Braemar Hotels & Resorts is continuing to offload its luxury assets: In late September, the company entered into a definitive agreement to sell the Four Seasons Resort Scottsdale (Ariz.) at Troon North for $372 million ($1.8 million per key) and received a $10 million non-refundable earnest money deposit in connection with the sale. The name of the buyer was not disclosed.
Including anticipated capital expenditures of $23 million, the sale price represents a 6.2 percent capitalization rate on net operating income for the trailing twelve months ended August.
The transaction is expected to close Oct. 22 subject to customary prorations and adjustments.
Braemar acquired the property in 2022 for $267.8 million ($1.28 million per key). The resort opened in 1999.
Offloading Properties
The deal follows Braemar's sales of Park Hyatt Beaver Creek (Colo.) Resort & Spa for $176 million ($912,000 per key) in May; the Ritz-Carlton Sarasota, the Hotel Yountville and the Bardessono Hotel and Spa for a combined $437.5 million ($1 million per key) in July; and the Pier House Resort & Spa for $190 million ($1.3 million per key) in August.
With these sales either completed or underway, Braemar now has a portfolio of seven assets, three of which are under Ritz-Carlton flags.
In June, the company announced plans to become a self-managed real estate investment trust while remaining publicly traded, terminating its advisory agreement and contractual arrangements with Ashford and its affiliates and internalizing its management functions. The company originally put itself up for sale last August.