BHR - Braemar Hotels & Resorts to acquire Ritz-Carlton property for $186.6M

Braemar Hotels & Resorts (NYSE:BHR) agrees to buy the 96-room Dorado Beach, a Ritz-Carlton Reserve in Dorado, Puerto Rico, for a total consideration of $186.6M. The acquisition will be funded with ~$104M of cash, 6M shares of common stock, and the assumption of a $54M mortgage loan. Meanwhile, the purchase price for Dorado Beach represents a capitalization rate of 9.8% on hotel net operating income of $18.2M, and a 10.2x hotel EBITDA multiple, according to the company's preliminary estimates. It expects to realize a stabilized yield of approximately 8% on its investments in the next three to five year. The deal is expected to close on or prior to February 1, 2022. Additionally, the company is acquiring the income stream attributable to 14 luxury residential units adjacent to the property that participates in a rental management program. Shares of BHR edge lower by 1% in pre-market trading. Previously, (Nov. 17) Braemar's October

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Braemar Hotels & Resorts to acquire Ritz-Carlton property for $186.6M