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The case is now in the settlement administration phase.
−Removed: As of September 30, 2025, the settlement liability amount has been accrued.
+Added: As of March 31, 2026, the settlement liability amount has been accrued.
On June 8, 2022, a lawsuit was filed against various Hilton entities on behalf of a class of all hourly employees at all Hilton-branded managed properties in California, including Hilton La Jolla Torrey Pines.
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At the end of the mediation, the mediator submitted a mediator’s proposal for approximately $3.5 million, which the parties have since agreed to.
−Removed: The allocation to Hilton La Jolla Torrey Pines is approximately $401,000, which was accrued as of September 30, 2025.
−Removed: A hearing on a motion for preliminary approval of the settlement was held on October 27, 2025.
−Removed: The Court issued a tentative ruling granting the motion for preliminary approval of settlement and scheduled a hearing for final approval on April 20, 2026.
+Added: The allocation to Hilton La Jolla Torrey Pines
+Added: is approximately $401,000, which was accrued as of March 31, 2026.
+Added: The Court granted a motion for preliminary approval of the settlement on October 27, 2025, and a hearing on the motion for final approval was set for April 20, 2026, and the ruling is pending.
On August 4, 2020, a lawsuit, Benjamin Zermeno v.
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A private mediation was held on December 27, 2024 to globally resolve the three outstanding matters.
−Removed: A tentative settlement was reached subject to court approval.
−Removed: As of September 30, 2025, the estimated settlement liability amount has been accrued.
+Added: The Court approved the settlement of all matters on January 16, 2026.
+Added: The aggregate settlement is $2.5 million.
+Added: Braemar’s portion of the settlement is approximately $679,000.
+Added: As of March 31, 2026, the settlement liability amount has been accrued.
+Added: On February 6, 2024, we received a Request for Information Under Section 114 of the Clean Air Act dated January 11, 2024, from the Environmental Protection Agency (EPA), Region 2, relating to The Ritz-Carlton St.
+Added: We complied with the Request for Information and provided the requested information on March 12, 2024.
+Added: Then, on April 16, 2025, we received a subsequent communication from the EPA alleging certain failures to comply with various record keeping and reporting requirements.
+Added: The EPA also indicated that they had concerns regarding the operation of the hotel’s generators and the lack of certain certifications that should be held by hotel employees.
+Added: We met with the EPA in May 2025 to discuss and respond to the allegations in the EPA’s April 16, 2025 communication.
+Added: Since this meeting, we have been working with the hotel management team to ensure full compliance with all applicable regulatory requirements at the hotel, including ensuring all appropriate hotel employees have all applicable certifications, engaging third-party environmental consultants, working with outside counsel, preparing standard operating procedures for the hotel, and reviewing options relating to the operation of the hotel’s generators.
+Added: As of the date of this Quarterly Report on Form 10-Q, conversations with the EPA are ongoing.
We are also engaged in other legal proceedings that have arisen but have not been fully adjudicated.
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Based on the information available to us relating to these legal proceedings and/or our experience in similar legal proceedings, we do not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial position, results of operations, or cash flow.
−Removed: During the quarter ended September 30, 2023, we had a cyber incident that resulted in the potential exposure of certain personal information.
−Removed: We have completed an investigation and have identified certain information that may have been exposed and notified potentially impacted individuals pursuant to applicable state guidelines.
−Removed: All systems have been restored.
−Removed: In February of 2024, two class action lawsuits were filed, one in the U.S.
−Removed: District Court for the Northern District of Texas and a second in the 68th District Court for Dallas County related to the cyber incident.
−Removed: The lawsuit filed in the 68th District Court was subsequently dismissed and refiled in the U.S.
−Removed: District Court for the Northern District of Texas.
−Removed: On March 12, 2024, the court ordered the two cases be consolidated.
−Removed: The consolidated case is currently pending in the U.S.
−Removed: District Court for the Northern District of Texas.
−Removed: The parties have reached an agreement, subject to final Court approval, to resolve the class action suit.
−Removed: amount of the class settlement is approximately $485,000.
−Removed: expects the entire settlement amount to be reimbursed through insurance coverage.
−Removed: Final court approval was received on September 3, 2025.
Our assessment may change depending upon the development of any current or future legal proceedings, and the final results of such legal proceedings cannot be predicted with certainty.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.