BRAEMAR HOTELS & RESORTS ANNOUNCES CLOSING ON SALE OF PARK HYATT BEAVER CREEK RESORT & SPA
Rhea-AI Summary
Braemar Hotels & Resorts (NYSE:BHR) closed the sale of the 193-room Park Hyatt Beaver Creek Resort & Spa for $176 million, or $912,000 per key, reflecting a 4.6% capitalization rate on trailing 12-month net operating income ended March 2026.
The property was acquired in 2017 for $145.5 million. Braemar repaid the $70.5 million mortgage on the asset and retained about $104.5 million of net proceeds after costs, using part to fully repay its 4.50% Convertible Senior Notes on June 1, 2026. The company indicates the transaction does not trigger a Change of Control under its advisory agreement with Ashford and supports its ongoing strategic alternatives process.
Positive
- Sale of Park Hyatt Beaver Creek for $176 million, or $912,000 per key
- Asset originally acquired for $145.5 million in 2017, implying value increase
- Capitalization rate of 4.6% on trailing 12-month net operating income
- Repayment of $70.5 million mortgage loan secured by the property
- Retention of approximately $104.5 million net proceeds after costs and cash release
- Full repayment of 4.50% Convertible Senior Notes on June 1, 2026
Negative
- None.
News Market Reaction – BHR
In the Jun 2 session, BHR declined 1.20%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 21 | Preferred dividends | Positive | -0.4% | Declared monthly preferred dividends for several series for May 2026. |
| May 08 | Governance letter | Neutral | +1.8% | Al Shams Investments released an open letter to independent directors. |
| Apr 30 | Asset sale agreement | Positive | -0.8% | Entered definitive agreement to sell Park Hyatt Beaver Creek for $176 million. |
| Apr 23 | Preferred dividends | Positive | +0.8% | Declared monthly preferred dividends for April 2026 across multiple series. |
| Apr 22 | Earnings date notice | Neutral | -1.4% | Announced schedule to release Q1 2026 financial results on May 6. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent positive corporate actions (asset sale agreement, preferred dividends) often saw flat-to-negative next-day moves, suggesting a tendency for the stock to sell off or remain subdued on ostensibly favorable news.
Over the last several months, Braemar has focused on capital allocation and governance developments. It agreed on April 30, 2026 to sell the Park Hyatt Beaver Creek asset for $176 million, with an initially modest negative price reaction. The company has regularly declared preferred dividends, with mixed short-term reactions, and announced timing for first-quarter 2026 results on May 6, 2026. An open activist letter on May 8, 2026 coincided with a small gain. Today’s closing of the Beaver Creek sale and debt repayment builds directly on the April 30 agreement.
Key Terms
capitalization rate financial
net operating income financial
convertible senior notes financial
change of control regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
"The sale of Park Hyatt Beaver Creek was a fantastic outcome for the Company and our shareholders," said Richard J. Stockton, President and Chief Executive Officer. "Acquired in 2017 for
In conjunction with the sale, the Company repaid the
This property sale, taken together with the sale of other properties during the applicable twelve-month and thirty-six-month lookback periods, does not, the Company believes, exceed the threshold that constitutes a Change of Control under the advisory agreement, as amended, with Ashford Inc.
About Braemar Hotels & Resorts
Braemar Hotels & Resorts Inc. (NYSE: BHR) is a real estate investment trust (REIT) focused on the high-growth luxury hotel and resort sector. The Company targets high-performance luxury urban and resort properties, specializing in assets that generate revenue per available room (RevPAR) at least twice the
Braemar Hotels & Resorts Inc. | ||
Park Hyatt Beaver Creek Resort & Spa | ||
Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and Hotel Net Operating Income | ||
(unaudited, in millions) |
12 Months Ended | ||
March 31, 2026 | ||
Net income (loss) | $ (3.0) | |
Interest expense | 5.0 | |
Depreciation and amortization | 7.8 | |
Hotel EBITDA | $ 9.8 | |
Capital reserve | (1.8) | |
Hotel Net Operating Income | $ 8.0 | |
_________
All information in this table is based upon unaudited operating financial data for the twelve month period ended March 31, 2026. This data has not been audited or reviewed by the Company's independent registered public accounting firm. The financial information presented could change.
EBITDA is defined as net income (loss), computed in accordance with generally accepted accounting principles ("GAAP"), before interest, taxes, depreciation and amortization. Hotel EBITDA multiple is defined as the purchase price divided by the trailing 12 month EBITDA. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's hotel EBITDA minus a capital expense reserve of
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 federal securities regulations. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Additionally, statements regarding the following subjects are forward-looking by their nature: our business and investment strategy; anticipated or expected purchases, sales or dispositions of assets; our projected operating results; completion of any pending transactions; our ability to restructure existing property-level indebtedness; our ability to secure additional financing to enable us to operate our business; our understanding of our competition; projected capital expenditures; and the impact of technology on our operations and business. 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. These and other risk factors are more fully discussed in the Company's filings with the SEC.
The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We will not 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.