Braemar Hotels to sell Marriott Seattle Waterfront for $145 million

DALLAS - Braemar Hotels & Resorts Inc. (NYSE:BHR) announced Tuesday it has entered into a definitive agreement to sell the 369-room Marriott Seattle Waterfront for $145 million, representing approximately $393,000 per key.

The transaction, expected to close in August 2025 subject to customary conditions, represents an 8.1% capitalization rate on net operating income for the trailing 12 months ended May 31, 2025, including anticipated capital expenditures of $7 million. The deal value is significant for Braemar, which currently maintains total debt of $1.22 billion and a current ratio of 1.15, indicating adequate liquidity to meet short-term obligations.

"We are pleased to announce the planned sale of the Marriott Seattle Waterfront," said Richard J. Stockton, Braemar’s president and CEO, in a press release statement. "The sale of this upper upscale hotel will help deleverage our portfolio and further align our financial performance with the luxury hotel sector." With annual revenue of $724 million and current trading levels suggesting potential undervaluation according to InvestingPro’s Fair Value analysis, this strategic move could help strengthen the company’s financial position.

Financial data provided by the company shows the property generated $12.4 million in net operating income for the twelve months ended May 31, 2025. This figure is calculated after accounting for $1.9 million in capital reserves.

The hotel reported a net loss of $1.6 million during the same period, with interest expense of $6.6 million and depreciation and amortization costs of $9.1 million.

Braemar Hotels & Resorts is a real estate investment trust focused on investing in luxury hotels and resorts. The company noted that the financial information presented is based on unaudited operating data and could be subject to change.

In other recent news, Braemar Hotels & Resorts Inc. reported its first-quarter 2025 financial results, revealing a net loss of $2.5 million or $0.04 per diluted share, which was better than analysts’ expectations of a $0.15 loss per share. The company generated $218.41 million in revenue, slightly missing the forecast of $221.68 million. Despite the revenue shortfall, the company highlighted operational improvements and strategic renovations, which contributed to its performance. Braemar Hotels & Resorts also announced the postponement of its 2025 Annual Meeting of Stockholders to December 15, 2025.

During the earnings call, Braemar’s management expressed cautious optimism about future asset sales, which could be used for preferred equity redemptions or debt retirement. The company emphasized its continued focus on cost efficiencies and strategic renovations, which have resulted in improved operational performance. Braemar’s urban hotels experienced a notable 11.3% increase in comparable revenue per available room (RevPAR) during the quarter. Additionally, the company has been actively managing its capital structure, including refinancing efforts and the redemption of non-traded preferred stock.

Analysts from firms like Oppenheimer and Baird participated in the earnings call, inquiring about the company’s booking trends and asset sale strategy. Braemar’s management confirmed stable booking windows and minimal impact from international travel fluctuations, while also noting increased buyer activity in the asset sales market.

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