acted as administrative agent and lead arranger on the transaction. Syndicate bank participants include TBK Bank and MidFirst Bank.

The Credit Agreement evidences a $200 million senior secured credit facility (the “Facility”) comprised of a senior secured term loan facility of $150 million (the “Term Loan Facility”) and a senior secured revolving credit facility of $50 million (the “Revolving Credit Facility”). Upon satisfaction of certain conditions, including the addition of new Borrowing Base Properties (as defined in the Credit Agreement), the Facility may be increased to a size of not more than $400 million in the aggregate. The maximum availability under the Facility is determined on a quarterly basis and limited to the lesser of (i) $200 million (subject to increase of up to $400 million in the aggregate); (ii) 55% of the appraised value of all Borrowing Base Properties; and (iii) the DSC Amount (as defined below). The initial Borrowing Base Properties include the Company’s Ritz-Carlton Sarasota, Bardessono Hotel and Spa and Hotel Yountville hotel properties (the “Initial Borrowing Base Properties”). The “DSC Amount” means the maximum principal amount that can be supported from the Adjusted NOI (as defined in the Credit Agreement) from the Borrowing Base Properties assuming (i) a 30-year amortization and an interest rate which is the greater of (a) the ten (10) year U.S. Treasury Rate plus 2.50% and (b) 7.50%; and (ii) a minimum debt service coverage of 1.75 to 1.00.

The proceeds of the Term Loan Facility were used to repay the mortgage debt associated with The Ritz-Carlton Sarasota, Bardessono Hotel and Spa and Hotel Yountville, which will serve as the Initial Borrowing Base Properties for the financing. In addition, at closing, the Company drew down approximately $46 million under the Revolving Credit Facility.

The Facility is a three-year interest-only facility with all outstanding principal due at maturity, with a one-year extension option, subject to the satisfaction of certain conditions including the payment of an Extension Fee (as defined in the Credit Agreement) equal to 20 basis points (0.20%) of the outstanding Facility amount.

The Credit Agreement is guaranteed by the Company, the Borrower and certain other eligible subsidiaries of the Company and secured by: (i) perfected lien mortgages or deeds of trust and security interests in the Borrowing Base Properties (as defined in the Credit Agreement); (ii) assignments of leases and rents with respect to the Borrowing Base Properties; (iii) assignments of all management agreements, franchise agreements, licenses and other material agreements relating to the Borrowing Base Properties; (iv) perfected first priority liens on all reserve accounts and all operating accounts related to each Borrowing Base Property; and (v) perfected first priority liens on and security interests in each subsidiary guarantor owning a Borrowing Base Property.

Borrowings under the Credit Agreement will bear interest at Daily SOFR or Term SOFR plus 10 basis points (with a 0% floor) plus the applicable margin. Depending on the Company’s Net Debt to EBITDA ratio, the applicable margin for SOFR ranges from 2.25% to 3.00%. Default interest would accrue at the applicable rate plus 2.0%.

The Facility contains customary terms, covenants, negative covenants, events of default, limitations and other conditions for credit facilities of this type. Subject to certain exceptions, the Company and the Borrower are subject to restrictions on incurring additional indebtedness and liens, investments, mergers and fundamental changes, sales or other dispositions of property, dividends and stock redemptions, changes in the nature of the Borrower’s business, transactions with affiliates and burdensome agreements.

Financial covenants are generally based on the financial condition and results of operations of the Company and its consolidated subsidiaries and include, among others, the following:

(i) a Consolidated Leverage Ratio (i.e., Consolidated Net Debt to the Consolidated Total Asset Value) of not more than 55%; and

(ii) a Consolidated Fixed Charge Coverage Ratio (FCCR) (i.e., the ratio of Consolidated Adjusted EBITDA to Consolidated Fixed Charges) of not less than (i) prior to December 31, 2024, 1.1 to 1.0 and (ii) thereafter, 1.25 to 1.0.

The Credit Agreement includes customary events of default, and the occurrence of an event of default will permit the Lenders to terminate commitments to lend under the Credit Agreement and accelerate payments of all amounts outstanding thereunder.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income (loss)	$ (1,846)	$ 14,366	$ 14,188	$ 29,029

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Significant Accounting Policies (For 10Q) (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These condensed consolidated financial statements include the accounts of Braemar Hotels & Resorts Inc., its majority-owned subsidiaries, and its majority-owned entities in which it has a controlling interest. All intercompany accounts and transactions between consolidated entities have been eliminated in these condensed consolidated financial statements. We have condensed

or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made herein are adequate to prevent the information presented from being misleading. However, the financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 10, 2023.

Braemar OP is considered to be a variable interest entity (“VIE”), as defined by authoritative accounting guidance. A VIE must be consolidated by a reporting entity if the reporting entity is the primary beneficiary because it has (i) the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. All major decisions related to Braemar OP that most significantly impact its economic performance, including but not limited to operating procedures with respect to business affairs and any acquisitions, dispositions, financings, restructurings or other transactions with sellers, purchasers, lenders, brokers, agents and other applicable representatives, are subject to the approval of our wholly-owned subsidiary, Braemar OP General Partner LLC, its general partner. As such, we consolidate Braemar OP.

The following items affect reporting comparability of our historical condensed consolidated financial statements:

•Historical seasonality patterns at some of our hotel properties cause fluctuations in our overall operating results. Consequently, operating results for the three and six months ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023;

•On March 11, 2022, we acquired The Ritz-Carlton Reserve Dorado Beach hotel located in Dorado, Puerto Rico. The operating results of the hotel property have been included in the results of operations from its acquisition date; and

•On December 1, 2022, we acquired the Four Seasons Resort Scottsdale at Troon North located in Scottsdale, Arizona. The operating results of the hotel property have been included in the results of operations from its acquisition date.

Use of Estimates

Use of Estimates—The preparation of these condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Recently Adopted and Issued Accounting Standards

Recently Adopted Accounting Standards—In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”), which provides optional guidance through December 31, 2022 to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which further clarified the scope of the reference rate reform optional practical expedients and exceptions outlined in Topic 848. The amendments in ASU Nos. 2020-04 and 2021-01 apply to contract modifications that replace a reference rate affected by reference rate reform, providing optional expedients regarding the measurement of hedge effectiveness in hedging relationships that have been modified to replace a reference rate. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) (“ASU 2022-06”), which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company applied the optional expedient in evaluating debt modifications converting from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”). The Company adopted the standards upon the respective effective dates. There was no material impact as a result of this adoption.

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Revenue (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables present our revenue disaggregated by geographical areas (dollars in thousands):

	Three Months Ended June 30, 2023
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	31,004	$	10,630	$	5,066	$	46,700
Puerto Rico	1	12,870		5,060		3,087		21,017
Arizona	1	7,924		5,268		2,043		15,235
Colorado	1	1,866		1,811		1,689		5,366
Florida	2	15,290		8,630		5,665		29,585
Illinois	1	7,738		1,947		412		10,097
Pennsylvania	1	7,643		1,650		349		9,642
Washington	1	8,193		1,337		411		9,941
Washington, D.C.	1	11,433		5,721		426		17,580
USVI	1	13,176		5,722		2,646		21,544
Total	16	$	117,137	$	47,776	$	21,794	$	186,707

	Three Months Ended June 30, 2022
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	34,313	$	11,560	$	4,226	$	50,099
Puerto Rico	1	11,927		4,700		2,908		19,535
Colorado	1	2,306		2,713		1,633		6,652
Florida	2	19,631		9,742		6,589		35,962
Illinois	1	7,542		2,209		411		10,162
Pennsylvania	1	6,158		1,120		309		7,587
Washington	1	5,587		887		316		6,790
Washington, D.C.	1	9,719		3,403		572		13,694
USVI	1	15,344		5,935		3,134		24,413
Total	15	$	112,527	$	42,269	$	20,098	$	174,894

	Six Months Ended June 30, 2023
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	65,570	$	21,940	$	10,756	$	98,266
Puerto Rico	1	28,300		9,935		6,224		44,459
Arizona	1	22,081		11,786		4,659		38,526
Colorado	1	16,207		8,172		4,672		29,051
Florida	2	36,939		19,129		12,336		68,404
Illinois	1	11,304		2,930		767		15,001
Pennsylvania	1	12,163		2,646		631		15,440
Washington	1	12,414		2,037		823		15,274
Washington, D.C.	1	20,210		11,209		859		32,278
USVI	1	29,476		10,220		5,613		45,309
Total	16	$	254,664	$	100,004	$	47,340	$	402,008

	Six Months Ended June 30, 2022
Primary Geographical Market	Number of Hotels	Rooms		Food and Beverage		Other Hotel		Total
California	6	$	65,284	$	22,429	$	9,169	$	96,882
Puerto Rico	1	17,403		5,832		3,796		27,031
Colorado	1	14,483		8,846		4,764		28,093
Florida	2	44,714		19,264		13,632		77,610
Illinois	1	10,301		3,006		740		14,047
Pennsylvania	1	9,233		1,626		520		11,379
Washington	1	8,175		1,298		625		10,098
Washington, D.C.	1	13,600		5,733		992		20,325
USVI	1	34,526		10,942		5,841		51,309
Total	15	$	217,719	$	78,976	$	40,079	$	336,774

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Investments in Hotel Properties, net (Tables)

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of Investment in Hotel Properties

Investments in hotel properties, net consisted of the following (in thousands):

