DALLAS,
Aug. 7,
2024 /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 $407
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 2029. The loan is
interest only and provides for a floating interest rate of SOFR +
3.24%. As part of this financing, the Company acquired
$42.2 million of the most junior
tranche of the loan, which lowered its net spread on the
$364.8 million remaining loan amount
to SOFR + 3.01%. The loan is secured by five hotels:
Pier House Resort & Spa, Bardessono Hotel & Spa, Hotel
Yountville, The Ritz-Carlton Sarasota, and The Ritz-Carlton St.
Thomas. The new loan refinanced the $80.0 million loan secured by the Pier House
Resort & Spa which had an interest rate of SOFR + 3.60% and had
a final maturity date in September
2025, the $42.5 million loan
secured by The Ritz-Carlton St. Thomas which had an interest rate
of SOFR + 4.35% and had a final maturity date in August 2026, and the $200.0 million Corporate Term Loan and Credit
Facility secured by The Ritz-Carlton Sarasota, Hotel Yountville,
and Bardessono Hotel & Spa which had an interest rate of SOFR +
3.10% and had a final maturity date in July 2027.
"We are pleased to announce the closing of
this financing at an attractive spread," said Richard J. Stockton, Braemar's President and
Chief Executive Officer. "This financing 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."
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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.