BRAEMAR HOTELS & RESORTS ANNOUNCES AN EXTENSION ON ITS MORTGAGE LOAN FOR THE HOTEL YOUNTVILLE

Rhea-AI Summary

Braemar Hotels & Resorts (NYSE: BHR) has finalized an extension of its $51.0 million mortgage loan for the Hotel Yountville, extending the maturity for an additional 6 months, with a potential further 6-month extension. The loan will have an interest rate of SOFR + 2.55%, increasing to SOFR + 3.50% on July 1, 2023. Coinciding with this extension, Braemar purchased a SOFR interest rate cap at a strike of 5.25% expiring on November 10, 2023. The company is also negotiating an extension or refinancing for another mortgage due in August 2023. CEO Richard J. Stockton expressed optimism about the refinancing program and future announcements related to their liability management efforts.

Positive

• Successful extension of $51.0 million mortgage loan for Hotel Yountville.
• Interest rate cap purchased at a favorable strike of 5.25%.
• Potential for additional loan extension which can enhance liquidity.

Negative

• Interest rate on loan will increase after July 1, 2023.
• Active refinancing efforts suggest potential liquidity pressures.

DALLAS, April 18, 2023 /PRNewswire/ -- Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") announced that it has finalized an extension of its $51.0 million mortgage loan for the 80-room Hotel Yountville. The loan is being extended beyond its original maturity in May 2023 for an additional 6 months with one additional 6-month extension available. As extended, the loan will have a rate of SOFR + 2.55% that will reset to SOFR + 3.50% on July 1, 2023. In conjunction with this extension, the Company has purchased a SOFR interest rate cap at a strike of 5.25% with an expiration date of November 10, 2023. The Company is also working with its lender on an extension or refinancing of its mortgage loan secured by the Bardessono, which has a final maturity in August 2023.

"We continue to work through our refinancing program for 2023 and are pleased to announce this extension of the Hotel Yountville mortgage loan for up to an additional year under favorable terms," said Richard J. Stockton, Braemar's President and Chief Executive Officer. "We look forward to making additional announcements related to our liability management program in due course."

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.

FAQ

What is the recent update about Braemar Hotels & Resorts (BHR)?

Braemar Hotels & Resorts has extended its $51.0 million mortgage loan for Hotel Yountville by 6 months with favorable terms.

When will the interest rate on the loan for Hotel Yountville increase?

The interest rate will increase from SOFR + 2.55% to SOFR + 3.50% on July 1, 2023.

What financial measures is Braemar Hotels & Resorts (BHR) taking in 2023?

Braemar is working on refinancing strategies and has purchased a SOFR interest rate cap to manage interest rate risks.

What are the implications of the loan extension for BHR's financial health?

The loan extension offers additional liquidity, but the upcoming interest rate increase may affect future financial costs.