An unknown buyer has signed a definitive agreement to acquire Hilton La Jolla Torrey Pines located in La Jolla, California from Braemar Hotels & Resorts Inc. (NYSE:BHR) for approximately $170 million on May 6, 2024. Including anticipated capital expenditures of $40 million, the sale price represents a 7.2% capitalization rate on net operating income for the trailing twelve months ended March 31, 2024. For the 12 Months Ending March 31, 2024, Hilton Torrey Pines had a Net income of $0.3 million, Interest expense $11.5 million, Amortization of loan cost $0.5 million, Depreciation and amortization $4.2 million, Non-hotel EBITDA ownership expense $0.5 million, Income tax expense $0.2 million, Hotel EBITDA $17.2 million, Capital reserve $2.5 million, and Hotel Net Operating Income $14.7 million.

The transaction is subject to several customary conditions, including approval from the City of San Diego, the ground lessor. The transaction is expected to be completed by August 2024.