Dallas-based Braemar Hotels & Resorts Inc. revealed that it has successfully refinanced its Aareal Capital mortgage loan with an existing outstanding balance totaling approximately $187 million and a final maturity date in November 2021.
The new loan was originated by PGIM Real Estate Finance, totals $195 million and has a five-year term. The loan is interest only and provides for a floating interest rate of LIBOR + 1.70%. The loan remains secured by the same two hotels: the Capital Hilton in Washington, DC and Hilton La Jolla Torrey Pines in La Jolla, CA. Braemar has a 75% ownership interest in the properties, with Park Hotels & Resorts Inc. holding the remaining 25%.
“We are pleased to have capitalized on the continuing positive debt market conditions to have significantly reduced our interest expense costs on this loan,” said Richard J. Stockton, Braemar’s President and Chief Executive Officer. “To the extent the debt markets continue to improve, we will seek further opportunities to reduce borrowing spreads on our secured loans, despite not having any significant debt maturities in the coming years.”
Braemar Hotels & Resorts is a real estate investment trust focused on investing in luxury hotels and resorts. Park Hotels & Resorts Inc. is a publicly traded lodging real estate investment trust with a diverse portfolio of market-leading hotels and resorts.