	June 30, 2023		December 31, 2022
Land	$	630,842	$	630,489
Buildings and improvements	1,520,184		1,511,949
Furniture, fixtures and equipment	157,626		147,019
Construction in progress	39,444		22,890
Residences	12,746		12,746
Total cost	2,360,842		2,325,093
Accumulated depreciation	(470,484)		(440,492)
Investments in hotel properties, net	$	1,890,358	$	1,884,601

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Investment in Unconsolidated Entity (Tables)

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Summarized Financial Information

The following table summarizes our carrying value and ownership interest in OpenKey:

	June 30, 2023			December 31, 2022
Carrying value of the investment in OpenKey (in thousands)	$	1,535		$	1,689
Ownership interest in OpenKey	7.9		%	7.9		%

The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2023		2022		2023		2022
Equity in earnings (loss) of unconsolidated entity	$	(80)	$	(74)	$	(154)	$	(146)

The following table summarizes our note receivable from OpenKey (in thousands):

Line Item	June 30, 2023		December 31, 2022
Investment in unconsolidated entity	$	164	$	—

The following table summarizes the interest income associated with the loan to OpenKey (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
Line Item	2023		2023
Equity in earnings (loss) of unconsolidated entity	$	5	$	6

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Indebtedness, net (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Indebtedness, net

Indebtedness, net consisted of the following (dollars in thousands):

Indebtedness	Collateral	Current Maturity	Final Maturity (11)	Interest Rate	June 30, 2023		December 31, 2022
Mortgage loan (3)	The Ritz-Carlton Sarasota	April 2023	April 2023	LIBOR (1) + 2.65%	$	—	$	98,500
Mortgage loan (4)	Hotel Yountville	May 2023	May 2023	LIBOR (1) + 2.55%	—		51,000
Mortgage loan	Bardessono Hotel and Spa	August 2023	August 2023	SOFR (2) + 2.65%	40,000		40,000
Mortgage loan (5)	The Ritz-Carlton St. Thomas	August 2023	August 2024	LIBOR (1) + 3.95%	42,500		42,500
Mortgage loan (3)	The Ritz-Carlton Sarasota	October 2023	April 2024	SOFR (2) + 3.60%	98,000		—
Mortgage loan (4)	Hotel Yountville	November 2023	May 2024	SOFR (2) + 2.65%	51,000		—
Mortgage loan	The Ritz-Carlton Lake Tahoe	January 2024	January 2024	SOFR (2) + 2.20%	54,000		54,000
Mortgage loan	Capital Hilton	February 2024	February 2024	LIBOR (1) + 1.70%	195,000		195,000
	Hilton La Jolla Torrey Pines
Mortgage loan (6)	Park Hyatt Beaver Creek Resort & Spa	February 2024	February 2027	SOFR (2) + 2.86%	70,500		70,500
Mortgage loan (7)	The Ritz-Carlton Reserve Dorado Beach	March 2024	March 2026	LIBOR (1) + 6.00%	—		54,000
Mortgage loan (8)	The Notary Hotel	June 2024	June 2025	LIBOR (1) + 2.61%	293,180		435,000
	The Clancy
	Sofitel Chicago Magnificent Mile
	Marriott Seattle Waterfront
Mortgage loan (9)	Mr. C Beverly Hills Hotel	August 2024	August 2024	LIBOR (1) + 3.60%	30,000		30,000
Mortgage loan	Pier House Resort & Spa	September 2024	September 2024	SOFR (2) + 1.95%	80,000		80,000
Mortgage loan (10)	Four Seasons Resort Scottsdale	December 2025	December 2027	SOFR (2) + 3.75%	100,000		100,000
Convertible Senior Notes	Equity	June 2026	June 2026	4.50%	86,250		86,250
					1,140,430		1,336,750
Capitalized default interest and late charges, net					1,046		1,934
Deferred loan costs, net					(3,616)		(5,054)
Premiums/(discounts), net					(1,902)		500
Indebtedness, net					$	1,135,958	$	1,334,130

__________________

(1)LIBOR rates were 5.22% and 4.39% at June 30, 2023 and December 31, 2022, respectively.

(2)SOFR rates were 5.14% and 4.36% at June 30, 2023 and December 31, 2022, respectively.

(3)On April 4, 2023, we amended this mortgage loan. Terms of the amendment replaced the variable interest rate of LIBOR + 2.65% with SOFR + 2.75%, extended the current maturity date to October 2023, and added one six-month extension option, subject to satisfaction of certain conditions. Effective June 1, 2023, the variable interest rate increased from SOFR + 2.75% to SOFR + 3.60% in accordance with the loan agreement.

(4)On April 18, 2023, we amended this mortgage loan. Terms of the amendment replaced the variable interest rate of LIBOR + 2.55% with SOFR + 2.65%, extended the current maturity date to November 2023, and added one six-month extension option, subject to satisfaction of certain conditions.

(5)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the second was exercised in August 2022. This mortgage loan has a LIBOR floor of 1.00%.

(6)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions.

(7)On January 18, 2023, we repaid this mortgage loan.

(8)This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions, of which the fourth was exercised in June 2023. In accordance with exercising the fourth one-year extension option, we repaid $142.0 million of principal and the variable interest rate increased from LIBOR + 2.16% to LIBOR + 2.61%.

(9)This mortgage loan has a LIBOR floor of 1.50%.

(10)This mortgage loan has a SOFR floor of 1.00%.

(11)The final maturity date assumes all available extension options will be exercised.

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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table summarizes the interest rate derivatives we entered into over the applicable periods:

	Six Months Ended June 30,
Interest rate caps:(1)	2023			2022
Notional amount (in thousands)	$	496,180		$	556,500
Strike rate low end of range	3.50		%	3.50		%
Strike rate high end of range	5.25		%	4.00		%
Effective date range	January 2023 - June 2023			February 2022-May 2022
Termination date range	October 2023 - June 2024			May 2023- February 2024
Total cost of interest rate caps (in thousands)	$	3,400		$	1,145

_______________

(1)    No instruments were designated as cash flow hedges.

Interest rate derivatives consisted of the following:

Interest rate caps: (1)	June 30, 2023			December 31, 2022
Notional amount (in thousands)	$	816,680		$	960,500
Strike rate low end of range	2.00		%	2.00		%
Strike rate high end of range	5.25		%	4.50		%
Termination date range	August 2023 - January 2025			January 2023- January 2025
Aggregate principal balance on corresponding mortgage loans (in thousands)	$	816,680		$	959,000

_______________

(1)No instruments were designated as cash flow hedges.

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):

	Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 30, 2023
Assets
Derivative assets:
Interest rate derivatives - caps	$	—	$	6,308	$	—	$	6,308
Total	$	—	$	6,308	$	—	$	6,308	(1)
Liabilities
Derivative liabilities:
Warrants	$	—	$	(165)	$	—	$	(165)	(2)
Net	$	—	$	6,143	$	—	$	6,143

	Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
December 31, 2022
Assets
Derivative assets:
Interest rate derivatives - caps	$	—	$	6,482	$	—	$	6,482
	$	—	$	6,482	$	—	$	6,482	(1)
Liabilities
Derivative liabilities:
Warrants	$	—	$	(284)	$	—	$	(284)	(2)
Net	$	—	$	6,198	$	—	$	6,198

__________________

(1)Reported as “derivative assets” in our condensed consolidated balance sheets.

(2)Reported as “derivative liabilities” in our condensed consolidated balance sheets.

Effect of Fair Value Measured Assets and Liabilities on Consolidated Statements of Operations

The following table summarizes the effect of fair value measured assets and liabilities on our condensed consolidated statements of operations (in thousands):

	Gain (Loss) Recognized in Income
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Assets
Derivative assets:
Interest rate derivatives - caps	$	1,013		$	43		$	576		$	886
Total	$	1,013		$	43		$	576		$	886
Liabilities
Derivative liabilities:
Warrants	$	16		$	1,165		$	119		$	730
Net	$	1,029		$	1,208		$	695		$	1,616
Total combined
Interest rate derivatives - caps	$	(1,269)		$	43		$	(3,573)		$	886
Warrants	16			1,165			119			730
Unrealized gain (loss) on derivatives	$	(1,253)	(1)	$	1,208	(1)	$	(3,454)	(1)	$	1,616	(1)
Realized gain (loss) on interest rate caps	2,282		(1) (2)	—			4,149		(1) (2)	—
Net	$	1,029		$	1,208		$	695		$	1,616

________

(1)Reported in “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations.

(2)Represents settled and unsettled payments from counterparties on interest rate caps.

