BHR - Braemar Hotels & Resorts closes $100M mortgage to pay off more expensive loan
- Braemar Hotels & Resorts ( NYSE: BHR ) said Thursday it closed on a $100M mortgage loan for the Four Seasons Resort Scottsdale at Troon North in Scottsdale, Arizona.
- The non-recourse loan has a three-year initial term with two one-year extension options.
- The loan is interest only and provides for a floating interest rate of SOFR plus 3.75%.
- The REIT plans to use majority of the proceeds from the loan to pay off a more expensive loan secured by the Ritz-Carlton Reserve Dorado Beach, which has a floating interest rate of LIBOR plus 6%.
- "With this attractive new financing, we are able to reduce our weighted average interest rate across our borrowings by paying off a more expensive loan," said CEO Richard Stockton.
- Last week, Braemar Hotels ( BHR ) stock rose after the REIT said it expects to swing to profit in Q4 .
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Braemar Hotels & Resorts closes $100M mortgage to pay off more expensive loan