Braemar Hotels & Resorts Inc. has signed a definitive agreement to sell the Four Seasons Resort Scottsdale in Arizona for $372 million. The deal, which includes a $10 million nonrefundable earnest money deposit, values the resort at approximately $1.8 million per key. The transaction is scheduled to close by October 22, 2026, pending customary adjustments.
Braemar’s Strategy to Separate from Ashford Inc.
The sale supports Braemar’s ongoing effort to separate from Ashford Inc. and become a self-managed real estate investment trust (REIT). Earlier in 2026, Braemar completed sales of The Ritz-Carlton Sarasota, Hotel Yountville, and Bardessono Hotel and Spa for a combined $437.5 million in July, followed
by the $190 million sale of Pier House Resort & Spa in August. These disposals are part of a broader plan to streamline the portfolio.
Cost Reductions and Refinancing Plans
Braemar expects to reduce annual corporate general and administrative expenses from about $42 million to $15 million by terminating its management agreement with Ashford Inc. The company plans refinancing transactions over the next three to six months to lower weighted-average interest rates on certain assets by more than 150 basis points. These refinancings are projected to save $4.8 million to $5.5 million in interest costs during 2027 and extend debt maturities. On a pro forma
basis, the company anticipates reducing net debt as a percentage of gross assets from 50% to 36%.
Remaining Portfolio and Financial Outlook
Once the Four Seasons Resort Scottsdale sale closes, Braemar’s portfolio will consist of seven properties, including Ritz-Carlton Reserve Dorado Beach in Puerto Rico, The Ritz-Carlton, St. Thomas in the U.S. Virgin Islands, Capital Hilton in Washington, D.C., The Notary Hotel in Philadelphia, Sofitel Chicago Magnificent Mile, The Ritz-Carlton, Lake Tahoe, and Cameo Beverly Hills in California. Forward bookings for this portfolio show a 25% revenue pace increase year-over-year as of September 2026, led by a 27% rise in average daily rate (ADR).
For
2027, Braemar projects revenue per available room (RevPAR) growth between 4.5% and 6.5%, with comparable RevPAR ranging from $354 to $361. Total revenue is forecast between $407 million and $412 million, with adjusted EBITDAre estimates from $85 million to $90 million and a GAAP net loss of $6 million to $11 million.
Executive Statements and Market Context
Richard Stockton, president and CEO of Braemar Hotels & Resorts, stated, “With Four Seasons Resort Scottsdale under contract and our transition to self-management on schedule, Braemar is well positioned to deliver long-term value for our shareholders.” He highlighted strong sector fundamentals and luxury hotel investment strategy as supportive
of the company’s approach, adding that Braemar remains disciplined in evaluating portfolio additions.
Industry data showed strong hotel performance in 2026 due to increased business travel and major events like the World Cup. Hotel occupancy rose by 80 basis points year-over-year in the second quarter of 2026, while average daily rates increased 4.4%, resulting in 5.7% growth in RevPAR compared with the previous year.
Shareholder Dispute Resolution
Braemar also resolved a shareholder dispute with its largest investor, Al Shams Investments Limited, which withdrew its notice nominating board candidates for the 2026 annual meeting under a cooperation and settlement agreement. The conditions include voting
and standstill commitments and settlement of all outstanding legal issues between the parties.
