Braemar Hotels & Resorts 8K Reports | BHR 1 Aug 18

EXHIBIT 99.1

NEWS RELEASE



Contact:	Deric Eubanks	Jordan Jennings	Joseph Calabrese
	Chief Financial Officer	Investor Relations	Financial Relations Board
	(972) 490-9600	(972) 778-9487	(212) 827-3772

BRAEMAR HOTELS & RESORTS REPORTS

SECOND QUARTER 2018 RESULTS

Adjusted EBITDAre Increased 14%

AFFO per Share Increased 12%

RevPAR for all hotels not under renovation increased 4.5%

$8.7 Million in Business Interruption Income Booked in the Second Quarter

Completed Acquisition of the Ritz-Carlton Sarasota

Completed Sale of the Renaissance Tampa

DALLAS - August 1, 2018 - Braemar Hotels & Resorts Inc. (NYSE: BHR) (“Braemar” or the “Company”) today reported the following results and performance measures for the second quarter ended June 30, 2018. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company’s hotel portfolio as of June 30, 2018 were owned as of the beginning of each of the periods presented. Unless otherwise stated, all reported results compare the second quarter ended June 30, 2018, with the second quarter ended June 30, 2017 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

STRATEGIC OVERVIEW


•	Focused strategy of investing in luxury hotels and resorts


•	Targets conservative leverage levels of 45% Net Debt to Gross Assets


•	Highly-aligned management team and advisory structure


•	Dividend yield of approximately 5.6%

FINANCIAL AND OPERATING HIGHLIGHTS


•	Net income attributable to common stockholders for the quarter was $9.8 million or $0.29 per diluted share


•	Comparable RevPAR for all hotels not under renovation increased 4.5% to $247.65 during the quarter


•	Adjusted funds from operations (AFFO) was $0.56 per diluted share for the quarter as compared with $0.50 per diluted share from the prior year quarter, reflecting 12% growth


•	Adjusted EBITDAre was $38.3 million for the quarter, compared with $33.7 million for the prior year quarter, reflecting 14% growth


•	During the quarter, the Company completed the acquisition of the 266-room Ritz-Carlton Sarasota in Sarasota, Florida for $171 million


•	During the quarter, the Company completed the sale of the 293-room Renaissance Tampa

BHR Reports Second Quarter Results

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August 1, 2018

International Plaza hotel in Tampa, Florida for $68 million


•	During the quarter, the Company completed a $435 million refinancing of two loans


•	Capex invested during the quarter was $16.7 million

UPDATE ON BUSINESS INTERRUPTION INCOME

During the second quarter of 2018, the Company recognized $5.2 million of business interruption income for the Ritz-Carlton St. Thomas related to lost profits for the period of March 2018 through May 2018 due to the impact of Hurricane Irma.

Additionally, during the second quarter, the Company recorded $190,000 in business interruption income for the Bardessono Hotel and the Hotel Yountville related to lost profits for the period of January 2018 through March 2018 due to the impact of the Northern California wildfires and $3.3 million in business interruption income for the Tampa Renaissance related to lost profits related to the BP Deepwater Horizon oil spill in the Gulf of Mexico in 2010.

The Company will continue to work with its insurers on the business interruption claims at the Ritz-Carlton St. Thomas and does not expect to receive any additional business interruption income associated with its other properties.

RITZ-CARLTON SARASOTA ACQUISITION

On April 4, 2018, the Company announced that it had completed the acquisition of the 266-room Ritz-Carlton Sarasota in Sarasota, Florida for $171 million ($643,000 per key). The purchase price represents a trailing twelve-month cap rate, as of December 31, 2017, of 6% and the Company expects to realize a stabilized unleveraged yield of approximately 8% on its investment. The Company also closed on the acquisition of a 22-acre plot of vacant land adjacent to the golf course for $9.7 million that is currently entitled for residential development. Concurrent with the completion of the acquisition, the Company financed the hotel with a $100 million non-recourse mortgage loan. The loan provides for a floating interest rate of LIBOR + 2.65% and has a five-year term. The property will continue to be operated as a Ritz-Carlton under a management agreement with Ritz-Carlton.

SALE OF RENAISSANCE TAMPA

On June 4, 2018, the Company announced that it had completed the sale of the 293-room Renaissance Tampa International Plaza hotel in Tampa, Florida for $68 million ($232,000 per key). The sales price represents a trailing twelve-month cap rate of 8.2% on net operating income and a 10.0x Hotel EBITDA multiple as of March 31, 2018.

The sale of the Renaissance Tampa is another step in the execution of the strategy for the Company’s non-core hotels that was announced in January 2017. This transaction follows the Company’s June 2017 announcement that it had reached an agreement to convert its Courtyard Philadelphia Downtown hotel to an Autograph Collection property as well as its November 2017 announcements that it had sold its Marriott Plano hotel and had reached an agreement to convert its Courtyard San Francisco Downtown hotel to an Autograph Collection property.

CAPITAL STRUCTURE

At June 30, 2018, the Company had total assets of $1.6 billion. As of June 30, 2018, the Company had $994 million of mortgage debt of which $47 million related to its joint venture partner’s share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines. The Company’s total combined debt had a blended average interest rate of 4.6%.

BHR Reports Second Quarter Results

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August 1, 2018

On May 23, 2018, the Company announced that it had refinanced two mortgage loans with existing outstanding balances totaling approximately $358 million. The previous mortgage loans that were refinanced were the Morgan Stanley Pool and the GACC Sofitel loans with final maturity dates in February 2024 and March 2019, respectively. The new loan totals $435 million and has a two-year initial term with five one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of LIBOR + 2.16%. The next hard debt maturity for the Company is in March 2020.

PORTFOLIO REVPAR

As of June 30, 2018, the portfolio consisted of twelve properties. During the second quarter of 2018, ten of the Company’s hotels were not under renovation. The Company believes reporting its operating metrics for its hotels on a comparable total basis (all 12 hotels) and comparable not under renovation basis (10 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio. Details of each category are provided in the tables attached to this release.


•	Comparable RevPAR decreased 1.1% to $241.41 for all hotels on a 1.4% decrease in ADR and a 0.3% increase in occupancy


•	Comparable RevPAR increased 4.5% to $247.65 for hotels not under renovation on a 3.4% increase in ADR and a 1.0% increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company’s portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company’s portfolio as of the end of the current period. As the Company’s portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin. The details of the quarterly calculations for the previous four quarters for the twelve hotels are provided in the table attached to this release.

COMMON STOCK DIVIDEND

On June 5, 2018, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.16 per diluted share for the Company's common stock for the second quarter ending June 30, 2018. The dividend, which equates to an annual rate of $0.64 per share, was paid on July 16, 2018, to shareholders of record as of June 29, 2018.

“We continue to execute on our strategic objectives and are pleased to have completed our planned sale of the Renaissance Tampa International Plaza as part of our portfolio realignment initiative,” said Richard J. Stockton, Braemar’s President and Chief Executive Officer. “Further, the completion of our acquisition of the Ritz-Carlton Sarasota continues our plan of recycling capital into higher quality, higher RevPAR assets consistent with our overall investment strategy. Going forward, we are well positioned to capitalize on the recent strong trends in the luxury class and remain committed to enhancing shareholder value by delivering solid operational performance and executing on all aspects of our business plan.”

INVESTOR CONFERENCE CALL AND SIMULCAST

Braemar will conduct a conference call on Thursday, August 2, 2018, at 11:00 a.m. ET. The number to call for this interactive teleconference is (323) 794-2093. A replay of the conference call will be available through

BHR Reports Second Quarter Results

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August 1, 2018

Thursday, August 9, 2018, by dialing (719) 457-0820 and entering the confirmation number, 3902715.

The Company will also provide an online simulcast and rebroadcast of its second quarter 2018 earnings release conference call. The live broadcast of Braemar’s quarterly conference call will be available online at the Company's web site, www.bhrreit.com on Thursday, August 2, 2018, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA. FFO and EBITDAre are computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to how these measures reported by other REITs that do not define the term in accordance with the current NAREIT definitions or that interpret the NAREIT definitions differently than us. None of FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, or Hotel EBITDA represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

* * * * *

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

Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple’s App Store and the Google Play Store by searching “Ashford.”

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 may include, among others, statements about the implied share price for the Company's common stock. 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: 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; our ability to successfully complete and integrate acquisitions, and manage our planned growth, 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. 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. A capitalization rate is determined by dividing the property's annual 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. Hotel

BHR Reports Second Quarter Results

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August 1, 2018

EBITDA Margin is Hotel EBITDA divided by total revenues. Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures. EBITDAre and Adjusted EBITDAre are non-GAAP financial measures. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of NAREIT in September 2017 defines EBITDAre as net income (loss) (computed in accordance with GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates.

The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. 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.

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)



	June 30, 2018			December 31, 2017
ASSETS
Investments in hotel properties, gross	$	1,520,011		$	1,403,110
Accumulated depreciation	(241,928		)	(257,268		)
Investments in hotel properties, net	1,278,083			1,145,842
Cash and cash equivalents	169,235			137,522
Restricted cash	83,096			47,820
Accounts receivable, net of allowance of $91 and $94, respectively	22,338			14,334
Insurance receivable	—			8,825
Inventories	1,898			1,425
Note receivable	—			8,098
Deferred costs, net	477			656
Prepaid expenses	4,325			3,670
Investment in Ashford Inc., at fair value	12,628			18,124
Investment in OpenKey	1,935			—
Derivative assets	1,007			594
Other assets	7,800			9,426
Intangible assets, net	27,994			22,545
Due from related party, net	588			349
Due from third-party hotel managers	5,522			4,589
Total assets	$	1,616,926		$	1,423,819

LIABILITIES AND EQUITY
Liabilities:
Indebtedness, net	$	985,205		$	820,959
Accounts payable and accrued expenses	63,976			56,803
Dividends and distributions payable	8,572			8,146
Due to Ashford Inc., net	1,100			1,703
Due to third-party hotel managers	2,299			1,709
Intangible liability, net	—			3,569
Other liabilities	21,585			1,628
Total liabilities	1,082,737			894,517

5.50% Series B cumulative convertible preferred stock, $0.01 par value, 4,965,850 shares issued and outstanding at June 30, 2018 and December 31, 2017	106,123			106,123
Redeemable noncontrolling interests in operating partnership	47,818			46,627
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 32,501,880 and 32,120,210 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	325			321
Additional paid-in capital	472,945			469,791
Accumulated deficit	(87,777		)	(88,807		)
Total stockholders' equity of the Company	385,493			381,305
Noncontrolling interest in consolidated entities	(5,245		)	(4,753		)
Total equity	380,248			376,552
Total liabilities and equity	$	1,616,926		$	1,423,819

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
REVENUE
Rooms	$	78,439		$	79,449		$	143,946		$	146,867
Food and beverage	25,393			27,980			48,893			52,453
Other	17,286			8,626			30,768			13,991
Total hotel revenue	121,118			116,055			223,607			213,311
Other	—			37			—			77
Total revenue	121,118			116,092			223,607			213,388
EXPENSES
Hotel operating expenses:
Rooms	16,652			17,613			31,570			33,410
Food and beverage	17,287			19,263			32,907			36,124
Other expenses	33,768			32,021			63,432			59,752
Management fees	4,501			4,209			8,118			7,754
Total hotel operating expenses	72,208			73,106			136,027			137,040
Property taxes, insurance and other	6,077			5,370			11,681			10,444
Depreciation and amortization	14,811			13,469			27,817			25,440
Impairment charges	59			—			71			—
Advisory services fee:
Base advisory fee	2,313			2,276			4,420			4,279
Reimbursable expenses	499			532			919			1,079
Incentive fee	691			—			861			—
Non-cash stock/unit-based compensation	1,377			335			3,924			(1,350		)
Contract modification cost	—			5,000			—			5,000
Transaction costs	461			2,066			949			6,394
Corporate, general and administrative:
Non-cash stock/unit-based compensation	—			227			—			245
Other general and administrative	1,206			1,304			1,234			5,160
Total operating expenses	99,702			103,685			187,903			193,731
OPERATING INCOME (LOSS)	21,416			12,407			35,704			19,657
Equity in earnings (loss) of unconsolidated entity	(62		)	—			(65		)	—
Interest income	230			165			430			277
Gain (loss) on sale of hotel property	15,711			—			15,711			—
Other income (expense)	(63		)	(113		)	(126		)	(270		)
Interest expense	(11,603		)	(8,582		)	(20,794		)	(15,735		)
Amortization of loan costs	(1,075		)	(1,349		)	(2,063		)	(2,398		)
Write-off of loan costs and exit fees	(4,176		)	—			(4,178		)	(1,963		)
Unrealized gain (loss) on investments	(6,024		)	(1,563		)	(5,496		)	1,528
Unrealized gain (loss) on derivatives	(298		)	(100		)	(225		)	(998		)
INCOME (LOSS) BEFORE INCOME TAXES	14,056			865			18,898			98
Income tax (expense) benefit	(1,202		)	(479		)	(1,774		)	(1		)
NET INCOME (LOSS)	12,854			386			17,124			97
(Income) loss from consolidated entities attributable to noncontrolling interest	(89		)	(1,614		)	(47		)	(1,593		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	(1,235		)	343			(1,527		)	598
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	11,530			(885		)	15,550			(898		)
Preferred dividends	(1,708		)	(1,707		)	(3,415		)	(3,380		)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	9,822		$	(2,592	)	$	12,135		$	(4,278	)

