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California  + Los Angeles  + Hospitality  | 

Braemer Enters Purchase Agreement for Mr. C Beverly Hills Hotel

Braemar Hotels & Resorts Inc. has entered into a definitive agreement to acquire the 138-room Mr. C Beverly Hills Hotel in Los Angeles for $78 million. In addition, the company is also acquiring five luxury condominium residences adjacent to the hotel. Remington will take over hotel management post-acquisition.

The acquisition is expected to close on or prior to July 9, 2021, subject to customary closing conditions. The company will issue 2.5 million units in its operating partnership and 500,000 warrants to the seller as part of the consideration for this acquisition in addition to $30 million in cash, the majority of which will be used to pay down existing debt. The price per key is $474,000 for fee simple ownership. The revenue per available room (RevPAR) was $251.14 for the 12 months ended December 31, 2019.

“This property fits perfectly with our strategy of owning high RevPAR luxury hotels and resorts, and further diversifies our portfolio,” said Richard J. Stockton, Braemar’s president and chief executive officer. “This is a complicated transaction that involves OP units, warrants and mortgage debt. Also, with Remington’s proven ability to maximize 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.”

The hotel is located near high-end shopping on Rodeo Drive and business demand from Century City and Culver City. Moreover, the property is in the middle of more than 45 million square feet of office space and a wide array of leisure demand generators including high-end retailers, restaurants, and various art and cultural attractions. 

The Mr. C was built in 1965 and underwent an extensive renovation in 2011. It has 138 rooms including 22 suites. 

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About Lisa Brown

Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM. In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.

  • ◦Sale/Acquisition
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