Sixth Street Buys Four Seasons Scottsdale for $372M, About $1.8M a Key

By Nathan Snyder, Editor

Sixth Street, with Riller Capital, announced Oct. 29 that it has acquired the 210-room Four Seasons Resort Scottsdale at Troon North for $372 million from Braemar Hotels & Resorts (NYSE: BHR). Braemar has put the price at about $1.8 million a key. Simple math on $372 million divided by 210 keys is about $1.77 million a key. For owners and brokers watching Phoenix luxury resorts, this is a fresh hard comp.

Per Sixth Street’s announcement, the resort spans about 38 acres at the base of Pinnacle Peak in North Scottsdale, plus roughly 13 acres of developable land. The inventory is 188 casitas and 22 suites. Eastdil Secured arranged the buyer’s financing, provided by Ares Management; the loan amount was not disclosed.

Braemar’s Oct. 8 release put the sale at about $1.8 million per key and a 6.2% cap rate on trailing-12-month NOI through August 2026, including $23 million of anticipated capex. Braemar has said sale proceeds help fund its separation from Ashford Inc. and its move to a self-managed REIT; it expects to complete that separation by mid-November, per the same Oct. 8 release.

Braemar’s Sept. 23 8-K named Evergreen Acquisitions, LLC as the contract buyer, with a $10 million nonrefundable deposit; Braemar had targeted an Oct. 22 close. Whether Evergreen is a Sixth Street/Riller vehicle has not been disclosed. The exact closing date is also unconfirmed: Sixth Street’s release is dated Oct. 29; Braemar had targeted Oct. 22. Braemar has not announced a closing date.

“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 at Sixth Street, in the Sixth Street release. Sixth Street says it looks forward to “working with Four Seasons”; whether Four Seasons stays on as manager under the same agreement is unconfirmed, and Ares loan size and terms were not disclosed.

Why It Matters

A roughly $1.8 million-per-key, 6.2% cap-rate trade on a Phoenix-area luxury resort is a live valuation print for Scottsdale and the broader Phoenix hotel market. It follows the Fairmont Scottsdale Princess sale, per azcentral. It also shows large private capital (Sixth Street, with Ares debt arranged by Eastdil) still buying and financing trophy resorts even as Fed officials this week have signaled more firming; see our Musalem / December hike read. Brokers should also watch Braemar for more dispositions as it funds the Ashford exit. Track related prints on our Hotel Transactions Desk / Transaction Tracker.

What This Means For Your Hotel…