Braemar Hotels & Resorts Lawsuit Investigation
Braemar Hotels & Resorts Inc. recorded a $480 million fee to its outside advisor, Ashford Inc., and reported a $240.9 million third-quarter loss. The White Law Group is investigating potential claims, including a possible Braemar Hotels & Resorts lawsuit or FINRA arbitration claim, for investors whose brokers recommended its securities. Here is what happened and what your options may be.
What Happened at Braemar Hotels & Resorts
Braemar is a real estate investment trust (REIT) that owns luxury hotels and resorts. It put itself up for sale in August 2025. On June 12, 2026, it ended that process and announced it would stay public, cut ties with Ashford, and manage itself.
The stock fell about 14% on the news, according to trade press, and was trading around $2.10 per share days later. Braemar says it expects to finish the move to self-management in mid-November 2026.
The $480 Million Ashford Fee and Hotel Sales
Braemar sold hotels to help pay what it owed Ashford. From July through October 2026, it closed sales worth nearly $1 billion:
- The Ritz-Carlton Sarasota, Hotel Yountville, and Bardessono Hotel and Spa for $437.5 million
- Pier House Resort & Spa for $190 million
- Four Seasons Resort Scottsdale for $372 million
Braemar says its go-forward portfolio will have seven hotels. The company says leaving Ashford will save more than $25 million a year.
Third Quarter 2026 Results
Braemar’s third-quarter results showed a net loss to common stockholders of $3.51 per share, mainly because of the Ashford fee. Total equity went from $140.8 million at the end of 2025 to a deficit of $105.5 million on September 30, 2026. Hotel performance improved, with comparable revenue per available room up 14.4%. Braemar has not declared a common stock dividend in 2026, though it continues to declare preferred dividends.
Non-Traded Preferred Stock Sold Through Brokers
Many retail investors may hold Braemar’s Series E or Series M Redeemable Preferred Stock rather than its common stock. These shares do not trade on the New York Stock Exchange. They were sold through Ashford Securities, an Ashford Inc. subsidiary, and a network of participating broker-dealers and registered investment advisers.
The prospectus allowed up to 7% in selling commissions and a 3% dealer manager fee on Series E shares. Braemar reported $63.5 million in redemptions payable on these shares as of September 30, 2026.
Braemar Hotels & Resorts Lawsuit Threats and the Al Shams Dispute
Braemar has faced shareholder pressure for years. Blackwells Capital ran a proxy contest in 2024 that ended in a settlement that July.
In June 2026, largest shareholder Al Shams Investments called the Ashford deal “one of the most brazen acts of self-dealing” and threatened legal action. It later filed a Texas court petition seeking information before a possible suit. Braemar called the accusations baseless and said it had negotiated a $94.3 million reduction in the fee. The two sides settled in October 2026, and those allegations were not decided in court.
What Brokers Owed Braemar Investors
Brokerage firms must perform adequate due diligence on the investments they recommend. Each recommendation must also fit the investor’s goals, risk tolerance, and need for access to their money. A firm that fails to meet these duties may be liable for resulting losses.
Speak With a Securities Attorney
If you have concerns about your Braemar Hotels & Resorts investment, call The White Law Group at (888) 637-5510 or contact us online for a free consultation. The White Law Group is a national securities fraud law firm with offices in Chicago and Seattle. Learn more about our FINRA arbitration practice.
Frequently Asked Questions
How do I file a claim to recover money invested in Braemar Hotels & Resorts?
You generally file a claim against the brokerage firm that recommended the investment, not against Braemar. Most brokerage account agreements typically include a pre-dispute arbitration clause, which many investors don’t know about, so these claims usually go through FINRA arbitration instead of court. Arbitration can still result in a monetary recovery, but FINRA generally does not allow claims more than six years after the events at issue.
What are the risks of non-traded preferred stock?
The main risk is that you may not be able to sell quickly at the price you paid. Non-traded preferred shares do not trade on a public exchange, and dividends and redemptions depend on the issuer’s finances and terms. Upfront commissions and fees can also make these products more costly to buy than listed securities.
Can a brokerage firm be held responsible for my Braemar losses?
Yes, if the firm made an unsuitable recommendation or failed to supervise the broker who made it. Firms must have systems in place to review what their brokers recommend. A drop in value alone does not prove a claim, so the facts of the recommendation matter.
