DALLAS, March 10,
2025 /PRNewswire/ -- Braemar Hotels & Resorts
Inc. (NYSE: BHR) ("Braemar" or the "Company") today announced that
it has closed on a refinancing involving five hotels. The new loan
totals $363 million and has a
two-year initial term with three one-year extension options,
subject to the satisfaction of certain conditions, taking the final
maturity to 2030. The loan is interest only and provides for a
floating interest rate of SOFR + 2.52%. The loan is secured by five
hotels: The Clancy, The Notary Hotel, Marriott Seattle
Waterfront, Sofitel Chicago Magnificent Mile, and The Ritz-Carlton
Reserve Dorado Beach. The $363
million loan amount represents a 48.9% loan-to-value based
on third-party appraisals completed by the lender. The appraisals
valued the hotels at $742.2 million
based on the sum of their "as-is" values. The new loan refinanced
the $293.2 million loan secured by
The Clancy, The Notary Hotel, Marriott Seattle Waterfront, and
Sofitel Chicago Magnificent Mile which had an interest rate of SOFR
+ 2.66% and had a final maturity date in June of 2025 and the
$62 million loan secured by The
Ritz-Carlton Reserve Dorado Beach which had an interest rate of
SOFR + 4.75% and had a final maturity date in March of 2026.
"We are pleased to announce the closing of this financing at a
very attractive spread," said Richard J.
Stockton, Braemar's President and Chief Executive Officer.
"This financing addresses our only remaining final debt maturity
for 2025 and not only results in a lower cost of capital for the
debt on these assets, but also improves our maturity schedule and
extends our weighted average maturity."
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.
