Braemar Offers Luxury Hotels As Virus Hits Room Demand
(Bloomberg) -- Braemar Hotels & Resorts Inc. has explored asset sales as the U.S. hospitality industry is battered by the coronavirus outbreak, according to people familiar with the matter.
Virtually all of the company’s properties, including the Ritz-Carlton St. Thomas in the U.S. Virgin Islands and the Hilton La Jolla Torrey Pines in California, were on the table, according to one of the people, who asked not to be named because the matter is private.
Prices from prospective buyers have so far been too low, said one of the people, adding that the company remains open to the sale of some assets.
A representative for the company declined to comment.
Braemar’s shares have plunged more than 75% this year as travel restrictions implemented to slow the spread of the coronavirus have shut down travel and brought hotel demand to a halt.
The Dallas-based company focuses on luxury hotels, which have been especially hard hit. High-end properties saw occupancy rates plummet to 11% in the week ending March 21, according to lodging data provider STR.
Braemar had about $1.1 billion in property-level debt as of Dec. 31. The stock slide this year has left the company with a market value of roughly $62 million.
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