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Braemar Hotels & Resorts Inc. has expanded its Board of Directors with the appointment of Kellie Sirna, effective immediately. Sirna, 46, brings over two decades of experience in the design industry to the real estate investment trust, which specializes in luxury hotels and resorts.
Sirna is the founder and principal of Studio 11 Design, a firm known for its work in the hospitality and leisure sectors. The Board has determined that Sirna qualifies as an independent director under New York Stock Exchange listing standards and the company's Corporate Governance Guidelines. However, she has not been assigned to any Board committees as of yet. The appointment comes as Braemar manages a substantial debt position of $1.23 billion, with InvestingPro analysis indicating short-term obligations currently exceed liquid assets.
The newly appointed director will receive compensation in line with the company's non-employee director remuneration policy, detailed in Braemar's definitive proxy statement filed on October 10, 2024. Studio 11 Design, Sirna's business, has a history of providing interior design services to Ashford Inc (NYSE:AINC)., Braemar's advisor, under a consulting agreement with an annualized rate of $85,000. This agreement is set for an initial four-year term.
It's noteworthy that Studio 11 Design has refunded a significant portion of its gross revenues from previous engagements with Ashford Inc. and its affiliates. In 2022, 2023, and 2024, the firm received $339,511, $145,623, and $12,710, respectively, and refunded a total of $336,547 of these revenues.
This strategic addition to the Board is based on information contained in a press release statement. Sirna's appointment is part of the company's ongoing efforts to strengthen its leadership and strategic vision, as Braemar Hotels & Resorts continues to navigate the competitive landscape of luxury hospitality real estate.
In other recent news, Braemar Hotels & Resorts reported its fourth-quarter earnings for 2024, revealing a net loss of $31.1 million, translating to an earnings per share (EPS) of -$0.47, which missed the forecasted EPS of -$0.33. Despite this earnings miss, the company exceeded revenue expectations, reporting $173.34 million against a forecast of $165.31 million. The company's adjusted EBITDAre for the quarter was $30.2 million. Additionally, Braemar Hotels & Resorts has been actively engaging in refinancing efforts, successfully extending a mortgage loan secured by the Ritz Carlton Lake Tahoe. The company also announced that it has redeemed approximately $80 million of its non-traded preferred stock, aiming to improve cash flow per share. Analysts have noted that despite operational challenges, the company has shown strong sales performance, with firms like Oppenheimer inquiring about future revenue drivers. Furthermore, Braemar Hotels & Resorts has been focusing on enhancing its luxury offerings with several renovation projects, including guest room updates at Hotel Yonville and the addition of beachside cabanas at the Ritz Carlton St. Thomas.
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