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Summary of Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Investments, All Other Investments [Abstract]

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments were as follows (in thousands):

	June 30, 2023				December 31, 2022
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets measured at fair value:
Derivative assets	$	6,308	$	6,308	$	6,482	$	6,482
Financial liabilities measured at fair value:
Derivative liabilities	$	165	$	165	$	284	$	284
Financial assets not measured at fair value:
Cash and cash equivalents	$	128,025	$	128,025	$	261,541	$	261,541
Restricted cash	63,439		63,439		54,155		54,155
Accounts receivable, net	32,864		32,864		51,448		51,448
Due from related parties, net	333		333		938		938
Due from third-party hotel managers	15,430		15,430		26,625		26,625
Financial liabilities not measured at fair value:
Indebtedness	$	1,138,528	$1,050,061 to $1,160,595		$	1,337,250	$1,229,671 to $1,359,110
Accounts payable and accrued expenses	135,096		135,096		133,978		133,978
Dividends and distributions payable	8,917		8,917		8,184		8,184
Due to Ashford Inc.	4,558		4,558		10,005		10,005
Due to third-party hotel managers	1,579		1,579		2,096		2,096

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Income (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Summary of Amounts Used in Calculating Basic and Diluted Earnings (Loss) Per Share

The following table reconciles the amounts used in calculating basic and diluted income (loss) per share (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss) attributable to common stockholders - basic and diluted:
Net income (loss) attributable to the Company	$	(1,846)	$	14,366	$	14,188	$	29,029
Less: dividends on preferred stock	(10,877)		(4,064)		(21,227)		(7,367)
Less: deemed dividends on preferred stock	(301)		—		(2,755)		—
Less: dividends on common stock	(3,291)		(707)		(6,580)		(1,414)
Less: dividends on unvested performance stock units	(36)		(7)		(72)		(14)
Less: dividends on unvested restricted shares	(8)		(6)		(17)		(12)
Less: net (income) loss allocated to performance stock units	—		(95)		—		(207)
Less: net (income) loss allocated to unvested restricted shares	—		(74)		—		(161)
Undistributed net income (loss) allocated to common stockholders	(16,359)		9,413		(16,463)		19,854
Add back: dividends on common stock	3,291		707		6,580		1,414
Distributed and undistributed net income (loss) - basic	$	(13,068)	$	10,120	$	(9,883)	$	21,268
Interest expense on Convertible Senior Notes	—		1,108		—		2,211
Dividends on preferred stock - Series E (inclusive of deemed dividends)	—		2,053		—		3,452
Dividends on preferred stock - Series M (inclusive of deemed dividends)	—		128		—		149
Distributed and undistributed net income (loss) - diluted	$	(13,068)	$	13,409	$	(9,883)	$	27,080
Weighted average common shares outstanding:
Weighted average common shares outstanding – basic	65,806		70,740		68,378		68,325
Effect of assumed exercise of warrants	—		—		—		1
Effect of assumed conversion of Convertible Senior Notes	—		13,610		—		13,610
Effect of assumed conversion of preferred stock - Series E	—		22,207		—		16,232
Effect of assumed conversion of preferred stock - Series M	—		1,112		—		630
Weighted average common shares outstanding – diluted	65,806		107,669		68,378		98,798
Income (loss) per share - basic:
Net income (loss) allocated to common stockholders per share	$	(0.20)	$	0.14	$	(0.14)	$	0.31
Income (loss) per share - diluted:
Net income (loss) allocated to common stockholders per share	$	(0.20)	$	0.12	$	(0.14)	$	0.27

Summary of Computation of Diluted Income Per Share

Due to their anti-dilutive effect, the computation of diluted income (loss) per share does not reflect the adjustments for the following items (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss) allocated to common stockholders is not adjusted for:
Income (loss) allocated to unvested restricted shares	$	8	$	80	$	17	$	173
Income (loss) allocated to unvested performance stock units	36		102		72		221
Income (loss) attributable to redeemable noncontrolling interests in operating partnership	(925)		846		(664)		1,813
Dividends on preferred stock - Series B	1,058		1,058		2,116		2,116
Interest expense on Convertible Senior Notes	1,117		—		2,231		—
Dividends on preferred stock - Series E (inclusive of deemed dividends)	8,162		—		17,892		—
Dividends on preferred stock - Series M (inclusive of deemed dividends)	1,133		—		2,324		—
Total	$	10,589	$	2,086	$	23,988	$	4,323
Weighted average diluted shares are not adjusted for:
Effect of unvested restricted shares	—		34		—		25
Effect of unvested performance stock units	340		—		346		1
Effect of assumed conversion of operating partnership units	5,172		5,868		5,576		5,862
Effect of assumed conversion of preferred stock - Series B	4,116		4,116		4,116		4,116
Effect of assumed conversion of Convertible Senior Notes	13,609		—		13,609		—
Effect of assumed conversion of preferred stock - Series E	102,751		—		101,478		—
Effect of assumed conversion of preferred stock - Series M	12,219		—		11,945		—
Total	138,207		10,018		137,070		10,004

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Redeemable Noncontrolling Interests in Operating Partnership (Tables)

6 Months Ended

Jun. 30, 2023

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interest

The following table presents the redeemable noncontrolling interests in Braemar OP and the corresponding approximate ownership percentage of our operating partnership:

	June 30, 2023			December 31, 2022
Redeemable noncontrolling interests in Braemar OP (in thousands)	$	35,174		$	40,555
Adjustments to redeemable noncontrolling interests (1) (in thousands)	$	77		$	70
Ownership percentage of operating partnership	6.63		%	7.69		%

____________________________________

(1)    Reflects the excess of the redemption value over the accumulated historical cost.

We allocated net (income) loss to the redeemable noncontrolling interests as illustrated in the table below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	$	925	$	(846)	$	664	$	(1,813)
Distributions declared to holders of common units, LTIP units and Performance LTIP units	$	361	$	84	$	722	$	167

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Equity and Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Dividends Declared

Common Stock Dividends—The following table summarizes the common stock dividends declared during the period (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Common stock dividends declared	$	3,335	$	720	$	6,669	$	1,440

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series D Cumulative Preferred Stock	$	825	$	825	$	1,650	$	1,650

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Redeemable Preferred Stock (Tables)

6 Months Ended

Jun. 30, 2023

Temporary Equity Disclosure [Abstract]

Summary of the Activity of Temporary Equity

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series B Convertible Preferred Stock	$	1,058	$	1,058	$	2,116	$	2,116

The issuance activity of the Series E Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series E Preferred Stock shares issued (1)	—		1,312		3,798		2,789
Net proceeds	$	—	$	29,518	$	85,444	$	62,754

__________________

(1)Exclusive of shares issued under the DRIP.

The redemption value adjustment of Series E Preferred Stock is summarized below (in thousands):

	June 30, 2023		December 31, 2022
Series E Preferred Stock	$	379,403	$	291,076
Cumulative adjustments to Series E Preferred Stock (1)	$	11,775	$	9,403

________

(1)    Reflects the excess of the redemption value over the accumulated carrying value.

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series E Preferred Stock	$	7,986	$	2,053	$	15,520	$	3,452

The issuance activity of Series M Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series M Preferred Stock shares issued (1)	—		334		531		367
Net proceeds	$	—	$	8,087	$	12,869	$	8,897

__________________

(1)Exclusive of shares issued under the DRIP.

The redemption value adjustment of Series M Preferred stock is summarized below (in thousands):

	June 30, 2023		December 31, 2022
Series M Preferred Stock	$	48,405	$	35,182
Cumulative adjustments to Series M Preferred Stock (1)	$	1,195	$	812

__________________

(1)    Reflects the excess of the redemption value over the accumulated carrying value.

The following table summarizes dividends declared (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series M Preferred Stock	$	1,008	$	128	$	1,941	$	149

Preferred Stock Redemption Activities

The redemption activities of Series E Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series E Preferred Stock shares redeemed	21		2		32		2
Redemption amount, net of redemption fees	$	507	$	50	$	789	$	50

The redemption activities of Series M Preferred Stock is summarized below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Series M Preferred Stock shares redeemed	4		—		5		—
Redemption amount, net of redemption fees	$	90	$	—	$	115	$	—

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

The following table summarizes the advisory services fees incurred (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Advisory services fee
Base advisory fee	$	3,667	$	3,226	$	7,307	$	6,165
Reimbursable expenses (1)	2,042		1,173		4,064		2,269
Equity-based compensation (2)	2,506		2,637		4,792		4,947
Incentive fee	—		(731)		—		246
Total	$	8,215	$	6,305	$	16,163	$	13,627

________

(1)Reimbursable expenses include overhead, internal audit, risk management advisory, asset management services and deferred cash awards.

(2)    Equity-based compensation is associated with equity grants of Braemar’s common stock, PSUs, LTIP units and Performance LTIP units awarded to officers and employees of Ashford LLC.

The table below summarizes the amount Braemar has expensed related to reimbursed operating expenses of Ashford Securities (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2023		2022		2023		2022
Corporate, general and administrative	$	1,024	$	664	$	2,219	$	1,191

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Commitment and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Licensing Fees Incurred

The table below summarizes the licensing fees incurred (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2023		2022		2023		2022
Other hotel expenses	$	172	$	189	$	374	$	291

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Organization and Description of Business (Details)	Jun. 30, 2023 room hotel state	Jun. 30, 2022 hotel
Real Estate Properties [Line Items]
Number of hotel properties	16	15
Number of states in which entity operates | state	7
Number of rooms | room	4,192
Number of units in real estate property, net partnership interest | room	3,957
Wholly owned properties
Real Estate Properties [Line Items]
Number of hotel properties	14
Consolidated properties
Real Estate Properties [Line Items]
Number of hotel properties	2
Leased by wholly-owned or majority-owned taxable REIT subsidiaries
Real Estate Properties [Line Items]
Number of hotel properties	15
US virgin islands taxable REIT subsidiary
Real Estate Properties [Line Items]
Number of hotel properties	1
Leased by ashford prime wholly-owned taxable REIT subsidiary
Real Estate Properties [Line Items]
Number of hotel properties	13
Remington Hospitality
Real Estate Properties [Line Items]
Number of hotel properties managed by related party	4

