Braemar to sell Four Seasons Resort Scottsdale for $372M - hotelbusiness.com

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Four Seasons Resort Scottsdale at Troon North

[Braemar Hotels & Resorts Inc.](https://www.bhrreit.com/) has entered into a definitive agreement to sell the Four Seasons Resort Scottsdale for $372 million, a transaction expected to help fund the company’s [separation from Ashford Inc. and transition to a self-managed real estate investment trust (REIT)](https://hotelbusiness.com/braemar-to-terminate-ashford-advisory-agreement/).

The agreement values the resort at approximately $1.8 million per key. Braemar received a $10 million nonrefundable earnest money deposit, with the transaction expected to close Oct. 22, subject to customary prorations and adjustments.

Including anticipated capital expenditures of $23 million, the sale price represents a 6.2% capitalization rate on net operating income for the 12 months ended August 2026.

The planned sale follows several other dispositions by the Dallas-based REIT this year. In July, Braemar completed the sale of The Ritz-Carlton Sarasota, Hotel Yountville and Bardessono Hotel and Spa for a combined $437.5 million, or approximately $1 million per key. In August, [the company sold Pier House Resort & Spa for $190 million](https://hotelbusiness.com/sixth-street-acquires-pier-house-resort-spa-for-190m/), or approximately $1.3 million per key.

Proceeds from the dispositions, combined with planned refinancing transactions, are expected to provide sufficient funds to pay the remaining fees owed to Ashford as part of Braemar’s separation and transition to self-management. The company expects to complete that process by mid-November.

“With Four Seasons Resort Scottsdale under contract and our transition to self-management on schedule, Braemar is well positioned to deliver long-term value for our shareholders,” said Richard Stockton, president/CEO, Braemar Hotels & Resorts. “Current sector tailwinds and strong fundamentals support our luxury hotel investment strategy.”

Following the Scottsdale sale, Braemar’s portfolio will consist of seven properties: Ritz-Carlton Reserve Dorado Beach in Puerto Rico; The Ritz-Carlton, St. Thomas in the U.S. Virgin Islands; Capital Hilton in Washington, DC; The Notary Hotel, Autograph Collection in Philadelphia; Sofitel Chicago Magnificent Mile; The Ritz-Carlton, Lake Tahoe in California; and Cameo Beverly Hills, LXR Hotels & Resorts in California.

As part of its transition to self-management, Braemar expects to reduce annual corporate general and administrative expenses, including advisory and related fees, from approximately $42 million to $15 million. The reduction represents more than $25 million in annual savings.

The company also plans targeted refinancing transactions over the next three to six months that are expected to reduce weighted-average interest rates on the affected assets by more than 150 basis points. These transactions are projected to generate between $4.8 million and $5.5 million in interest savings during 2027 while extending debt maturities.

On a pro forma basis, Braemar expects net debt as a percentage of gross assets to decline from approximately 50% to 36%.

The company reported positive forward booking trends across its remaining portfolio. As of September, revenue pace for the next 12 months was approximately 25% ahead of the prior year, driven by an approximately 27% increase in ADR. On-the-books occupancy was modestly below year-earlier levels.