Dallas-based Braemar Hotels & Resorts Inc. has closed on its previously announced sale of the Hilton La Jolla Torrey Pines for $165 million, or $419,000 per key. The buyer reportedly was Los Angeles-based JRK Property Holdings, which acquired the 394-key resort property through its $350-million hospitality fund. The sale, arranged by Eastdil Secured, was first announced in May.

“We are pleased to announce the closing of the sale of the Hilton La Jolla Torrey Pines at a very attractive cap rate,” said Richard J. Stockton, Braemar’s president and CEO. “This sale demonstrates the high-quality nature of the Braemar portfolio and removes our last remaining 2024 debt maturity.  We continue to evaluate additional potential asset sales and look forward to providing additional updates on our next earnings call.”

Including anticipated capital expenditures of $40 million, the sale price represents a 7.2% cap rate on net operating income for the trailing 12 months ended March 31, 2024. Braemar continues to evaluate the sale of two more hotels, subject to market conditions, to be completed in 2024 and 2025, respectively. JRK plans capital improvements to its new acquisition.