INCOME (LOSS) PER SHARE – BASIC AND DILUTED
Basic:
Net income (loss) attributable to common stockholders	$	0.30		$	(0.09	)	$	0.37		$	(0.16	)
Weighted average common shares outstanding – basic	32,006			31,469			31,845			29,380
Diluted:
Net income (loss) attributable to common stockholders	$	0.29		$	(0.09	)	$	0.37		$	(0.16	)
Weighted average common shares outstanding – diluted	38,588			(31,469		)	31,853			29,380
Dividends declared per common share:	$	0.16		$	0.16		$	0.32		$	0.32

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, EBITDAre AND ADJUSTED EBITDAre

(in thousands)

(unaudited)



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Net income (loss)	$	12,854		$	386		$	17,124		$	97
Interest income	(230		)	(165		)	(430		)	(277		)
Interest expense and amortization of loan costs	12,678			9,931			22,857			18,133
Depreciation and amortization	14,811			13,469			27,817			25,440
Income tax expense (benefit)	1,202			479			1,774			1
Equity in (earnings) loss of unconsolidated entity	62			—			65			—
Company's portion of EBITDA of OpenKey	(62		)	—			(64		)	—
EBITDA	41,315			24,100			69,143			43,394
Impairment charges on real estate	59			—			71			—
(Gain) loss on sale of hotel property	(15,711		)	—			(15,711		)	—
EBITDAre	25,663			24,100			53,503			43,394
Amortization of favorable (unfavorable) contract assets (liabilities)	49			44			92			93
Transaction and management conversion costs	462			2,112			965			6,440
Other (income) expense	63			113			126			270
Write-off of loan costs and exit fees	4,176			—			4,178			1,963
Unrealized (gain) loss on investments	6,024			1,563			5,496			(1,528		)
Unrealized (gain) loss on derivatives	298			100			225			998
Non-cash stock/unit-based compensation	1,442			597			4,035			(1,071		)
Legal, advisory and settlement costs	197			3			(944		)	2,948
Contract modification cost	—			5,000			—			5,000
Software implementation costs	—			79			—			79
Uninsured hurricane and wildfire related costs	(55		)	—			412			—
Company's portion of adjustments to EBITDAre of OpenKey	2			—			2			—
Adjusted EBITDAre	$	38,321		$	33,711		$	68,090		$	58,586

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO

(in thousands, except per share amounts)

(unaudited)



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Net income (loss)	$	12,854		$	386		$	17,124		$	97
(Income) loss from consolidated entities attributable to noncontrolling interest	(89		)	(1,614		)	(47		)	(1,593		)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	(1,235		)	343			(1,527		)	598
Preferred dividends	(1,708		)	(1,707		)	(3,415		)	(3,380		)
Net income (loss) attributable to common stockholders	9,822			(2,592		)	12,135			(4,278		)
Depreciation and amortization on real estate	14,052			12,752			26,310			24,003
Impairment charges on real estate	59			—			71			—
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	1,235			(343		)	1,527			(598		)
Equity in (earnings) loss of unconsolidated entity	62			—			65			—
Gain (loss) on sale of hotel property	(15,711		)	—			(15,711		)	—
Company's portion of FFO of OpenKey	(63		)	—			(65		)	—
FFO available to common stockholders and OP unitholders	9,456			9,817			24,332			19,127
Preferred dividends	1,708			1,707			3,415			3,380
Transaction and management conversion costs	462			2,112			965			6,440
Other (income) expense	63			113			126			270
Interest expense accretion on refundable membership club deposits	150			—			150			—
Write-off of loan costs and exit fees	4,176			—			4,178			1,963
Unrealized (gain) loss on investments	6,024			1,563			5,496			(1,528		)
Unrealized (gain) loss on derivatives	298			100			225			998
Non-cash stock/unit-based compensation	1,442			597			4,035			(1,071		)
Legal, advisory and settlement costs	197			3			(944		)	2,948
Contract modification cost	—			5,000			—			5,000
Software implementation costs	—			79			—			79
Uninsured hurricane and wildfire related costs	(55		)	—			412			—
Company's portion of adjustments to FFO of OpenKey	2			—			2			—
Adjusted FFO available to the Company and OP unitholders	$	23,923		$	21,091		$	42,392		$	37,606
Adjusted FFO per diluted share available to the Company and OP unitholders	$	0.56		$	0.50		$	1.00		$	0.95
Weighted average diluted shares	42,743			42,556			42,593			39,426

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

JUNE 30, 2018

(dollars in thousands)

(unaudited)



Indebtedness	Maturity	Interest Rate	Fixed-Rate Debt			Floating-Rate Debt				Total Debt			Comparable TTM Hotel EBITDA ⁽⁸⁾		Comparable TTM EBITDA Debt Yield
Apollo Ritz-Carlton St. Thomas - 1 hotel	December 2018	LIBOR + 4.95%	$	—		$	42,000		(1)	$	42,000		$	10,866	25.9	%
Credit Agricole Pier House - 1 hotel	March 2019	LIBOR + 2.25%	—			70,000			(2)	70,000			11,082		15.8	%
JPMorgan Park Hyatt Beaver Creek - 1 hotel	April 2019	LIBOR + 2.75%	—			67,500			(3)	67,500			9,244		13.7	%
Aareal - 2 hotels	November 2019	LIBOR + 2.65%	—			188,326			(4)	188,326			30,376		16.1	%
Secured revolving credit facility - various	November 2019	Base Rate(6) + 1.25% to 2.50% or LIBOR + 2.25% to 3.50%	—			—			(5)	—			N/A		N/A
BAML Pool - 4 hotels	June 2020	LIBOR + 2.16%	—			435,000			(7)	435,000			49,525		11.4	%
BAML Hotel Yountville - 1 hotel	May 2022	LIBOR + 2.55%	—			51,000				51,000			5,961		11.7	%
BAML Bardessono - 1 hotel	August 2022	LIBOR + 2.55%	—			40,000				40,000			5,417		13.5	%
BAML Ritz-Carlton Sarasota - 1 hotel	April 2023	LIBOR + 2.65%	—			100,000				100,000			12,958		13.0	%
Total			$	—		$	993,826			$	993,826		$	135,429	13.6	%
Percentage			—		%	100.0		%		100.0		%
Weighted average interest rate			—		%	4.59		%		4.59		%

All indebtedness is non-recourse with the exception of the secured revolving credit facility.

⁽¹⁾This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in December 2017.

⁽²⁾This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the second was exercised in March 2018.

⁽³⁾This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.

⁽⁴⁾This mortgage loan has two one-year extension options subject to satisfaction of certain conditions.

⁽⁵⁾This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2019.

⁽⁶⁾Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.

⁽⁷⁾This mortgage loan has five one-year extension options subject to satisfaction of certain conditions.

⁽⁸⁾See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

JUNE 30, 2018

(dollars in thousands)

(unaudited)



	2018		2019		2020		2021		2022		Thereafter		Total
Secured revolving credit facility - various	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Credit Agricole Pier House - 1 hotel	—		—		70,000		—		—		—		70,000
Apollo Ritz-Carlton St. Thomas - 1 hotel	—		—		42,000		—		—		—		42,000
Aareal - 2 hotels	—		—		—		177,486		—		—		177,486
JPMorgan Park Hyatt Beaver Creek - 1 hotel	—		—		—		—		67,500		—		67,500
BAML Hotel Yountville - 1 hotel	—		—		—		—		51,000		—		51,000
BAML Bardessono - 1 hotel	—		—		—		—		40,000		—		40,000
BAML Ritz-Carlton Sarasota - 1 hotel	—		—		—		—		—		98,000		98,000
BAML Pool - 4 hotels	—		—		—		—		—		435,000		435,000
Principal due in future periods	$	—	$	—	$	112,000	$	177,486	$	158,500	$	533,000	$	980,986
Scheduled amortization payments remaining	1,492		3,120		3,312		3,416		1,000		500		12,840
Total indebtedness	$	1,492	$	3,120	$	115,312	$	180,902	$	159,500	$	533,500	$	993,826

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(unaudited)



ALL HOTELS:
		Three Months Ended June 30,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2018			2018			2018			2017			2017			2017			% Variance		% Variance
	Rooms revenue (in thousands)	$	78,439		$	(2,612	)	$	75,827		$	79,449		$	(712	)	$	78,737		(1.27	)%	(3.70	)%
	RevPAR	$	236.85		$	(152.97	)	$	241.41		$	221.65		$	(19.79	)	$	244.20		6.86	%	(1.14	)%
	Occupancy	84.90		%	(81.55		)%	85.09		%	84.07		%	(76.90		)%	84.87		%	0.99	%	0.26	%
	ADR	$	278.96		$	(187.57	)	$	283.72		$	263.65		$	(25.73	)	$	287.74		5.81	%	(1.40	)%



ALL HOTELS:
		Six Months Ended June 30,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2018			2018			2018			2017			2017			2017			% Variance		% Variance
	Rooms revenue (in thousands)	$	143,946		$	1,280		$	145,226		$	146,867		$	10,009		$	156,876		(1.99	)%	(7.43	)%
	RevPAR	$	223.45		$	(65.60	)	$	232.47		$	212.35		$	(198.15	)	$	244.69		5.23	%	(4.99	)%
	Occupancy	81.87		%	(94.12		)%	81.49		%	81.35		%	(74.51		)%	81.89		%	0.64	%	(0.49	)%
	ADR	$	272.91		$	(69.70	)	$	285.27		$	261.03		$	(265.93	)	$	298.80		4.55	%	(4.53	)%

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.


(2)	All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.



ALL HOTELS NOT UNDER RENOVATION:
ALL HOTELS NOT UNDER RENOVATION:		Three Months Ended June 30,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2018			2018			2018			2017			2017			2017			% Variance		% Variance
	Rooms revenue (in thousands)	$	69,184		$	(2,612	)	$	66,572		$	64,296		$	(712	)	$	63,584		7.60	%	4.70	%
	RevPAR	$	242.00		$	(152.97	)	$	247.65		$	211.30		$	(19.79	)	$	237.01		14.53	%	4.49	%
	Occupancy	85.13		%	(81.55		)%	85.36		%	83.59		%	(76.90		)%	84.49		%	1.85	%	1.04	%
	ADR	$	284.26		$	(187.57	)	$	290.12		$	252.78		$	(25.73	)	$	280.53		12.45	%	3.42	%



ALL HOTELS NOT UNDER RENOVATION:
ALL HOTELS NOT UNDER RENOVATION:		Six Months Ended June 30,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2018			2018			2018			2017			2017			2017			% Variance		% Variance
	Rooms revenue (in thousands)	$	129,456		$	1,280		$	130,736		$	118,498		$	10,009		$	128,507		9.25	%	1.73	%
	RevPAR	$	233.63		$	(65.60	)	$	244.55		$	202.93		$	(198.15	)	$	240.91		15.13	%	1.51	%
	Occupancy	83.09		%	(94.12		)%	82.69		%	81.87		%	(74.51		)%	82.57		%	1.49	%	0.15	%
	ADR	$	281.17		$	(69.70	)	$	295.74		$	247.88		$	(265.93	)	$	291.79		13.43	%	1.36	%

NOTES:

(1)

The above comparable information assumes the ten hotel properties owned and included in the Company's operations at June 30, 2018, and not under renovation during the three months ended June 30, 2018, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.


(2)	All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.


