The sale is expected to close around July 9.
Mr. C Beverly Hills Hotel will fetch $65.4 million while $12.5 million will be spent on the adjacent condo units.
The deal will be funded with $30 million in cash, 2.5 million operating partnership units, 500,000 warrants and a $30 million mortgage loan.
“The acquisition of the Mr. C is an opportunity for us to acquire an irreplaceable luxury property in a premier location in the heart of West Los Angeles,” Richard Stockton, Braemar’s president and chief executive officer, said in a statement.
Prior to the pandemic, revenue per available room at Mr. C was $251.14 for the 12 months that ended at the end of 2019. The hotel was seeing 75% occupancy numbers and an average daily rate of $334.40.
“This property fits perfectly with our strategy of owning high RevPAR luxury hotels and resorts and further diversifies our portfolio,” Stockton said in a statement. “We are excited to announce our first acquisition in the midst of the current industry recovery cycle.”
The Mr. C was built in 1965 and renovated in 2011. It has 138 rooms, including 22 suites. The hotel also has a spa and three food and beverage options.
In addition, the property is home to The Restaurant at Mr. C; 24,000 square feet of meeting space; a 4,500-square-foot outdoor pool terrace; gym; and business center.
The five condominium units are fully furnished and offer access to the hotel’s amenities. They range from 2,000 to 3,4000 square feet and are being used for extended stay rentals.
Braemar Hotels & Resorts expects a yield of more than 8% on the investment in the next three to five years.
The Mr. C isn’t the only recent notable hotel sale in L.A. In May, Westwood-based Stockdale Capital Partners purchased the 175-room JW Marriott Santa Monica Le Merigot hotel from Columbia Sussex.
The company declined to provide the purchase price, but records indicate that it sold for $75 million.
The JW Marriott Santa Monica is located at 1740 Ocean Ave. and has 11 indoor and outdoor event spaces, a full-service restaurant, a patio lounge, 24/7 in-room dining, an outdoor pool with a spa terrace, the Spa Le Merigot, a fitness center and a business center.
There were some big sales last year as well.
Downtown-based BLVD Hospitality, Global Mutual and ESI Ventures purchased the iconic Georgian Hotel at 1415 Ocean Ave. in Santa Monica for $62 million.
EOS Investors, meanwhile, purchased the 116-room Viceroy L’Ermitage Beverly Hills for $100 million. The hotel is located at 9291 Burton Way, near Rodeo Drive.
And late last year the 502-room Renaissance Los Angeles Airport hotel sold for $91.5 million.
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