#USA #Seattle #hospitality #Marriott Seattle #Braemar

Braemar Hotels & Resorts Completes Marriott Seattle Waterfront Sale

Braemar Hotels & Resorts Inc. (NYSE: BHR) has successfully concluded the sale of the 369-room Marriott Seattle Waterfront for a total of $145 million, which translates to approximately $393,000 per room. This strategic divestiture marks a significant milestone for the company, expected to bolster its balance sheet and liquidity.

In a statement from Richard J. Stockton, Braemar's president and CEO, the company expressed satisfaction with the sale, highlighting how it enhances their financial standing. "With this divestiture, which enhances our balance sheet and liquidity, we project no additional property sales this calendar year," he stated.

In addition to the sale price, Braemar anticipates capital expenditures of around $7 million, leading to an overall sale price that represents an 8.1% capitalization rate on net operating income for the trailing 12-month period ending on May 31, 2025.

Upon the conclusion of the sale, Braemar proceeded to pay down approximately $88.4 million of its outstanding debt, retaining net proceeds of about $50.8 million after covering transfer taxes and transaction expenses. The financial data highlights a hotel EBITDA of $14.3 million with a net operating income of $12.4 million for the same period.

Braemar Hotels & Resorts functions primarily as a real estate investment trust (REIT), specializing in luxury hotels and resorts. This latest transaction aligns with their broader strategy of focusing on high-value assets and ensuring a strong financial footing.

The company was clear in their communications that this sell-off aligns with their future plans, emphasizing a refined approach to asset management. They anticipate that the cash and credit made available through such maneuvers would strengthen their operational capabilities moving forward.

However, Braemar also acknowledged the uncertainties that lie within market operations and the broader economy, outlining several risk factors that could affect their strategic directions. "Certain statements and assumptions in this press release contain or are based upon 'forward-looking' information," they warned, a reminder that investments always come with inherent risks.

In conclusion, the sale of the Marriott Seattle Waterfront not only boosts Braemar's liquidity but also reflects the company's agility in navigating the hospitality landscape during fluctuating economic conditions. As they move forward, stakeholders and potential investors will watch closely to see how these strategic choices unfold in future market performance.

For those in the hospitality and investment sectors, the implications of this sale extend beyond mere numbers, offering insights into current trends in hotel real estate and investment strategies. Braemar’s ongoing commitment to optimizing its portfolio positions it as a noteworthy player in the luxury accommodations market for the foreseeable future.