(3)	Excluded Hotels Under Renovation:

Chicago Sofitel Magnificent Mile, St. Thomas Ritz-Carlton

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

HOTEL EBITDA

(dollars in thousands)

(unaudited)



ALL HOTELS:		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2018			2017			% Variance		2018			2017			% Variance
	Total hotel revenue	$	121,118		$	116,055		4.36	%	$	223,607		$	213,311		4.83	%
	Non-comparable adjustments	(6,552		)	3,141					5,536			27,282
	Comparable total hotel revenue	$	114,566		$	119,196		(3.88	)%	$	229,143		$	240,593		(4.76	)%

	Hotel EBITDA	$	43,721		$	38,371		13.94	%	$	77,326		$	67,102		15.24	%
	Non-comparable adjustments	(4,260		)	(877		)			(929		)	6,457
	Comparable hotel EBITDA	$	39,461		$	37,494		5.25	%	$	76,397		$	73,559		3.86	%
	Hotel EBITDA margin	36.10		%	33.06		%	3.04	%	34.58		%	31.46		%	3.12	%
	Comparable hotel EBITDA margin	34.44		%	31.46		%	2.98	%	33.34		%	30.57		%	2.77	%

	Hotel EBITDA adjustments attributable to consolidated noncontrolling interests	$	2,365		$	2,641		(10.45	)%	$	4,355		$	4,865		(10.48	)%
	Hotel EBITDA attributable to the Company and OP unitholders	$	41,356		$	35,730		15.75	%	$	72,971		$	62,237		17.25	%
	Comparable hotel EBITDA attributable to the Company and OP unitholders	$	37,096		$	34,853		6.44	%	$	72,042		$	68,694		4.87	%

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.


(2)	All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.


(3)	See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.



ALL HOTELS NOT UNDER RENOVATION:		Three Months Ended								Six Months Ended
ALL HOTELS NOT UNDER RENOVATION:		June 30,								June 30,
		2018			2017			% Variance		2018			2017			% Variance
	Total hotel revenue	$	103,538		$	91,573		13.07	%	$	194,586		$	168,368		15.57	%
	Non-comparable adjustments	(6,552		)	3,141					5,536			27,282
	Comparable total hotel revenue	$	96,986		$	94,714		2.40	%	$	200,122		$	195,650		2.29	%

	Hotel EBITDA	$	35,744		$	32,046		11.54	%	$	67,104		$	57,544		16.61	%
	Non-comparable adjustments	(4,260		)	(877		)			(929		)	6,457
	Comparable hotel EBITDA	$	31,484		$	31,169		1.01	%	$	66,175		$	64,001		3.40	%
	Hotel EBITDA margin	34.52		%	35.00		%	(0.48	)%	34.49		%	34.18		%	0.31	%
	Comparable hotel EBITDA margin	32.46		%	32.91		%	(0.45	)%	33.07		%	32.71		%	0.36	%

	Hotel EBITDA adjustments attributable to consolidated noncontrolling interests	$	2,365		$	2,641		(10.45	)%	$	4,355		$	4,865		(10.48	)%
	Hotel EBITDA attributable to the Company and OP unitholders	$	33,379		$	29,405		13.51	%	$	62,749		$	52,679		19.12	%
	Comparable hotel EBITDA attributable to the Company and OP unitholders	$	29,119		$	28,528		2.07	%	$	61,820		$	59,136		4.54	%

NOTES:

(1)


(2)	All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.


(4)	Excluded Hotels Under Renovation:

Chicago Sofitel Magnificent Mile, St. Thomas Ritz-Carlton

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)



		Three Months Ended June 30,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2018			2018			2018			2017			2017			2017			% Variance		% Variance
CAPITAL HILTON WASHINGTON D.C.
	Selected Financial Information:
	Rooms revenue	$	12,791		$	—		$	12,791		$	12,516		$	—		$	12,516		2.20	%	2.20	%
	Total hotel revenue	$	17,024		$	—		$	17,024		$	16,997		$	—		$	16,997		0.16	%	0.16	%
	Hotel EBITDA	$	6,138		$	—		$	6,138		$	6,248		$	—		$	6,248		(1.76	)%	(1.76	)%
	Hotel EBITDA margin	36.05		%				36.05		%	36.76		%				36.76		%	(0.71	)%	(0.71	)%
	Selected Operating Information:
	RevPAR	$	255.58		$	—		$	255.58		$	250.07		$	—		$	250.07		2.20	%	2.20	%
	Occupancy	91.78		%	—		%	91.78		%	94.65		%	—		%	94.65		%	(3.03	)%	(3.03	)%
	ADR	$	278.46		$	—		$	278.46		$	264.22		$	—		$	264.22		5.39	%	5.39	%

LA JOLLA HILTON TORREY PINES
	Selected Financial Information:
	Rooms revenue	$	6,417		$	—		$	6,417		$	6,124		$	—		$	6,124		4.78	%	4.78	%
	Total hotel revenue	$	10,801		$	—		$	10,801		$	11,570		$	—		$	11,570		(6.65	)%	(6.65	)%
	Hotel EBITDA	$	3,323		$	—		$	3,323		$	4,318		$	—		$	4,318		(23.04	)%	(23.04	)%
	Hotel EBITDA margin	30.77		%				30.77		%	37.32		%				37.32		%	(6.55	)%	(6.55	)%
	Selected Operating Information:
	RevPAR	$	178.99		$	—		$	178.99		$	170.80		$	—		$	170.80		4.80	%	4.80	%
	Occupancy	85.33		%	—		%	85.33		%	84.76		%	—		%	84.76		%	0.67	%	0.67	%
	ADR	$	209.77		$	—		$	209.77		$	201.50		$	—		$	201.50		4.10	%	4.10	%

CHICAGO SOFITEL MAGNIFICENT MILE
	Selected Financial Information:
	Rooms revenue	$	7,783		$	—		$	7,783		$	7,824		$	—		$	7,824		(0.52	)%	(0.52	)%
	Total hotel revenue	$	10,723		$	—		$	10,723		$	10,386		$	—		$	10,386		3.24	%	3.24	%
	Hotel EBITDA	$	3,576		$	—		$	3,576		$	3,215		$	—		$	3,215		11.23	%	11.23	%
	Hotel EBITDA margin	33.35		%				33.35		%	30.96		%				30.96		%	2.39	%	2.39	%
	Selected Operating Information:
	RevPAR	$	206.09		$	—		$	206.09		$	207.17		$	—		$	207.17		(0.52	)%	(0.52	)%
	Occupancy	85.23		%	—		%	85.23		%	89.18		%	—		%	89.18		%	(4.43	)%	(4.43	)%
	ADR	$	241.81		$	—		$	241.81		$	232.31		$	—		$	232.31		4.09	%	4.09	%

BARDESSONO HOTEL AND SPA
	Selected Financial Information:
	Rooms revenue	$	3,770		$	—		$	3,770		$	3,829		$	—		$	3,829		(1.54	)%	(1.54	)%
	Total hotel revenue	$	5,232		$	—		$	5,232		$	5,053		$	—		$	5,053		3.54	%	3.54	%
	Hotel EBITDA	$	1,732		$	—		$	1,732		$	1,571		$	—		$	1,571		10.25	%	10.25	%
	Hotel EBITDA margin	33.10		%				33.10		%	31.09		%				31.09		%	2.01	%	2.01	%
	Selected Operating Information:
	RevPAR	$	668.14		$	—		$	668.14		$	678.78		$	—		$	678.78		(1.57	)%	(1.57	)%
	Occupancy	79.28		%	—		%	79.28		%	81.81		%	—		%	81.81		%	(3.09	)%	(3.09	)%
	ADR	$	842.76		$	—		$	842.76		$	829.66		$	—		$	829.66		1.58	%	1.58	%

KEY WEST PIER HOUSE RESORT
	Selected Financial Information:
	Rooms revenue	$	4,510		$	—		$	4,510		$	4,687		$	—		$	4,687		(3.78	)%	(3.78	)%
	Total hotel revenue	$	5,905		$	—		$	5,905		$	6,161		$	—		$	6,161		(4.16	)%	(4.16	)%
	Hotel EBITDA	$	2,659		$	—		$	2,659		$	2,715		$	24		$	2,739		(2.06	)%	(2.92	)%
	Hotel EBITDA margin	45.03		%				45.03		%	44.07		%				44.46		%	0.96	%	0.57	%
	Selected Operating Information:
	RevPAR	$	349.02		$	—		$	349.02		$	362.69		$	—		$	362.69		(3.77	)%	(3.77	)%
	Occupancy	80.85		%	—		%	80.85		%	84.82		%	—		%	84.82		%	(4.68	)%	(4.68	)%
	ADR	$	431.70		$	—		$	431.70		$	427.58		$	—		$	427.58		0.96	%	0.96	%



		Three Months Ended June 30,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2018			2018			2018			2017			2017			2017			% Variance		% Variance
HOTEL YOUNTVILLE
	Selected Financial Information:
	Rooms revenue	$	3,458		$	—		$	3,458		$	1,982		$	1,285		$	3,267		74.47	%	5.85	%
	Total hotel revenue	$	4,159		$	—		$	4,159		$	2,355		$	1,571		$	3,926		76.60	%	5.93	%
	Hotel EBITDA	$	1,780		$	—		$	1,780		$	984		$	572		$	1,556		80.89	%	14.40	%
	Hotel EBITDA margin	42.80		%				42.80		%	41.78		%				39.63		%	1.02	%	3.17	%
	Selected Operating Information:
	RevPAR	$	475.01		$	—		$	475.01		$	485.76		$	401.52		$	448.73		(2.21	)%	5.86	%
	Occupancy	80.23		%	—		%	80.23		%	77.33		%	77.72		%	77.50		%	3.75	%	3.52	%
	ADR	$	592.04		$	—		$	592.04		$	628.17		$	516.64		$	579.01		(5.75	)%	2.25	%

PARK HYATT BEAVER CREEK
	Selected Financial Information:
	Rooms revenue	$	1,761		$	—		$	1,761		$	1,717		$	—		$	1,717		2.56	%	2.56	%
	Total hotel revenue	$	5,237		$	—		$	5,237		$	4,946		$	—		$	4,946		5.88	%	5.88	%
	Hotel EBITDA	$	(670	)	$	—		$	(670	)	$	(447	)	$	—		$	(447	)	(49.89	)%	(49.89	)%
	Hotel EBITDA margin	(12.79		)%				(12.79		)%	(9.04		)%				(9.04		)%	(3.75	)%	(3.75	)%
	Selected Operating Information:
	RevPAR	$	101.82		$	—		$	101.82		$	99.29		$	—		$	99.29		2.55	%	2.55	%
	Occupancy	43.29		%	—		%	43.29		%	43.91		%	—		%	43.91		%	(1.41	)%	(1.41	)%
	ADR	$	235.20		$	—		$	235.20		$	226.13		$	—		$	226.13		4.01	%	4.01	%

PHILADELPHIA COURTYARD DOWNTOWN
	Selected Financial Information:
	Rooms revenue	$	8,351		$	—		$	8,351		$	7,781		$	—		$	7,781		7.33	%	7.33	%
	Total hotel revenue	$	10,373		$	—		$	10,373		$	9,425		$	—		$	9,425		10.06	%	10.06	%
	Hotel EBITDA	$	4,597		$	—		$	4,597		$	4,194		$	—		$	4,194		9.61	%	9.61	%
	Hotel EBITDA margin	44.32		%				44.32		%	44.50		%				44.50		%	(0.18	)%	(0.18	)%
	Selected Operating Information:
	RevPAR	$	183.90		$	—		$	183.90		$	171.35		$	—		$	171.35		7.32	%	7.32	%
	Occupancy	92.14		%	—		%	92.14		%	87.65		%	—		%	87.65		%	5.12	%	5.12	%
	ADR	$	199.59		$	—		$	199.59		$	195.50		$	—		$	195.50		2.09	%	2.09	%

PLANO MARRIOTT LEGACY TOWN CENTER
	Selected Financial Information:
	Rooms revenue	$	—		$	—		$	—		$	5,218		$	(5,218	)	$	—		(100.00	)%	—	%
	Total hotel revenue	$	—		$	—		$	—		$	8,878		$	(8,878	)	$	—		(100.00	)%	—	%
	Hotel EBITDA	$	—		$	—		$	—		$	3,036		$	(3,036	)	$	—		(100.00	)%	—	%
	Hotel EBITDA margin	—		%				—		%	34.20		%				—		%	(34.20	)%	—	%
	Selected Operating Information:
	RevPAR	$	—		$	—		$	—		$	141.95		$	(141.95	)	$	—		(100.00	)%	—	%
	Occupancy	—		%	—		%	—		%	76.19		%	(76.19		)%	—		%	(100.00	)%	—	%
	ADR	$	—		$	—		$	—		$	186.30		$	(186.30	)	$	—		(100.00	)%	—	%

SAN FRANCISCO COURTYARD DOWNTOWN
	Selected Financial Information:
	Rooms revenue	$	9,890		$	—		$	9,890		$	7,720		$	—		$	7,720		28.11	%	28.11	%
	Total hotel revenue	$	11,371		$	—		$	11,371		$	8,876		$	—		$	8,876		28.11	%	28.11	%
	Hotel EBITDA	$	3,890		$	—		$	3,890		$	2,783		$	—		$	2,783		39.78	%	39.78	%
	Hotel EBITDA margin	34.21		%				34.21		%	31.35		%				31.35		%	2.86	%	2.86	%
	Selected Operating Information:
	RevPAR	$	265.07		$	—		$	265.07		$	208.40		$	—		$	208.40		27.19	%	27.19	%
	Occupancy	91.47		%	—		%	91.47		%	81.72		%	—		%	81.72		%	11.93	%	11.93	%
	ADR	$	289.77		$	—		$	289.77		$	255.03		$	—		$	255.03		13.62	%	13.62	%



