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Indebtedness, net
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Indebtedness, net Indebtedness, net
Indebtedness, net consisted of the following (dollars in thousands):
IndebtednessCollateralCurrent Maturity
Final
Maturity (11)
Interest RateSeptember 30, 2025December 31, 2024
Mortgage loan (2) (3)
The Notary HotelJune 2025June 2025
SOFR (1) + 2.66%
$— $293,180 
The Clancy
Sofitel Chicago Magnificent Mile
Marriott Seattle Waterfront
Mortgage loan (4)
Park Hyatt Beaver Creek Resort & SpaFebruary 2026February 2027
SOFR (1) + 2.86%
70,500 70,500 
Mortgage loan (3)
The Ritz-Carlton Reserve Dorado BeachMarch 2026March 2026
SOFR (1) + 4.75%
— 62,000 
Term Loan (5)
Land
March 2026March 2026WSJ Prime Rate5,360 — 
Convertible Senior NotesEquityJune 2026June 20264.50%86,250 86,250 
Mortgage loan (6)
The Ritz-Carlton Lake TahoeJuly 2026July 2026
SOFR (1) + 3.25%
43,413 53,413 
Mortgage loan (7)
Bardessono Hotel & SpaAugust 2026August 2029
SOFR (1) + 3.24%
407,000 407,000 
Hotel Yountville
The Ritz-Carlton Sarasota
Pier House Resort & Spa
The Ritz-Carlton St. Thomas
Mortgage loan (8)
Capital HiltonDecember 2026December 2028
SOFR (1) + 3.75%
110,600 110,600 
Mortgage loan (3) (9)
The Notary HotelMarch 2027March 2030
SOFR (1) + 2.57%
274,630 — 
The Clancy
Sofitel Chicago Magnificent Mile
The Ritz-Carlton Reserve Dorado Beach
Mortgage loan (10)
Four Seasons Resort ScottsdaleAugust 2028August 2030
SOFR (1) + 3.00%
180,000 140,000 
1,177,753 1,222,943 
Deferred loan costs, net(12,631)(11,985)
Premiums/(discounts), net(451)(940)
Indebtedness, net$1,164,671 $1,210,018 
__________________
(1)SOFR rates were 4.13% and 4.33% at September 30, 2025 and December 31, 2024, respectively.
(2)This mortgage loan had five one-year extension options, subject to satisfaction of certain conditions, of which the fifth was exercised in June 2024.
(3)On March 7, 2025, we refinanced two mortgage loans into a new $363.0 million mortgage loan. The new mortgage loan is interest only and bears interest at a rate of SOFR + 2.57%, has a two-year initial term, and has three one-year extension options, subject to the satisfaction of certain conditions.
(4)This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the second was exercised in February 2025.
(5)On April 4, 2025, we assumed a $5.4 million term loan secured by an eight acre parcel of land. The assumed term loan is interest only, bears interest at WSJ Prime Rate, and matures in March 2026. This term loan has a floor of 4.99%. See note 4.
(6)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. On July 25, 2025, we amended this mortgage loan. Terms of the amendment extended the maturity date to July 2026.
(7)This mortgage loan 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 $17.2 million and $42.2 million at September 30, 2025, and December 31, 2024, respectively, and a rate of SOFR + 5.20%. The CMBS is reported as “investment in securities” on the condensed consolidated balance sheet.
(8)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%.
(9)On August 7, 2025, this mortgage loan was paid down $88.4 million in conjunction with the sale of the Marriott Seattle Waterfront. See note 5.
(10)On August 15, 2025, we amended this mortgage loan. Terms of the amendment included increasing the principal balance to $180.0 million, reducing the interest rate to SOFR +3.00%, extending the maturity to August 2028, and adding two, one-year extension options, subject to the satisfaction of certain conditions.
(11)The final maturity date assumes all available extension options will be exercised.
Convertible Senior Notes
For the three and nine months ended September 30, 2025, the Company recorded coupon interest expense of $970,000 and $2.9 million, respectively. For the three and nine months ended September 30, 2024, the Company recorded coupon interest expense of $970,000 and $2.9 million, respectively.
For the three and nine months ended September 30, 2025, the Company recorded discount amortization of $165,000 and $489,000, respectively, related to the initial purchase discount, with the remaining discount balance to be amortized through June 2026. For the three and nine months ended September 30, 2024, the Company recorded discount amortization of $157,000 and $463,000 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. As of September 30, 2025, the conversion rate is 195.8127 shares per $1,000 principal amount of notes.
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 September 30, 2025, we were in compliance with all covenants.
Interest Rate Derivatives—We use interest rate caps to hedge our debt and our cash flows, which are recorded at fair value. Payments from counterparties on in-the-money interest rate caps are recognized as realized gains on our condensed consolidated statements of operations. See note 8.