Braemar Hotels Refinances Ritz-Carlton Lake Tahoe Mortgage

Braemar Hotels & Resorts Inc. (NYSE: BHR) has entered into a new loan agreement to refinance debt associated with The Ritz-Carlton, Lake Tahoe. The transaction, finalized on October 30, 2026, involves a subsidiary of the company, BHR Tahoe LP, and Western Alliance Bank.

The new financing replaces an existing loan with an outstanding balance of $43.4 million, a floating interest rate of SOFR plus 3.25%, and a maturity date in January 2027. The new loan provides for an initial term loan of $60 million, with an additional earnout facility of up to $15 million available for future drawdowns, bringing the total potential loan amount to $75 million.

The loan is secured by first-priority mortgages on the Ritz-Carlton Lake Tahoe and its Lake Club, as well as first-priority liens on the borrower’s and the related hotel lessee’s tangible and intangible personal property. The loan bears interest at a floating rate equal to one-month Term SOFR plus 2.65%, subject to a 5.30% interest rate floor. The initial maturity date is October 30, 2029, with two one-year extension options available, subject to conditions, which would extend the final maturity to October 30, 2031.

Under the terms of the agreement, monthly payments are interest-only prior to October 30, 2029. After that date, monthly payments of principal and interest are required based on a 25-year amortization period, with the remaining balance due at maturity.

The earnout facility allows for up to two advances, with the first advance required to be at least $7.5 million. The company must meet specific conditions to access these funds, including maintaining no continuing event of default, achieving a debt yield of at least 11.5% for two consecutive fiscal quarters, and, if required by the lender, maintaining a loan-to-value ratio of no greater than 55%.

With this refinancing, Braemar has extended its debt maturities, pushing the company's next hard debt maturity to December 2028. The company stated that the transaction capitalizes on tighter interest rate spreads in the market.