Dallas-based Braemar Hotels & Resorts Inc. has 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 + 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.
“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.”
According to a prepared statement, the next hard debt maturity for the company is in March 2020. Braemar Hotels & Resorts is a real estate investment trust focused on investing in luxury hotels and resorts.