BRAEMAR HOTELS & RESORTS ADDRESSES FINAL 2025 DEBT MATURITY WITH REFINANCING OF FIVE HOTELS AND REDUCES INTEREST COSTS
Braemar Hotels & Resorts (NYSE: BHR) has successfully closed a $363 million refinancing deal covering five luxury properties. The new loan features a two-year initial term with three one-year extension options, potentially extending to 2030, and carries a floating interest rate of SOFR + 2.52%.
The refinancing encompasses The Clancy, The Notary Hotel, Marriott Seattle Waterfront, Sofitel Chicago Magnificent Mile, and The Ritz-Carlton Reserve Dorado Beach. The loan amount represents a 48.9% loan-to-value ratio, with the properties collectively appraised at $742.2 million.
This strategic move replaces two existing loans: a $293.2 million facility at SOFR + 2.66% maturing in June 2025 and a $62 million loan at SOFR + 4.75% due in March 2026. The refinancing addresses BHR's final 2025 debt maturity while securing more favorable interest terms and extending the weighted average maturity of its debt portfolio.
Braemar Hotels & Resorts (NYSE: BHR) ha concluso con successo un'operazione di rifinanziamento da 363 milioni di dollari che copre cinque proprietà di lusso. Il nuovo prestito prevede un termine iniziale di due anni con tre opzioni di estensione annuale, potenzialmente fino al 2030, e ha un tasso di interesse variabile di SOFR + 2,52%.
Il rifinanziamento comprende The Clancy, The Notary Hotel, Marriott Seattle Waterfront, Sofitel Chicago Magnificent Mile e The Ritz-Carlton Reserve Dorado Beach. L'importo del prestito rappresenta un rapporto prestito/valore del 48,9%, con le proprietà valutate collettivamente a 742,2 milioni di dollari.
Questa mossa strategica sostituisce due prestiti esistenti: un finanziamento da 293,2 milioni di dollari a SOFR + 2,66% in scadenza a giugno 2025 e un prestito da 62 milioni di dollari a SOFR + 4,75% in scadenza a marzo 2026. Il rifinanziamento affronta la scadenza del debito finale di BHR nel 2025, garantendo al contempo condizioni di interesse più favorevoli e prolungando la scadenza media ponderata del suo portafoglio debitorio.
Braemar Hotels & Resorts (NYSE: BHR) ha cerrado con éxito un acuerdo de refinanciación de 363 millones de dólares que cubre cinco propiedades de lujo. El nuevo préstamo tiene un plazo inicial de dos años con tres opciones de extensión de un año, potencialmente hasta 2030, y lleva una tasa de interés variable de SOFR + 2.52%.
El refinanciamiento abarca The Clancy, The Notary Hotel, Marriott Seattle Waterfront, Sofitel Chicago Magnificent Mile y The Ritz-Carlton Reserve Dorado Beach. El monto del préstamo representa un ratio préstamo-valor del 48.9%, con las propiedades valoradas en conjunto en 742.2 millones de dólares.
Este movimiento estratégico reemplaza dos préstamos existentes: una línea de crédito de 293.2 millones de dólares a SOFR + 2.66% que vence en junio de 2025 y un préstamo de 62 millones de dólares a SOFR + 4.75% que vence en marzo de 2026. El refinanciamiento aborda el vencimiento final de la deuda de BHR en 2025, asegurando al mismo tiempo condiciones de interés más favorables y extendiendo el vencimiento promedio ponderado de su cartera de deuda.
Braemar Hotels & Resorts (NYSE: BHR)는 3억 6천 3백만 달러 규모의 재융자 거래를 성공적으로 마무리하며 다섯 개의 고급 호텔을 포함했습니다. 새로운 대출은 2년의 초기 기간과 3개의 1년 연장 옵션을 제공하며, 2030년까지 연장될 수 있으며, SOFR + 2.52%의 변동 금리를 적용합니다.
재융자는 The Clancy, The Notary Hotel, Marriott Seattle Waterfront, Sofitel Chicago Magnificent Mile, The Ritz-Carlton Reserve Dorado Beach를 포함합니다. 대출 금액은 48.9%의 대출-가치 비율을 나타내며, 자산의 총 가치는 7억 4천 2백만 달러로 평가됩니다.
