Braemar Hotels & Resorts Inc. enters agreement to buy Dorado Beach Ritz for $187M
Braemar Hotels & Resorts, a real estate investment trust (REIT) focused on investing in luxury hotels and resorts, announced it has entered into a definitive agreement to acquire the 96-room Dorado Beach, a Ritz-Carlton Reserve in Dorado, for $186.6 million.
The purchase price represents $1.7 million per key, including 14 luxury residences adjacent to the hotel currently participating in a rental management program.
The acquisition is expected to close on or prior to Feb. 1, 2022, subject to certain customary closing conditions.
This announcement comes after earlier this month, one of the property’s developing partners, PRISA Group, told News is my Business that the property was not under contract for sale, following a report by the Wall Street Journal that said the venture is exploring a possible sale of the property that opened for business in December 2012, following a $342 million investment.
“The acquisition of Dorado Beach, a Ritz-Carlton Reserve is an opportunity for us to acquire one of the most iconic luxury assets in the Americas,” said Braemar’s CEO Richard J. Stockton.
“As the first Ritz-Carlton Reserve in the Americas and one of only five Ritz-Carlton Reserve properties worldwide, this unique property fits perfectly with our strategy of owning high RevPAR luxury hotels and resorts and further diversifies our portfolio,” he said.
The ultra-luxury 96-key resort is located within a 1,900-acre exclusive residential development.
As part of the acquisition, Braemar will issue 6 million shares of common stock, $104 million of cash, and assume a $54 million loan to fund the acquisition, it confirmed.
Dorado Beach, a Ritz-Carlton Reserve was opened in 2012 and underwent an extensive $78 million renovation in 2018. It has since earned numerous industry awards from AAA, Forbest Travel Guide, Conde Nast Traveler, Travel + Leisure, and US News & World Report, among others.