Braemar Hotels & Resorts Completes Acquisition of The Mr. C Beverly Hills Hotel For $77.9m
Main Photo: The Hotel Lobby
Date: September 2021
Name: Mr. C Beverly Hills
Location: Beverly Hills, Los Angeles, California, USA
Number of Keys: 138
Seller: The Cipriani Family
Buyer: Braemar Hotels & Resorts
Braemar Hotels & Resorts Inc. has completed the acquisition of the 138-room Mr. C Beverly Hills Hotel in Los Angeles, California. The company has also acquired five luxury condominium residences adjacent to the hotel. The total consideration for the acquisition was $77.9 million and consisted of $65.4 million for the hotel ($474,000 per key) and an allocated price of $12.5 million for the five adjacent condominium units. The acquisition was funded with approximately $30 million of cash, 2.5 million OP units, 500,000 warrants at a strike price of $6.00, and a $30 million mortgage loan.
The Mr. C hotels brand was conceptualized by Ignazio and Maggio Cipriani of the Cipriani family internationally renowned for their restaurants, innovative event spaces, nightlife and residences. As young travellers commuting between Europe and the United States, the fourth generation Cipriani found Los Angeles to be the perfect location to introduce their independent hotel brand, Mr. C.
Grandfather Giuseppe Cipriani of course was the famed owner of Harry’s Bar and the Cipriani Hotel in Venice, back in 1931.
Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts. They have a portfolio of some 15 top-end hotels mostly in the USA, including the Sofitel Chicago Magnificent Mile, The Ritz-Carlton St. Thomas and the Marriott Seattle Waterfront.
Braemar Hotels & Resorts embraces five guiding principles that describe what the company stands for: ethical, innovative, profitable, engaging and tenacious. They say that these guiding principles are more than just a catchy phrase or slogan, they are a way of doing business.
One of those Guiding Principles is to be Engaging. The focus of this principle is for Braemar Hotels & Resorts to be an active partner and contributor to their surrounding community and to positively support organisations that assist those less fortunate. Their major company-wide philanthropic events are our Community Service Day (Spring) and Holiday Events Participation (Winter). In addition, throughout the year, they encourage associates to be mindful of community contributions and they financially support many charitable causes in their markets.
Price: US$77.9m to include five Condo residences valued at $12.5m
Price per Key: US$474k
THPT Comment: Great concept – Mr. C from Cipriani family…like the Braemar philosophy…we believe it is written into many of hotel brand’s franchise agreements, that the GM of a local hotel must be “engaged in the local community” It would be great to see more of that.
First Seen: www.hotel-online.com
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