Braemar Hotels Sells Four Seasons Scottsdale for $372M to Fund Ashford Exit

• Braemar Hotels & Resorts closed the sale of the 210-room Four Seasons Resort Scottsdale for $372 million, or approximately $1.8 million per room.
• The sale reflects a 5.8% cap rate and a 15.0x Hotel EBITDA multiple, including $23 million in anticipated capital spending.
• Braemar also refinanced its Ritz-Carlton Lake Tahoe mortgage as it prepares to leave Ashford Inc. and transition to a self-managed REIT in mid-November.

Braemar Closes $372M Scottsdale Resort Sale

Braemar Hotels & Resorts has completed its $372 million sale of the Four Seasons Resort Scottsdale at Troon North, marking a major step in the luxury hotel REIT’s plan to separate from external adviser Ashford Inc. The 210-room resort sold for approximately $1.8 million per key, before customary prorations and adjustments. The transaction closed on October 28, with Braemar announcing the completion on November 3. CEO Richard Stockton said Braemar acquired the resort in 2022 and generated an unlevered return of approximately 15%, exceeding its 10% minimum investment 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,” Stockton said. 

Sale Proceeds Support Ashford Separation

The Scottsdale sale is part of a broader asset-sale strategy designed to fund Braemar’s separation from Ashford and transition to self-management. In July, the company sold the Ritz-Carlton Sarasota, Hotel Yountville, and Bardessono Hotel & Spa for a combined $437.5 million. It followed with the $190 million sale of Pier House Resort & Spa in August. Braemar’s investor presentation put total Ashford separation fees at approximately $505 million, with $223 million remaining unpaid. The Scottsdale proceeds are expected to cover the balance. Following the transition, annual corporate overhead is projected to decline from approximately $42 million to $15 million, representing substantial cost savings.

Ritz-Carlton Lake Tahoe Debt Refinanced

Braemar also refinanced the mortgage on its 170-room Ritz-Carlton Lake Tahoe in Truckee, California. The existing loan had a $43.4 million balance, an interest rate of SOFR plus 3.25%, and a January 2027 maturity. The new financing provides $60 million at closing, with up to another $15 million available subject to conditions. It carries a three-year initial term, two one-year extension options, and an interest rate of SOFR plus 2.65%. Braemar said its next hard debt maturity is now December 2028. <Cite refs={["turn848891search3","turn848891search5"]}/>

A Leaner Luxury Hotel REIT Takes Shape

Braemar’s move to self-management comes alongside a governance dispute with its largest shareholder, Al Shams Investments, which has accused management of self-dealing. The company has nominated eight board candidates for its 2026 annual meeting, a slate that would replace every director except Stockton. The company says the Ashford separation remains on track for mid-November. The Scottsdale sale and Lake Tahoe refinancing give Braemar additional liquidity and a longer debt runway as it restructures its operations. The takeaway: Braemar is monetizing luxury hotel assets to pay its separation costs, reduce corporate overhead, and move toward a more independent operating structure.