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Revenue - Disaggregated by Geographical Areas (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) hotel	Jun. 30, 2022 USD ($) hotel	Jun. 30, 2023 USD ($) hotel	Jun. 30, 2022 USD ($) hotel
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	16	15	16	15
Total revenue	$ 186,707	$ 174,894	$ 402,008	$ 336,774
California
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	6	6	6	6
Total revenue	$ 46,700	$ 50,099	$ 98,266	$ 96,882
Puerto Rico
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	1	1	1	1
Total revenue	$ 21,017	$ 19,535	$ 44,459	$ 27,031
Arizona
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	1		1
Total revenue	$ 15,235		$ 38,526
Colorado
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	1	1	1	1
Total revenue	$ 5,366	$ 6,652	$ 29,051	$ 28,093
Florida
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	2	2	2	2
Total revenue	$ 29,585	$ 35,962	$ 68,404	$ 77,610
Illinois
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	1	1	1	1
Total revenue	$ 10,097	$ 10,162	$ 15,001	$ 14,047
Pennsylvania
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	1	1	1	1
Total revenue	$ 9,642	$ 7,587	$ 15,440	$ 11,379
Washington
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	1	1	1	1
Total revenue	$ 9,941	$ 6,790	$ 15,274	$ 10,098
Washington, D.C.
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	1	1	1	1
Total revenue	$ 17,580	$ 13,694	$ 32,278	$ 20,325
USVI
Disaggregation of Revenue [Line Items]
Number of hotel properties | hotel	1	1	1	1
Total revenue	$ 21,544	$ 24,413	$ 45,309	$ 51,309
Rooms
Disaggregation of Revenue [Line Items]
Total revenue	117,137	112,527	254,664	217,719
Rooms | California
Disaggregation of Revenue [Line Items]
Total revenue	31,004	34,313	65,570	65,284
Rooms | Puerto Rico
Disaggregation of Revenue [Line Items]
Total revenue	12,870	11,927	28,300	17,403
Rooms | Arizona
Disaggregation of Revenue [Line Items]
Total revenue	7,924		22,081
Rooms | Colorado
Disaggregation of Revenue [Line Items]
Total revenue	1,866	2,306	16,207	14,483
Rooms | Florida
Disaggregation of Revenue [Line Items]
Total revenue	15,290	19,631	36,939	44,714
Rooms | Illinois
Disaggregation of Revenue [Line Items]
Total revenue	7,738	7,542	11,304	10,301
Rooms | Pennsylvania
Disaggregation of Revenue [Line Items]
Total revenue	7,643	6,158	12,163	9,233
Rooms | Washington
Disaggregation of Revenue [Line Items]
Total revenue	8,193	5,587	12,414	8,175
Rooms | Washington, D.C.
Disaggregation of Revenue [Line Items]
Total revenue	11,433	9,719	20,210	13,600
Rooms | USVI
Disaggregation of Revenue [Line Items]
Total revenue	13,176	15,344	29,476	34,526
Food and Beverage
Disaggregation of Revenue [Line Items]
Total revenue	47,776	42,269	100,004	78,976
Food and Beverage | California
Disaggregation of Revenue [Line Items]
Total revenue	10,630	11,560	21,940	22,429
Food and Beverage | Puerto Rico
Disaggregation of Revenue [Line Items]
Total revenue	5,060	4,700	9,935	5,832
Food and Beverage | Arizona
Disaggregation of Revenue [Line Items]
Total revenue	5,268		11,786
Food and Beverage | Colorado
Disaggregation of Revenue [Line Items]
Total revenue	1,811	2,713	8,172	8,846
Food and Beverage | Florida
Disaggregation of Revenue [Line Items]
Total revenue	8,630	9,742	19,129	19,264
Food and Beverage | Illinois
Disaggregation of Revenue [Line Items]
Total revenue	1,947	2,209	2,930	3,006
Food and Beverage | Pennsylvania
Disaggregation of Revenue [Line Items]
Total revenue	1,650	1,120	2,646	1,626
Food and Beverage | Washington
Disaggregation of Revenue [Line Items]
Total revenue	1,337	887	2,037	1,298
Food and Beverage | Washington, D.C.
Disaggregation of Revenue [Line Items]
Total revenue	5,721	3,403	11,209	5,733
Food and Beverage | USVI
Disaggregation of Revenue [Line Items]
Total revenue	5,722	5,935	10,220	10,942
Other Hotel
Disaggregation of Revenue [Line Items]
Total revenue	21,794	20,098	47,340	40,079
Other Hotel | California
Disaggregation of Revenue [Line Items]
Total revenue	5,066	4,226	10,756	9,169
Other Hotel | Puerto Rico
Disaggregation of Revenue [Line Items]
Total revenue	3,087	2,908	6,224	3,796
Other Hotel | Arizona
Disaggregation of Revenue [Line Items]
Total revenue	2,043		4,659
Other Hotel | Colorado
Disaggregation of Revenue [Line Items]
Total revenue	1,689	1,633	4,672	4,764
Other Hotel | Florida
Disaggregation of Revenue [Line Items]
Total revenue	5,665	6,589	12,336	13,632
Other Hotel | Illinois
Disaggregation of Revenue [Line Items]
Total revenue	412	411	767	740
Other Hotel | Pennsylvania
Disaggregation of Revenue [Line Items]
Total revenue	349	309	631	520
Other Hotel | Washington
Disaggregation of Revenue [Line Items]
Total revenue	411	316	823	625
Other Hotel | Washington, D.C.
Disaggregation of Revenue [Line Items]
Total revenue	426	572	859	992
Other Hotel | USVI
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,646	$ 3,134	$ 5,613	$ 5,841

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Investments in Hotel Properties, net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Land	$ 630,842	$ 630,489
Buildings and improvements	1,520,184	1,511,949
Furniture, fixtures and equipment	157,626	147,019
Construction in progress	39,444	22,890
Residences	12,746	12,746
Total cost	2,360,842	2,325,093
Accumulated depreciation	(470,484)	(440,492)
Investments in hotel properties, net	$ 1,890,358	$ 1,884,601

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Investments in Hotel Properties, net - Impairment Charges and Insurance Recoveries (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Impairment charges	$ 0	$ 0	$ 0	$ 0

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Investment in Unconsolidated Entity (Details) - USD ($)		3 Months Ended		6 Months Ended
	Jun. 09, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Feb. 02, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Carrying value of the investment in OpenKey		$ 1,699,000		$ 1,699,000			$ 1,689,000
Equity in earnings (loss) of unconsolidated entity		(75,000)		(148,000)	$ (146,000)
Investment in unconsolidated entity				158,000	164,000
OpenKey
Schedule of Equity Method Investments [Line Items]
Aggregate equity method investments		2,900,000		2,900,000
Impairment		0	$ 0	0	0
Carrying value of the investment in OpenKey		$ 1,535,000		$ 1,535,000			$ 1,689,000
Ownership interest in OpenKey (as a percent)		7.90%		7.90%			7.90%
Equity in earnings (loss) of unconsolidated entity		$ (80,000)	$ (74,000)	$ (154,000)	$ (146,000)
OpenKey Notes Receivable
Schedule of Equity Method Investments [Line Items]
Carrying value of the investment in OpenKey		164,000		164,000			$ 0
Equity in earnings (loss) of unconsolidated entity		$ 5,000		6,000
Face amount for debt						$ 5,000,000
Investment, interest rate (as a percent)						15.00%
Investment in unconsolidated entity	$ 59,000			$ 158,000

