BRAEMAR HOTELS & RESORTS REDUCES INTEREST COSTS AND EXTENDS MATURITIES WITH REFINANCING OF FIVE HOTELS
Braemar Hotels & Resorts Inc. (NYSE: BHR) has successfully closed a $407 million refinancing involving five luxury hotels. The new loan offers a two-year initial term with three one-year extension options, potentially extending the final maturity to 2029. It features a floating interest rate of SOFR + 3.24% and is interest-only. By acquiring $42.2 million of the most junior tranche, Braemar effectively lowered its net spread on the remaining $364.8 million to SOFR + 3.01%.
This refinancing encompasses the Pier House Resort & Spa, Bardessono Hotel & Spa, Hotel Yountville, The Ritz-Carlton Sarasota, and The Ritz-Carlton St. Thomas. It replaces three existing loans with higher interest rates and earlier maturity dates. CEO Richard J. Stockton highlighted that this move results in a lower cost of capital, improves the company's maturity schedule, and extends its weighted average maturity.
Braemar Hotels & Resorts Inc. (NYSE: BHR) ha chiuso con successo un rifinanziamento di 407 milioni di dollari che coinvolge cinque hotel di lusso. Il nuovo prestito offre un termine iniziale di due anni con tre opzioni di estensione di un anno, potenzialmente estendendo la scadenza finale fino al 2029. Presenta un tasso d'interesse variabile di SOFR + 3,24% ed è solo a interesse. Acquistando 42,2 milioni di dollari della tranche più junior, Braemar ha ridotto efficacemente il suo margine netto sui restanti 364,8 milioni di dollari a SOFR + 3,01%.
Questo rifinanziamento comprende il Pier House Resort & Spa, il Bardessono Hotel & Spa, l'Hotel Yountville, il Ritz-Carlton Sarasota e il Ritz-Carlton St. Thomas. Sostituisce tre prestiti esistenti con tassi d'interesse più elevati e scadenze precedenti. Il CEO Richard J. Stockton ha sottolineato che questa mossa comporta un costo del capitale più basso, migliora il programma di scadenza dell'azienda e prolunga la sua scadenza media ponderata.
Braemar Hotels & Resorts Inc. (NYSE: BHR) ha cerrado con éxito un refinanciamiento de 407 millones de dólares que involucra cinco hoteles de lujo. El nuevo préstamo ofrece un plazo inicial de dos años con tres opciones de extensión de un año, lo que podría extender la fecha de vencimiento final hasta 2029. Presenta un tipo de interés variable de SOFR + 3,24% y es solo de interés. Al adquirir 42,2 millones de dólares de la porción más junior, Braemar ha reducido efectivamente su margen neto sobre los restantes 364,8 millones de dólares a SOFR + 3,01%.
Este refinanciamiento abarca el Pier House Resort & Spa, el Bardessono Hotel & Spa, el Hotel Yountville, el Ritz-Carlton Sarasota y el Ritz-Carlton St. Thomas. Reemplaza tres préstamos existentes con tasas de interés más altas y fechas de vencimiento anteriores. El CEO Richard J. Stockton destacó que este movimiento resulta en un costo de capital más bajo, mejora el calendario de vencimiento de la empresa y extiende su vida media ponderada.
브레이머 호텔 & 리조트 Inc. (NYSE: BHR)는 다섯 개의 고급 호텔을 포함하는 4억 7백만 달러의 재융자를 성공적으로 마무리했습니다. 새로운 대출은 2년의 초기 기간을 제공하고, 1년 추가 옵션을 세 번 제공하여 최종 만기를 2029년으로 연장할 수 있습니다. SOFR + 3.24%의 변동 금리를 특징으로 하며, 이자만 지불하는 조건입니다. 가장 하위 트랜치에서 4천2백20만 달러를 인수함으로써 브레이머는 남은 3억 6천4백80만 달러에 대한 순 차입 스프레드를 SOFR + 3.01%로 효과적으로 낮췄습니다.
이번 재융자는 Pier House Resort & Spa, Bardessono Hotel & Spa, Hotel Yountville, Ritz-Carlton Sarasota, Ritz-Carlton St. Thomas를 포함합니다. 더 높은 이자율과 이전 만기를 가진 세 개의 기존 대출을 대체합니다. CEO인 Richard J. Stockton은 이 조치가 자본 비용 절감으로 이어지며, 회사의 만기 일정을 개선하고 가중 평균 만기를 연장한다고 강조했습니다.
