BRAEMAR HOTELS & RESORTS ISSUES STATEMENT REGARDING CASH HOLDINGS

Rhea-AI Summary

On March 14, 2023, Braemar Hotels & Resorts (NYSE: BHR) addressed concerns regarding its cash holdings amid recent banking industry events. The Company stated that approximately 60% of its cash is invested in short-term U.S. Treasury Securities with maturities under 90 days. Additionally, 18% is held in fully insured Insured Cash Sweep accounts at commercial banks. About 16% is related to property-level operating cash with Global Systemically Important Banks. The remaining 6% is deposited with other commercial banks. The statement aims to provide transparency and reassurance to shareholders about the Company's liquidity position.

Positive

• 60% of cash in short-term U.S. Treasury Securities, indicating a conservative investment approach.
• 18% of cash in fully insured ICS accounts, enhancing financial security.

Negative

• None.

DALLAS, March 14, 2023 /PRNewswire/ -- Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") issued the following statement today:  In light of recent events in the banking industry, the Company thought it would be helpful to provide some clarity on its current cash holdings.  Currently, approximately 60% of the Company's cash is held in short-term U.S. Treasury Securities with maturity dates of less than 90 days.  Approximately 18% is held at commercial banks in Insured Cash Sweep ("ICS") accounts, which are fully insured by the FDIC. Approximately 16% relates to property-level operating cash deposited with commercial banks that have been designated as a Global Systemically Important Bank ("G-SIB") by the Financial Stability Board ("FSB").  Approximately 6% relates to property-level operating cash deposited with other commercial banks. 

Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.

Forward-Looking Statements

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about the Company's strategy and future plans. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Braemar's control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; anticipated or expected purchases or sales of assets; our projected operating results; completion of any pending transactions; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board's decision whether to pay further dividends at levels previously disclosed or to use available cash to pay dividends; our understanding of our competition; market trends; projected capital expenditures; the impact of technology on our operations and business; general volatility of the capital markets and the market price of our common stock and preferred stock; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the markets in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in Braemar's filings with the Securities and Exchange Commission.

The forward-looking statements included in this press release are only made as of the date of this press release. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. Investors should not place undue reliance on these forward-looking statements. The Company can give no assurance that these forward-looking statements will be attained or that any deviation will not occur. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations, or otherwise, except to the extent required by law.

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SOURCE Braemar Hotels & Resorts Inc.

FAQ

What percentage of Braemar Hotels & Resorts' cash is held in U.S. Treasury Securities?

Approximately 60% of Braemar Hotels & Resorts' cash is held in short-term U.S. Treasury Securities.

How much cash does Braemar have in Insured Cash Sweep accounts?

Braemar holds about 18% of its cash in Insured Cash Sweep accounts that are fully insured by the FDIC.

What is the cash position of Braemar Hotels & Resorts as of March 14, 2023?

As of March 14, 2023, Braemar Hotels & Resorts holds about 60% in U.S. Treasury Securities, 18% in ICS accounts, 16% with G-SIBs, and 6% with other commercial banks.

What risks did Braemar Hotels & Resorts mention in their press release?

The press release highlighted various risks including the ability to repay debt, competition, market volatility, and economic conditions affecting operations.