Braemar Hotels & Resorts is moving closer to finalizing its separation from Ashford Inc. following the sale of a major hotel asset for $372 million.
Details of the Transaction
The company announced the completion of the sale of the 1,190-room Hilton La Jolla Torrey Pines, located in San Diego, California. The transaction, valued at $372 million, is expected to provide Braemar with significant liquidity as it continues to pursue its strategic plans.
Implications for Braemar and Ashford
This sale marks a significant step for Braemar in its efforts to reduce its reliance on Ashford Inc., its external advisor. The company has indicated that the proceeds from the sale will be used to pay down debt and strengthen its balance sheet. Braemar has also stated that it is evaluating further options to enhance shareholder value, including a potential internalization of management.
Company Statements
“The sale of the Hilton La Jolla Torrey Pines is a major milestone for Braemar as we continue to execute on our strategic initiatives,” said Richard J. Stockton, Braemar’s President and Chief Executive Officer. “This transaction provides us with additional financial flexibility and positions us well for future growth.”
Background and Future Plans
Braemar has been working to distance itself from Ashford Inc. as part of a broader strategy to improve corporate governance and align interests with shareholders. The company’s board has formed a special committee to explore alternatives, including the possible internalization of management functions currently handled by Ashford.
Additional Information
For more details, visit the original report at this link.
