Braemar to acquire Dorado Beach, a Ritz-Carlton reserve for $ 186.6 million; more sales

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The companies make year-end acquisitions as Braemar strikes a deal to acquire Dorado Beach, a Ritz-Carlton reserve in Dorado, Puerto Rico, for $ 186.6 million.

Braemar signs deal to purchase Dorado Beach, a Ritz-Carlton reserve
Braemar Hotels & Resorts Inc. has entered into a definitive agreement to acquire the 96-room Dorado Beach, a Ritz-Carlton reserve in Dorado, Puerto Rico, for $ 186.6 million. In addition, the company also acquires the revenue stream attributable to 14 luxury residential units adjacent to the property that participate in a rental management program.

The acquisition is expected to be completed by February 1 at the latest, subject to certain customary closing conditions. As the acquisition is subject to certain customary closing conditions, the company cannot guarantee that the transaction will be completed on that date or not at all.

The property is located in the Dorado Beach Resort, a planned 1,900-acre community in one of the most sought-after residential real estate markets in Puerto Rico, as well as the United States, according to the company. In addition to the amenities of the autonomous community of Dorado Beach, the resort also benefits from its location in the town of Dorado. Dorado is an upscale suburb of San Juan with plenty of restaurants, outlets, and other amenities and leisure activities in the surrounding area. In addition, the city is 32 km from Old San Juan and 35 km from Luis Muñoz Marin International Airport.

The property opened in 2012 and underwent major renovations of $ 78 million in 2018. It has 96 rooms, including 12 suites averaging 1,288 square feet. The hotel offers a range of amenities, including full service, a five-acre Botanico spa, and three food and beverage outlets (in addition to in-room dining). The property also features the COA Restaurant, over 4,800 square feet of meeting space, and an infinity pool with direct beach access. Additionally, the surrounding residential development of Dorado Beach contains several other amenities that guests of the Ritz-Carlton Reserve can access during their stay, including 2.5 miles of waterfront, TPC Dorado Beach Golf Club with two golf courses from 18 hole championship, tennis center with five Har-Tru clay courts offering classes and clinics for all skill levels, fitness center, Encanto pool, “The Watermill” – a large park aquatic area, three additional food and drink outlets, as well as Dorado Farms – a 500-hectare site featuring clay pigeon shooting, equestrian center and culinary offerings currently under construction.

Although not included in the fee simple guarantee of the property, the acquisition includes the income from 14 additional residential units, ranging in size from 2,200 to 6,600 square feet, which are part of a program. rental management.

The total consideration for the acquisition is $ 186.6 million ($ 1.7 million per key, including residential units from the rental program). The acquisition will be funded with approximately $ 104 million in cash, six million common shares and the assumption of a $ 54 million mortgage. No additional shares will be issued to fund the cash portion of the consideration, which will be funded from excess available cash.

The purchase price of Dorado Beach, a Ritz-Carlton reserve represents, based on expected financial results for 2021, a capitalization rate of 9.8% on hotel net operating income of $ 18.2 million and a hotel EBITDA multiple of 10.2x, based on preliminary company estimates. based on unaudited operating financial data provided by the vendor. The company expects to achieve a stabilized return of around 8% on its investment over the next three to five years. On a 12 month basis to November 30, the property achieved a RevPAR of $ 1,129, with 57% occupancy and an Average Daily Rate (ADR) of $ 1,968, according to unaudited operating financial data provided. by the seller.

OTO Development acquires Hyatt House Nashville from Vanderbilt
OTO Development moves to Music City with the acquisition of Hyatt House Nashville in Vanderbilt. The deal was negotiated by Hunter Hotel Advisors.

The extended stay property is located in the historic West End of Nashville, near Lower Broadway. It is a short walk from Music Row and close to Vanderbilt University as well as Vanderbilt University Medical Center and other leading community hospitals.

Opened in December 2018, this 15-story Hyatt House features 201 extended-stay rooms, including 125 suites, and over 2,000 square feet of meeting space. The H-branded bar and rooftop pool highlight the amenities list, with additional amenities such as a fitness center, kitchens / kitchenettes in suites, free breakfast, shuttle of the hotel and a pet policy.

Marcus & Millichap sells 150 DoubleTree by Hilton rooms
Marcus & Millichap, a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, has sold the 150-room DoubleTree by Hilton Hotel Winston-Salem University.

Jack Davis, Joce Messinger and Josh Williams, investment specialists at Marcus & Millichap’s Charleston office, had the exclusive list to market the property on behalf of the seller, a private investor. The SEO team also secured and represented the buyer, another private investor.

DoubleTree by Hilton Hotel Winston-Salem was built in 1987 and renovated in 2015. Its amenities include free Wi-Fi, laundry facilities, restaurant and bar, event center, 24-hour gym. 24, an outdoor swimming pool and a fireplace.

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