Braemar Hotels to buy Ritz-Carlton Lake Tahoe in $120M deal

|About: Braemar Hotels & Resorts Inc. (BHR)|By:, SA News Editor

Braemar Hotels & Resorts (NYSE:BHR) agrees to buy the 170-room Ritz-Carlton Lake Tahoe in Truckee, CA, for about $120M.

Included in the deal is a 3.4-acre plot of vacant land adjacent to the hotel that is being entitled for luxury residential townhome development.

BHR expects to realize a stabilized yield of about 8.5% on its investment.

Hotel had RevPAR of $372.35 for the 12 months ended Sept. 30, 2018; purchase price of $103.4M for the hotel represents $608,000 per key, a trailing 12-month (as of Sept. 30, 2018) capitalization rate of 5.8% on hotel net operating income of $6.0M, and a trailing 12-month 13.5x hotel EBITDA multiple, according to preliminary estimates based on unaudited operating financial data provided by sellers.

Deal is expect to close on or before Jan. 15, 2019.

Previously: Braemar Hotels & Resorts misses by $0.10, misses on revenue (Oct. 31)

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