Including anticipated capital expenditures of $23 million, the sale price represents a 5.8% capitalization rate on net operating income and a 15.0x hotel EBITDA multiple for the trailing 12 months ended September 2026.
“I am extremely pleased with our investment in the Four Seasons Scottsdale,” said Richard J. Stockton, president/CEO, Braemar Hotels & Resorts. “Having acquired the property in 2022, this transaction further demonstrates our acquisition team’s ability to source and underwrite attractive opportunities, in addition to our asset management team’s ability to implement deliverable growth strategies. In doing so, we generated an unlevered return of approximately 15%, significantly above our 10% minimum target. We expect the proceeds from this sale, together with cash on hand, to fund the remaining fees owed to our external advisor under our separation agreement. We remain on track to complete our transition to a self-managed REIT in mid-November. We look forward to updating shareholders as we finalize the remaining steps.”
Spanning approximately 38 acres at the base of Pinnacle Peak in North Scottsdale, the resort offers 88 casitas and 22 suites, five food and beverage venues, a 9,000-sq.-ft. spa, a fitness center, a multilevel pool complex, tennis and pickleball courts and approximately 36,000 sq. ft. of indoor and outdoor meeting and event space. The Four Seasons Scottsdale also offers direct access to hiking through a private on-site trailhead and preferred access at the adjacent Troon North Golf Club.
The property also includes approximately 13 acres of developable land beyond the resort’s existing footprint.
“The Four Seasons Scottsdale is an iconic, irreplaceable luxury resort in one of the country’s fastest-growing and most attractive destinations,” said Aman Gupta, principal, Sixth Street. “With its dramatic desert setting at the base of Pinnacle Peak, distinctive casita-style accommodations, strong amenity base and best-in-class service and operations, the property offers a differentiated experience for high-end-leisure and group customers alike. We look forward to working with Four Seasons to further enhance the resort’s offerings to cement its position as one of the top resorts in the Southwest. This investment reflects Sixth Street’s continued conviction in the long-term fundamentals of luxury travel, particularly for distinctive properties.”
Tags: Richard J. Stocktons Braemar Hotels & Resorts Inc Four Seasons Resort Scottsdale
