Company: BHR-PD
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001574085-25-000092
Chunk: 20

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 20
---
 estimated fair value of $5.4 million.We accounted for this acquisition as an asset acquisition because substantially all of the fair value of the gross assets acquired was concentrated in a group of similar identifiable assets. The cost of the acquisition including transaction costs was allocated to the individual asset acquired and liabilities assumed on a relative fair value basis, which is considered a Level 3 valuation technique.

5. Hotel Disposition

On July 17, 2024, the Company sold the Hilton La Jolla Torrey Pines for $165 million in cash, subject to customary pro-rations and adjustments. The Company owned an indirect 75% equity interest in the hotel property. Additionally, the Company repaid the $66.6 million mortgage loan secured by the hotel property. The sale resulted in a gain of approximately $88.1 million for the year ended December 31, 2024. 

12

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)(unaudited)

We included the results of operations for this hotel property through the date of disposition in net income (loss) as shown in our condensed consolidated statements of operations for the three and six months ended June 30, 2024. The following table includes the condensed consolidated financial information from this hotel property (in thousands):Three Months Ended June 30,Six Months Ended June 30,20242024Total hotel revenue$14,112 $25,852 Total hotel operating expenses(8,374)(15,567)Property taxes, insurance and other(766)(1,555)Depreciation and amortization(1,059)(2,149)Operating income (loss)3,913 6,581 Interest income110 210 Interest expense and amortization of loan costs(1,846)(3,538)Write-off of loan costs and exit fees— (101)Income (loss) before income taxes2,177 3,152 Income from consolidated entities attributable to noncontrolling interests(1,021)(1,728)(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership(93)(114)Income (loss) before income taxes attributable to the Company$1,063 $1,310 

6. Indebtedness, net

Indebtedness, net consisted of the following (dollars in thousands):Indeb