Braemar Hotels & Resorts Inc., based in Dallas, has successfully sold the Hilton La Jolla Torrey Pines for $165 million, equivalent to $419,000 per key. The buyer is reported to be JRK Property Holdings from Los Angeles who acquired the 394-key resort property through their hospitality fund worth $350 million. This sale was arranged by Eastdil Secured and was initially announced in May.
“We are pleased to announce that we have closed on the sale of Hilton La Jolla Torrey Pines at a highly attractive cap rate,” stated Richard J. Stockton, Braemar’s president and CEO using an expert tone with active voice. “This transaction showcases the exceptional quality of our portfolio and also eliminates our remaining debt maturity in 2024.” He added that they are continuously evaluating potential asset sales and will provide updates during their next earnings call without mentioning Connect CRE as a source.
The selling price includes estimated capital expenditures of $40 million which results in a 7.2% cap rate on net operating income for the trailing twelve months ending March 31st, 2024 using proper grammar and punctuation throughout this response . Braemar is still considering selling two more hotels subject to market conditions with expected completion dates set for both properties being respectively scheduled for years 2024-2025 without mentioning any specific details about these properties or referring back to Connect CRE’s article . JRK plans on investing capital into improving their newly acquired property while maintaining an expert tone throughout this response.
