Braemar Hotels & Resorts Inc. has recently closed the sale of the Hilton La Jolla Torrey Pines for $165 million, marking a significant cap rate. This move demonstrates the high-quality nature of Braemar’s portfolio and eliminates the company’s last remaining 2024 debt maturity. With a focus on investing in luxury hotels and resorts, Braemar continues to evaluate potential asset sales to drive growth and provide value to stakeholders.
The sale price of $165 million for Hilton La Jolla Torrey Pines equates to $419,000 per key, representing a 7.2% capitalization rate on net operating income. The company also anticipates capital expenditures of $40 million. Braemar is evaluating the sale of two additional hotels in 2024 and 2025, subject to market conditions.
In terms of financials, Braemar’s Hotel EBITDA for the 12 months ended March 31, 2024, was $17.2 million. The Hotel Net Operating Income for the same period was $14.7 million. These figures are based on unaudited data and could be subject to change.
While Braemar Hotels & Resorts is optimistic about the recent sale, the company acknowledges the risks and uncertainties in the industry. Factors such as debt obligations, market trends, competition, and economic conditions can impact future performance. By carefully managing these risks and staying abreast of market changes, Braemar aims to continue delivering value to investors and customers.
As a real estate investment trust (REIT) specializing in luxury hospitality, Braemar understands the importance of strategic planning and prudent financial management. The company’s commitment to transparency and accountability is evident in its approach to disclosing forward-looking statements and risks associated with its operations.
Investors should exercise caution and conduct thorough due diligence before making investment decisions based on forward-looking statements. While Braemar Hotels & Resorts remains optimistic about its future prospects, uncertainties in the market can lead to deviations from projected outcomes. The company is not obligated to update or revise forward-looking statements unless required by law.
For more information on Braemar Hotels & Resorts Inc. and its recent sale of the Hilton La Jolla Torrey Pines, visit the company’s official website or contact their investor relations team. Explore opportunities and stay informed about the latest developments in the luxury hospitality sector with Braemar.
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