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Indebtedness, net (Schedule of Indebtedness) (Details) $ in Thousands							3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($) extension	Jun. 01, 2023	Apr. 18, 2023 extension	Apr. 17, 2023	Apr. 04, 2023 extension	Apr. 03, 2023	Jun. 30, 2023 USD ($) extension	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) extension	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	May 31, 2021
Debt Instrument [Line Items]
Indebtedness, gross	$ 1,140,430						$ 1,140,430		$ 1,140,430		$ 1,336,750
Capitalized default interest and late charges, net	1,046						1,046		1,046		1,934
Deferred loan costs, net	(3,616)						(3,616)		(3,616)		(5,054)
Premiums/(discounts), net	(1,902)						(1,902)		(1,902)		500
Indebtedness, net	$ 1,135,958						$ 1,135,958		$ 1,135,958		$ 1,334,130
LIBOR rate (as a percent)	5.22%						5.22%		5.22%		4.39%
SOFR rate (as a percent)	5.14%						5.14%		5.14%		4.36%
Repayments of debt									$ 196,355	$ 68,000
Gain (loss) on extinguishment of debt							$ 0	$ 0	2,318	$ 0
Mortgages | Mortgage Loan 1
Debt Instrument [Line Items]
Indebtedness, gross	$ 0						0		$ 0		$ 98,500
Mortgages | Mortgage Loan 1 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)						2.65%			265.00%
Mortgages | Mortgage Loan 1 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					2.75%
Mortgages | Mortgage Loan 2
Debt Instrument [Line Items]
Indebtedness, gross	0						0		$ 0		51,000
Mortgages | Mortgage Loan 2 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				2.55%					2.55%
Mortgages | Mortgage Loan 3
Debt Instrument [Line Items]
Indebtedness, gross	40,000						40,000		$ 40,000		40,000
Mortgages | Mortgage Loan 3 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									2.65%
Mortgages | Mortgage Loan 4
Debt Instrument [Line Items]
Indebtedness, gross	$ 42,500						$ 42,500		$ 42,500		42,500
Number of extension options | extension	3						3		3
Term of extension options (in years)									1 year
Mortgages | Mortgage Loan 4 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									3.95%
LIBOR floor (as a percent)									1.00%
Mortgages | Mortgage Loan 5
Debt Instrument [Line Items]
Indebtedness, gross	$ 98,000						$ 98,000		$ 98,000		0
Number of extension options | extension					1
Term of extension options (in years)					6 months
Mortgages | Mortgage Loan 5 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		3.60%							360.00%
Mortgages | Mortgage Loan 6
Debt Instrument [Line Items]
Indebtedness, gross	51,000						51,000		$ 51,000		0
Number of extension options | extension			1
Term of extension options (in years)			6 months
Mortgages | Mortgage Loan 6 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			2.65%						265.00%
Mortgages | Mortgage Loan 7
Debt Instrument [Line Items]
Indebtedness, gross	54,000						54,000		$ 54,000		54,000
Mortgages | Mortgage Loan 7 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									2.20%
Mortgages | Mortgage Loan 8
Debt Instrument [Line Items]
Indebtedness, gross	195,000						195,000		$ 195,000		195,000
Mortgages | Mortgage Loan 8 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									1.70%
Mortgages | Mortgage Loan 9
Debt Instrument [Line Items]
Indebtedness, gross	$ 70,500						$ 70,500		$ 70,500		70,500
Number of extension options | extension	3						3		3
Term of extension options (in years)									1 year
Mortgages | Mortgage Loan 9 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									0.0286%
Mortgages | Mortgage Loan 10
Debt Instrument [Line Items]
Indebtedness, gross	$ 0						$ 0		$ 0		54,000
Gain (loss) on extinguishment of debt									$ 2,300
Mortgages | Mortgage Loan 10 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									0.06%
Mortgages | Mortgage Loan 11
Debt Instrument [Line Items]
Indebtedness, gross	$ 293,180						$ 293,180		$ 293,180		$ 435,000
Number of extension options | extension	5						5		5
Term of extension options (in years)									1 year
Repayments of debt									$ 142,000
Mortgages | Mortgage Loan 11 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.61%								261.00%		2.16%
Mortgages | Mortgage Loan 12
Debt Instrument [Line Items]
Indebtedness, gross	$ 30,000						$ 30,000		$ 30,000		$ 30,000
Mortgages | Mortgage Loan 12 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									3.60%
LIBOR floor (as a percent)									1.50%
Mortgages | Mortgage Loan 13
Debt Instrument [Line Items]
Indebtedness, gross	80,000						80,000		$ 80,000		80,000
Mortgages | Mortgage Loan 13 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									1.95%
Mortgages | Mortgage Loan 14
Debt Instrument [Line Items]
Indebtedness, gross	100,000						100,000		$ 100,000		100,000
Mortgages | Mortgage Loan 14 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)									0.0375%
LIBOR floor (as a percent)									1.00%
Convertible Senior Notes | Convertible senior notes
Debt Instrument [Line Items]
Indebtedness, gross	$ 86,250						$ 86,250		$ 86,250		$ 86,250
Interest rate (as a percent)	4.50%						4.50%		4.50%			4.50%

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Indebtedness, net (Narrative) (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 18, 2023 USD ($)	May 31, 2021 USD ($) day $ / shares	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Debt Instrument [Line Items]
Amortization of principal			$ 420	$ 500	$ 888	$ 1,000
Gain (loss) on extinguishment of debt			$ 0	0	2,318	0
Net proceeds from long-term debt					0	70,500
Mortgages | Mortgage Loan 10
Debt Instrument [Line Items]
Repayments of long-term debt	$ 54,000
Gain (loss) on extinguishment of debt					$ 2,300
Convertible Senior Notes | Convertible senior notes
Debt Instrument [Line Items]
Face amount of debt		$ 86,250
Interest rate (as a percent)		4.50%	4.50%		4.50%
Net proceeds from long-term debt		$ 82,800
Coupon interest expense			$ 970	970	$ 1,900	1,900
Discount amortization			$ 146	$ 139	$ 290	$ 271
Conversion rate		0.1577909
Conversion price (in dollars per share) | $ / shares		$ 6.34
Threshold percentage of stock price trigger		130.00%
Threshold trading days | day		20
Threshold consecutive trading days | day		30
Redemption price, percentage (as a percent)		100.00%

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Derivative Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Interest rate derivatives - caps
Derivative [Line Items]
Notional amount (in thousands)	$ 816,680		$ 960,500
Aggregate principal balance on corresponding mortgage loans (in thousands)	$ 816,680		$ 959,000
Interest rate derivatives - caps | Minimum
Derivative [Line Items]
Strike rate (as a percent)	2.00%		2.00%
Interest rate derivatives - caps | Maximum
Derivative [Line Items]
Strike rate (as a percent)	5.25%		4.50%
Interest rate derivatives - caps
Derivative [Line Items]
Notional amount (in thousands)	$ 496,180	$ 556,500
Total cost of interest rate caps (in thousands)	$ 3,400	$ 1,145
Interest rate derivatives - caps | Minimum
Derivative [Line Items]
Strike rate (as a percent)	3.50%	3.50%
Interest rate derivatives - caps | Maximum
Derivative [Line Items]
Strike rate (as a percent)	5.25%	4.00%

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Derivative Instruments - Warrants (Details) - Mr. C Beverly Hills Hotel and Luxury Residences $ / shares in Units, $ in Millions	Aug. 05, 2021 USD ($) yr residence $ / shares shares	Jun. 30, 2023 shares
Business Acquisition [Line Items]
Number of real estate properties acquired | residence	5
Strike price of warrants (in dollars per share) | $ / shares	$ 6.00
Warrants exercised (in shares)		0
Fair value of warrants | $	$ 1.5
Contractual Term | Valuation Technique, Option Pricing Model | Warrants | Fair Value, Inputs, Level 2
Business Acquisition [Line Items]
Warrants, measurement input (as a percent) | yr	3
Volatility | Valuation Technique, Option Pricing Model | Warrants | Fair Value, Inputs, Level 2
Business Acquisition [Line Items]
Warrants, measurement input (as a percent)	0.9793
Dividend Rate | Valuation Technique, Option Pricing Model | Warrants | Fair Value, Inputs, Level 2
Business Acquisition [Line Items]
Warrants, measurement input (as a percent)	0
Risk-Free Interest Rate | Valuation Technique, Option Pricing Model | Warrants | Fair Value, Inputs, Level 2
Business Acquisition [Line Items]
Warrants, measurement input (as a percent)	0.0038
Warrants
Business Acquisition [Line Items]
Consideration transferred, equity issued (in shares)	500,000

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Fair Value Measurements - Additional Information (Details)	Jun. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significance of current credit spreads to level 3 input considerations (as a percent)	10.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
SOFR interest rate forward curve (as a percent)	0.05141
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
SOFR interest rate forward curve (as a percent)	0.03686

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Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 6,308	$ 6,482
Derivative liabilities	(165)	(284)
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	6,308	6,482
Net	6,143	6,198
Quoted Market Prices (Level 1) | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Net	0	0
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	6,308	6,482
Net	6,143	6,198
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Net	0	0
Interest rate derivatives - caps | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	6,308	6,482
Interest rate derivatives - caps | Quoted Market Prices (Level 1) | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Interest rate derivatives - caps | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	6,308	6,482
Interest rate derivatives - caps | Significant Unobservable Inputs (Level 3) | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Warrants | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	(165)	(284)
Warrants | Quoted Market Prices (Level 1) | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Warrants | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	(165)	(284)
Warrants | Significant Unobservable Inputs (Level 3) | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	$ 0	$ 0

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Fair Value Measurements - Schedule of Effect of Fair Value Measured Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Realized and unrealized gain (loss) on derivatives	$ 1,029	$ 1,208	$ 695	$ 1,616
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net	1,029	1,208	695	1,616
Fair Value, Recurring | Non-derivative assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (Loss) Recognized in Income, Asset	1,013	43	576	886
Fair Value, Recurring | Derivative
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Realized and unrealized gain (loss) on derivatives	(1,253)	1,208	(3,454)	1,616
Fair Value, Recurring | Interest rate derivatives - caps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Realized and unrealized gain (loss) on derivatives	(1,269)	43	(3,573)	886
Realized gain (loss) on credit default swaps	2,282	0	4,149	0
Fair Value, Recurring | Interest rate derivatives - caps | Derivative assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (Loss) Recognized in Income, Asset	1,013	43	576	886
Fair Value, Recurring | Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Realized and unrealized gain (loss) on derivatives	16	1,165	119	730
Fair Value, Recurring | Warrants | Derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (Loss) Recognized in Income, Liability	$ 16	$ 1,165	$ 119	$ 730

