Braemar secures $62M loan for Dorado Beach, a Ritz-Carlton Reserve
Braemar Hotels & Resorts Inc. has closed on a $62 million nonrecourse mortgage loan for the Dorado Beach, a Ritz-Carlton Reserve, in Puerto Rico. The two-year loan is interest-only and has a floating interest rate set at the Secured Overnight Financing Rate plus 4.75%.
“We are pleased to capitalize on the current favorable conditions in the lending markets to secure this attractive financing of the iconic Ritz-Carlton Reserve Dorado Beach,” said Richard Stockton, Braemar’s president and chief executive officer. “Looking ahead, hotel debt capital markets continue to improve, which we believe will continue to reduce the company’s interest expense on future financings.”
In December 2021, News is my Business reported that Braemar Hotels & Resorts, a real estate investment trust specializing in luxury hotels and resorts, agreed to acquire the 96-room luxury resort in Dorado for $186.6 million. The acquisition was expected to close by Feb. 1, 2022.
This followed PRISA Group, one of the property’s developers, denying the property was for sale in December 2021 after a Wall Street Journal report suggested a sale was being considered. The property, which opened in 2012, received a $342 million investment and underwent a $78 million renovation in 2018.
“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,” Stockton remarked at the time.
