Braemar Hotels & Resorts Inc. has entered into a definitive agreement to acquire the 170-room Ritz-Carlton Lake Tahoe in Truckee, California. In addition, the company is also acquiring a 3.4 acre plot of vacant land adjacent to the hotel that is being entitled for luxury residential townhome development.
The acquisition is expected to close on or prior to January 15, 2019, but in no event earlier than December 12, 2018. Because the acquisition is subject to customary closing conditions, the company can give no assurance that the transaction will be consummated by such date or at all, according to a prepared release.
“The acquisition of the Ritz-Carlton Lake Tahoe is an opportunity for us to acquire an iconic and irreplaceable luxury resort property with a premier location on the Northstar ski mountain in the world-famous Lake Tahoe area,” said Richard J. Stockton, Braemar’s President and Chief Executive Officer. “This property fits perfectly with our strategy of owning luxury hotels and resorts and further diversifies our portfolio while also increasing the overall RevPAR of our portfolio, which is already the highest among our hotel REIT peers. This will be the third Ritz-Carlton in our portfolio, and with the strong market fundamentals in the Northern California area along with our proven ability to work with Ritz-Carlton to maximize property level performance, we are excited about the future prospects for this iconic property.”
Located in the North Lake Tahoe area, the Property is situated mid-mountain at the Northstar Ski Area. With its premier location, luxury brand affiliation and world-class amenities, the Ritz Tahoe is positioned as the leading resort in one of country’s most popular tourist destinations. North Lake Tahoe, located approximately 45 minutes from Reno, Nevada and 1.5 hours from Sacramento, is a popular and growing upscale, year-round tourist destination. Beyond the first-class hotel experience, guests have easy access to the Lake Tahoe area’s many amenities and activities, including world-class skiing and winter sports, boating, fishing, hiking, golfing, as well as exceptional dining and shops.
The Ritz Tahoe was built in 2009 and has 170 luxurious and spacious rooms, including 17 suites. The resort also offers an array of amenities, including ski-in/ski-out access to Northstar Ski Mountain, an ultra-luxury Lake Club on the shore of Lake Tahoe, a 17,000 sq. ft. full-service spa, six food and beverage outlets, including the acclaimed Manzanita restaurant, over 37,000 sq. ft. of flexible indoor/outdoor meeting space, two outdoor pools, state-of-the-art fitness club and yoga studio, and the Ritz Kids Club. The Property is in excellent physical condition after having over $18 million spent for capital improvements during the past few years. Post-closing, the property will continue to be managed by Ritz-Carlton.