DOLLARS, December 29, 2022 /PRNewswire/ — Braemar Hotels & Resorts Inc. (NYSE: BHR) (“Braemar” or the “Company”) today announced that it has successfully closed a mortgage loan for the 210-room Four Seasons Resort Scottsdale at Troon North in Scottsdale, Arizona.
The full non-recourse loan $100.0 million and the initial term is three years with two one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and earns a floating rate of SOFR + 3.75%. The Company also announced that it plans to use the proceeds from the new loan to pay off a more expensive loan secured by the Ritz-Carlton Reserve Dorado Beach, which is has a floating interest rate of LIBOR + 6.00%.
“We are very pleased with our recent acquisition of the Four Seasons Resort i Scottsdale and are pleased to be able to finance this asset on favorable terms due to the current volatility in capital markets,” said Richard J. Stockton, Braemar’s President and Chief Executive Officer. He continued, “With this wonderful new financing, we are able to lower the interest rate on our loans by paying off a more expensive loan.”
Robert Douglasa real estate consulting company that specializes in providing large-scale solutions to the hospitality industry, assisted Braemar in this transaction.
Braemar Hotels & Resorts is a privately held real estate investment trust (REIT) focused on investing in hotels and resorts.
Certain statements and opinions in this press release contain or are based on “forward-looking” statements and are made in accordance with the terms of the safe harbor of the Private Securities Litigation Reform Act of 1995. other, information about the Company’s plans and future plans. These forward-looking statements are subject to risks and uncertainties. When we use the words “likely to occur,” “may,” “expect,” “estimate,” “should,” “expect,” “believe,” “hope,” or similar expressions, we expect to display forward-looking information. Such statements are subject to many assumptions and uncertainties, many of which are beyond Braemar’s control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ from those anticipated, including, without limitation : the impact of COVID-19, and the rate of adoption and effectiveness of vaccines to prevent it. COVID-19, on our business and investment plans; our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; intended or anticipated sales or purchases of assets; our results of planned activities; complete any pending transactions; risks related to our ability to implement our dividend policy, including factors such as operating results and economic outlook affecting the decision of the Board of Directors whether to pay additional dividends in the cases previously announced or to use available funds to pay dividends; our understanding of our competition; marketing strategy; planned capital; the impact of technology on our jobs and businesses; general liquidation of the capital markets and the market value of our common stock and preferred stock; availability, terms and conditions of capital injection; 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 risks are more fully discussed in Braemar’s filings with the Securities and Exchange Commission.
The forward-looking statements contained in this press release speak only as of the date of this press release. Such forward-looking statements are based on our beliefs, opinions, and expectations of our future performance and take into account all information available to us. now. These beliefs, ideas, and expectations can change as a result of many possible events or events, not all of which we know. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other expectations may differ from those expressed in our forward-looking statements. You should consider this risk carefully when making an investment decision regarding 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 accurate or that they will not be misleading. We do not publicly update or revise any forward-looking statements, whether as a result of new information, future events or conditions, changes in expectations, or otherwise, except to the extent that required by law.
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(tagsTranslated) Braemar Hotels & Resorts Inc.