BRAEMAR HOTELS & RESORTS ANNOUNCES AGREEMENT TO SELL MARRIOTT SEATTLE WATERFRONT
Rhea-AI Summary
Braemar Hotels & Resorts (NYSE: BHR) has announced the planned sale of the 369-room Marriott Seattle Waterfront for $145 million ($393,000 per key). The transaction, expected to close in August 2025, represents an 8.1% capitalization rate on trailing 12-month net operating income through May 31, 2025.
The property generated $12.4 million in Net Operating Income and $14.3 million in Hotel EBITDA for the trailing 12 months. The sale price factors in anticipated capital expenditures of $7 million. According to CEO Richard J. Stockton, this strategic divestment of the upper upscale hotel aims to deleverage BHR's portfolio and align its financial performance with the luxury hotel sector.
Positive
- Sale price of $145 million represents $393,000 per key
- Strong 8.1% capitalization rate on trailing 12-month net operating income
- Strategic deleveraging of portfolio
- Alignment with luxury hotel sector focus
Negative
- Property reported net loss of $1.6 million for trailing 12 months
- Reduction in total room count and market presence
- Transaction subject to closing conditions and potential risks
News Market Reaction
On the day this news was published, BHR gained 1.20%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"We are pleased to announce the planned sale of the Marriott Seattle Waterfront," said Richard J. Stockton, Braemar's president and CEO. "The sale of this upper upscale hotel will help deleverage our portfolio and further align our financial performance with the luxury hotel sector."
The transaction is expected to close in August 2025, subject to customary conditions. The Company provides no assurances that the sale will be completed on these terms or at all.
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Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.
Braemar Hotels & Resorts Inc. | |||
Marriott Seattle Waterfront | |||
Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and Hotel Net Operating Income | |||
(Unaudited, in millions) | |||
12 Months Ended | |||
May 31, 2025 | |||
Net income (loss) | $ | (1.6) | |
Interest expense | 6.6 | ||
Amortization of loan cost | 0.2 | ||
Depreciation and amortization | 9.1 | ||
Hotel EBITDA | $ | 14.3 | |
Capital reserve | (1.9) | ||
Hotel Net Operating Income | $ | 12.4 | |
_________
All information in this table is based upon unaudited operating financial data for the twelve month period ended May 31, 2025. This data has not been audited or reviewed by the Company's independent registered public accounting firm. The financial information presented could change.
EBITDA is defined as net income (loss), computed in accordance with generally accepted accounting principles ("GAAP"), before interest, taxes, depreciation and amortization. Hotel EBITDA multiple is defined as the purchase price divided by the trailing 12 month EBITDA. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's hotel EBITDA minus a capital expense reserve of
Forward-Looking Statements
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about the Company's strategy and future plans. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Braemar's control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; anticipated or expected purchases or sales of assets; our projected operating results; completion of any pending transactions; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board's decision whether to pay further dividends at levels previously disclosed or to use available cash to pay dividends; our understanding of our competition; market trends; projected capital expenditures; the impact of technology on our operations and business; general volatility of the capital markets and the market price of our common stock and preferred stock; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the markets in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in Braemar's filings with the Securities and Exchange Commission.
The forward-looking statements included in this press release are only made as of the date of this press release. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. Investors should not place undue reliance on these forward-looking statements. The Company can give no assurance that these forward-looking statements will be attained or that any deviation will not occur. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations, or otherwise, except to the extent required by law.
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SOURCE Braemar Hotels & Resorts, Inc.
FAQ
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