		Three Months Ended June 30,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2018			2018			2018			2017			2017			2017			% Variance		% Variance
SARASOTA RITZ-CARLTON
	Selected Financial Information:
	Rooms revenue	$	6,297		$	277		$	6,574		$	—		$	7,182		$	7,182		—	%	(8.47	)%
	Total hotel revenue	$	15,127		$	645		$	15,772		$	—		$	16,092		$	16,092		—	%	(1.99	)%
	Hotel EBITDA	$	3,023		$	191		$	3,214		$	—		$	3,285		$	3,285		—	%	(2.16	)%
	Hotel EBITDA margin	19.98		%				20.38		%	—		%				20.41		%	19.98	%	(0.03	)%
	Selected Operating Information:
	RevPAR	$	269.02		$	348.08		$	271.62		$	—		$	296.73		$	296.73		—	%	(8.46	)%
	Occupancy	76.86		%	89.97		%	77.29		%	—		%	81.89		%	81.89		%	—	%	(5.62	)%
	ADR	$	350.00		$	386.86		$	351.41		$	—		$	362.33		$	362.33		—	%	(3.01	)%

SEATTLE MARRIOTT WATERFRONT
	Selected Financial Information:
	Rooms revenue	$	9,050		$	—		$	9,050		$	8,761		$	—		$	8,761		3.30	%	3.30	%
	Total hotel revenue	$	11,112		$	—		$	11,112		$	11,668		$	—		$	11,668		(4.77	)%	(4.77	)%
	Hotel EBITDA	$	4,821		$	—		$	4,821		$	4,922		$	—		$	4,922		(2.05	)%	(2.05	)%
	Hotel EBITDA margin	43.39		%				43.39		%	42.18		%				42.18		%	1.21	%	1.21	%
	Selected Operating Information:
	RevPAR	$	275.48		$	—		$	275.48		$	268.92		$	—		$	268.92		2.44	%	2.44	%
	Occupancy	91.35		%	—		%	91.35		%	92.66		%	—		%	92.66		%	(1.41	)%	(1.41	)%
	ADR	$	301.58		$	—		$	301.58		$	290.22		$	—		$	290.22		3.91	%	3.91	%

ST. THOMAS RITZ-CARLTON
	Selected Financial Information:
	Rooms revenue	$	1,472		$	—		$	1,472		$	7,329		$	—		$	7,329		(79.92	)%	(79.92	)%
	Total hotel revenue	$	6,857		$	—		$	6,857		$	14,096		$	—		$	14,096		(51.35	)%	(51.35	)%
	Hotel EBITDA	$	4,401		$	—		$	4,401		$	3,110		$	—		$	3,110		41.51	%	41.51	%
	Hotel EBITDA margin	64.18		%				64.18		%	22.06		%				22.06		%	42.12	%	42.12	%
	Selected Operating Information:
	RevPAR	$	195.59		$	—		$	195.59		$	447.41		$	—		$	447.41		(56.28	)%	(56.28	)%
	Occupancy	74.56		%	—		%	74.56		%	81.25		%	—		%	81.25		%	(8.23	)%	(8.23	)%
	ADR	$	262.32		$	—		$	262.32		$	550.68		$	—		$	550.68		(52.36	)%	(52.36	)%

TAMPA RENAISSANCE
	Selected Financial Information:
	Rooms revenue	$	2,889		$	(2,889	)	$	—		$	3,961		$	(3,961	)	$	—		(27.06	)%	—	%
	Total hotel revenue	$	7,197		$	(7,197	)	$	—		$	5,644		$	(5,644	)	$	—		27.52	%	—	%
	Hotel EBITDA	$	4,451		$	(4,451	)	$	—		$	1,712		$	(1,712	)	$	—		159.99	%	—	%
	Hotel EBITDA margin	61.85		%				—		%	30.33		%				—		%	31.52	%	—	%
	Selected Operating Information:
	RevPAR	$	161.68		$	(161.68	)	$	—		$	148.59		$	(148.59	)	$	—		8.81	%	—	%
	Occupancy	81.93		%	(81.93		)%	—		%	82.51		%	(82.51		)%	—		%	(0.70	)%	—	%
	ADR	$	197.34		$	(197.34	)	$	—		$	180.08		$	(180.08	)	$	—		9.58	%	—	%

BRAEMAR PROPERTIES TOTAL
	Selected Financial Information:
	Rooms revenue	$	78,439		$	(2,612	)	$	75,827		$	79,449		$	(712	)	$	78,737		(1.27	)%	(3.70	)%
	Total hotel revenue	$	121,118		$	(6,552	)	$	114,566		$	116,055		$	3,141		$	119,196		4.36	%	(3.88	)%
	Hotel EBITDA	$	43,721		$	(4,260	)	$	39,461		$	38,371		$	(877	)	$	37,494		13.94	%	5.25	%
	Hotel EBITDA margin	36.10		%				34.44		%	33.06		%				31.46		%	3.04	%	2.98	%
	Selected Operating Information:
	RevPAR	$	236.85		$	(152.97	)	$	241.41		$	221.65		$	(19.79	)	$	244.20		6.86	%	(1.14	)%
	Occupancy	84.90		%	(81.55		)%	85.09		%	84.07		%	(76.90		)%	84.87		%	0.99	%	0.26	%
	ADR	$	278.96		$	(187.57	)	$	283.72		$	263.65		$	(25.73	)	$	287.74		5.81	%	(1.40	)%

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.


(2)	All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.


(3)	See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)



		Six Months Ended June 30,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2018			2018			2018			2017			2017			2017			% Variance		% Variance
CAPITAL HILTON WASHINGTON D.C.
	Selected Financial Information:
	Rooms revenue	$	21,752		$	—		$	21,752		$	23,390		$	—		$	23,390		(7.00	)%	(7.00	)%
	Total hotel revenue	$	30,608		$	—		$	30,608		$	32,832		$	—		$	32,832		(6.77	)%	(6.77	)%
	Hotel EBITDA	$	9,240		$	—		$	9,240		$	11,253		$	—		$	11,253		(17.89	)%	(17.89	)%
	Hotel EBITDA margin	30.19		%				30.19		%	34.27		%				34.27		%	(4.08	)%	(4.08	)%
	Selected Operating Information:
	RevPAR	$	218.50		$	—		$	218.50		$	234.96		$	—		$	234.96		(7.01	)%	(7.01	)%
	Occupancy	85.19		%	—		%	85.19		%	90.59		%	—		%	90.59		%	(5.96	)%	(5.96	)%
	ADR	$	256.48		$	—		$	256.48		$	259.36		$	—		$	259.36		(1.11	)%	(1.11	)%

LA JOLLA HILTON TORREY PINES
	Selected Financial Information:
	Rooms revenue	$	12,892		$	—		$	12,892		$	12,249		$	—		$	12,249		5.25	%	5.25	%
	Total hotel revenue	$	23,813		$	—		$	23,813		$	22,806		$	—		$	22,806		4.42	%	4.42	%
	Hotel EBITDA	$	8,182		$	—		$	8,182		$	8,205		$	—		$	8,205		(0.28	)%	(0.28	)%
	Hotel EBITDA margin	34.36		%				34.36		%	35.98		%				35.98		%	(1.62	)%	(1.62	)%
	Selected Operating Information:
	RevPAR	$	180.78		$	—		$	180.78		$	171.76		$	—		$	171.76		5.25	%	5.25	%
	Occupancy	85.79		%	—		%	85.79		%	82.33		%	—		%	82.33		%	4.20	%	4.20	%
	ADR	$	210.72		$	—		$	210.72		$	208.62		$	—		$	208.62		1.01	%	1.01	%

CHICAGO SOFITEL MAGNIFICENT MILE
	Selected Financial Information:
	Rooms revenue	$	11,202		$	—		$	11,202		$	11,297		$	—		$	11,297		(0.84	)%	(0.84	)%
	Total hotel revenue	$	15,603		$	—		$	15,603		$	15,172		$	—		$	15,172		2.84	%	2.84	%
	Hotel EBITDA	$	2,433		$	—		$	2,433		$	2,039		$	—		$	2,039		19.32	%	19.32	%
	Hotel EBITDA margin	15.59		%				15.59		%	13.44		%				13.44		%	2.15	%	2.15	%
	Selected Operating Information:
	RevPAR	$	149.13		$	—		$	149.13		$	150.39		$	—		$	150.39		(0.84	)%	(0.84	)%
	Occupancy	74.22		%	—		%	74.22		%	77.94		%	—		%	77.94		%	(4.77	)%	(4.77	)%
	ADR	$	200.94		$	—		$	200.94		$	192.96		$	—		$	192.96		4.14	%	4.14	%

BARDESSONO HOTEL AND SPA
	Selected Financial Information:
	Rooms revenue	$	6,118		$	—		$	6,118		$	6,286		$	—		$	6,286		(2.67	)%	(2.67	)%
	Total hotel revenue	$	9,404		$	—		$	9,404		$	8,537		$	—		$	8,537		10.16	%	10.16	%
	Hotel EBITDA	$	2,780		$	—		$	2,780		$	1,804		$	—		$	1,804		54.10	%	54.10	%
	Hotel EBITDA margin	29.56		%				29.56		%	21.13		%				21.13		%	8.43	%	8.43	%
	Selected Operating Information:
	RevPAR	$	545.17		$	—		$	545.17		$	560.20		$	—		$	560.20		(2.68	)%	(2.68	)%
	Occupancy	75.34		%	—		%	75.34		%	78.77		%	—		%	78.77		%	(4.35	)%	(4.35	)%
	ADR	$	723.58		$	—		$	723.58		$	711.15		$	—		$	711.15		1.75	%	1.75	%

KEY WEST PIER HOUSE RESORT
	Selected Financial Information:
	Rooms revenue	$	9,983		$	—		$	9,983		$	10,369		$	—		$	10,369		(3.72	)%	(3.72	)%
	Total hotel revenue	$	12,932		$	—		$	12,932		$	13,138		$	—		$	13,138		(1.57	)%	(1.57	)%
	Hotel EBITDA	$	6,510		$	—		$	6,510		$	6,377		$	33		$	6,410		2.09	%	1.56	%
	Hotel EBITDA margin	50.34		%				50.34		%	48.54		%				48.79		%	1.80	%	1.55	%
	Selected Operating Information:
	RevPAR	$	388.41		$	—		$	388.41		$	403.42		$	—		$	403.42		(3.72	)%	(3.72	)%
	Occupancy	83.34		%	—		%	83.34		%	87.11		%	—		%	87.11		%	(4.33	)%	(4.33	)%
	ADR	$	466.08		$	—		$	466.08		$	463.09		$	—		$	463.09		0.65	%	0.65	%



		Six Months Ended June 30,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2018			2018			2018			2017			2017			2017			% Variance		% Variance
HOTEL YOUNTVILLE
	Selected Financial Information:
	Rooms revenue	$	5,574		$	—		$	5,574		$	1,982		$	3,473		$	5,455		181.23	%	2.18	%
	Total hotel revenue	$	7,579		$	—		$	7,579		$	2,355		$	4,276		$	6,631		221.83	%	14.30	%
	Hotel EBITDA	$	3,021		$	—		$	3,021		$	983		$	1,233		$	2,216		207.32	%	36.33	%
	Hotel EBITDA margin	39.86		%				39.86		%	41.74		%				33.42		%	(1.88	)%	6.44	%
	Selected Operating Information:
	RevPAR	$	384.95		$	—		$	384.95		$	485.76		$	333.88		$	376.67		(20.75	)%	2.20	%
	Occupancy	75.82		%	—		%	75.82		%	77.33		%	75.52		%	76.03		%	(1.95	)%	(0.28	)%
	ADR	$	507.70		$	—		$	507.70		$	628.17		$	442.11		$	495.43		(19.18	)%	2.48	%

PARK HYATT BEAVER CREEK
	Selected Financial Information:
	Rooms revenue	$	11,558		$	—		$	11,558		$	1,717		$	10,034		$	11,751		573.15	%	(1.64	)%
	Total hotel revenue	$	23,396		$	—		$	23,396		$	4,946		$	18,810		$	23,756		373.03	%	(1.52	)%
	Hotel EBITDA	$	6,378		$	—		$	6,378		$	(447	)	$	6,968		$	6,521		1,526.85	%	(2.19	)%
	Hotel EBITDA margin	27.26		%				27.26		%	(9.04		)%				27.45		%	36.30	%	(0.19	)%
	Selected Operating Information:
	RevPAR	$	336.07		$	—		$	336.07		$	99.29		$	586.82		$	341.71		238.47	%	(1.65	)%
	Occupancy	60.78		%	—		%	60.78		%	43.91		%	83.74		%	63.72		%	38.42	%	(4.61	)%
	ADR	$	552.92		$	—		$	552.92		$	226.13		$	700.74		$	536.30		144.51	%	3.10	%

