ITEM 8.01  OTHER EVENTS.
In January 2019, Braemar Hotels & Resorts Inc. (the "Company") refinanced its
$186.8 million mortgage loan secured by the Capital Hilton and Hilton La Jolla
Torrey Pines, which are held in a joint venture in which the Company has a 75%
equity interest, for a new mortgage loan that totaled $195.0 million. The loan
has a maturity date in February 2024, is interest only and bears interest at a
rate of LIBOR + 1.70%.
On April 6, 2020, the Company failed to make the interest payment due on the
loan. On September 24, 2020, the Company entered into a loan forbearance
agreement with its lender (the "Forbearance Agreement"). Pursuant to the
Forbearance Agreement, its lender consented to: (i) the deferral of interest
payments for a period of six months beginning in April 2020 through September
2020, with interest payments resuming in October 2020; (ii) repayment of all
deferred interest on a 1/12th monthly basis starting January 5, 2021; and (iii)
the utilization of FF&E reserve funds (from the furniture, fixtures and
equipment reserve account generally reserved to finance capital improvements to
the property) for the payment of operating expenses at the hotels, with
suspension of all required payments to be made to the FF&E reserve through
December 31, 2020. The FF&E reserve is subject to replenishment on a 1/24th
monthly basis starting March 2021.
Lismore Capital LLC ("Lismore"), a subsidiary of Ashford Inc., was paid a
$731,250 fee in connection with this forbearance, which was due under the
Braemar Loan Modification/Forbearance Agreement, dated as of March 20, 2020, by
and among Lismore and the Company (the "Lismore Agreement"). This fee was
comprised of the following components (i) a $182,813 fee which was paid upfront
upon execution of the Lismore Agreement and was not subject to clawback, (ii) a
$182,813 fee which has been paid pursuant to the monthly installments and was
previously subject to clawback and (iii) a $365,625 success fee which was only
payable to Lismore upon acceptance by the applicable lender.


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