Blackwells Analysis Suggested Braemar Assets Undervalued
Investors in hospitality REITs should monitor how Braemar’s shift to self-management impacts its long-term cost structure.
Updated on Oct. 13, 2026 in Corporate Finance
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Blackwells Capital has released an independent analysis concluding that Braemar Hotels & Resorts is currently trading at roughly 30% of its fair asset value. This report coincides with Braemar’s ongoing transition to a self-managed REIT structure, a process fueled by $1.18 billion in asset sales throughout 2026.
Why it matters
The analysis highlights a major corporate restructuring aimed at streamlining operations by reducing annual administrative expenses from $42 million to $15 million. For operators, the move underscores the potential efficiency gains from eliminating external advisory agreements in the REIT sector.
The remaining Braemar portfolio includes 2,062 keys that generated $381 million in revenue and $88 million in Hotel EBITDA for the twelve months ended June 30, 2026. The firm also successfully negotiated a $94.3 million reduction in fees previously owed to Ashford Inc.
The players
Blackwells Capital
An investment firm that uses activist strategies to influence corporate governance and strategy at publicly traded companies.
Braemar Hotels & Resorts
A lodging real estate investment trust that focuses on owning luxury hotels and resorts.
Ashford Inc.
A provider of asset management and other services to the hospitality industry that previously acted as an advisor to Braemar.
The details
Braemar is funding its transition to a self-managed model through the liquidation of hotel assets, which reached $1.18 billion in 2026. By terminating its advisory agreement with Ashford Inc., the company intends to realize significant operational savings and simplify its corporate structure. Management has provided 2027 guidance projecting Adjusted EBITDAre between $85 million and $90 million with a target net debt to gross assets ratio of approximately 36%.
Timeline
July 2, 2024: Blackwells and Braemar signed a cooperation agreement.
June 30, 2026: End of the twelve-month reporting period for hotel results.
July 15, 2026: Blackwells formally supported the transition to a self-managed REIT.
October 8, 2026: Braemar published its latest pro forma financials and investor presentation.
October 9, 2026: Braemar shares closed at $1.21.
Market Landscape
Braemar's shift to internal management follows a widespread industry trend of REITs eliminating external advisory agreements to reduce corporate overhead. This move aligns with similar efforts by other publicly traded hotel owners to improve accountability and increase operating margins.
Operators and investors should watch how the transition to a $15 million annual administrative cost base influences Braemar’s future capital allocation. The projected EBITDAre range of $85 million to $90 million for 2027 serves as a key benchmark for evaluating the success of the new internal management structure.
The takeaway
The move demonstrates the potential for significant G&A expense reduction when hospitality REITs internalize management. Business leaders should monitor the resulting EBITDAre figures in the coming year to gauge whether reduced corporate overhead effectively translates to improved asset-level performance.
Further reading
For more on the financial mechanics driving REIT restructuring, see our coverage in Corporate Finance.
More information
View the full Blackwells Capital company presentation for additional data regarding the portfolio analysis.
Source note: This article includes information reported by The Kingston Whig-Standard.
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