Braemar buys Ritz-Carlton Dorado Beach in Puerto Rico
Braemar Hotels & Resorts purchases a boutique hotel in Puerto Rico, where billionaire John Palson is looking to sell the two hotels he bought in 2014.
The Dallas-based hotel real estate investment trust is contributing $ 186.6 million, or $ 1.9 million for each of the 96 rooms at the Dorado Beach hotel, according to the Dallas Morning News. The deal includes the management of the 14 neighboring luxury residential units and is expected to be concluded in early 2022.
Richard Stockton, president and chief executive officer of Braemar, said in a statement that the property is the first Ritz-Carlton reserve in the Americas and one of five in the world. âThis unique property fits perfectly with our strategy of owning high revenue luxury hotels and resorts per available room and further diversifies our portfolio,â he said.
The resort’s average daily rate was nearly $ 2,000 per night and it averaged 57% occupancy in 2021, the Dallas Morning News reported.
Hotel Puerto Rico opened in 2012 and is part of Dorado Beach Resort, which spans 1,900 acres. A $ 78 million renovation of the Ritz-Carlton Reserve was completed in 2018.
The majority – 98% – of Puerto Rico are in Opportunity Zones, which allow investors who invest significantly in their properties to benefit from tax advantages.
Paulson hired JLL to market San Juan’s Condado Vanderbilt hotel and La Concha Renaissance San Juan complex, The Wall Street Journal reported earlier this month. Hotel owners and brokers have said the two properties together could fetch more than $ 500 million.
[Dallas Morning News] – Catherine Kallergis