Brancous LP1, a shareholder of Braemar Hotels & Resorts, has called on the company's board to cease what it describes as attacks on shareholders and instead renegotiate the Ashford termination payment, distribute excess cash, and let shareholders elect an independent board. The investor argues the board is pursuing a 'stealth liquidation' by selling over 30% of gross asset value to trigger a change-of-control payment to Ashford, bypassing a shareholder vote. Brancous estimates the payment at roughly $7.00 per share, nearly three times the current stock price, and says the board should have first negotiated a lower fee. It demands a special dividend of at least $1.00 per share from the approximately $100 million in cash on hand and insists that directors with prior relationships to Ashford's chairman should not decide the payment.
Braemar Hotel & Resorts IncActivist investor demands board stop attacks, renegotiate payment, distribute cash, and allow independent board election, which could unlock value.
Activist criticizes change-of-control payment to Ashford, potentially reducing or renegotiating the fee.