Braemar Hotels & Resorts Inc. has entered into a definitive agreement to sell the Four Seasons Resort Scottsdale in Arizona for $372 million. The transaction, which values the resort at approximately $1.8 million per key, involves a nonrefundable $10 million earnest money deposit and is scheduled to close on October 22, 2026, subject to customary prorations and adjustments. Including anticipated capital expenditures of $23 million, the deal reflects a 6.2% capitalization rate on net operating income for the 12 months ending August 2026.
Braemar’s Asset Sales and Separation from Ashford
This sale is a continuation of Braemar’s broader plan to reduce its portfolio and transition into a
self-managed real estate investment trust (REIT) separate from Ashford Inc. In July 2026, Braemar completed the sale of three properties—The Ritz-Carlton Sarasota in Florida, Hotel Yountville in California, and Bardessono Hotel and Spa in California—for a combined $437.5 million. In August, Pier House Resort & Spa was sold for $190 million to a partnership formed by Sixth Street and Riller Capital.
Proceeds from these transactions, alongside planned refinancing activities, will fund Braemar’s $480 million termination fee to Ashford, enabling the end of their management agreement. Braemar expects to finalize its separation and full self-management by mid-November 2026.
Financial Implications and Forecast
Braemar anticipates significant
financial improvements from the transition. Its annual corporate general and administrative expenses, including advisory fees, are projected to decrease from approximately $42 million to $15 million, resulting in over $25 million in yearly savings. Targeted refinancing within the next three to six months is expected to lower weighted-average interest rates by more than 150 basis points, generating interest savings between $4.8 million and $5.5 million for 2027 while extending debt maturities.
The net debt-to-gross-assets ratio is forecasted to improve from roughly 50% to 36% on a pro forma basis after these transactions. Braemar’s forward bookings as of September 2026 indicate
a revenue pace approximately 25% above the prior year for the next 12 months, driven by a 27% rise in average daily rate (ADR), despite occupancy being slightly below year-earlier levels.
Financial guidance for 2027 includes projected revenue per available room (RevPAR) growth between 4.5% and 6.5%, total revenue of $407 million to $412 million, comparable hotel EBITDA margins between 24.5% and 25.4%, adjusted EBITDAre ranging from $85 million to $90 million, and a GAAP net loss forecast between $6 million and $11 million.
Remaining Portfolio and Strategy
Following the Four Seasons Resort Scottsdale sale, Braemar will retain ownership of seven properties: The Ritz-Carlton
Reserve Dorado Beach in Puerto Rico; The Ritz-Carlton, St. Thomas in the U.S. Virgin Islands; Capital Hilton in Washington, DC; The Notary Hotel, Autograph Collection in Philadelphia; Sofitel Chicago Magnificent Mile; The Ritz-Carlton, Lake Tahoe in California; and Cameo Beverly Hills, LXR Hotels & Resorts in California.
Richard Stockton, Braemar’s President and CEO, stated that with the Scottsdale sale under contract and the self-management transition on track, the company is positioned to provide long-term value for shareholders. He emphasized the support from current sector tailwinds and strong fundamentals for the luxury hotel investment strategy. Stockton added that Braemar will continue
selective growth and remain focused on the luxury segment while evaluating opportunities to add complementary properties.
Shareholder Settlement and Industry Context
Braemar reached a cooperation and settlement agreement with its largest shareholder, Al Shams Investments Limited, led by Wafic Rida Said. This agreement resulted in the withdrawal of Al Shams’ board nominations for the 2026 annual meeting and resolved all outstanding legal disputes between the parties through voting and standstill commitments.
The hotel sector experienced strong performance in 2026, supported by increased business travel and major events like the World Cup. Hotel occupancy rose 80 basis points year-over-year in the second quarter, with demand growth
outpacing new supply. The average daily rate grew by 4.4%, contributing to a 5.7% increase in RevPAR compared to the previous year, with only four markets reporting year-over-year declines in RevPAR during the same period, according to CBRE.
