Braemar Hotels & Resorts Inc. (NYSE: BHR), a publicly traded real estate investment trust and sponsor of preferred stock offerings, has purchased the 138-room Mr. C Beverly Hills Hotel in Los Angeles, California for $77.9 million. In addition, the company acquired five condominium residences adjacent to the hotel.
The total consideration consisted of $65.4 million for the hotel ($474,000 per key) and an allocated price of $12.5 million for the five adjacent condominium units. The acquisition was funded 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. For purposes of calculating total consideration for the transaction, a price of $6 per share was assumed.
As of the second quarter of 2021, Braemar Hotels & Resorts owned a $1.8 billion portfolio of 13 properties located in six states, the District of Columbia and St. Thomas, U.S. Virgin Islands with 3,722 total rooms.