PHILADELPHIA COURTYARD DOWNTOWN
	Selected Financial Information:
	Rooms revenue	$	14,504		$	—		$	14,504		$	12,741		$	—		$	12,741		13.84	%	13.84	%
	Total hotel revenue	$	17,996		$	—		$	17,996		$	15,547		$	—		$	15,547		15.75	%	15.75	%
	Hotel EBITDA	$	7,195		$	—		$	7,195		$	5,777		$	—		$	5,777		24.55	%	24.55	%
	Hotel EBITDA margin	39.98		%				39.98		%	37.16		%				37.16		%	2.82	%	2.82	%
	Selected Operating Information:
	RevPAR	$	160.58		$	—		$	160.58		$	141.07		$	—		$	141.07		13.83	%	13.83	%
	Occupancy	86.29		%	—		%	86.29		%	81.23		%	—		%	81.23		%	6.23	%	6.23	%
	ADR	$	186.09		$	—		$	186.09		$	173.67		$	—		$	173.67		7.15	%	7.15	%

PLANO MARRIOTT LEGACY TOWN CENTER
	Selected Financial Information:
	Rooms revenue	$	—		$	—		$	—		$	10,324		$	(10,324	)	$	—		(100.00	)%	—	%
	Total hotel revenue	$	—		$	—		$	—		$	17,437		$	(17,437	)	$	—		(100.00	)%	—	%
	Hotel EBITDA	$	—		$	—		$	—		$	6,092		$	(6,092	)	$	—		(100.00	)%	—	%
	Hotel EBITDA margin	—		%				—		%	34.94		%				—		%	(34.94	)%	—	%
	Selected Operating Information:
	RevPAR	$	—		$	—		$	—		$	141.19		$	(141.19	)	$	—		(100.00	)%	—	%
	Occupancy	—		%	—		%	—		%	74.00		%	(74.00		)%	—		%	(100.00	)%	—	%
	ADR	$	—		$	—		$	—		$	190.81		$	(190.81	)	$	—		(100.00	)%	—	%

SAN FRANCISCO COURTYARD DOWNTOWN
	Selected Financial Information:
	Rooms revenue	$	18,055		$	—		$	18,055		$	16,062		$	—		$	16,062		12.41	%	12.41	%
	Total hotel revenue	$	20,651		$	—		$	20,651		$	18,497		$	—		$	18,497		11.65	%	11.65	%
	Hotel EBITDA	$	6,965		$	—		$	6,965		$	6,021		$	—		$	6,021		15.68	%	15.68	%
	Hotel EBITDA margin	33.73		%				33.73		%	32.55		%				32.55		%	1.18	%	1.18	%
	Selected Operating Information:
	RevPAR	$	243.54		$	—		$	243.54		$	218.55		$	—		$	218.55		11.43	%	11.43	%
	Occupancy	86.29		%	—		%	86.29		%	80.52		%	—		%	80.52		%	7.17	%	7.17	%
	ADR	$	282.23		$	—		$	282.23		$	271.44		$	—		$	271.44		3.98	%	3.98	%



		Six Months Ended June 30,
		Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments			Comparable			Actual		Comparable
		2018			2018			2018			2017			2017			2017			% Variance		% Variance
SARASOTA RITZ-CARLTON
	Selected Financial Information:
	Rooms revenue	$	6,297		$	9,451		$	15,748		$	—		$	16,030		$	16,030		—	%	(1.76	)%
	Total hotel revenue	$	15,127		$	20,073		$	35,200		$	—		$	34,740		$	34,740		—	%	1.32	%
	Hotel EBITDA	$	3,023		$	5,568		$	8,591		$	—		$	8,305		$	8,305		—	%	3.44	%
	Hotel EBITDA margin	19.98		%				24.41		%	—		%				23.91		%	19.98	%	0.50	%
	Selected Operating Information:
	RevPAR	$	269.02		$	382.06		$	327.10		$	—		$	332.96		$	332.96		—	%	(1.76	)%
	Occupancy	76.86		%	78.86		%	77.89		%	—		%	79.90		%	79.90		%	—	%	(2.52	)%
	ADR	$	350.00		$	484.46		$	419.95		$	—		$	416.70		$	416.70		—	%	0.78	%

SEATTLE MARRIOTT WATERFRONT
	Selected Financial Information:
	Rooms revenue	$	14,552		$	—		$	14,552		$	14,174		$	—		$	14,174		2.67	%	2.67	%
	Total hotel revenue	$	18,543		$	—		$	18,543		$	19,166		$	—		$	19,166		(3.25	)%	(3.25	)%
	Hotel EBITDA	$	7,313		$	—		$	7,313		$	7,489		$	—		$	7,489		(2.35	)%	(2.35	)%
	Hotel EBITDA margin	39.44		%				39.44		%	39.07		%				39.07		%	0.37	%	0.37	%
	Selected Operating Information:
	RevPAR	$	222.70		$	—		$	222.70		$	218.74		$	—		$	218.74		1.81	%	1.81	%
	Occupancy	84.02		%	—		%	84.02		%	86.98		%	—		%	86.98		%	(3.40	)%	(3.40	)%
	ADR	$	265.06		$	—		$	265.06		$	251.48		$	—		$	251.48		5.40	%	5.40	%

ST. THOMAS RITZ-CARLTON
	Selected Financial Information:
	Rooms revenue	$	3,288		$	—		$	3,288		$	17,072		$	—		$	17,072		(80.74	)%	(80.74	)%
	Total hotel revenue	$	13,418		$	—		$	13,418		$	29,771		$	—		$	29,771		(54.93	)%	(54.93	)%
	Hotel EBITDA	$	7,789		$	—		$	7,789		$	7,519		$	—		$	7,519		3.59	%	3.59	%
	Hotel EBITDA margin	58.05		%				58.05		%	25.26		%				25.26		%	32.79	%	32.79	%
	Selected Operating Information:
	RevPAR	$	219.33		$	—		$	219.33		$	523.99		$	—		$	523.99		(58.14	)%	(58.14	)%
	Occupancy	75.18		%	—		%	75.18		%	79.97		%	—		%	79.97		%	(5.99	)%	(5.99	)%
	ADR	$	291.72		$	—		$	291.72		$	655.24		$	—		$	655.24		(55.48	)%	(55.48	)%

TAMPA RENAISSANCE
	Selected Financial Information:
	Rooms revenue	$	8,171		$	(8,171	)	$	—		$	9,204		$	(9,204	)	$	—		(11.22	)%	—	%
	Total hotel revenue	$	14,537		$	(14,537	)	$	—		$	13,107		$	(13,107	)	$	—		10.91	%	—	%
	Hotel EBITDA	$	6,497		$	(6,497	)	$	—		$	3,980		$	(3,980	)	$	—		63.24	%	—	%
	Hotel EBITDA margin	44.69		%				—		%	30.37		%				—		%	14.32	%	—	%
	Selected Operating Information:
	RevPAR	$	184.70		$	(184.70	)	$	—		$	173.56		$	(173.56	)	$	—		6.42	%	—	%
	Occupancy	85.59		%	(85.59		)%	—		%	83.29		%	(83.29		)%	—		%	2.76	%	—	%
	ADR	$	215.80		$	(215.80	)	$	—		$	208.37		$	(208.37	)	$	—		3.57	%	—	%

BRAEMAR PROPERTIES TOTAL
	Selected Financial Information:
	Rooms revenue	$	143,946		$	1,280		$	145,226		$	146,867		$	10,009		$	156,876		(1.99	)%	(7.43	)%
	Total hotel revenue	$	223,607		$	5,536		$	229,143		$	213,311		$	27,282		$	240,593		4.83	%	(4.76	)%
	Hotel EBITDA	$	77,326		$	(929	)	$	76,397		$	67,102		$	6,457		$	73,559		15.24	%	3.86	%
	Hotel EBITDA margin	34.58		%				33.34		%	31.46		%				30.57		%	3.12	%	2.77	%
	Selected Operating Information:
	RevPAR	$	223.45		$	(65.60	)	$	232.47		$	212.35		$	(198.15	)	$	244.69		5.23	%	(4.99	)%
	Occupancy	81.87		%	94.12		%	81.49		%	81.35		%	74.51		%	81.89		%	0.64	%	(0.49	)%
	ADR	$	272.91		$	(69.70	)	$	285.27		$	261.03		$	(265.93	)	$	298.80		4.55	%	(4.53	)%

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.


(2)	All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.


(3)	See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)



		TTM Ended June 30,
		Actual			Non-comparable Adjustments			Comparable
		2018			2018			2018
CAPITAL HILTON WASHINGTON D.C.
	Selected Financial Information:
	Rooms revenue	$	40,687		$	—		$	40,687
	Total hotel revenue	$	57,092		$	—		$	57,092
	Hotel EBITDA	$	15,659		$	—		$	15,659
	Hotel EBITDA margin	27.43		%				27.43		%
	Selected Operating Information:
	RevPAR	$	202.67		$	—		$	202.67
	Occupancy	85.96		%	—		%	85.96		%
	ADR	$	235.78		$	—		$	235.78

LA JOLLA HILTON TORREY PINES
	Selected Financial Information:
	Rooms revenue	$	25,326		$	—		$	25,326
	Total hotel revenue	$	44,956		$	—		$	44,956
	Hotel EBITDA	$	14,717		$	—		$	14,717
	Hotel EBITDA margin	32.74		%				32.74		%
	Selected Operating Information:
	RevPAR	$	176.11		$	—		$	176.11
	Occupancy	85.36		%	—		%	85.36		%
	ADR	$	206.31		$	—		$	206.31

CHICAGO SOFITEL MAGNIFICENT MILE
	Selected Financial Information:
	Rooms revenue	$	24,746		$	—		$	24,746
	Total hotel revenue	$	33,733		$	—		$	33,733
	Hotel EBITDA	$	6,172		$	—		$	6,172
	Hotel EBITDA margin	18.30		%				18.30		%
	Selected Operating Information:
	RevPAR	$	163.37		$	—		$	163.37
	Occupancy	79.08		%	—		%	79.08		%
	ADR	$	206.59		$	—		$	206.59

BARDESSONO HOTEL AND SPA
	Selected Financial Information:
	Rooms revenue	$	13,246		$	—		$	13,246
	Total hotel revenue	$	18,568		$	—		$	18,568
	Hotel EBITDA	$	5,417		$	—		$	5,417
	Hotel EBITDA margin	29.17		%				29.17		%
	Selected Operating Information:
	RevPAR	$	585.31		$	—		$	585.31
	Occupancy	75.26		%	—		%	75.26		%
	ADR	$	777.69		$	—		$	777.69

KEY WEST PIER HOUSE RESORT
	Selected Financial Information:
	Rooms revenue	$	16,816		$	—		$	16,816
	Total hotel revenue	$	23,026		$	—		$	23,026
	Hotel EBITDA	$	11,115		$	(33	)	$	11,082
	Hotel EBITDA margin	48.27		%				48.13		%
	Selected Operating Information:
	RevPAR	$	324.43		$	—		$	324.43
	Occupancy	75.20		%	—		%	75.20		%
	ADR	$	431.42		$	—		$	431.42



		TTM Ended June 30,
		Actual			Non-comparable Adjustments			Comparable
		2018			2018			2018
HOTEL YOUNTVILLE
	Selected Financial Information:
	Rooms revenue	$	11,732		$	—		$	11,732
	Total hotel revenue	$	14,823		$	—		$	14,823
	Hotel EBITDA	$	5,961		$	—		$	5,961
	Hotel EBITDA margin	40.21		%				40.21		%
	Selected Operating Information:
	RevPAR	$	401.80		$	—		$	401.80
	Occupancy	73.01		%	—		%	73.01		%
	ADR	$	550.33		$	—		$	550.33

PARK HYATT BEAVER CREEK
	Selected Financial Information:
	Rooms revenue	$	18,594		$	—		$	18,594
	Total hotel revenue	$	40,419		$	—		$	40,419
	Hotel EBITDA	$	9,244		$	—		$	9,244
	Hotel EBITDA margin	22.87		%				22.87		%
	Selected Operating Information:
	RevPAR	$	268.11		$	—		$	268.11
	Occupancy	59.84		%	—		%	59.84		%
	ADR	$	448.06		$	—		$	448.06

