What happened 

Shares of Braemar Hotels & Resorts (BHR 0.36%) jumped as much as 18.5% in trading on Friday after the company annouced details of a debt offering. Shares didn't hold their highs of the day and are up 9% at 1:20 p.m. EDT. 

So what

Management announced the pricing of a $75 million convertible debt offering of 4.5% notes due in 2026. The deal comes with an option for underwriters to purchase another $11.25 million of notes and will have an initial conversion rate of $6.34 per share. 

Bell at a hotel desk.

Image source: Getty Images.

This offering is larger than the $50 million debt offering announced earlier this week and investors were clearly pleased with the terms. If the company continues to get reasonable rates on debt it won't have to tap equity markets as it did in the first quarter when it sold $16.1 million of stock. 

Now what

The hotel business has been rocked over the past year but there's hope that demand will be strong for the rest of 2021. And investors are seeing that debt markets are at least giving companies like Braemar a lifeline until visitors return in bigger numbers. That's enough to push the stock higher today.