Form 4: Braemar Hotels & Resorts Director Receives Incentive Partnership Units

Director Mary Candace Evans receives long-term incentive partnership units in Braemar Hospitality Limited Partnership as part of an annual grant.

Summary

• Mary Candace Evans, a director of Braemar Hotels & Resorts Inc., received an annual grant of 14,925 fully vested special long-term incentive partnership units (LTIP Units) in Braemar Hospitality Limited Partnership on May 15, 2024.
• These LTIP Units were awarded under the Issuer's Second Amended and Restated 2013 Equity Incentive Plan for her continued service on the Issuer's Board of Directors.
• The LTIP Units have no expiration date and are convertible into Common Partnership Units upon achieving parity.
• Common Partnership Units are redeemable for cash or convertible into shares of the Issuer's common stock on a 1-for-1 basis at the Issuer's option.
• Following the transaction, Ms. Evans beneficially owns 76,566 LTIP Units directly, as well as 3,875 shares of common stock and 1,206 shares of Series E Redeemable Preferred Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of LTIP units is a standard practice and indicates confidence in the director's continued service and the company's long-term prospects.

Positives

• The LTIP Units serve as an incentive for the director's continued service on the board.
• The LTIP Units are fully vested, providing immediate value to the director.
• The conversion feature of the LTIP Units provides flexibility and potential upside for the director.

Future Outlook

The document does not contain specific forward-looking statements, but the LTIP Units are designed to align the director's interests with the long-term performance of the company.

Industry Context

Equity-based compensation is a common practice in the hospitality industry to incentivize executives and board members to drive long-term value creation.

Comparison to Industry Standards

• Many hotel and resort companies use LTIP units or similar equity-based awards to align management and board interests with shareholder value.
• Comparable companies such as Host Hotels & Resorts and Park Hotels & Resorts also utilize equity incentive plans as part of their compensation strategy.
• The specific terms and conditions of LTIP units can vary widely across companies, depending on factors such as company size, performance goals, and industry practices.

Stakeholder Impact

• The granting of LTIP Units aligns the director's interests with those of shareholders, potentially driving long-term value creation.
• The LTIP Units incentivize the director to contribute to the company's success, which can benefit employees and other stakeholders.

Key Dates