DALLAS—Braemar Hotels & Resorts Inc. successfully refinanced two mortgage loans with existing outstanding balances totaling approximately $358 million. The previous mortgage loans that were refinanced were the Morgan Stanley Pool and the GACC Sofitel loans with final maturity dates in February 2024 and March 2019, respectively.
The new loan totals $435 million and has a two-year initial term with five one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of LIBOR plus 2.16%.
The loan is secured by four hotels: Seattle Marriott Waterfront, San Francisco Courtyard downtown, Philadelphia Courtyard downtown and Sofitel Chicago Magnificent Mile. Additionally, as part of this financing, the allocated loan balance associated with the Renaissance Tampa International Plaza as part of the Morgan Stanley Pool was paid off at closing and that property is now unencumbered.
The next hard debt maturity for the Dallas-based company is in March 2020.
“We are pleased to close this refinancing which addressed our only 2019 debt maturity,” said Richard J. Stockton, Braemar's president and chief executive officer. “This increased financial flexibility meaningfully improves our liquidity position and lowers our average interest rate.”
Braemar Hotels and Resorts is a real estate investment trust focused on investing in luxury hotels and resorts.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
