Including anticipated capital expenditures of $7 million, the sale price represents an 8.1% capitalization rate on net operating income for the trailing 12 months ended May 31.
“We are pleased that this strategic sale is complete,” said Richard J. Stockton, Braemar’s president/CEO. “With this divestiture, which enhances our balance sheet and liquidity, we project no additional property sales this calendar year.”
The hotel features newly renovated, nautical-themed guestrooms; an M Club Lounge; approximately 17,000 sq. ft. of meeting space, including the largest ballroom in the competitive set at 8,000 sq. ft.; and the only indoor and outdoor hotel pool in Downtown Seattle.
In conjunction with the sale, the company paid down approximately $88.4 million of debt and retained approximately $50.8 million of net proceeds after payment of transfer taxes and transaction costs.
RobertDouglas advised Braemar on the transaction.
“This transaction reflects strong investor conviction in the long-term fundamentals of the Seattle lodging market, particularly in the downtown core,” said Patrick Tan, SVP, RobertDouglas. “This generational asset benefits from a diverse and durable set of demand generators—most notably its adjacency to the cruise port, which is on track for a record year.”
Stephen O’Connor, principal/managing director, RobertDouglas, added, “We are proud to have advised Braemar on a transaction that attracted significant institutional interest and showcased the depth of capital pursuing high-quality lodging assets. The sale supports Braemar’s broader portfolio strategy—enhancing the balance sheet while further aligning the portfolio with the luxury hotel segment.”
Tags: Richard J. Stockton, Braemar Hotels and Resorts Inc, Marriott Waterfront
