financeHotel Dive··1 min·For: Owner, Investor, GM, Revenue
Al Shams Slams Braemar Over Ashford Termination Deal
Braemar Hotels & Resorts' largest shareholder, Al Shams, has issued an open letter accusing the board of 'betrayal' and self-dealing after terminating its advisory agreement with Ashford Inc. for $36.7 million.
Key Takeaways
- 1Monitor the legal threat from Al Shams, which accuses Braemar's board of self-dealing and breaching fiduciary duties regarding the Ashford termination.
- 2Analyze the $36.7 million termination payment to Ashford Inc., which Al Shams claims was designed to enrich insiders at the expense of shareholders.
- 3Prepare for potential governance changes as the largest shareholder demands a board overhaul and threatens to sue to recover the 'misappropriated' payout.
Source: Hotel Dive
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