Braemar Hotels To Buy Mr. C Beverly Hills Hotel In Los Angeles, California For $77.9 Mln

(RTTNews) - Braemar Hotels & Resorts Inc. (BHR) announced Tuesday its agreement to acquire the 138-room Mr. C Beverly Hills Hotel in Los Angeles, California. The company is also acquiring five luxury condominium residences adjacent to the hotel.

The total consideration for the acquisition is $77.9 million. It consists of $65.4 million for the hotel and an allocated price of $12.5 million for the five adjacent condominium units.

The acquisition is expected to close on or prior to July 9, 2021, subject to customary closing conditions. The company will fund the acquisition with approximately $30 million of cash, 2.5 million OP units, 500,000 warrants at a strike price of $6.00, and a $30 million mortgage loan. .

Braemar expects to realize a stabilized yield of over 8% on its investment in the next three to five years.

With its premier location in the heart of West Los Angeles, the Property is in the middle of over 45 million sq. ft. of office space, supporting substantial corporate demand and a wide array of leisure demand generators.

Richard Stockton, Braemar's President and Chief Executive Officer, said, "This property fits perfectly with our strategy of owning high RevPAR luxury hotels and resorts and further diversifies our portfolio. We are excited to announce our first acquisition in the midst of the current industry recovery cycle. This is a complicated transaction that involves OP units, warrants, and mortgage debt."