May 2018 Forward Looking Statements and Non-GAAP Measures In - PowerPoint PPT Presentation

May 2018

Forward Looking Statements and Non-GAAP Measures In keeping with the SEC's "Safe Harbor" guidelines, certain statements made during this presentation could be considered forward- looking and subject to certain risks and uncertainties that could cause results to differ materially from those projected. 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 forward-looking statements include, but are not limited to, our business and investment strategy, our understanding of our competition, current market trends and opportunities, projected operating results, and projected capital expenditures. 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: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market 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 the company's filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price or debt amount. A capitalization rate is determined by dividing the property's net operating income by the purchase price. Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues. EBITDA, FFO, AFFO, CAD and other terms are non-GAAP measures, reconciliations of which have been provided in prior earnings releases and filings with the SEC or in the appendix to this presentation. The calculation of implied equity value is derived from an estimated blended capitalization rate (“Cap Rate”) for the entire portfolio using the capitalization rate method. The estimated Cap Rate is based on recent Cap Rates of publically traded peers involving a similar blend of asset types found in the portfolio, which is then applied to Net Operating Income (“NOI”) of the company’s a ssets to calculate a Total Enterprise Value (“TEV”) of the company. From the TEV, we deduct debt and preferred equity and then add bac k working capital and the company’s investment in Ashford Inc. to derive an equity value. The capitalization rate method is one of several valuation methods for estimating asset value and implied equity value. Among the limitations of using the capitalization rate method for determining an implied equity value are that it does not take into account the potential change or variability in future cash flows, potential significant future capital expenditures, the intended hold period of the asset, or a change in the future risk profile of an asset. This overview is for informational purposes only and is not an offer to sell, or a solicitation of an offer to buy or sell, any securities of Braemar Hotels & Resorts, Inc. or any of its respective affiliates, and may not be relied upon in connection with the purchase or sale of any such security. 2 Company Presentation // May 2018

Management Team R ICHARD J. S TOCKTON J EREMY J. W ELTER D ERIC S. E UBANKS , CFA Chief Executive Officer & Chief Operating Officer Chief Financial Officer President  13 years of hospitality  20 years of hospitality  18 years of hospitality experience experience experience  8 years with the Company (5  1 year with the Company  15 years with the Company years with the Company’s  15 years with Morgan Stanley  3 years with ClubCorp predecessor)  Cornell School of Hotel  CFA charterholder  5 years with Stephens Administration, BS  Southern Methodist University Investment Bank  University of Pennsylvania BBA  Oklahoma State University BS MBA 3 Company Presentation // May 2018

Strategic Overview Focused strategy of investing in luxury hotels and resorts Bardessono Hotel & Spa Yountville, CA Grow organically through strong revenue and cost control initiatives Grow externally through accretive acquisitions of high quality assets Pier House Resort Key West, FL Targets conservative leverage of Net Debt / Gross Assets of 45% with non-recourse property debt The Ritz-Carlton St. Thomas St. Thomas, USVI Highly-aligned management team and advisory structure 4 Company Presentation // May 2018

2018 Q1 Hotel Operating Results Comparable Hotel Operating Results (1) 2018 Q1 2017 Q1 % Variance ADR $ 266.01 $ 292.40 (9.03)% Occupancy 78.67% 79.38% (0.89)% RevPAR $ 209.27 $ 232.11 (9.84)% RevPAR (not under renovation) $ 237.21 $ 231.81 2.33% Total Hotel Revenue (2) $ 102,489 $ 110,212 (7.01)% Hotel EBITDA (2) $ 33,605 $ 33,313 0.88% Hotel EBITDA Margin 32.79 % 30.23% 2.56% C OMPARABLE R EV PAR C OMPARABLE H OTEL EBITDA $225 219 $129 127.2 126.9 213 $215 $127 207 $125 (In millions ) 123.3 $205 199 $123 121.1 $195 $121 $119 $185 $117 $175 $115 2015 2016 2017 2018 Q1 2015 2016 2017 2018 Q1 TTM TTM (1) Includes: Bardessono, Hotel Yountville, Ritz-Carlton St. Thomas, Pier House, Marriott Seattle Waterfront, Capital Hilton, Sofitel Chicago, Hilton Torrey Pines, Courtyard San Francisco, Renaissance Tampa, Courtyard Philadelphia, and Park Hyatt Beaver Creek. (2) In thousands. 5 Company Presentation // May 2018