PHILADELPHIA COURTYARD DOWNTOWN
	Selected Financial Information:
	Rooms revenue	$	28,100		$	—		$	28,100
	Total hotel revenue	$	34,311		$	—		$	34,311
	Hotel EBITDA	$	13,639		$	—		$	13,639
	Hotel EBITDA margin	39.75		%				39.75		%
	Selected Operating Information:
	RevPAR	$	154.28		$	—		$	154.28
	Occupancy	84.34		%	—		%	84.34		%
	ADR	$	182.92		$	—		$	182.92

PLANO MARRIOTT LEGACY TOWN CENTER
	Selected Financial Information:
	Rooms revenue	$	6,439		$	(6,439	)	$	—
	Total hotel revenue	$	9,813		$	(9,813	)	$	—
	Hotel EBITDA	$	3,478		$	(3,478	)	$	—
	Hotel EBITDA margin	35.44		%				—		%
	Selected Operating Information:
	RevPAR	$	129.57		$	(129.57	)	$	—
	Occupancy	70.95		%	(70.95		)%	—		%
	ADR	$	182.64		$	(182.64	)	$	—

SAN FRANCISCO COURTYARD DOWNTOWN
	Selected Financial Information:
	Rooms revenue	$	34,102		$	—		$	34,102
	Total hotel revenue	$	39,083		$	—		$	39,083
	Hotel EBITDA	$	13,681		$	—		$	13,681
	Hotel EBITDA margin	35.00		%				35.00		%
	Selected Operating Information:
	RevPAR	$	228.55		$	—		$	228.55
	Occupancy	82.81		%	—		%	82.81		%
	ADR	$	276.01		$	—		$	276.01



		TTM Ended June 30,
		Actual			Non-comparable Adjustments			Comparable
		2018			2018			2018
SARASOTA RITZ-CARLTON
	Selected Financial Information:
	Rooms revenue	$	6,297		$	21,030		$	27,327
	Total hotel revenue	$	15,127		$	47,656		$	62,783
	Hotel EBITDA	$	3,023		$	9,935		$	12,958
	Hotel EBITDA margin	19.98		%				20.64		%
	Selected Operating Information:
	RevPAR	$	269.02		$	285.43		$	281.47
	Occupancy	76.86		%	77.20		%	77.12		%
	ADR	$	350.00		$	369.72		$	364.98

SEATTLE MARRIOTT WATERFRONT
	Selected Financial Information:
	Rooms revenue	$	31,787		$	—		$	31,787
	Total hotel revenue	$	40,091		$	—		$	40,091
	Hotel EBITDA	$	16,033		$	—		$	16,033
	Hotel EBITDA margin	39.99		%				39.99		%
	Selected Operating Information:
	RevPAR	$	241.38		$	—		$	241.38
	Occupancy	86.52		%	—		%	86.52		%
	ADR	$	279.00		$	—		$	279.00

ST. THOMAS RITZ-CARLTON
	Selected Financial Information:
	Rooms revenue	$	9,387		$	—		$	9,387
	Total hotel revenue	$	27,604		$	—		$	27,604
	Hotel EBITDA	$	10,866		$	—		$	10,866
	Hotel EBITDA margin	39.36		%				39.36		%
	Selected Operating Information:
	RevPAR	$	269.73		$	—		$	269.73
	Occupancy	77.86		%	—		%	77.86		%
	ADR	$	346.44		$	—		$	346.44

TAMPA RENAISSANCE
	Selected Financial Information:
	Rooms revenue	$	15,826		$	(15,826	)	$	—
	Total hotel revenue	$	25,555		$	(25,555	)	$	—
	Hotel EBITDA	$	9,519		$	(9,519	)	$	—
	Hotel EBITDA margin	37.25		%				—		%
	Selected Operating Information:
	RevPAR	$	161.24		$	(161.24	)	$	—
	Occupancy	82.88		%	(82.88		)%	—		%
	ADR	$	194.56		$	(194.56	)	$	—

BRAEMAR PROPERTIES TOTAL
	Selected Financial Information:
	Rooms revenue	$	283,085		$	(1,235	)	$	281,850
	Total hotel revenue	$	424,201		$	12,288		$	436,489
	Hotel EBITDA	$	138,524		$	(3,095	)	$	135,429
	Hotel EBITDA margin	32.66		%				31.03		%
	Selected Operating Information:
	RevPAR	$	211.55		$	(16.65	)	$	222.99
	Occupancy	81.21		%	(80.52		)%	81.25		%
	ADR	$	260.49		$	(20.68	)	$	274.44

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.


(2)	All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.


(3)	See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)



	Actual			Non-comparable Adjustments			Comparable			Actual			Non-comparable Adjustments		Comparable			Actual			Non-comparable Adjustments		Comparable			Actual			Non-comparable Adjustments			Comparable
	2018			2018			2018			2018			2018		2018			2017			2017		2017			2017			2017			2017
	2nd Quarter			2nd Quarter			2nd Quarter			1st Quarter			1st Quarter		1st Quarter			4th Quarter			4th Quarter		4th Quarter			3rd Quarter			3rd Quarter			3rd Quarter
Total Hotel Revenue	$	121,118		$	(6,552	)	$	114,566		$	102,489		$	12,088	$	114,577		$	92,514		$	7,240	$	99,754		$	108,080		$	(488	)	$	107,592
Hotel EBITDA	$	43,721		$	(4,260	)	$	39,461		$	33,605		$	3,331	$	36,936		$	28,168		$	753	$	28,921		$	33,030		$	(2,919	)	$	30,111
Hotel EBITDA Margin	36.10		%				34.44		%	32.79		%			32.24		%	30.45		%			28.99		%	30.56		%				27.99		%

EBITDA % of Total TTM	31.6		%				29.1		%	24.3		%			27.3		%	20.3		%			21.4		%	23.8		%				22.2		%

JV Interests in EBITDA	$	2,365		$	—		$	2,365		$	1,990		$	—	$	1,990		$	1,620		$	—	$	1,620		$	1,618		$	—		$	1,618

	Actual			Non-comparable Adjustments			Comparable
	2018			2018			2018
	TTM			TTM			TTM
Total Hotel Revenue	$	424,201		$	12,288		$	436,489
Hotel EBITDA	$	138,524		$	(3,095	)	$	135,429
Hotel EBITDA Margin	32.66		%				31.03		%

EBITDA % of Total TTM	100.0		%				100.0		%

JV Interests in EBITDA	$	7,593		$	—		$	7,593

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

TOTAL ENTERPRISE VALUE

JUNE 30, 2018

(in thousands, except share price)

(unaudited)



	June 30, 2018
End of quarter common shares outstanding	32,502
Partnership units outstanding (common stock equivalents)	5,139
Combined common shares and partnership units outstanding	37,641
Common stock price at quarter end	$	11.42
Market capitalization at quarter end	$	429,860
Series B convertible preferred stock	$	124,146
Debt on balance sheet date	$	993,826
Joint venture partner's share of consolidated debt	$	(47,082	)
Net working capital (see below)	$	(205,337	)
Total enterprise value (TEV)	$	1,295,413

Ashford Inc. Investment:
Common stock owned at end of quarter	195
Common stock price at quarter end	$	64.80
Market value of Ashford Inc. investment	$	12,628

Cash and cash equivalents	$	162,993
Restricted cash	$	81,543
Accounts receivable, net	$	21,218
Prepaid expenses	$	4,096
Due from third-party hotel managers, net	$	3,440
Market value of Ashford Inc. investment	$	12,628
Total current assets	$	285,918

Accounts payable, net & accrued expenses	$	71,498
Dividends payable	$	8,572
Due to affiliates, net	$	511
Total current liabilities	$	80,581

Net working capital*	$	205,337

* Includes the Company's pro rata share of net working capital in joint ventures.

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

ANTICIPATED CAPITAL EXPENDITURES CALENDAR (a)



		2018
		1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
	Rooms	Actual	Actual	Estimated	Estimated
Philadelphia Courtyard Downtown	499				x
San Francisco Courtyard Downtown	410	x		x	x
Capital Hilton Washington D.C.	550	x		x	x
St. Thomas Ritz-Carlton	180	x	x	x	x
Chicago Sofitel Magnificent Mile	415	x	x
Total		4	2	3	4


(a)	Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2018 are included in this table.

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



	2018			2018			2017			2017			June 30, 2018
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			TTM
Net income (loss)	$	38,623		$	16,761		$	35,206		$	10,705		$	101,295
Non-property adjustments	(15,423		)	12			(23,720		)	1,008			(38,123		)
Interest income	(39		)	(18		)	(13		)	(18		)	(88		)
Interest expense	4,335			3,123			2,986			2,744			13,188
Amortization of loan costs	277			199			310			307			1,093
Depreciation and amortization	14,811			13,006			12,705			14,134			54,656
Income tax expense (benefit)	382			154			(607		)	(404		)	(475		)
Non-hotel EBITDA ownership expense	755			368			1,301			4,554			6,978
Hotel EBITDA including amounts attributable to noncontrolling interest	43,721			33,605			28,168			33,030			138,524
Non-comparable adjustments	(4,260		)	3,331			753			(2,919		)	(3,095		)
Comparable hotel EBITDA	$	39,461		$	36,936		$	28,921		$	30,111		$	135,429

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



	Three Months Ended June 30, 2018
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile		Bardessono Hotel & Spa		Key West Pier House Resort			Hotel Yountville		Park Hyatt Beaver Creek			Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center		San Francisco Courtyard Downtown			Sarasota Ritz-Carlton			Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance			Hotel Total			Corporate / Allocated			Braemar Hotels & Resorts Inc.
Net income (loss)	$	4,054		$	1,843		$	1,180	$	146	$	2,186		$	245	$	(2,507	)	$	3,176		$	—	$	1,906		$	(719	)	$	3,777		$	3,523		$	19,813		$	38,623		$	(25,769	)	$	12,854
Non-property adjustments	—			—			229		—		60			—		—			—			—		—			—			—			—			(15,712		)	(15,423		)	15,423			—
Interest income	(7		)	(10		)	—		—		—			—		—			(3		)	—		(1		)	(11		)	(7		)	—			—			(39		)	(191		)	(230		)
Interest expense	—			—			520		443		—			576		796			—			—		—			1,270			—			730			—			4,335			7,268			11,603
Amortization of loan cost	—			—			—		33		—			35		134			—			—		—			75			—			—			—			277			798			1,075
Depreciation and amortization	1,832			1,421			1,593		665		458			667		852			1,474			—		1,974			2,294			1,046			177			358			14,811			—			14,811
Income tax expense (benefit)	299			69			—		—		—			—		—			4			—		—			—			—			10			—			382			820			1,202
Non-hotel EBITDA ownership expense	(40		)	—			54		445		(45		)	257		55			(54		)	—		11			114			5			(39		)	(8		)	755			(755		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	6,138			3,323			3,576		1,732		2,659			1,780		(670		)	4,597			—		3,890			3,023			4,821			4,401			4,451			43,721			(2,406		)	41,315
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(1,535		)	(831		)	—		—		—			—		—			—			—		—			—			—			—			—			(2,366		)	2,366			—
Equity in earnings (loss) of unconsolidated entities	—			—			—		—		—			—		—			—			—		—			—			—			—			—			—			62			62
Company's portion of EBITDA of OpenKey	—			—			—		—		—			—		—			—			—		—			—			—			—			—			—			(62		)	(62		)
Hotel EBITDA attributable to the Company and OP unitholders	$	4,603		$	2,492		$	3,576	$	1,732	$	2,659		$	1,780	$	(670	)	$	4,597		$	—	$	3,890		$	3,023		$	4,821		$	4,401		$	4,451		$	41,355		$	(40	)	$	41,315
Non-comparable adjustments	—			—			—		—		—			—		—			—			—		—			191			—			—			(4,451		)	(4,260		)
Comparable hotel EBITDA	$	6,138		$	3,323		$	3,576	$	1,732	$	2,659		$	1,780	$	(670	)	$	4,597		$	—	$	3,890		$	3,214		$	4,821		$	4,401		$	—		$	39,461
ALL HOTELS NOT UNDER RENOVATION:
Hotel EBITDA including amounts attributable to noncontrolling interest	$	6,138		$	3,323		$	—	$	1,732	$	2,659		$	1,780	$	(670	)	$	4,597		$	—	$	3,890		$	3,023		$	4,821		$	—		$	4,451		$	35,744
Non-comparable adjustments	—			—			—		—		—			—		—			—			—		—			191			—			—			(4,451		)	(4,260		)
Comparable hotel EBITDA	$	6,138		$	3,323		$	—	$	1,732	$	2,659		$	1,780	$	(670	)	$	4,597		$	—	$	3,890		$	3,214		$	4,821		$	—		$	—		$	31,484

HOTEL EBITDA BY LOAN POOL

(in thousands)

(unaudited)



Credit Agricole Pier House - 1 hotel	$	—	$	—	$	—	$	—	$	2,659	$	—	$	—		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	2,659
BAML Bardessono - 1 hotel	—		—		—		1,732		—		—		—			—		—		—		—		—		—		—		1,732
BAML Hotel Yountville - 1 hotel	—		—		—		—		—		1,780		—			—		—		—		—		—		—		—		1,780
Apollo Ritz-Carlton St Thomas - 1 hotel	—		—		—		—		—		—		—			—		—		—		—		—		4,401		—		4,401
Aareal - 2 hotels	6,138		3,323		—		—		—		—		—			—		—		—		—		—		—		—		9,461
Morgan Stanley Pool - 4 hotels	—		—		3,576		—		—		—		—			4,597		—		3,890		—		4,821		—		—		16,884
JP Morgan Park Hyatt Beaver Creek - 1 hotel	—		—		—		—		—		—		(670		)	—		—		—		—		—		—		—		(670		)
BAML Ritz Sarasota - 1 hotel	—		—		—		—		—		—		—			—		—		—		3,214		—		—		—		3,214
Total	$	6,138	$	3,323	$	3,576	$	1,732	$	2,659	$	1,780	$	(670	)	$	4,597	$	—	$	3,890	$	3,214	$	4,821	$	4,401	$	—	$	39,461

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.