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Summary of Fair Value of Financial Instruments (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Financial assets measured at fair value:
Derivative assets, Carrying Value	$ 6,308	$ 6,482
Financial liabilities measured at fair value:
Derivative liabilities, Carrying Value	165	284
Financial assets not measured at fair value:
Cash and cash equivalents, Carrying Value	128,025	261,541	$ 251,032	$ 215,998
Restricted cash, Carrying Value	63,439	54,155	$ 48,117	$ 47,376
Accounts receivable, net, Carrying Value	32,864	51,448
Financial liabilities not measured at fair value:
Indebtedness, Carrying Value	1,140,430	1,336,750
Accounts payable and accrued expenses, Carrying Value	135,096	133,978
Dividends and distributions payable, Carrying Value	8,917	8,184
Related Party
Financial assets not measured at fair value:
Due from related parties and nonrelated parties	333	938
Financial liabilities not measured at fair value:
Due to related parties and nonrelated parties, Carrying Value	4,558	10,005
Nonrelated Party
Financial assets not measured at fair value:
Due from related parties and nonrelated parties	15,430	26,625
Financial liabilities not measured at fair value:
Due to related parties and nonrelated parties, Carrying Value	1,579	2,096
Carrying Value
Financial assets measured at fair value:
Derivative assets, Carrying Value	6,308	6,482
Financial liabilities measured at fair value:
Derivative liabilities, Carrying Value	165	284
Financial assets not measured at fair value:
Cash and cash equivalents, Carrying Value	128,025	261,541
Restricted cash, Carrying Value	63,439	54,155
Accounts receivable, net, Carrying Value	32,864	51,448
Financial liabilities not measured at fair value:
Indebtedness, Carrying Value	1,138,528	1,337,250
Accounts payable and accrued expenses, Carrying Value	135,096	133,978
Dividends and distributions payable, Carrying Value	8,917	8,184
Carrying Value | Related Party
Financial assets not measured at fair value:
Due from related parties and nonrelated parties	333	938
Financial liabilities not measured at fair value:
Due to related parties and nonrelated parties, Carrying Value	4,558	10,005
Carrying Value | Nonrelated Party
Financial assets not measured at fair value:
Due from related parties and nonrelated parties	15,430	26,625
Financial liabilities not measured at fair value:
Due to related parties and nonrelated parties, Carrying Value	1,579	2,096
Estimated Fair Value
Financial assets measured at fair value:
Derivative assets, Estimated Fair Value	6,308	6,482
Financial liabilities measured at fair value:
Derivative liabilities, Estimated Fair Value	165	284
Financial assets not measured at fair value:
Cash and cash equivalents, Estimated Fair Value	128,025	261,541
Restricted cash, Estimated Fair Value	63,439	54,155
Accounts receivable, net, Estimated Fair Value	32,864	51,448
Financial liabilities not measured at fair value:
Accounts payable and accrued expenses, Estimated Fair Value	135,096	133,978
Dividends and distributions payable, Estimated Fair Value	8,917	8,184
Estimated Fair Value | Related Party
Financial assets not measured at fair value:
Due from related parties and nonrelated parties, Estimated Fair Value	333	938
Financial liabilities not measured at fair value:
Due to related parties and nonrelated parties, Estimated fair value	4,558	10,005
Estimated Fair Value | Nonrelated Party
Financial assets not measured at fair value:
Due from related parties and nonrelated parties, Estimated Fair Value	15,430	26,625
Financial liabilities not measured at fair value:
Due to related parties and nonrelated parties, Estimated fair value	1,579	2,096
Minimum | Estimated Fair Value
Financial liabilities not measured at fair value:
Indebtedness, Estimated Fair Value	1,050,061	1,229,671
Maximum | Estimated Fair Value
Financial liabilities not measured at fair value:
Indebtedness, Estimated Fair Value	$ 1,160,595	$ 1,359,110

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Summary of Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Maximum maturity term of financial assets (in days)	90 days
Indebtedness, Carrying Value	$ 1,140,430	$ 1,336,750
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Indebtedness, Carrying Value	$ 1,138,528	$ 1,337,250
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total indebtedness fair value variance from carrying value (as a percent)	92.20%	92.00%
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total indebtedness fair value variance from carrying value (as a percent)	101.90%	101.60%

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Income (Loss) Per Share (Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net income (loss) attributable to common stockholders - basic and diluted:
Net income (loss)	$ (1,846)	$ 14,366	$ 14,188	$ 29,029
Less: dividends on preferred stock	(10,877)	(4,064)	(21,227)	(7,367)
Deemed dividends on preferred stock	(301)	0	(2,755)	0
Undistributed net income (loss) allocated to common stockholders	(16,359)	9,413	(16,463)	19,854
Distributed and undistributed net income (loss) - basic	(13,068)	10,120	(9,883)	21,268
Interest expense on Convertible Senior Notes		1,108		2,211
Distributed and undistributed net income (loss) - diluted	$ (13,068)	$ 13,409	$ (9,883)	$ 27,080
Weighted average common shares outstanding:
Weighted average common shares outstanding – basic (in shares)	65,806	70,740	68,378	68,325
Effect of assumed exercise of warrants (in shares)	0	0	0	1
Effect of assumed conversion of Convertible Senior Notes (in shares)	0	13,610	0	13,610
Weighted average common shares outstanding – diluted (in shares)	65,806	107,669	68,378	98,798
Income (loss) per share - basic:
Net income (loss) allocated to common stockholders per share (in dollars per share)	$ (0.20)	$ 0.14	$ (0.14)	$ 0.31
Income (loss) per share - diluted:
Net income (loss) allocated to common stockholders per share (in dollars per share)	$ (0.20)	$ 0.12	$ (0.14)	$ 0.27
Series E Preferred Stock
Net income (loss) attributable to common stockholders - basic and diluted:
Dividends on preferred stock	$ 7,986	$ 2,053	$ 15,520	$ 3,452
Weighted average common shares outstanding:
Effect of assumed conversion of preferred stock (in shares)	0	22,207	0	16,232
Series M Preferred Stock
Net income (loss) attributable to common stockholders - basic and diluted:
Dividends on preferred stock	$ 1,008	$ 128	$ 1,941	$ 149
Weighted average common shares outstanding:
Effect of assumed conversion of preferred stock (in shares)	0	1,112	0	630
Performance shares
Net income (loss) attributable to common stockholders - basic and diluted:
Net income (loss)	$ 0	$ (95)	$ 0	$ (207)
Less: dividends on common stock	(36)	(7)	(72)	(14)
Restricted Stock
Net income (loss) attributable to common stockholders - basic and diluted:
Net income (loss)	0	(74)	0	(161)
Less: dividends on common stock	(8)	(6)	(17)	(12)
Common Stock
Net income (loss) attributable to common stockholders - basic and diluted:
Less: dividends on common stock	$ (3,291)	$ (707)	$ (6,580)	$ (1,414)

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Income (Loss) Per Share (Antidilutive) (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net income (loss) allocated to common stockholders is not adjusted for:
Total	$ 10,589	$ 2,086	$ 23,988	$ 4,323
Weighted average diluted shares are not adjusted for:
Antidilutive securities excluded (in shares)	138,207	10,018	137,070	10,004
Series E Preferred Stock
Net income (loss) allocated to common stockholders is not adjusted for:
Dividends on preferred stock	$ 7,986	$ 2,053	$ 15,520	$ 3,452
Series M Preferred Stock
Net income (loss) allocated to common stockholders is not adjusted for:
Dividends on preferred stock	1,008	128	1,941	149
Restricted Stock
Net income (loss) allocated to common stockholders is not adjusted for:
Income (loss) allocated to unvested shares	$ 8	$ 80	$ 17	$ 173
Weighted average diluted shares are not adjusted for:
Antidilutive securities excluded (in shares)	0	34	0	25
Performance shares
Net income (loss) allocated to common stockholders is not adjusted for:
Income (loss) allocated to unvested shares	$ 36	$ 102	$ 72	$ 221
Weighted average diluted shares are not adjusted for:
Antidilutive securities excluded (in shares)	340	0	346	1
Operating Partnership Units
Net income (loss) allocated to common stockholders is not adjusted for:
Income (loss) attributable to redeemable noncontrolling interests in operating partnership	$ (925)	$ 846	$ (664)	$ 1,813
Weighted average diluted shares are not adjusted for:
Antidilutive securities excluded (in shares)	5,172	5,868	5,576	5,862
Equity Unit Purchase Agreements | Series B Preferred Stock
Net income (loss) allocated to common stockholders is not adjusted for:
Dividends on preferred stock	$ 1,058	$ 1,058	$ 2,116	$ 2,116
Weighted average diluted shares are not adjusted for:
Antidilutive securities excluded (in shares)	4,116	4,116	4,116	4,116
Equity Unit Purchase Agreements | Series E Preferred Stock
Net income (loss) allocated to common stockholders is not adjusted for:
Dividends on preferred stock	$ 8,162	$ 0	$ 17,892	$ 0
Weighted average diluted shares are not adjusted for:
Antidilutive securities excluded (in shares)	102,751	0	101,478	0
Equity Unit Purchase Agreements | Series M Preferred Stock
Net income (loss) allocated to common stockholders is not adjusted for:
Dividends on preferred stock	$ 1,133	$ 0	$ 2,324	$ 0
Weighted average diluted shares are not adjusted for:
Antidilutive securities excluded (in shares)	12,219	0	11,945	0
Convertible Senior Notes
Net income (loss) allocated to common stockholders is not adjusted for:
Interest expense on Convertible Senior Notes	$ 1,117	$ 0	$ 2,231	$ 0
Weighted average diluted shares are not adjusted for:
Antidilutive securities excluded (in shares)	13,609	0	13,609	0

