Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Proxy Contest (May 2024)
15 slides from Braemar Hotels & Resorts's proxy contest presentation, May 9, 2024
Slide 1: Too Little, Too Late: Braemar's May 6th Announcement
TOO LITTLE, TOO LATE BRAEMAR’S MAY 6 th ANNOUNCEMENT Braemar Hotels & Resorts Inc. (NYSE:BHR) MAY 2024 NOMOREMONTY.COM PRESENTED BY BLACKWELLS CAPITAL
Slide 2: Disclaimer
DISCLAIMER 2 The views expressed in this presentation (the “Presentation”) represent the opinions of Blackwells Capital LLC and/or certain of its affiliates (“Blackwells”) and the investment funds it manages that hold shares in Braemar Hotels & Resorts Inc . (the “Company”, “Braemar” or “BHR”) . The
Slide 3: Who Is Montgomery Bennett?
WHO IS MONTGOMERY BENNETT? Montgomery Bennett took over his daddy's hotel business and here are the results: ▪ AHT – stock is down (99%) all time (1) ▪ BHR – stock is down (91%) all time (2) ▪ AIN C – s to c k i s do w n ( 95 %) al l t im e ( 3 ) Source: Capital IQ and The Wall Street Journal, Augus
Slide 4: Montgomery Seems to Have a Lot of Time on His Hands
MONTGOMERY SEEMS TO HAVE A LOT OF TIME ON HIS HANDS "I can want a cemetery, and I can put it in the path," Mr. Bennett told D Magazine in 2016 when discussing the burial plot, which he said contained the remains of a World War II veteran Source: https://therealdeal.com/magazine/national-may-2023/mon
Slide 5: We Believe Monty Uses Company Resources for Stupidities
WE BELIEVE MONTY USES COMPANY RESOURCES FOR STUPIDITIES Monty Bennett has a pattern of using Company resources for his pet projects, at Braemar and at Ashford Hospitality Other than this common theme, Braemar and Ashford Hospitality also share the unhappy link of being among the worst performing REI
Slide 6: Monty's Pet Projects Do Not Help Braemar
MONTY’S PET PROJECTS DO NOT HELP BRAEMAR $1 0 . 0 0 $2 2 . 5 0 $2 0 . 0 0 $1 7 . 5 0 $1 5 . 0 0 $1 2 . 5 0 $7.50 $5.00 $2.50 $ - Nov - 2013 Nov - 2014 Nov - 2015 Nov - 2016 Nov - 2017 Nov - 2018 Nov - 2019 Nov - 2020 Nov - 2021 Nov - 2022 Nov - 2023 Source: Capital IQ Pro. Note: Braemar was spun off
Slide 7: Does Braemar's Board Enable Montgomery's Behavior?
DOES BRAEMAR’S BOARD ENABLE MONTGOMERY’S BEHAVIOR? A b t ee n V a z ir i M a tt h e w R i n a l d i R e b ec a J ohn s o n M on t y B e nn e t t C a nd ac e E va n s S t e f a n i C a rt e r R i c h a r d S t o ck t o n K e nn e t h F ea r n Candace Evans has written for The Dallas Express, a Newspa
Slide 8: It's Time to Press the Pause Button on Bennett
On May 6, 2024 Braemar announced the sale of their 75% stake in Hilton La Jolla Torrey Pines to JRK Property Holdings on a cash - free, debt - free basis for $165 million We demand the Board not approve any transactions that see a penny go to Monty and his father Archibald under their shady Advisory
Slide 9: Was the Sale of Hilton La Jolla Torrey Pines a Fire Sale?
WAS THE SALE OF HILTON LA JOLLA TORREY PINES A FIRE SALE? Ashford Hospitality Trust’s sale of lower quality assets have achieved a far greater results than Braemar’s sale of Hilton La Jolla Torrey Pines because they conducted a marketed process In March 2024, Ashford Hospitality Trust sold a 3 - sta
Slide 10: Déjà Vu
DÉJÀ VU Faced with activist pressure in 2016/2017, Braemar responded similarly: a series of transactions that did not add value - except to Monty Bennett, his father Archibald, and Braemar’s external advisor 10
Slide 11: A Double Déjà Vu!
A DOUBLE DÉJÀ VU! $3.00 $4.00 $5.00 $6.00 $7.00 $2.00 Jan - 2022 Mar - 2022 May - 2022 Jul - 2022 Sep - 2022 Nov - 2022 Jan - 2023 Mar - 2023 May - 2023 Jul - 2023 Sep - 2023 Nov - 2023 Mr . total units Feb - 24, 2023 Bennett redeemed a of 1.4 million common for approx. $7 million Dec - 8, 2022 Anno
Slide 12: Three Strikes and Braemar's Board Must Go
THREE STRIKES AND BRAEMAR’S BOARD MUST GO We believe selling an asset at fire sale pricing, and announcing a buyback of a stock that has cratered under the jackboot of self - dealing, confirms that urgent change is needed the incumbent directors may face personal liability for past actions and for c
Slide 13: Key Questions Regarding the May 6th Announcement
KEY QUESTIONS REGARDING THE MAY 6TH ANNOUNCEMENT Why did the Board approve a transaction at what appears to be a fire sale price, knowing shareholders will soon vote on new leadership? 1 Was this transaction done to drive yet more money into Monty’s pocket under the Advisory Agreement? 2 Why is ther
Slide 14: Voting Information
VOTING INFORMATION Braemar's 2024 Annual Meeting of Shareholders will be held on July 30 , 2024 , and all shareholders of record as of the close of business on May 2 , 2024 are entitled to vote at the meeting Braemar Shareholders – Please vote your proxy today on the WHITE universal proxy card “FOR”
Slide 15: Exhibit 3: No More Monty social media post
No More Monty @nomoremonty - 29m Who allows Matt Rinaldi to sit on a public company board?? Wz0NMq Democratic lawmaker Justin Rodriguez claimed that Rinaldi threatened to “puta bulletin one of my colleagues’ heads"; Rinaldi did not deny making the statement, but claimed it was made in sett-defense.!