Braemar Hotels to Pivot to Self-Management After Strategic Review

The company intends to internalize its workforce and refresh its leadership by installing five new independent directors. Every current board member except for President and Chief Executive Richard Stockton will resign to make room for a new team, which will be led by an independent chairman. This transition, supported by executive search firm Ferguson Partners, is expected to trim annual expenses by over $25 million while the company shifts its base to a new Dallas office.

Braemar will now concentrate on a refined collection of six to eight properties across the U.S. and the Caribbean, assets that produced between $300 million and $350 million in revenue during the twelve months ending March 31. Stockton stated that the firm will continue evaluating the divestment of two or three additional properties to further streamline operations. Following the announcement, Braemar shares jumped 8.1% to $2.73 in premarket trading, a welcome bounce for a stock that had seen a 12% decline since the start of the year.