XML 37 R16.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Indebtedness, net | 12 Months Ended
--- | ---
Dec. 31, 2024
Debt Disclosure [Abstract] |
Indebtedness, net | Indebtedness, net Indebtedness, net consisted of the following (dollars in thousands):
Indebtedness |  | Collateral |  | Current Maturity |  | Final Maturity (15) |  | Interest Rate |  | December 31, 2024 |  | December 31, 2023
|  |  |  |  | Debt Balance |  | Book Value of Collateral |  | Debt Balance |  | Book Value of Collateral
Mortgage loan (3) |  | Cameo Beverly Hills |  | August 2024 |  | August 2024 |  | SOFR (1) + 3.66% |  | $ | — |  |  | — |  |  | $ | 30,000 |  |  | 71,196 |
Mortgage loan (4) |  | Hilton La Jolla Torrey Pines |  | August 2024 |  | August 2024 |  | 9.00% |  | — |  |  | — |  |  | 66,600 |  |  | 66,947 |
Mortgage loan (5) |  | The Ritz-Carlton Lake Tahoe |  | January 2025 |  | January 2026 |  | SOFR (1) + 3.60% |  | 53,413 |  |  | 135,287 |  |  | 53,413 |  |  | 132,467 |
Mortgage loan (6) |  | Park Hyatt Beaver Creek Resort & Spa |  | February 2025 |  | February 2027 |  | SOFR (1) + 2.86% |  | 70,500 |  |  | 144,707 |  |  | 70,500 |  |  | 140,966 |
Mortgage loan (7) |  | The Notary Hotel |  | June 2025 |  | June 2025 |  | SOFR (1) + 2.66% |  | 293,180 |  |  | 354,893 |  |  | 293,180 |  |  | 378,335 |
|  | The Clancy |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Sofitel Chicago Magnificent Mile |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Marriott Seattle Waterfront |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loan (8)(9) |  | The Ritz-Carlton St. Thomas |  | August 2025 |  | August 2026 |  | SOFR (1) + 4.35% |  | — |  |  | — |  |  | 42,500 |  |  | 114,224 |
Mortgage loan (9)(10) |  | Pier House Resort & Spa |  | September 2025 |  | September 2026 |  | SOFR (1) + 3.60% |  | — |  |  | — |  |  | 80,000 |  |  | 81,806 |
Mortgage loan (11) |  | The Ritz-Carlton Reserve Dorado Beach |  | March 2026 |  | March 2026 |  | SOFR (1) + 4.75% |  | 62,000 |  |  | 186,539 |  |  | — |  |  | — |
Convertible Senior Notes |  | Equity |  | June 2026 |  | June 2026 |  | 4.50% |  | 86,250 |  |  | — |  |  | 86,250 |  |  | — |
BAML Credit Facility (9)(12) |  | Bardessono Hotel & Spa |  | July 2026 |  | July 2027 |  | Base Rate (2) +1.25% to 2.00% or SOFR (1) + 2.35% to 3.10% |  | — |  |  | — |  |  | 200,000 |  |  | 303,405 |
|  | Hotel Yountville |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | The Ritz-Carlton Sarasota |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loan (9) |  | Bardessono Hotel & Spa |  | August 2026 |  | August 2029 |  | SOFR (1) + 3.24% |  | 407,000 |  |  | 496,223 |  |  | — |  |  | — |
|  | Hotel Yountville |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | The Ritz-Carlton Sarasota |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Pier House Resort & Spa |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | The Ritz-Carlton St. Thomas |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loan (13) |  | Four Seasons Resort Scottsdale |  | December 2026 |  | December 2028 |  | SOFR (1) + 3.75% |  | 140,000 |  |  | 255,631 |  |  | 140,000 |  |  | 261,737 |
Mortgage loan (14) |  | Capital Hilton |  | December 2026 |  | December 2028 |  | SOFR (1) + 3.75% |  | 110,600 |  |  | 134,013 |  |  | 110,600 |  |  | 143,840 |
|  |  |  |  |  |  |  |  |  | 1,222,943 |  |  | 1,707,293 |  |  | 1,173,043 |  |  | 1,694,923 |
Capitalized default interest and late charges, net |  |  |  |  |  |  |  |  |  | — |  |  |  |  | 120 |  |  |
Deferred loan costs, net |  |  |  |  |  |  |  |  |  | (11,985) |  |  |  |  | (9,135) |  |  |
Premiums/(discounts), net |  |  |  |  |  |  |  |  |  | (940) |  |  |  |  | (1,584) |  |  |
Indebtedness, net |  |  |  |  |  |  |  |  |  | $ | 1,210,018 |  |  |  |  | $ | 1,162,444 |  |  |
__________________ (1)SOFR rates were 4.33% and 5.35% at December 31, 2024 and December 31, 2023, respectively. (2)Base Rate, as defined in the secured credit facility agreement, is the greater of (i) the prime rate set by Bank of America, (ii) federal funds rate + 0.50%, (iii) Term SOFR + 1.00%, or (iv) 1.00%. (3)This mortgage loan had a SOFR floor of 1.50%. On April 9, 2024, we repaid this mortgage loan. (4)On February 5, 2024, we amended this mortgage loan. Terms of the amendment included extending the maturity date by six months from February 2024 to August 2024, and converting the interest rate from a variable rate of SOFR + 1.70% to a fixed rate of 9.00%. This mortgage loan was secured by the Hilton La Jolla Torrey Pines. On July 17, 2024, we sold this property for $165.0 million and repaid the mortgage loan. (5)On January 14, 2025, we amended this mortgage loan. Terms of the amendment included a $10.0 million principal pay-down, current maturity date extension to July 2025, interest rate reduction to SOFR + 3.25%, and one six-month extension option subject to satisfaction of certain conditions. (6)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the second was exercised February 2025. (7)This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions, of which the fifth was exercised in June 2024. (8)On January 29, 2024, we amended this mortgage loan. Terms of the amendment included extending the current maturity date one year to August 2025, and the variable rate increased from SOFR + 4.04% to SOFR 4.35%. This amended mortgage loan had one one-year extension option, subject to satisfaction of certain conditions. This mortgage