One of Monty Bennett’s hotel companies, Braemar Hotels and Resorts, is seeking a buyer for its portfolio of 14 properties located across the United States. The Dallas-based real estate investment trust has experienced a significant decline in its stock value since 2013 and currently holds over $1.1 billion in debt against approximately $473 million in stock value, according to the Dallas Morning News. The board of directors determined that selling the company was the best way to preserve shareholder value.
Braemar manages hotels under several major brands, including Marriott’s Autograph Collection, Hilton, Sofitel, Four Seasons, and Ritz-Carlton. The company retained Robert W. Baird & Company as its financial advisor to oversee the sales process.
Richard Stockton, CEO of Braemar, stated that current market conditions—such as limited room supply and steady consumer spending—make it an opportune time for a sale. “Hotel portfolios like the Braemar portfolio do not come to the market very often, and we believe the opportunity to acquire this iconic portfolio will attract significant buyer interest from around the world and result in an attractive valuation for shareholders,” Bennett said in a statement.
If Braemar is sold, Ashford Hospitality Trust—another hospitality firm chaired by Bennett—would receive a payment of $480 million.
Previously, both Braemar and Ashford were involved in a proxy dispute with Blackwells Capital, an investor in both companies. Blackwells attempted to remove Bennett from Braemar’s board last year. Ultimately, Braemar expanded its board and dropped litigation against Blackwells after reaching an agreement; Blackwells then acquired 3.5 million shares at about $2.46 per share.
Ashford Hospitality Trust has been active in hotel transactions recently. Ayrshire Corp., based in Houston, purchased Hilton Houston NASA Clear Lake from Ashford for $27 million last week (https://www.bizjournals.com/houston/news/2024/08/21/hilton-nasa-clear-lake-sold-ayrshire-corp.html). Additionally, Ashford sold a Residence Inn property in Evansville, Indiana for $6 million (https://www.hotelmanagement.net/transactions/ashford-hospitality-trust-sells-residence-inn-evansville-ind).
The company also offered $32 million cash for a San Antonio office building with plans to convert it into an Autograph Collection Hotel (https://www.bizjournals.com/sanantonio/news/2024/07/15/downtown-office-building-sale-autograph-hotel.html). Earlier this year, Ashford refinanced 16 hotels located in Florida and California through a $580 million deal (https://therealdeal.com/la/2024/03/11/monty-bennetts-ashford-hospitality-scores-580m-refi-for-16-hotels/).
A special servicer recently reported that Ashford failed to refinance another portfolio consisting of 18 hotels across 13 states; however, Ashford stated it received an extension on the loan until January while awaiting possible lower interest rates.
Ashford Hospitality Trust was founded by Monty Bennett in 1968 and owns 66 hotels across 21 states.
