Braemar Hotels & Resorts (BHR) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Braemar Hotels & Resorts is grappling with the disruptive influence of activist shareholders, such as Blackwells Capital LLC, which can levy substantial costs on the company and distract management. The firm’s focus on proxy battles and the retention of professional advisers to address activist matters could negatively impact its financial outcomes. Additionally, such shareholder actions might lead to volatile stock prices that do not reflect Braemar’s core business health, potentially benefiting competitors and unsettling customers and staff. The ongoing legal proceedings with Blackwells further threaten to divert resources and could adversely affect the company’s operations and market valuation.
Overall, Wall Street has a Hold consensus rating on BHR stock based on 3 Holds.
To learn more about Braemar Hotels & Resorts’ risk factors, click here.