이 전략적 조치는 기존의 두 개 대출을 대체합니다: 2025년 6월 만기가 도래하는 SOFR + 2.66%의 2억 9천 3백 20만 달러 대출과 2026년 3월 만기가 도래하는 SOFR + 4.75%의 6천 2백만 달러 대출입니다. 재융자는 BHR의 2025년 최종 부채 만기를 해결하고, 보다 유리한 금리 조건을 확보하며, 부채 포트폴리오의 가중 평균 만기를 연장합니다.
Braemar Hotels & Resorts (NYSE: BHR) a conclu avec succès un accord de refinancement de 363 millions de dollars couvrant cinq propriétés de luxe. Le nouveau prêt a une durée initiale de deux ans avec trois options de prolongation d'un an, pouvant potentiellement s'étendre jusqu'en 2030, et présente un taux d'intérêt variable de SOFR + 2,52%.
Le refinancement inclut The Clancy, The Notary Hotel, Marriott Seattle Waterfront, Sofitel Chicago Magnificent Mile et The Ritz-Carlton Reserve Dorado Beach. Le montant du prêt représente un ratio prêt/valeur de 48,9%, les propriétés étant collectivement évaluées à 742,2 millions de dollars.
Ce mouvement stratégique remplace deux prêts existants : un financement de 293,2 millions de dollars à SOFR + 2,66% arrivant à échéance en juin 2025 et un prêt de 62 millions de dollars à SOFR + 4,75% arrivant à échéance en mars 2026. Le refinancement traite de l'échéance finale de la dette de BHR en 2025 tout en garantissant des conditions d'intérêt plus favorables et en prolongeant la durée moyenne pondérée de son portefeuille de dettes.
Braemar Hotels & Resorts (NYSE: BHR) hat erfolgreich ein Refinanzierungsabkommen über 363 Millionen Dollar für fünf Luxusimmobilien abgeschlossen. Das neue Darlehen hat eine zweijährige Anfangslaufzeit mit drei einjährigen Verlängerungsoptionen, die potenziell bis 2030 verlängert werden können, und hat einen variablen Zinssatz von SOFR + 2,52%.
Die Refinanzierung umfasst The Clancy, The Notary Hotel, Marriott Seattle Waterfront, Sofitel Chicago Magnificent Mile und The Ritz-Carlton Reserve Dorado Beach. Der Darlehensbetrag entspricht einem Beleihungsauslauf von 48,9%, wobei die Immobilien insgesamt auf 742,2 Millionen Dollar geschätzt werden.
Dieser strategische Schritt ersetzt zwei bestehende Darlehen: eine 293,2 Millionen Dollar umfassende Finanzierung zu SOFR + 2,66%, die im Juni 2025 fällig wird, und ein 62 Millionen Dollar Darlehen zu SOFR + 4,75%, das im März 2026 fällig ist. Die Refinanzierung betrifft die endgültige Fälligkeit der Schulden von BHR im Jahr 2025, sichert günstigere Zinssätze und verlängert die gewichtete durchschnittliche Laufzeit des Schuldenportfolios.
- Secured lower interest rates (SOFR + 2.52%) compared to previous rates
- Extended debt maturity timeline potentially to 2030
- Eliminated all remaining 2025 debt maturities
- Conservative 48.9% loan-to-value ratio indicates strong asset value
- Increased total debt from $355.2M to $363M
- Floating interest rate exposure could lead to higher costs if rates rise
Insights
Braemar Hotels & Resorts has executed a strategic financial maneuver that significantly improves its capital structure. The new
First, this refinancing completely eliminates BHR's final 2025 debt maturity, removing near-term refinancing risk from the company's profile. The previous loans carried higher interest rates of SOFR + 2.66% and SOFR + 4.75%, while the new consolidated loan reduces the spread to SOFR + 2.52% - representing meaningful interest expense savings across a substantial portion of their portfolio.
The loan structure is particularly advantageous: it's interest-only with a conservative
Most impressive is the maturity profile enhancement. The two-year initial term with three one-year extension options potentially extends this debt to 2030, significantly stretching BHR's weighted average debt maturity and creating greater financial flexibility.
For a hotel REIT with
"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.
FAQ
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