(3)	Excluded Hotels Under Renovation:

Chicago Sofitel Magnificent Mile, St. Thomas Ritz-Carlton

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



	Three Months Ended March 31, 2018
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile			Bardessono Hotel & Spa			Key West Pier House Resort		Hotel Yountville			Park Hyatt Beaver Creek		Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown		Sarasota Ritz-Carlton		Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance			Hotel Total			Corporate / Allocated			Braemar Hotels & Resorts Inc.
Net income (loss)	$	1,334		$	3,273		$	(3,350	)	$	(210	)	$	3,076	$	(37	)	$	5,330	$	991		$	74		$	1,354	$	—	$	1,457		$	2,324		$	1,145		$	16,761		$	(12,491	)	$	4,270
Non-property adjustments	—			—			—			—			—		—			—		—			—			—		—		—			—			12			12			(12		)	—
Interest income	(5		)	(7		)	—			—			—		—			—		(1		)	—			—		—		(3		)	(1		)	(1		)	(18		)	(182		)	(200		)
Interest expense	—			—			779			415			—		507			734		—			—			—		—		—			688			—			3,123			6,068			9,191
Amortization of loan cost	—			—			—			32			—		35			132		—			—			—		—		—			—			—			199			789			988
Depreciation and amortization	1,769			1,438			1,426			647			765		664			836		1,543			—			1,674		—		1,049			259			936			13,006			—			13,006
Income tax expense (benefit)	—			124			—			—			—		—			—		2			—			—		—		—			28			—			154			418			572
Non-hotel EBITDA ownership expense	4			31			2			164			10		72			16		63			(74		)	47		—		(11		)	90			(46		)	368			(368		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	3,102			4,859			(1,143		)	1,048			3,851		1,241			7,048		2,598			—			3,075		—		2,492			3,388			2,046			33,605			(5,778		)	27,827
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(775		)	(1,215		)	—			—			—		—			—		—			—			—		—		—			—			—			(1,990		)	1,990			—
Equity in earnings (loss) of unconsolidated entities	—			—			—			—			—		—			—		—			—			—		—		—			—			—			—			3			3
Company's portion of EBITDA of OpenKey	—			—			—			—			—		—			—		—			—			—		—		—			—			—			—			(2		)	(2		)
Hotel EBITDA attributable to the Company and OP unitholders	$	2,327		$	3,644		$	(1,143	)	$	1,048		$	3,851	$	1,241		$	7,048	$	2,598		$	—		$	3,075	$	—	$	2,492		$	3,388		$	2,046		$	31,615		$	(3,787	)	$	27,828
Non-comparable adjustments	—			—			—			—			—		—			—		—			—			—		5,377		—			—			(2,046		)	3,331
Comparable hotel EBITDA	$	3,102		$	4,859		$	(1,143	)	$	1,048		$	3,851	$	1,241		$	7,048	$	2,598		$	—		$	3,075	$	5,377	$	2,492		$	3,388		$	—		$	36,936

HOTEL EBITDA BY LOAN POOL

(in thousands)

(unaudited)



Credit Agricole Pier House - 1 hotel	$	—	$	—	$	—		$	—	$	3,851	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,851
BAML Bardessono - 1 hotel	—		—		—			1,048		—		—		—		—		—		—		—		—		—		—		1,048
BAML Hotel Yountville - 1 hotel	—		—		—			—		—		1,241		—		—		—		—		—		—		—		—		1,241
Apollo Ritz-Carlton St Thomas - 1 hotel	—		—		—			—		—		—		—		—		—		—		—		—		3,388		—		3,388
Aareal - 2 hotels	3,102		4,859		—			—		—		—		—		—		—		—		—		—		—		—		7,961
Morgan Stanley Pool - 4 hotels	—		—		(1,143		)	—		—		—		—		2,598		—		3,075		—		2,492		—		—		7,022
JP Morgan Park Hyatt Beaver Creek - 1 hotel	—		—		—			—		—		—		7,048		—		—		—		—		—		—		—		7,048
BAML Ritz Sarasota - 1 hotel	—		—		—			—		—		—		—		—		—		—		5,377		—		—		—		5,377
Total	$	3,102	$	4,859	$	(1,143	)	$	1,048	$	3,851	$	1,241	$	7,048	$	2,598	$	—	$	3,075	$	5,377	$	2,492	$	3,388	$	—	$	36,936

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



	Three Months Ended December 31, 2017
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile			Bardessono Hotel & Spa			Key West Pier House Resort			Hotel Yountville			Park Hyatt Beaver Creek			Philadelphia Courtyard Downtown		Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown		Sarasota Ritz-Carlton		Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance			Hotel Total			Corporate / Allocated			Braemar Hotels & Resorts Inc.
Net income (loss)	$	2,003		$	1,921		$	(502	)	$	(745	)	$	2,416		$	(744	)	$	(484	)	$	1,927	$	24,587		$	512	$	—	$	2,240		$	1,226		$	849		$	35,206		$	(6,762	)	$	28,444
Non-property adjustments	—			—			—			—			505			—			—			—		(23,797		)	—		—		—			(428		)	—			(23,720		)	23,720			—
Interest income	(2		)	(6		)	—			—			—			—			—			—		—			—		—		(3		)	(1		)	(1		)	(13		)	(202		)	(215		)
Interest expense	—			—			733			388			—			499			697			—		—			—		—		—			669			—			2,986			6,059			9,045
Amortization of loan cost	—			—			—			35			—			34			131			—		—			—		—		—			110			—			310			839			1,149
Depreciation and amortization	1,696			1,468			1,290			647			712			655			824			1,540		135			1,486		—		1,047			265			940			12,705			(16		)	12,689
Income tax expense (benefit)	—			(593		)	—			—			—			—			—			11		—			—		—		—			(25		)	—			(607		)	(249		)	(856		)
Non-hotel EBITDA ownership expense	83			(90		)	54			169			(176		)	47			13			40		151			438		—		46			536			(10		)	1,301			(1,301		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	3,780			2,700			1,575			494			3,457			491			1,181			3,518		1,076			2,436		—		3,330			2,352			1,778			28,168			22,088			50,256
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(945		)	(675		)	—			—			—			—			—			—		—			—		—		—			—			—			(1,620		)	1,620			—
Equity in earnings (loss) of unconsolidated entities	—			—			—			—			—			—			—			—		—			—		—		—			—			—			—			—			—
Company's portion of EBITDA of OpenKey	—			—			—			—			—			—			—			—		—			—		—		—			—			—			—			—			—
Hotel EBITDA attributable to the Company and OP unitholders	$	2,835		$	2,025		$	1,575		$	494		$	3,457		$	491		$	1,181		$	3,518	$	1,076		$	2,436	$	—	$	3,330		$	2,352		$	1,778		$	26,548		$	23,708		$	50,256
Non-comparable adjustments	—			—			—			—			(50		)	—			—			—		(1,076		)	—		3,657		—			—			(1,778		)	753
Comparable hotel EBITDA	$	3,780		$	2,700		$	1,575		$	494		$	3,407		$	491		$	1,181		$	3,518	$	—		$	2,436	$	3,657	$	3,330		$	2,352		$	—		$	28,921

HOTEL EBITDA BY LOAN POOL

(in thousands)

(unaudited)



Credit Agricole Pier House - 1 hotel	$	—	$	—	$	—	$	—	$	3,407	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,407
BAML Bardessono - 1 hotel	—		—		—		494		—		—		—		—		—		—		—		—		—		—		494
BAML Hotel Yountville - 1 hotel	—		—		—		—		—		491		—		—		—		—		—		—		—		—		491
Apollo Ritz-Carlton St Thomas - 1 hotel	—		—		—		—		—		—		—		—		—		—		—		—		2,352		—		2,352
Aareal - 2 hotels	3,780		2,700		—		—		—		—		—		—		—		—		—		—		—		—		6,480
Morgan Stanley Pool - 4 hotels	—		—		1,575		—		—		—		—		3,518		—		2,436		—		3,330		—		—		10,859
JP Morgan Park Hyatt Beaver Creek - 1 hotel	—		—		—		—		—		—		1,181		—		—		—		—		—		—		—		1,181
BAML Ritz Sarasota - 1 hotel	—		—		—		—		—		—		—		—		—		—		3,657		—		—		—		3,657
Total	$	3,780	$	2,700	$	1,575	$	494	$	3,407	$	491	$	1,181	$	3,518	$	—	$	2,436	$	3,657	$	3,330	$	2,352	$	—	$	28,921

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



	Three Months Ended September 30, 2017
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile		Bardessono Hotel & Spa		Key West Pier House Resort			Hotel Yountville		Park Hyatt Beaver Creek			Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown		Sarasota Ritz-Carlton		Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance			Hotel Total			Corporate / Allocated			Braemar Hotels & Resorts Inc.
Net income (loss)	$	767		$	2,504		$	241	$	1,147	$	(1,139	)	$	1,250	$	(23	)	$	1,399		$	1,152		$	2,941	$	—	$	4,294		$	(4,081	)	$	253		$	10,705		$	(10,922	)	$	(217	)
Non-property adjustments	—			—			—		—		318			—		—			—			—			—		—		—			680			10			1,008			(1,008		)	—
Interest income	(9		)	(4		)	—		—		—			—		—			(1		)	—			—		—		(3		)	(1		)	—			(18		)	(180		)	(198		)
Interest expense	—			—			719		185		—			492		684			—			—			—		—		—			664			—			2,744			6,510			9,254
Amortization of loan cost	—			—			—		11		—			33		129			—			—			—		—		—			134			—			307			1,049			1,356
Depreciation and amortization	1,644			1,481			1,193		641		736			654		820			1,516			1,232			1,302		—		1,027			944			944			14,134			(1		)	14,133
Income tax expense (benefit)	(184		)	(187		)	—		—		—			—		—			4			—			—		—		—			(37		)	—			(404		)	737			333
Non-hotel EBITDA ownership expense	421			41			11		159		1,233			20		75			8			18			37		—		72			2,422			37			4,554			(4,554		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	2,639			3,835			2,164		2,143		1,148			2,449		1,685			2,926			2,402			4,280		—		5,390			725			1,244			33,030			(8,369		)	24,661
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(660		)	(958		)	—		—		—			—		—			—			—			—		—		—			—			—			(1,618		)	1,618			—
Equity in earnings (loss) of unconsolidated entities	—			—			—		—		—			—		—			—			—			—		—		—			—			—			—			—			—
Company's portion of EBITDA of OpenKey	—			—			—		—		—			—		—			—			—			—		—		—			—			—			—			—			—
Hotel EBITDA attributable to the Company and OP unitholders	$	1,979		$	2,877		$	2,164	$	2,143	$	1,148		$	2,449	$	1,685		$	2,926		$	2,402		$	4,280	$	—	$	5,390		$	725		$	1,244		$	31,412		$	(6,751	)	$	24,661
Non-comparable adjustments	—			—			—		—		17			—		—			—			(2,402		)	—		710		—			—			(1,244		)	(2,919		)
Comparable hotel EBITDA	$	2,639		$	3,835		$	2,164	$	2,143	$	1,165		$	2,449	$	1,685		$	2,926		$	—		$	4,280	$	710	$	5,390		$	725		$	—		$	30,111

HOTEL EBITDA BY LOAN POOL

(in thousands)

(unaudited)



