USA: The 138-room Mr. C Beverly Hills Hotel and five condominium residences are to be acquired by Braemar Hotels & Resorts.
Mr. C Beverly Hills Hotel is located in west Los Angeles, California. The hotel was built in 1965 and went under a renovation in 2011. The hotel includes a spa, three food and beverage outlets, in-room dining, over 24,000 square feet of indoor/outdoor meeting space, a 4,500 square foot outdoor pool terrace with daybeds and cabanas, a fitness centre with personal fitness training, and a business centre.
The agreement totalled $77.9 million. This consists of $65.4 million for the hotel, and $12.5 million for the five condominium units. The acquisition will be funded with $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.
Richard J. Stockton, Braemar’s president and chief executive officer, said: “The acquisition of the Mr. C is an opportunity for us to acquire an irreplaceable luxury property in a premier location in the heart of west Los Angeles. This property fits perfectly with our strategy of owning high RevPAR luxury hotels and resorts and further diversifies our portfolio. We are excited to announce our first acquisition in the midst of the current industry recovery cycle. This is a complicated transaction that involves OP units, warrants, and mortgage debt. I’m proud of our entire team’s effort.”
Stockton added: “Also, with Remington’s proven ability to maximise operating performance, we are excited about the future prospects for this renowned Los Angeles mainstay. Our prior corporate term loan had restrictive covenants that not only severely limited our capital expenditure program, prohibited property dispositions, and disallowed common dividends, but also would not have allowed us to complete this acquisition. By repaying that loan with the proceeds from our recent convertible notes offering, we have not only eliminated these constraints, but are now also able to pursue this acquisition.”
Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.