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Redeemable Noncontrolling Interests in Operating Partnership (Narrative) (Details) $ / shares in Units, $ in Thousands				1 Months Ended	6 Months Ended
	May 12, 2023 USD ($) shares	May 10, 2023 USD ($) shares	Feb. 24, 2023 USD ($) day shares	Mar. 31, 2023 $ / shares shares	Jun. 30, 2023 $ / shares shares
Noncontrolling Interest [Line Items]
Redemption/conversion of operating partnership units (in shares)	32,500
Fair value of common units converted | $	$ 123
Long Term Incentive Plan Units and Performance Long Term Incentive Plan Units
Noncontrolling Interest [Line Items]
Units outstanding (in shares)					3,800,000
Long Term Incentive Plan Units
Noncontrolling Interest [Line Items]
Vesting period (in years)					3 years
Common partnership unit per converted long term incentive plan unit (in shares)					1
Units outstanding (in shares)					2,400,000
Granted (in shares)		45,000
Fair value of vested restricted stock | $		$ 182
Units which have not reached full economic parity with the common units (in shares)					614,000
Performance long term incentive plan units
Noncontrolling Interest [Line Items]
Vesting period (in years)				3 years	3 years
Granted (in shares)				353,000
Fair value of awards (in dollars per share) | $ / shares				$ 3.86	$ 4.07
Units which have not reached full economic parity with the common units (in shares)					1,200,000
Redemption/conversion of operating partnership units (in shares)			1,423,777
Threshold consecutive trading days | day			10
Fair value of common units converted | $			$ 7,000
Performance long term incentive plan units | Redemption, One
Noncontrolling Interest [Line Items]
Redemption/conversion of operating partnership units (in shares)			169,523
Performance long term incentive plan units | Redemption, Two
Noncontrolling Interest [Line Items]
Redemption/conversion of operating partnership units (in shares)			1,254,254
Minimum | Performance long term incentive plan units
Noncontrolling Interest [Line Items]
Award performance target (as a percent)					0.00%
Maximum | Performance long term incentive plan units
Noncontrolling Interest [Line Items]
Award performance target (as a percent)					200.00%

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Redeemable Noncontrolling Interests in Operating Partnership (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Noncontrolling Interest [Line Items]
Redeemable noncontrolling interests in Braemar OP (in thousands)	$ 35,174		$ 35,174		$ 40,555
Adjustments to redeemable noncontrolling interests	(11)	$ 4,594	(7)	$ 208
Braemar Hotels & Resorts, Inc.
Noncontrolling Interest [Line Items]
Redeemable noncontrolling interests in Braemar OP (in thousands)	$ 35,174		35,174		40,555
Adjustments to redeemable noncontrolling interests			$ 77		$ 70
Ownership percentage of operating partnership	6.63%		6.63%		7.69%

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Redeemable Noncontrolling Interests in Operating Partnership (Allocated Redeemable Noncontrolling Interests) (For 10K) - (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Noncontrolling Interest [Line Items]
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	$ 925	$ (846)	$ 664	$ (1,813)
Distributions declared to holders of common units, LTIP units and Performance LTIP units	$ 361	$ 84	$ 722	$ 167

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Equity and Stock-Based Compensation (Common Stock Dividends) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Equity [Abstract]
Dividends declared – common stock ($0.10 /share)	$ 3,335	$ 720	$ 6,669	$ 1,440

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Equity and Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	May 31, 2023	Mar. 31, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 07, 2022
Class of Stock [Line Items]
Common stock, par value (in dollars per share)			$ 0.01		$ 0.01		$ 0.01
Purchase of common stock, value			$ 4	$ (5)	$ 19,254	$ 547
Stock Repurchase Program
Class of Stock [Line Items]
Common stock, par value (in dollars per share)								$ 0.01
Share repurchase program authorized amount								$ 25,000
Shares of stock repurchased during period (in shares)					3,900,000
Purchase of common stock, value					$ 18,900
Series D Preferred Stock
Class of Stock [Line Items]
Preferred stock dividend rate (as a percent)			8.25%	8.25%	8.25%	8.25%	8.25%
Annual preferred stock dividend (in dollars per share)					$ 2.0625
Performance shares
Class of Stock [Line Items]
Granted (in shares)		383,000,000
Award service period (in years)					3 years
Vesting period (in years)		3 years			3 years
Fair value of awards			$ 1,600		$ 1,600
Performance shares | Minimum
Class of Stock [Line Items]
Award performance target (as a percent)					0.00%
Performance shares | Maximum
Class of Stock [Line Items]
Award performance target (as a percent)					200.00%
Restricted Stock
Class of Stock [Line Items]
Granted (in shares)	45,000
Fair value of vested restricted stock	$ 182

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Equity and Stock-Based Compensation (Preferred Stock Dividends) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Series D Preferred Stock
Class of Stock [Line Items]
Series D Cumulative Preferred Stock	$ 825,000	$ 825,000	$ 1,650,000	$ 1,650,000

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Redeemable Preferred Stock - Issuance Activity (Details)		3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 02, 2021 $ / shares shares	Jun. 30, 2023 $ / shares	Jun. 30, 2022	Jun. 30, 2023 day $ / shares	Jun. 30, 2022	Dec. 31, 2022 $ / shares
Series B Preferred Stock
Class of Stock [Line Items]
Temporary equity, dividend rate (as a percent)		5.50%	5.50%	5.50%	5.50%	5.50%
Initial conversion/redemption price (in dollars per share)		$ 18.70		$ 18.70
Temporary equity conversion rate				1.3372
Annual preferred stock dividend (in dollars per share)				$ 1.375
Consecutive trading days | day				45
Days ending prior to notice of conversion				3 days
Redemption price (in dollars per share)		$ 25.00		$ 25.00
Redemption percent of liquidation preference		103.00%		103.00%
Liquidation preference per share (in dollars per share)		$ 25.00		$ 25.00
Temporary equity, par value (in dollars per share)		$ 0.01		$ 0.01		$ 0.01
Series B Preferred Stock | Minimum
Class of Stock [Line Items]
Percent of conversion price		110.00%		110.00%
Series E Preferred Stock
Class of Stock [Line Items]
Initial conversion/redemption price (in dollars per share)		$ 25.00		$ 25.00
Temporary equity conversion rate				5.69476
Temporary equity, par value (in dollars per share)		0.01		$ 0.01		0.01
Sale of temporary equity, offering price (in dollars per share)		$ 25.00		$ 25.00
Period of preferred dividends in arrears (in months)				18 months
Redemption fee, percent of stated value on the original issue date		8.00%		8.00%
Redemption fee, percent of stated value beginning on the first anniversary		5.00%		5.00%
Redemption fee, percent of stated value beginning on the third anniversary		0.00%		0.00%
Series E Preferred Stock | Initial Closing Date
Class of Stock [Line Items]
Temporary equity, dividend rate (as a percent)				0.0008%
Series E Preferred Stock | First Anniversary From Initial Closing Date
Class of Stock [Line Items]
Temporary equity, dividend rate (as a percent)				0.0775%
Series E Preferred Stock | Second Anniversary From Initial Closing Date
Class of Stock [Line Items]
Temporary equity, dividend rate (as a percent)				0.00075%
Series E Preferred Stock | Equity Distribution Agreements
Class of Stock [Line Items]
Sale of temporary equity, number of shares authorized in transaction (in shares) | shares	20,000,000
Sale of temporary equity, offering price (in dollars per share)	$ 25.00
Series E Preferred Stock | Dividend Reinvestment Plan
Class of Stock [Line Items]
Sale of temporary equity, number of shares authorized in transaction (in shares) | shares	8,000,000
Sale of temporary equity, offering price (in dollars per share)	$ 25.00
Series M Preferred Stock
Class of Stock [Line Items]
Temporary equity, dividend rate (as a percent)				0.00082%
Initial conversion/redemption price (in dollars per share)		$ 25.00		$ 25.00
Temporary equity conversion rate				5.69476
Temporary equity, par value (in dollars per share)	0.01	0.01		$ 0.01		$ 0.01
Sale of temporary equity, offering price (in dollars per share)	$ 25.00	$ 25.00		$ 25.00
Period of preferred dividends in arrears (in months)				18 months
Redemption fee, percent of stated value on the original issue date		1.50%		1.50%
Redemption fee, percent of stated value beginning on the first anniversary		0.00%		0.00%
Dividend rate (in dollars per share)				$ 2.05
Dividend rate increase each year from original issuance (as a percent)				0.10%
Dividend rate, maximum percentage of stated value		8.70%		8.70%
Series M Preferred Stock | Equity Distribution Agreements
Class of Stock [Line Items]
Sale of temporary equity, number of shares authorized in transaction (in shares) | shares	20,000,000
Sale of temporary equity, offering price (in dollars per share)	$ 25.00
Series M Preferred Stock | Dividend Reinvestment Plan
Class of Stock [Line Items]
Sale of temporary equity, number of shares authorized in transaction (in shares) | shares	8,000,000
Sale of temporary equity, offering price (in dollars per share)	$ 25.00

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Redeemable Preferred Stock - Convertible Preferred Stock Series B Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Class of Stock [Line Items]
Series Preferred Stock	$ 10,877	$ 4,064	$ 21,227	$ 7,367
Series B Preferred Stock
Class of Stock [Line Items]
Series Preferred Stock	$ 1,058	$ 1,058	$ 2,116	$ 2,116

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Redeemable Preferred Stock - Series E Activity (Details) - Series E Preferred Stock - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Class of Stock [Line Items]
Units issued (in shares)	0	1,312	3,798	2,789
Net proceeds	$ 0	$ 29,518	$ 85,444	$ 62,754