Credit Agricole Pier House - 1 hotel	$	—	$	—	$	—	$	—	$	1,165	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1,165
BAML Bardessono - 1 hotel	—		—		—		2,143		—		—		—		—		—		—		—		—		—		—		2,143
BAML Hotel Yountville - 1 hotel	—		—		—		—		—		2,449		—		—		—		—		—		—		—		—		2,449
Apollo Ritz-Carlton St Thomas - 1 hotel	—		—		—		—		—		—		—		—		—		—		—		—		725		—		725
Aareal - 2 hotels	2,639		3,835		—		—		—		—		—		—		—		—		—		—		—		—		6,474
Morgan Stanley Pool - 4 hotels	—		—		2,164		—		—		—		—		2,926		—		4,280		—		5,390		—		—		14,760
JP Morgan Park Hyatt Beaver Creek - 1 hotel	—		—		—		—		—		—		1,685		—		—		—		—		—		—		—		1,685
BAML Ritz-Carlton Sarasota-1 hotel	—		—		—		—		—		—		—		—		—		—		710		—		—		—		710
Total	$	2,639	$	3,835	$	2,164	$	2,143	$	1,165	$	2,449	$	1,685	$	2,926	$	—	$	4,280	$	710	$	5,390	$	725	$	—	$	30,111

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



	Three Months Ended June 30, 2017
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile		Bardessono Hotel & Spa		Key West Pier House Resort		Hotel Yountville		Park Hyatt Beaver Creek			Philadelphia Courtyard Downtown		Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown			Sarasota Ritz-Carlton		Seattle Courtyard Downtown			Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance			Hotel Total			Corporate / Allocated			Braemar Hotels & Resorts Inc.
Net income (loss)	$	4,433		$	2,643		$	1,416	$	785	$	1,995	$	297	$	(2,032	)	$	2,548	$	1,792		$	1,605		$	—	$	10		$	3,895		$	1,435		$	785		$	21,607		$	(21,221	)	$	386
Non-property adjustments	—			—			—		—		—		—		—			—		—			—			—		—			—			—			—			—			—			—
Interest income	(4		)	(1		)	—		—		—		—		—			—		—			(1		)	—		—			(3		)	(1		)	—			(10		)	(155		)	(165		)
Interest expense	—			—			669		—		—		258		644			—		—			—			—		—			—			633			—			2,204			6,378			8,582
Amortization of loan cost	—			—			—		—		—		11		128			—		—			—			—		—			—			132			—			271			1,078			1,349
Depreciation and amortization	1,582			1,509			1,123		627		713		365		812			1,519		1,241			1,141			—		—			1,013			885			938			13,468			1			13,469
Income tax expense (benefit)	184			154			—		—		—		—		—			5		—			—			—		—			—			23			—			366			113			479
Non-hotel EBITDA ownership expense	53			13			7		159		7		53		1			122		3			38			—		—			17			3			(11		)	465			(465		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	6,248			4,318			3,215		1,571		2,715		984		(447		)	4,194		3,036			2,783			—		10			4,922			3,110			1,712			38,371			(14,271		)	24,100
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(1,562		)	(1,080		)	—		—		—		—		—			—		—			—			—		—			—			—			—			(2,642		)	2,642			—
Equity in earnings (loss) of unconsolidated entities	—			—			—		—		—		—		—			—		—			—			—		—			—			—			—			—			—			—
Company's portion of EBITDA of OpenKey	—			—			—		—		—		—		—			—		—			—			—		—			—			—			—			—			—			—
Hotel EBITDA attributable to the Company and OP unitholders	$	4,686		$	3,238		$	3,215	$	1,571	$	2,715	$	984	$	(447	)	$	4,194	$	3,036		$	2,783		$	—	$	10		$	4,922		$	3,110		$	1,712		$	35,729		$	(11,629	)	$	24,100
Non-comparable adjustments	—			—			—		—		24		572		—			—		(3,036		)	—			3,285		(10		)	—			—			(1,712		)	(877		)
Comparable hotel EBITDA	$	6,248		$	4,318		$	3,215	$	1,571	$	2,739	$	1,556	$	(447	)	$	4,194	$	—		$	2,783		$	3,285	$	—		$	4,922		$	3,110		$	—		$	37,494
ALL HOTELS NOT UNDER RENOVATION:
Hotel EBITDA including amounts attributable to noncontrolling interest	$	6,248		$	4,318		$	—	$	1,571	$	2,715	$	984	$	(447	)	$	4,194	$	3,036		$	2,783		$	—	$	10		$	4,922		$	—		$	1,712		$	32,046
Non-comparable adjustments	—			—			—		—		24		572		—			—		(3,036		)	—			3,285		(10		)	—			—			(1,712		)	(877		)
Comparable hotel EBITDA	$	6,248		$	4,318		$	—	$	1,571	$	2,739	$	1,556	$	(447	)	$	4,194	$	—		$	2,783		$	3,285	$	—		$	4,922		$	—		$	—		$	31,169

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.


(3)	Excluded Hotels Under Renovation:

Chicago Sofitel Magnificent Mile, St. Thomas Ritz-Carlton

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



	Six Months Ended June 30, 2018
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile			Bardessono Hotel & Spa			Key West Pier House Resort			Hotel Yountville		Park Hyatt Beaver Creek		Philadelphia Courtyard Downtown			Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown			Sarasota Ritz-Carlton			Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance			Hotel Total			Corporate / Allocated			Braemar Hotels & Resorts Inc.
Net income (loss)	$	5,388		$	5,116		$	(2,170	)	$	(64	)	$	5,262		$	208	$	2,823	$	4,167		$	74		$	3,260		$	(719	)	$	5,234		$	5,847		$	20,958		$	55,384		$	(38,260	)	$	17,124
Non-property adjustments	—			—			229			—			60			—		—		—			—			—			—			—			—			(15,700		)	(15,411		)	15,411			—
Interest income	(12		)	(17		)	—			—			—			—		—		(4		)	—			(1		)	(11		)	(10		)	(1		)	(1		)	(57		)	(373		)	(430		)
Interest expense	—			—			1,299			858			—			1,083		1,530		—			—			—			1,270			—			1,418			—			7,458			13,336			20,794
Amortization of loan cost	—			—			—			65			—			70		266		—			—			—			75			—			—			—			476			1,587			2,063
Depreciation and amortization	3,601			2,859			3,019			1,312			1,223			1,331		1,688		3,017			—			3,648			2,294			2,095			436			1,294			27,817			—			27,817
Income tax expense (benefit)	299			193			—			—			—			—		—		6			—			—			—			—			38			—			536			1,238			1,774
Non-hotel EBITDA ownership expense	(36		)	31			56			609			(35		)	329		71		9			(74		)	58			114			(6		)	51			(54		)	1,123			(1,123		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	9,240			8,182			2,433			2,780			6,510			3,021		6,378		7,195			—			6,965			3,023			7,313			7,789			6,497			77,326			(8,184		)	69,142
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(2,310		)	(2,046		)	—			—			—			—		—		—			—			—			—			—			—			—			(4,356		)	4,356			—
Equity in earnings (loss) of unconsolidated entities	—			—			—			—			—			—		—		—			—			—			—			—			—			—			—			65			65
Company's portion of EBITDA of OpenKey	—			—			—			—			—			—		—		—			—			—			—			—			—			—			—			(64		)	(64		)
Hotel EBITDA attributable to the Company and OP unitholders	$	6,930		$	6,136		$	2,433		$	2,780		$	6,510		$	3,021	$	6,378	$	7,195		$	—		$	6,965		$	3,023		$	7,313		$	7,789		$	6,497		$	72,970		$	(3,827	)	$	69,143
Non-comparable adjustments	—			—			—			—			—			—		—		—			—			—			5,568			—			—			(6,497		)	(929		)
Comparable hotel EBITDA	$	9,240		$	8,182		$	2,433		$	2,780		$	6,510		$	3,021	$	6,378	$	7,195		$	—		$	6,965		$	8,591		$	7,313		$	7,789		$	—		$	76,397
ALL HOTELS NOT UNDER RENOVATION:
Hotel EBITDA including amounts attributable to noncontrolling interest	$	9,240		$	8,182		$	—		$	2,780		$	6,510		$	3,021	$	6,378	$	7,195		$	—		$	6,965		$	3,023		$	7,313		$	—		$	6,497		$	67,104
Non-comparable adjustments	—			—			—			—			—			—		—		—			—			—			5,568			—			—			(6,497		)	(929		)
Comparable hotel EBITDA	$	9,240		$	8,182		$	—		$	2,780		$	6,510		$	3,021	$	6,378	$	7,195		$	—		$	6,965		$	8,591		$	7,313		$	—		$	—		$	66,175

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.


(3)	Excluded Hotels Under Renovation:

Chicago Sofitel Magnificent Mile, St. Thomas Ritz-Carlton

Exhibit 1

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



	Six Months Ended June 30, 2017
	Capital Hilton Washington D.C.			La Jolla Hilton Torrey Pines			Chicago Sofitel Magnificent Mile			Bardessono Hotel & Spa		Key West Pier House Resort		Hotel Yountville		Park Hyatt Beaver Creek			Philadelphia Courtyard Downtown		Plano Marriott Legacy Town Center			San Francisco Courtyard Downtown			Sarasota Ritz-Carlton		Seattle Courtyard Downtown			Seattle Marriott Waterfront			St. Thomas Ritz-Carlton			Tampa Renaissance			Hotel Total			Corporate / Allocated			Braemar Hotels & Resorts Inc.
Net income (loss)	$	7,719		$	4,908		$	(1,352	)	$	238	$	4,958	$	297	$	(2,039	)	$	2,558	$	3,659		$	3,822		$	—	$	10		$	5,465		$	4,184		$	2,131		$	36,558		$	(36,461	)	$	97
Non-property adjustments	—			—			—			—		—		—		—			—		—			—			—		—			—			—			—			—			—			—
Interest income	(6		)	(2		)	—			—		—		—		—			—		—			(4		)	—		—			(6		)	(2		)	—			(20		)	(257		)	(277		)
Interest expense	—			—			1,286			—		—		258		651			54		—			—			—		—			—			1,235			—			3,484			12,251			15,735
Amortization of loan cost	—			—			—			—		—		11		128			—		—			—			—		—			—			262			—			401			1,997			2,398
Depreciation and amortization	3,170			3,027			2,095			1,245		1,402		365		812			3,026		2,429			2,130			—		—			2,007			1,740			1,871			25,319			121			25,440
Income tax expense (benefit)	184			248			(1		)	—		—		—		—			7		(1		)	—			—		—			—			62			—			499			(498		)	1
Non-hotel EBITDA ownership expense	186			24			11			321		17		52		1			132		5			73			—		—			23			38			(22		)	861			(861		)	—
Hotel EBITDA including amounts attributable to noncontrolling interest	11,253			8,205			2,039			1,804		6,377		983		(447		)	5,777		6,092			6,021			—		10			7,489			7,519			3,980			67,102			(23,708		)	43,394
Less: EBITDA adjustments attributable to consolidated noncontrolling interest	(2,813		)	(2,052		)	—			—		—		—		—			—		—			—			—		—			—			—			—			(4,865		)	4,865			—
Equity in earnings (loss) of unconsolidated entities	—			—			—			—		—		—		—			—		—			—			—		—			—			—			—			—			—			—
Company's portion of EBITDA of OpenKey	—			—			—			—		—		—		—			—		—			—			—		—			—			—			—			—			—			—
Hotel EBITDA attributable to the Company and OP unitholders	$	8,440		$	6,153		$	2,039		$	1,804	$	6,377	$	983	$	(447	)	$	5,777	$	6,092		$	6,021		$	—	$	10		$	7,489		$	7,519		$	3,980		$	62,237		$	(18,843	)	$	43,394
Non-comparable adjustments	—			—			—			—		33		1,233		6,968			—		(6,092		)	—			8,305		(10		)	—			—			(3,980		)	6,457
Comparable hotel EBITDA	$	11,253		$	8,205		$	2,039		$	1,804	$	6,410	$	2,216	$	6,521		$	5,777	$	—		$	6,021		$	8,305	$	—		$	7,489		$	7,519		$	—		$	73,559
ALL HOTELS NOT UNDER RENOVATION:
Hotel EBITDA including amounts attributable to noncontrolling interest	$	11,253		$	8,205		$	—		$	1,804	$	6,377	$	983	$	(447	)	$	5,777	$	6,092		$	6,021		$	—	$	10		$	7,489		$	—		$	3,980		$	57,544
Non-comparable adjustments	—			—			—			—		33		1,233		6,968			—		(6,092		)	—			8,305		(10		)	—			—			(3,980		)	6,457
Comparable hotel EBITDA	$	11,253		$	8,205		$	—		$	1,804	$	6,410	$	2,216	$	6,521		$	5,777	$	—		$	6,021		$	8,305	$	—		$	7,489		$	—		$	—		$	64,001

NOTES:


(1)	The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.


(3)	Excluded Hotels Under Renovation:

Chicago Sofitel Magnificent Mile, St. Thomas Ritz-Carlton

Braemar Hotels & Resorts (BHR) 8-KBraemar Hotels & Resorts Reports