loan had a SOFR floor of 4.00%. (9)On August 7, 2024, we refinanced this mortgage loan and credit facility into a new $407.0 million mortgage loan. The new mortgage loan is interest only and bears interest at a rate of SOFR + 3.24%, has a two-year initial term, and has three one-year extension options, subject to satisfaction of certain conditions. Braemar holds a tranche of Commercial Mortgage-Backed Securities (“CMBS”), which is secured by the five hotel properties that serve as collateral for the new mortgage loan and has a par value of $42.2 million and a rate of SOFR + 5.20%. The CMBS is reported as “investment in securities” on the consolidated balance sheet. (10)On January 3, 2024, we amended this mortgage loan. Terms of the amendment included extending the current maturity date one year to September 2025, and the variable rate increased from SOFR + 1.95% to SOFR + 3.60%. This mortgage loan had one one-year extension option, subject to satisfaction of certain conditions. (11)On March 7, 2024, we entered into a new $62.0 million mortgage loan. The new mortgage loan is interest only and bears interest at a rate of SOFR + 4.75%. (12)This secured credit facility has one one-year extension option, subject to satisfaction of certain conditions. (13)This mortgage loan has two one-year extension options, subject to satisfaction of certain conditions. This mortgage loan has a SOFR floor of 1.00%. (14)This mortgage loan has two one-year extension options, subject to satisfaction of certain conditions. This mortgage loan has a SOFR floor of 2.00%. (15)The final maturity date assumes all available extension options will be exercised. On January 18, 2023, the Company repaid its $54.0 million mortgage loan secured by The Ritz-Carlton Reserve Dorado Beach, which resulted in a gain on extinguishment of debt of $2.3 million for the year ended December 31, 2023. The gain was primarily attributable to the premium that was recorded upon the assumption of the mortgage loan when the hotel was acquired. Convertible Senior Notes In May 2021, the Company issued $86.25 million aggregate principal amount of 4.50% Convertible Senior Notes due June 2026 (the “Convertible Senior Notes”). The net proceeds from this offering of the Convertible Senior Notes were approximately $82.8 million after deducting the underwriting fees and other expenses paid by the Company. The Convertible Senior Notes are governed by an indenture between the Company and U.S. Bank National Association, as trustee. The Convertible Senior Notes bear interest at a rate of 4.50% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2021. The Convertible Senior Notes will mature on June 1, 2026. For the years ended December 31, 2024, 2023 and 2022, the Company recorded coupon interest expense of $3.9 million, $3.9 million and $3.9 million, respectively. For the years ended December 31, 2024, 2023 and 2022, the Company recorded discount amortization of $621,000, $589,000 and $553,000 respectively, related to the initial purchase discount, with the remaining discount balance to be amortized through June 2026. The Convertible Senior Notes are convertible at any time prior to the close of business on the business day immediately preceding the maturity date for cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the election of the Company, based on an initial conversion rate of 157.7909 shares of the Company’s common stock per $1,000 principal amount of notes (equivalent to a conversion price of approximately $6.34 per share of common stock), subject to adjustment of the conversion rate under certain circumstances. As of December 31, 2024, the conversion rate is 182.1014 shares. In addition, following the occurrence of certain corporate events, if the Company provides notice of redemption or if it exercises its option to convert the Convertible Senior Notes, the Company will, in certain circumstances, increase the conversion rate for a holder that converts its Convertible Senior Notes in connection with such corporate event, such notice of redemption, or such issuer conversion option, as the case may be. The Company may redeem the Convertible Senior Notes at the Company’s option, in whole or in part, on any business day on or after the date of issuance if the last reported sale price per share of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the Convertible Senior Notes to be redeemed subject to certain adjustments, plus accrued and unpaid interest to, but excluding, the redemption date. Maturities and scheduled amortization of indebtedness as of December 31, 2024, assuming no extension of existing extension options for each of the following five years and thereafter are as follows (in thousands):
2025 | $ | 417,093 |
2026 | 805,850 |
2027 | — |
2028 | — |
2029 | — |
Thereafter | — |
Total | $ | 1,222,943 |
If we violate covenants in any debt agreement, we could be required to repay all or a portion of our indebtedness before maturity at a time when we might be unable to arrange financing for such repayment on attractive terms, if at all. The assets of certain of our subsidiaries are pledged under non-recourse indebtedness and are not available to satisfy the debts and other obligations of the consolidated group. As of December 31, 2024, we were in compliance with all covenants.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/470/tableOfContent + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration