Braemar Closes $358 Million CMBS Refinancing for Four Hotels

Braemar Hotels & Resorts (BHR ) announced on November 10, 2026 that it had closed a $358.0 million CMBS loan secured by four hotels, replacing two existing CMBS loans and reducing their weighted-average interest-rate spread by approximately 104 basis points.

The new loan is secured by The Ritz-Carlton St. Thomas, The Ritz-Carlton Reserve Dorado Beach, The Notary Hotel and Sofitel Chicago Magnificent Mile. It is interest-only and carries a floating rate of SOFR plus 2.37%, making 2.37% the spread over the benchmark rather than a fixed all-in rate. The two-year initial term is followed by three one-year extension options, subject to certain conditions.

The refinancing replaces loans with combined outstanding balances of approximately $290.4 million as of September 30, 2026. The St. Thomas loan had a balance of approximately $80.5 million and carried a spread of SOFR plus 4.91%. The loan backed by Dorado Beach, The Notary Hotel and Sofitel Chicago had a balance of approximately $209.9 million and a spread of SOFR plus 2.83%.

Braemar said the change takes the weighted-average spread on the four-hotel debt from approximately 3.41% to approximately 2.37%. The new pricing applies to one loan secured by all four properties, rather than two separate pools with different margins.

The maturity changes are also significant. Braemar’s third-quarter debt table, published November 4, 2026, listed current maturities of August 2027 for the St. Thomas loan and March 2027 for the three-hotel loan, with final maturities of August 2029 and March 2030, respectively. The table’s final-maturity convention assumes all available extension options are exercised. If all the new loan’s options are exercised, its November 2031 final maturity replaces both of those fully extended dates.

The announcement said the $358.0 million balance is $42.0 million below the $400.0 million estimate in Braemar’s October 2026 investor presentation. Calculated from the disclosed balances, the new principal is approximately $67.6 million above the combined September 30 balances being replaced, a comparison of principal amounts rather than proceeds or interest savings.

Richard J. Stockton, Braemar’s president and chief executive officer, said the loans cover four of the company’s seven hotels. He characterized the below-estimate balance as reflecting “our management team’s disciplined approach to capital allocation and commitment to creating long-term value for shareholders.”

The refinancing sits within a broader floating-rate debt profile. Braemar’s third-quarter report put total indebtedness at $624.4 million at September 30, 2026, with a blended average interest rate of 7.25%. All of that debt was non-recourse and effectively floating rate.

The result is a lower-spread, potentially longer-dated financing for a majority of Braemar’s hotels, but with more principal secured by those four properties and continued exposure to movements in SOFR.