Braemar Hotels & Resorts recently finalized a property-level mortgage financing deal for the esteemed Ritz-Carlton Reserve Dorado Beach in Puerto Rico. With 96 lavish rooms, this luxury destination in Dorado has long been a gem in Puerto Rico's hospitality landscape. The refinancing transaction, totaling a substantial $62 million, comes as a strategic move for Braemar.
The non-recourse loan, structured with a two-year term, signifies Braemar's confidence in the property's long-term value and potential. With an interest-only arrangement and a floating interest rate set at SOFR + 4.75 percent, the deal reflects Braemar's savvy financial management and its ability to leverage favorable lending conditions.
In a statement, Braemar's President and CEO, Richard Stockton, expressed satisfaction with the financing arrangement, citing the current favorable lending landscape. Stockton emphasized the company's commitment to seizing opportunities presented by improving hotel debt capital markets, foreseeing a reduction in interest expenses on future financings.
Braemar Hotels & Resorts stands out as a real estate investment trust dedicated to acquiring and developing luxury hotels and resorts. With a keen eye for prime properties and a focus on delivering unparalleled guest experiences, the company has built a strong portfolio of upscale destinations.
The successful refinancing of the Ritz-Carlton Reserve Dorado Beach underscores Braemar's confidence in the resilience of the hospitality sector, particularly in sought-after destinations like Puerto Rico. It also signals a broader trend of optimism as the industry rebounds from the challenges posed by the global pandemic.
Braemar's proactive approach to capitalizing on favorable market conditions reflects a strategic mindset aimed at maximizing returns for shareholders while maintaining the highest standards of luxury and service. The refinancing of the Ritz-Carlton Reserve Dorado Beach aligns with the company's overarching goal of driving sustainable growth and value creation.
As Braemar continues to navigate the evolving landscape of hospitality, it remains poised to explore new opportunities for expansion and innovation. With a focus on enhancing guest experiences and delivering exceptional returns, the company stands ready to chart a course towards continued success in the luxury hotel and resort sector.
Source: hotelmanagement.net
Photo: Ritz-Carlton Reserve Dorado Beach