Braemar Hotels & Resorts will sell its 369-key Marriott Seattle Waterfront hotel for $145 million to an undisclosed buyer.
The price, which breaks down to $393,000 per key, includes anticipated capital expenditures of $7 million, according to a news release. It also represents an 8.1% capitalization rate on the property's net operating income for the trailing 12 months ending May 31.
Braemar reported the Marriott Seattle Waterfront saw a net loss of $1.6 million in those trailing 12 months but achieved earnings before interest, taxes, depreciation and amortization of $14.3 million. It also had $1.9 million for capital reserve, resulting in net operating income of $12.4 million.
"The sale of this upper-upscale hotel will help deleverage our portfolio and further align our financial performance with the luxury hotel sector," Braemar President and CEO Richard Stockton said in the news release.
During Braemar's first-quarter 2025 earnings call, Stockton said the REIT had been testing the market with a few of its hotels and was pleased with the amount of increased buyer activity.
"I know I've been talking about this process for a while," he said. "It does take a long time, but we are having buyers tour our assets. We're getting [letters of intent], so we're seeing a fair amount of activity."
The properties Braemar would consider selling fall in the upper-upscale category, of which there are three to four, Stockton said at the time.
"We would consider them," he said. "I haven't officially designated them as noncore, but clearly our strategy is to own luxury assets. ... We'll probably get to closing on one or two hotels this year."
The hotel-focused real estate investment trust did not buy or sell any other hotels during the first half of 2025. However, Braemar did close on the refinancing of five hotels, which addressed its final 2025 debt maturity concerns as well as reduced interest costs. In July 2024, it sold the 394-room Hilton La Jolla Torrey Pines for $165 million.