DALLAS,
Feb. 7,
2024 /PRNewswire/ -- Braemar Hotels & Resorts
Inc. (NYSE: BHR) ("Braemar" or the "Company") today announced that
it has refinanced or extended almost all of its 2024 debt
maturities. A total of approximately $300
million in debt, out of a total of approximately
$330 million maturing in 2024, has
been extended or refinanced as follows:
- Refinanced the 550-room Capital Hilton in Washington, D.C. with a new $110.6 million mortgage loan with Aareal Capital
Corporation. The new loan has an initial maturity date of
December 2026 with two one-year
extension options, subject to the satisfaction of certain
conditions and bears interest at a floating interest rate of SOFR +
3.75%. The property continues to be owned by a joint venture in
which Braemar owns a 75% equity interest (the "Hilton
JV").
- The Hilton La Jolla Torrey Pines remains encumbered by the
original mortgage loan, which now has been partially paid down to a
remaining balance of $66.6 million.
While the Company considers its alternatives regarding refinancing
the loan or potentially selling the asset, the lender has provided
a six month forbearance agreement. During this time, the loan bears
an annual fixed interest rate of 9.0%. This property also continues
to be owned by the Hilton JV.
- The Company has extended the loan secured by the 142-room Pier
House Resort & Spa in Key West,
Florida. The loan now has an initial maturity date of
September 2025 with one one-year
extension option, subject to the satisfaction of certain
conditions, continues to have a balance of $80.0 million, and bears interest at a floating
interest rate of SOFR + 3.60%.
- The Company has also extended the loan secured by the 180-room
Ritz-Carlton St. Thomas in St. Thomas, USVI. The loan now has
an initial maturity date of August
2025 with one one-year extension option, subject the
satisfaction of certain conditions, continues to have a balance of
$42.5 million, and bears interest at
a floating interest rate of SOFR + 4.35%.
"We are pleased to have addressed these near-term
debt maturities, as the hotel debt capital markets continue to
improve," Richard Stockton,
President & CEO of Braemar Hotels & Resorts announced. He
continued, "With the Company's available liquidity, we plan to
fully repay the remaining $30.0
million loan associated with the Cameo Beverly Hills. We
expect a more favorable refinancing environment going forward,
which will continue to reduce the Company's interest expense on
these and other future refinancings."
Braemar Hotels & Resorts is a real estate
investment trust (REIT) focused on investing in luxury hotels and
resorts.
Forward-Looking Statements
Certain statements and assumptions in this
press release contain or are based upon "forward-looking"
information and are being made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this press release include, among
others, statements about the Company's strategy and future plans.
These forward-looking statements are subject to risks and
uncertainties. When we use the words "will likely result," "may,"
"anticipate," "estimate," "should," "expect," "believe," "intend,"
or similar expressions, we intend to identify forward-looking
statements. Such statements are subject to numerous assumptions and
uncertainties, many of which are outside Braemar's control.
These forward-looking statements are subject
to known and unknown risks and uncertainties, which could cause
actual results to differ materially from those anticipated,
including, without limitation: our ability to repay, refinance or
restructure our debt and the debt of certain of our subsidiaries;
anticipated or expected purchases or sales of assets; our projected
operating results; completion of any pending transactions; risks
associated with our ability to effectuate our dividend policy,
including factors such as operating results and the economic
outlook influencing our board's decision whether to pay further
dividends at levels previously disclosed or to use available cash
to pay dividends; our understanding of our competition; market
trends; projected capital expenditures; the impact of technology on
our operations and business; general volatility of the capital
markets and the market price of our common stock and preferred
stock; availability, terms and deployment of capital; availability
of qualified personnel; changes in our industry and the markets in
which we operate, interest rates or the general economy; and the
degree and nature of our competition. These and other risk factors
are more fully discussed in Braemar's filings with the Securities
and Exchange Commission.
The forward-looking statements included in
this press release are only made as of the date of this press
release. Such forward-looking statements are based on our beliefs,
assumptions, and expectations of our future performance taking into
account all information currently known to us. These beliefs,
assumptions, and expectations can change as a result of many
potential events or factors, not all of which are known to us. If a
change occurs, our business, financial condition, liquidity,
results of operations, plans, and other objectives may vary
materially from those expressed in our forward-looking statements.
You should carefully consider this risk when you make an investment
decision concerning our securities. Investors should not place
undue reliance on these forward-looking statements. The Company can
give no assurance that these forward-looking statements will be
attained or that any deviation will not occur. We are not obligated
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or
circumstances, changes in expectations, or otherwise, except to the
extent required by law.
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SOURCE Braemar Hotels & Resorts, Inc.