Braemar Hotels & Resorts Inc. (NYSE: BHR) a réussi à finaliser un refinancement de 407 millions de dollars impliquant cinq hôtels de luxe. Le nouveau prêt offre un terme initial de deux ans avec trois options d'extension d'un an, prolongeant potentiellement la maturité finale jusqu'en 2029. Il présente un taux d'intérêt variable de SOFR + 3,24% et est uniquement à paiement d'intérêts. En acquérant 42,2 millions de dollars de la tranche la plus junior, Braemar a effectivement réduit son écart net sur les 364,8 millions de dollars restants à SOFR + 3,01%.
Ce refinancement englobe le Pier House Resort & Spa, le Bardessono Hotel & Spa, l'Hotel Yountville, le Ritz-Carlton Sarasota et le Ritz-Carlton St. Thomas. Il remplace trois prêts existants avec des taux d'intérêt plus élevés et des dates d'échéance antérieures. Le PDG Richard J. Stockton a souligné que cette démarche entraîne un coût du capital réduit, améliore le calendrier des échéances de l'entreprise et prolonge sa durée de vie moyenne pondérée.
Braemar Hotels & Resorts Inc. (NYSE: BHR) hat erfolgreich eine Refinanzierung in Höhe von 407 Millionen Dollar abgeschlossen, die fünf Luxushotels umfasst. Der neue Kredit bietet eine zwei Jahre dauernde Anfangsfrist mit drei einjährigen Verlängerungsoptionen, die die endgültige Fälligkeit potenziell bis 2029 verlängern können. Er weist einen variablen Zinssatz von SOFR + 3,24% auf und ist nur zinsbelastet. Durch den Erwerb von 42,2 Millionen Dollar der am niedrigsten eingestuften Tranche hat Braemar effektiv seinen Nettomargen auf die verbleibenden 364,8 Millionen Dollar auf SOFR + 3,01% gesenkt.
Diese Refinanzierung umfasst das Pier House Resort & Spa, das Bardessono Hotel & Spa, das Hotel Yountville, das Ritz-Carlton Sarasota und das Ritz-Carlton St. Thomas. Sie ersetzt drei bestehende Kredite mit höheren Zinssätzen und früheren Fälligkeiten. CEO Richard J. Stockton betonte, dass dieser Schritt zu einem niedrigeren Kapitalkosten führt, den Fälligkeitszeitplan des Unternehmens verbessert und dessen gewichtete durchschnittliche Fälligkeit verlängert.
- Secured a $407 million refinancing at a lower interest rate (SOFR + 3.24%)
- Effectively reduced net spread to SOFR + 3.01% on $364.8 million by acquiring $42.2 million of junior tranche
- Extended potential loan maturity to 2029 with three one-year extension options
- Improved overall maturity schedule and weighted average maturity
- Consolidated three existing loans into one, simplifying debt structure
- Increased total debt from $322.5 million to $407 million
- Floating interest rate exposes the company to potential interest rate risk
Insights
This refinancing deal is a significant positive for Braemar Hotels & Resorts. The new
- Lower interest rate: New spread of SOFR +
3.01% vs. previous rates up to SOFR +4.35% - Extended maturity: Potential extension to 2029, improving the company's debt profile
- Increased flexibility: Interest-only terms and extension options
- Improved liquidity: By acquiring
$42.2 million of the junior tranche, Braemar effectively reduces its net borrowing
This move should enhance Braemar's financial stability and potentially boost profitability by lowering interest expenses. It's a smart financial maneuver in the current rising interest rate environment.
This refinancing demonstrates Braemar's proactive approach to capital management in the luxury hotel REIT sector. By securing better terms for five high-value properties, including two Ritz-Carlton hotels, Braemar is optimizing its portfolio performance. The deal covers diverse locations (Florida Keys, Napa Valley, Sarasota and St. Thomas), indicating strength across various luxury travel markets. The extended maturities provide a buffer against potential market volatility, while the lower interest rates should directly improve NOI. This move aligns with industry best practices for REITs, balancing leverage with operational flexibility. It's a strong signal of management's confidence in these assets' long-term value and performance.
Braemar's refinancing strategy reflects a positive outlook for the luxury hospitality sector. By securing favorable terms for high-end properties like the Ritz-Carlton and boutique hotels in prime locations, the company is positioning itself for continued growth in the luxury travel market. The lower interest costs could allow for increased investment in property enhancements or guest experiences, important for maintaining competitiveness in the luxury segment. The extended maturities also provide stability, allowing management to focus on operations and guest satisfaction rather than near-term refinancing pressures. This move suggests confidence in the sustained demand for luxury travel experiences, despite economic uncertainties. It's a savvy play that could enhance Braemar's competitive position in the upscale hospitality market.
"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.
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