Braemar Hotels & Resorts Divests Four Seasons Scottsdale for $372 Million to Support REIT Transition

Braemar Hotels & Resorts is selling the Four Seasons Resort Scottsdale for $372 million, equating to $1.8 million per key. The luxury property, located in Scottsdale, Arizona, is being acquired by an undisclosed buyer, with the transaction expected to close on October 22. A $10 million non-refundable earnest money deposit has already been secured.

The sale price, when factoring in $23 million in anticipated capital expenditures, represents a 6.2 percent capitalization rate based on the net operating income for the 12 months ending August 2026. This divestment is a strategic move by Braemar, designed to generate capital necessary to cover the remaining Company Sale Fee and Master Agreement Termination Fee owed to Ashford. This funding is crucial for Braemar's transition to a self-managed REIT, a separation anticipated to be finalized by mid-November.

For developers and investors, this sale highlights a significant transaction in the luxury hospitality sector and demonstrates a REIT's strategic asset disposition to facilitate a corporate restructuring.