2018 Q1 Company Results Earnings Results Adjusted EBITDAre was $29.8 million for the quarter, compared with $24.9 million for the prior year quarter • Comparable RevPAR for all hotels not under renovation increased 2.3% to $237.21 during the quarter • Adjusted funds from operations (AFFO) was $0.44 per diluted share for the quarter as compared with $0.46 • per diluted share from prior year quarter Subsequent to quarter end, the Company rebranded from Ashford Hospitality Prime to Braemar Hotels & • Resorts Subsequent to quarter end, the Company completed the acquisition of the 266-room Ritz Carlton Sarasota in • Sarasota, FL for $171 million Subsequent to quarter end, the Company agreed to sell the 293-room Renaissance Tampa in Tampa, FL for • $68 million Capex invested during the quarter was $15.7 million • A DJUSTED EBITDA RE AFFO PER S HARE Q UARTERLY D IVIDEND PER S HARE $110 $107.4 $2.00 $0.80 $105 $102.5 $1.60 $101.4 $0.34 $0.31 $0.20 $0.16 $100 (In millions) $1.20 $0.38 $0.37 $0.42 $95 $0.40 $0.12 $0.16 $0.80 $0.10 $0.50 $0.60 $0.12 $88.3 $90 $0.16 $0.62 $0.10 $0.40 $0.12 $85 $0.10 $0.46 $0.44 $0.39 $0.16 $0.16 $0.26 $0.10 $0.05 $0.00 $0.00 $80 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 Q1 TTM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 6 Company Presentation // May 2018

High-Quality Hotels in Leading Urban & Resort Markets Courtyard Philadelphia Philadelphia, PA Capital Hilton Washington D.C. Marriott Seattle Sofitel Chicago Magnificent Mile Hotel Yountville Seattle, WA Chicago, IL Yountville, CA Capital Hilton Washington D.C. Renaissance Tampa Tampa, FL Bardessono Hotel & Spa Yountville, CA The Ritz-Carlton, Courtyard San Francisco Sarasota, FL San Francisco, CA Hilton Torrey Pines Pier House Resort Pier House Resort The Ritz-Carlton St. Thomas Park Hyatt Beaver Creek La Jolla, CA Key West, FL Key West, FL St. Thomas, USVI Beaver Creek, CO 7 Company Presentation // May 2018 Core Assets Non-Core Assets

Portfolio Detail $234 $213 Core portfolio quality unparalleled in the • public lodging REIT sector Geographically diversified portfolio • C ORE R EV PAR O VERALL R EV PAR located in strong markets Number of TTM TTM TTM TTM Hotel % of ADR (1) OCC (1) RevPAR (1) EBITDA (1) Core Location Rooms Total Bardessono Napa Valley, CA 62 $775 76% $588 $5,256 4.1% Hotel Yountville Napa Valley, CA 80 $546 72% $395 $5,737 4.5% Ritz-Carlton St. Thomas St. Thomas, USVI 180 $438 80% $349 $9,575 7.5% Pier House Key West, FL 142 $430 76% $328 $11,162 8.8% Park Hyatt Beaver Creek Beaver Creek, CO 190 $446 60% $267 $9,467 7.4% Marriott Seattle Waterfront Seattle, WA 361 $276 87% $240 $16,134 12.7% Capital Hilton Washington D.C. 550 $232 87% $201 $15,769 12.4% Sofitel Chicago Magnificent Mile Chicago, IL 415 $204 80% $164 $5,811 4.6% Hilton Torrey Pines La Jolla, CA 394 $204 85% $174 $15,712 12.4% Total Core 2,374 $288 81% $234 $94,623 74.4% Non-Core (2) (2) Courtyard San Francisco Downtown San Francisco, CA 410 $267 80% $214 $12,574 9.9% (2) (3) (3) Renaissance Tampa Tampa, FL 293 $190 83% $158 $6,780 5.3% (3) (2) (2) Courtyard Philadelphia Downtown Philadelphia, PA 499 $182 83% $151 $13,236 (2) 10.4% Total Non-Core 1,202 $212 82% $174 $32,590 25.6% Total Portfolio 3,576 $262 82% $213 $127,213 100.0% (1) Pro Forma TTM as of 3/31/2018 (2) Announced repositioning to Autograph Collection by Marriott 8 Company Presentation // May 2018 (3) The company has recently agreed to sell the Renaissance Tampa Note: TTM Hotel EBITDA in thousands