Dallas hotel REIT to buy Ritz-Carlton Reserve in Puerto Rico for $187M
Deal includes management of 14 luxury residential units next door
Braemar Hotels & Resorts is buying a boutique hotel in Puerto Rico, where billionaire John Palson is seeking to sell the two hotels he bought in 2014.
The Dallas-based hotel real estate investment trust is paying $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 luxury residential units next door, and is set to close in early 2022.
Richard Stockton, Braemar’s president and CEO, said in a statement that the property is the first Ritz-Carlton Reserve in the Americas and one of five worldwide. “This unique property fits perfectly with our strategy of owning high revenue per available room luxury hotels and resorts and further diversifies our portfolio,” he said.
The resort’s average daily rate was close to $2,000 per night and it averaged 57 percent occupancy in 2021, the Dallas Morning News reported.
The Puerto Rico hotel opened in 2012 and is part of the 1,900-acre Dorado Beach Resort. A $78 million renovation of the Ritz-Carlton Reserve was completed in 2018.
The majority – 98 percent – of Puerto Rico is in Opportunity Zones, which allow investors who make significant investments in their properties to qualify for tax benefits.
Paulson hired JLL to market San Juan’s Condado Vanderbilt Hotel and La Concha Renaissance San Juan Resort, the Wall Street Journal reported earlier this month. Hotel owners and brokers said the two properties could together fetch upwards of $500 million.
[Dallas Morning News] – Katherine Kallergis