Braemar Hotels adds Jay Shah to its board

DALLAS - Braemar Hotels & Resorts Inc. (NYSE: BHR), a real estate investment trust specializing in luxury hotels and resorts, announced the appointment of Jay Shah to its Board of Directors today. Shah, recognized for his extensive background in the hospitality sector, joins as an independent director, bringing with him a wealth of experience from his tenure at Hersha Hotels & Resorts.

Shah, 56, has been closely associated with Hersha, serving as a Senior Advisor since November 8, 2023, and as a trustee since 2006. His previous roles at Hersha include Executive Chairman and Chief Executive Officer, positions he held for significant durations, highlighting his deep-rooted expertise in executive leadership within the hotel industry.

In addition to his operational and financial acumen, Shah is actively involved in various industry and educational boards. He is a part of Cornell University's School of Hotel Administration Dean's Advisory Board, the American Hotel & Lodging Association's Board of Directors, and several other prestigious hospitality and corporate advisory groups.

Monty J. Bennett, Chairman of Braemar, expressed confidence in Shah's capabilities, emphasizing that his experience in the lodging industry and public company matters would be instrumental to Braemar's board.

Shah's educational credentials include a Bachelor of Science from Cornell University's School of Hotel Administration, an MBA from Temple University Fox School of Business, and a Law degree from Temple University Beasley School of Law.

The addition of Shah to the board is part of Braemar's ongoing efforts to strengthen its leadership team and strategic direction. The company's focus remains on luxury hotel and resort investments, aiming to enhance its portfolio and stakeholder value.

This board appointment is based on a press release statement from Braemar Hotels & Resorts Inc.

In other recent news, Braemar Hotels & Resorts has reported mixed financial results for the second quarter of 2024, with a net loss of $21.9 million. Despite this, the company experienced a 6% increase in RevPAR in its urban hotels and a significant 10% growth at the Four Seasons Resort Scottsdale at Troon North. In a continued effort to manage its debt, Braemar has been actively refinancing and repaying its 2024 maturities. As part of its shareholder value creation plan, the company sold the Hilton La Jolla Torrey Pines for $165 million and authorized a share buyback.

In addition, Braemar has declared a quarterly dividend of $0.5 per share. The company is also focusing on balance sheet management and capital expenditure projects, with plans to reduce owner-funded CapEx by nearly 30%. In other developments, Braemar has postponed its 2024 Annual Meeting of Stockholders from October to December. Lastly, the company is working on rebranding and renovating a hotel to the LXR brand.

InvestingPro Insights

As Braemar Hotels & Resorts Inc. (NYSE: BHR) welcomes Jay Shah to its Board of Directors, investors may find additional context from recent financial data and expert insights valuable. According to InvestingPro, BHR's market capitalization stands at $222.64 million, reflecting its position in the luxury hotel and resort REIT sector.

InvestingPro Tips highlight that BHR is currently trading at low EBITDA and revenue valuation multiples, which could be of interest to value-oriented investors considering the company's focus on luxury properties. This valuation perspective aligns with the company's strategic moves, such as strengthening its board with experienced industry professionals like Shah.

However, it's worth noting that BHR's stock price movements have been quite volatile, with a significant price uptick over the last six months—a 56.73% total return according to InvestingPro Data. This recent performance may reflect market optimism about the company's direction and potential benefits from Shah's appointment.

Investors should also consider that BHR offers a dividend yield of 6.58%, which could be attractive for income-focused shareholders. This yield, combined with the company's strategic focus on luxury properties and its efforts to enhance leadership, may present an interesting proposition for those looking at the hospitality REIT sector.

For a more comprehensive analysis, InvestingPro offers additional tips and insights, with 7 more tips available for BHR on the platform.

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