DALLAS—Braemar Hotels & Resorts Inc. has closed on a mortgage loan for the 210-room Four Seasons Resort Scottsdale at Troon North in Scottsdale, Arizona. The non-recourse loan totals $100.0 million and has a three-year initial term with two one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of SOFR + 3.75 percent. The company also announced that it plans to use the majority of the proceeds from the new loan to pay off a more expensive loan secured by the Ritz-Carlton Reserve Dorado Beach, which has a floating interest rate of LIBOR + 6.00 percent.
“We are very excited about our recent acquisition of the Four Seasons Resort in Scottsdale and are pleased to be able to finance this asset on favorable terms given the current volatility in the capital markets,” said Richard J. Stockton, Braemar’s president and CEO. He continued, “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.”
Robert Douglas, a real estate advisory firm that specializes in providing capital solutions in the hospitality industry, assisted Braemar with this transaction.
