Braemar Hotels & Resorts — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net loss attributable to common stockholders was $240.9 million ($3.51 per diluted share) for the quarter, compared to a net loss of $8.2 million ($0.12 per diluted share) in the prior year quarter, primarily due to a $480.0 million termination fee payable to an external advisor.
• Adjusted EBITDAre was $3.9 million for the quarter, down from $16.4 million in the prior year quarter.
• Adjusted funds from operations (AFFO) was ($0.25) per diluted share, compared to ($0.19) in the prior year quarter.
• Comparable Hotel EBITDA was $12.9 million for the quarter, up 20.7% year-over-year, with Comparable Hotel EBITDA margin expanding 122 basis points to 13.6%.
• Year-to-date Comparable Hotel EBITDA was $93.0 million, up 14.9%, with Comparable Hotel EBITDA margin expanding 158 basis points to 26.0%.
• Comparable Total RevPAR increased 10.0% year-over-year to $452, with comparable total hotel revenue up 9.9% to $95.2 million.
• Comparable RevPAR for all hotels totaled $284, an increase of 14.4% year-over-year; excluding the Four Seasons Resort Scottsdale (sold in October 2026), Comparable RevPAR was $290, up 15.9%.
• Comparable ADR increased 8.6% year-over-year to $419, and Comparable Occupancy increased 5.3% to 67.9%.
• Urban Properties Comparable RevPAR increased 23.3% to $211, with Comparable Hotel EBITDA increasing 63.2% to $10.1 million and margin expanding 706 basis points to 24.3%.
• Resort Properties Comparable RevPAR increased 5.9% to $457, with Comparable ADR up 8.4% to $889.
• Total assets were $1.2 billion as of September 30, 2026, down from $1.86 billion at December 31, 2025.
• Indebtedness was $624.4 million, all non-recourse, with a trailing twelve-month Comparable Hotel EBITDA debt yield of 19.0%.
• Net debt to gross assets was 33.3% at the end of the third quarter.
• The company ended the quarter with $78.9 million in cash and cash equivalents and $39.6 million in restricted cash.

Guidance and Future Outlook:

• The company expects to complete its transition to a self-managed REIT in mid-November following the sale of the Four Seasons Resort Scottsdale.
• The Board of Directors intends to nominate seven new independent leaders for election at the 2026 Annual Meeting of Stockholders.
• The company's next hard debt maturity is not until December 2028.
• The third quarter is traditionally the Company's lowest-earning quarter of the year due to portfolio seasonality.

Business Segments and Product Lines:

• Cameo Beverly Hills delivered RevPAR growth of 82.8% year-over-year following its conversion to Hilton's LXR Hotels & Resorts collection.
• The Notary Hotel delivered RevPAR of $176, up approximately 33.9%, with Hotel EBITDA of approximately $3.9 million, up 72.5%.
• Sofitel Chicago Magnificent Mile delivered RevPAR of $276, up approximately 18.0%, with Hotel EBITDA of approximately $4.7 million, up 75.2%, and margin expansion of 1,159 basis points to 34.9%.
• The Ritz-Carlton Reserve Dorado Beach delivered RevPAR of $1,025, up approximately 14.4%.
• Capital investments (Capex) during the quarter were $5.0 million.

Market and Competitive Landscape:

• Comparable RevPAR growth of 14.4% represents the second-highest Q3 comparable RevPAR in the Company's history, trailing only the post-pandemic recovery in 2022.
• The company operates a portfolio of luxury hotel and resort properties across the United States and U.S. territories in the Caribbean.

Risks and Challenges:

• The company faces risks related to the completion of its shareholder value creation plan, potential actions from activist stockholders, and the ability to repay, refinance, or restructure debt.
• Forward-looking statements are subject to risks including general economic volatility, interest rate changes, market trends, and the availability of capital.
• The company's ability to declare future dividends is subject to board review and depends on operating results and the economic outlook.

Management Commentary and Tone:

• Richard J. Stockton, President and CEO, stated the luxury portfolio delivered double-digit RevPAR and Hotel EBITDA growth, noting that comparable RevPAR surged 14.4% and comparable Hotel EBITDA increased 20.7%.
• Management highlighted broad-based growth with comparable ADR up 8.6% and occupancy up 5.3%, converting top-line strength into strong profitability.
• Management expressed confidence in completing the transition to a self-managed REIT and executing on the path to value creation for shareholders.

Other Key Points:

• The company closed on the sale of the Ritz-Carlton Sarasota, the Hotel Yountville, and the Bardessono Hotel and Spa on July 14, 2026, for a total purchase price of $437.5 million.
• The company closed on the sale of the Pier House Resort & Spa on August 12, 2026, for $190.0 million ($1.3 million per key).
• The company closed on the sale of the Four Seasons Resort Scottsdale at Troon North on October 28, 2026, for $372 million ($1.8 million per key), representing a 5.8% capitalization rate and an unlevered return of approximately 15%.
• On October 30, 2026, the company refinanced its mortgage loan for the Ritz-Carlton Lake Tahoe; the new loan totals $60.0 million with an additional $15.0 million available to be drawn, bears interest at SOFR + 2.65%, and has a three-year initial term.
• During the quarter, the company redeemed approximately $5.0 million of non-traded preferred stock in cash; redeemable preferred stock redemptions payable totaled $63.5 million as of September 30, 2026.
• The Board declared cash dividends for Series B, Series D, Series E, and Series M preferred stock, payable in November, December 2026, and January 2027.