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Redeemable Preferred Stock - Value Adjustment Series E (Details) - Series E Preferred Stock - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Series preferred stock	$ 379,403	$ 291,076
Cumulative adjustments to Series Preferred Stock	$ 11,775	$ 9,403

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Redeemable Preferred Stock - Series E Dividend Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Series E Preferred Stock
Class of Stock [Line Items]
Dividends on preferred stock	$ 7,986	$ 2,053	$ 15,520	$ 3,452

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Redeemable Preferred Stock - Series E Redemption Activity (Details) - Series E Preferred Stock - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Class of Stock [Line Items]
Preferred Stock shares redeemed (in shares)	21	2	32	2
Redemption amount, net of redemption fees	$ 507	$ 50	$ 789	$ 50

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Redeemable Preferred Stock - Issuance Activity Series M (Details) - Series M Preferred Stock - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Class of Stock [Line Items]
Units issued (in shares)	0	334	531	367
Net proceeds	$ 0	$ 8,087	$ 12,869	$ 8,897

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Redeemable Preferred Stock - Series M Redemption Activity (Details) - Series M Preferred Stock - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Series preferred stock	$ 48,405	$ 35,182
Cumulative adjustments to Series Preferred Stock	$ 1,195	$ 812

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Redeemable Preferred Stock - Series M Dividend Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Series M Preferred Stock
Class of Stock [Line Items]
Dividends on preferred stock	$ 1,008	$ 128	$ 1,941	$ 149

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Redeemable Preferred Stock - Series M Preferred Stock Activity (Details) - Series M Preferred Stock - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Class of Stock [Line Items]
Preferred Stock shares redeemed (in shares)	4	0	5	0
Redemption amount, net of redemption fees	$ 90	$ 0	$ 115	$ 0

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Related Party Transactions (Narrative) (For 10Q) (Details)				1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 27, 2022 USD ($)	Dec. 31, 2020 USD ($)	Aug. 08, 2018 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2023 USD ($) hotel	Jun. 30, 2022 USD ($) hotel	Jun. 30, 2023 USD ($) hotel	Jun. 30, 2022 USD ($) hotel	Jun. 01, 2023	Dec. 31, 2022 USD ($)	Sep. 27, 2022
Related Party Transaction [Line Items]
Base fee, net asset fee adjustment (as a percent)					0.70%		0.70%
Minimum base fee (as a percent)					90.00%		90.00%
Term of advisory agreement (in years)							3 years
Related party agreement term									12 months
Aggregate non-listed preferred equity offerings		$ 400,000,000
Advisory agreement, percent of total construction costs			6.50%
Advisory agreement, construction management fees (as a percent)			10.00%
Advisory agreement, interior design fees (as a percent)			6.00%
Advisory agreement, FF&E purchasing fees (as a percent)			8.00%
Advisory Agreement, FF&E purchasing fees, freight and tax threshold			$ 2,000,000
Advisory Agreement, FF&E purchasing fees, with freight and tax threshold (as a percent)			6.00%
Number of hotel properties | hotel					16	15	16	15
Ashford Inc.
Related Party Transaction [Line Items]
Allocation percentage	45.00%	50.00%
Ashford Inc. | Ashford Trust
Related Party Transaction [Line Items]
Allocation percentage	45.00%	0.00%
Ashford Inc. | Ashford Inc.
Related Party Transaction [Line Items]
Allocation percentage	10.00%	50.00%
Related Party
Related Party Transaction [Line Items]
Due from related parties, net					$ 333,000		$ 333,000			$ 938,000
Due to related parties and nonrelated parties					4,558,000		4,558,000			10,005,000
Design and construction fees
Related Party Transaction [Line Items]
Percentage of project costs			4.00%
REIT Cash Management Strategies Agreement
Related Party Transaction [Line Items]
Annual fee, average daily balance of funds											0.0020
Nonrefundable Work Fees
Related Party Transaction [Line Items]
Advisory services, amount paid					150,000		150,000
Fees From Lismore
Related Party Transaction [Line Items]
Advisory services, amount paid					$ 98,000	$ 0	$ 98,000	$ 637,000
Remington Hospitality
Related Party Transaction [Line Items]
Number of hotel properties managed by related party | hotel					4		4
Remington Hospitality | Related Party
Related Party Transaction [Line Items]
Due from related parties, net										365,000
Due to related parties and nonrelated parties					$ 365,000		$ 365,000
Ashford Inc.
Related Party Transaction [Line Items]
Funding amount	$ 18,000,000
Amount funded					17,900,000		17,900,000			5,800,000
Paid to affiliate				$ 8,700,000
Pre-funded balance					1,900,000		1,900,000
Ashford Inc. | Other Assets
Related Party Transaction [Line Items]
Amounts payable										$ 6,600,000
Ashford Inc. | Related Party
Related Party Transaction [Line Items]
Due to related parties and nonrelated parties					$ 1,500,000		1,500,000
Minimum | Management fees
Related Party Transaction [Line Items]
Monthly property management fee							$ 16,000
Property management fee, percent							3.00%
Minimum | Remington Hospitality | Management fees
Related Party Transaction [Line Items]
Monthly property management fee							$ 16,000
Property management fee, percent							3.00%

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Related Party Transactions (Schedule of Advisory Services Fee) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Advisory services fee	$ 8,215	$ 6,305	$ 16,163	$ 13,627
Ashford LLC | Related Party
Related Party Transaction [Line Items]
Advisory services fee	8,215	6,305	16,163	13,627
Ashford LLC | Related Party | Base advisory fee
Related Party Transaction [Line Items]
Advisory services fee	3,667	3,226	7,307	6,165
Ashford LLC | Related Party | Reimbursable expenses
Related Party Transaction [Line Items]
Advisory services fee	2,042	1,173	4,064	2,269
Ashford LLC | Related Party | Equity-based compensation
Related Party Transaction [Line Items]
Advisory services fee	2,506	2,637	4,792	4,947
Ashford LLC | Related Party | Incentive fee
Related Party Transaction [Line Items]
Advisory services fee	$ 0	$ (731)	$ 0	$ 246

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Related Party Transactions (Schedule of Reimbursed Operating Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Ashford Inc.
Related Party Transaction [Line Items]
Corporate, general and administrative	$ 1,024	$ 664	$ 2,219	$ 1,191

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Commitments and Contingencies - Narrative (For 10Q) (Details)		6 Months Ended
	Aug. 05, 2021	Jun. 30, 2023 USD ($) hotel	Jun. 30, 2022 hotel	Dec. 20, 2016 hotel managementCompany
Loss Contingencies [Line Items]
Number of hotel properties | hotel		16	15
Class Action Lawsuit, California Employment Laws
Loss Contingencies [Line Items]
Number of hotel management companies | managementCompany				1
Number of hotel properties | hotel				2
Amounts accrued | $		$ 0
Intellectual Property Sublease Agreement
Loss Contingencies [Line Items]
Licensing fee, percent fee of total operating revenue	1.00%
Licensing fee, percent fee of gross food and beverage revenues	2.00%
Licensing fee, percent fee of food and beverage profits	25.00%
Minimum | Management fees
Loss Contingencies [Line Items]
Monthly property management fee | $		$ 16,000
Property management fee, percent		3.00%
Minimum | Restricted cash
Loss Contingencies [Line Items]
Replacement reserve escrow as percentage of property revenue		3.00%
Minimum | Management fees
Loss Contingencies [Line Items]
Property management fee, percent		3.00%
Maximum | Restricted cash
Loss Contingencies [Line Items]
Replacement reserve escrow as percentage of property revenue		5.00%
Maximum | Management fees
Loss Contingencies [Line Items]
Property management fee, percent		5.00%

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Commitments and Contingencies - Schedule of Licensing Fees Incurred (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Other Commitments [Line Items]
Other hotel expenses	$ 125,247	$ 113,653	$ 261,344	$ 212,220
Intellectual Property Sublease Agreement
Other Commitments [Line Items]
Other hotel expenses	$ 172	$ 189	$ 374	$ 291

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Segment Reporting (Details)	6 Months Ended
	Jun. 30, 2023 segment
Segment Reporting [Abstract]
Number of operating segments	1

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Subsequent Events (Details) - Credit Agreement - Subsequent Event $ in Millions	Jul. 31, 2023 USD ($)
Line of Credit
Subsequent Event [Line Items]
Face amount of debt	$ 200
Higher borrowing capacity	$ 400
Percentage of appraised value	55.00%
Debt term	3 years
Term of extension options (in years)	1 year
Interest rate (as a percent)	7.50%
Debt service coverage, minimum	1.75
Percentage of outstanding debt amount	0.20%
Additional basis points to interest rate	10
Variable rate floor (as a percent)	0.00%
Debt default basis spread rate	2.00%
Consolidated leverage ratio, maximum (as a percent)	0.55
Consolidated fixed charge coverage ratio, at the end of the year	1.1
Consolidated fixed charge coverage ratio, thereafter	1.25
Line of Credit | US Treasury (UST) Interest Rate
Subsequent Event [Line Items]
Basis spread on variable rate (as a percent)	2.50%
Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR)
Subsequent Event [Line Items]
Basis spread on variable rate (as a percent)	2.25%
Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR)
Subsequent Event [Line Items]
Basis spread on variable rate (as a percent)	3.00%
Term Loan
Subsequent Event [Line Items]
Face amount of debt	$ 150
Revolving Credit Facility | Line of Credit
Subsequent Event [Line Items]
Borrowing capacity	50
Proceeds from debt	$ 46