Braemar Hotels & Resorts has finalized a $358 million refinancing package for four of its upscale properties, resulting in lower interest rates and extended loan terms. The company announced the completion of the transaction on Monday, highlighting improved financial flexibility for its portfolio.
Details of the Refinancing Deal
The refinancing covers the Ritz-Carlton St. Thomas, Ritz-Carlton Sarasota, Bardessono Hotel and Spa in Yountville, and Hotel Yountville. According to Braemar, the new loan carries a floating interest rate of 3.75 percent over the secured overnight financing rate (SOFR), replacing the previous rate of 4.75 percent over LIBOR. The maturity date for the new debt is set for June 2027, with two one-year extension options available.
Company Statement on Financial Impact
Richard Stockton, CEO of Braemar Hotels & Resorts, stated, “This refinancing enhances our balance sheet and provides us with additional liquidity to pursue strategic opportunities.” The company noted that the new terms are expected to lower annual interest expenses by approximately $3.6 million.
Overview of the Properties
The four hotels included in the refinancing are all categorized as luxury properties. The Ritz-Carlton St. Thomas is located in the U.S. Virgin Islands, while the Ritz-Carlton Sarasota is situated in Florida. Both Bardessono Hotel and Spa and Hotel Yountville are based in California’s Napa Valley region.
Market Context
Braemar’s refinancing comes amid ongoing changes in the hospitality sector’s lending environment. The company indicated that the new arrangement strengthens its financial position as it navigates current market conditions.
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