BRAEMAR HOTELS & RESORTS ANNOUNCES TAX REPORTING INFORMATION FOR 2021 PREFERRED SHARE DISTRIBUTIONS

Rhea-AI Summary

Braemar Hotels & Resorts (NYSE: BHR) announced the tax reporting details for 2021 distributions on its Series B, D, E, and M preferred shares. The Series B preferred stock received a total cash distribution of $1.3752 per share, while Series D received $2.0624 per share, Series E received $0.8330 per share, and Series M received $0.6832 per share. Notably, all distributions were classified as returns of capital, with 100% of the cash not taxable as dividends. The Company will post Form 8937 on its website to provide further details. Shareholders are advised to consult their tax advisors.

Positive

• All distributions classified as returns of capital, potentially favorable for shareholders.
• Preferred shareholders received cash distributions: $1.3752 (Series B), $2.0624 (Series D), $0.8330 (Series E), $0.6832 (Series M).

Negative

• None.

DALLAS, Jan. 24, 2022 /PRNewswire/ -- Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") today announced the tax reporting (Federal Form 1099-DIV) information for the 2021 distributions on its Series B, D, E and M preferred shares.

The income tax treatment for the 2021 distributions for Braemar Hotels and Resorts Inc. Series B Cumulative Convertible Preferred Stock CUSIP #10482B200 traded on the NYSE under ticker symbol "BHRPrB" is as follows:

Distribution Type
	Distributions Per Share	Ordinary Taxable Dividend	Capital Gain Distribution	Unrecaptured 1250 Gain	Return of Capital
Total Cash Per Share	$1.3752000	$0.0000000	$0.0000000	$0.0000000	$1.3752000
Percent	100%	0%	0%	0%	100%

The income tax treatment for the 2021 distributions for Braemar Hotels and Resorts Inc. Series D Cumulative Preferred Stock CUSIP #104823B09 traded on the NYSE under ticker symbol "BHRPrD" is as follows:

Distribution Type
	Distributions Per Share	Ordinary Taxable Dividend	Capital Gain Distribution	Unrecaptured 1250 Gain	Return of Capital
Total Cash Per Share	$2.0624000	$0.0000000	$0.0000000	$0.0000000	$2.0624000
Percent	100%	0%	0%	0%	100%

The income tax treatment for the 2021 distributions for Braemar Hotels and Resorts Inc. Series E Redeemable Preferred Stock CUSIPs #10482B606 and 10482B804 is as follows:

Distribution Type
	Distributions Per Share	Ordinary Taxable Dividend	Capital Gain Distribution	Unrecaptured 1250 Gain	Return of Capital
Total Cash Per Share	$0.8330000	$0.0000000	$0.0000000	$0.0000000	$0.8330000
Percent	100%	0%	0%	0%	100%

The income tax treatment for the 2021 distributions for Braemar Hotels and Resorts Inc. Series M Redeemable Preferred Stock CUSIPs #10482B705 and 10482B887 is as follows:

Distribution Type
	Distributions Per Share	Ordinary Taxable Dividend	Capital Gain Distribution	Unrecaptured 1250 Gain	Return of Capital
Total Cash Per Share	$0.6832000	$0.0000000	$0.0000000	$0.0000000	$0.6832000
Percent	100%	0%	0%	0%	100%

The preferred distributions that the Company paid on January 15, 2021 to shareholders of record as of December 31, 2020 are reportable in 2021. The preferred distributions that the Company paid on January 18, 2022 to shareholders of record as of December 31, 2021 will be reportable in 2022.

In accordance with IRS Code Section 6045B, the Company will post Form 8937, Report of Organizational Actions Affecting Basis of Securities, which may be found in the Corporate Actions section of the Company's website. This form provides detailed information on the return of capital portion of the preferred share distributions.

The Company encourages shareholders to consult with their own tax advisors with respect to the federal, state and local, and foreign income tax effects of these dividends.

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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: the impact of COVID-19, and the rate of adoption and efficacy of vaccines to prevent COVID-19, on our business and investment strategy; 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; 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 is the tax treatment for Braemar Hotels preferred stocks BHR, BHR.PRB, and BHR.PRD for 2021?

Braemar Hotels' Series B, D, E, and M preferred stocks received distributions classified as returns of capital, with no ordinary taxable dividends issued for 2021.

What were the distribution amounts for Braemar Hotels preferred stocks in 2021?

The Series B preferred stock received $1.3752 per share, Series D received $2.0624, Series E received $0.8330, and Series M received $0.6832.

When will Braemar Hotels post Form 8937 for tax reporting?

Braemar Hotels will post Form 8937, which details the return of capital, on its website for shareholders.

What advice does Braemar Hotels give to its shareholders regarding tax effects?

Braemar Hotels advises shareholders to consult their own tax advisors about federal, state, local, and foreign income tax effects related to their dividends.