Braemar Hotels & Resorts Inc. has signed a definitive agreement to sell the Four Seasons Resort Scottsdale for $372 million as part of its strategy to separate from Ashford Inc. and transition to a self-managed real estate investment trust (REIT).
The Scottsdale property is valued at roughly $1.8 million per key. Braemar received a nonrefundable earnest money deposit of $10 million from the buyer. The transaction is scheduled to close on October 22, 2026, subject to standard prorations and adjustments. Including planned capital expenditures of $23 million, the deal reflects a 6.2% capitalization rate based on net operating income for
the 12 months ending August 2026.
Earlier in 2026, Braemar completed multiple asset sales to help fund its management separation. In July, the company sold The Ritz-Carlton Sarasota, Hotel Yountville, and Bardessono Hotel and Spa for a combined total of $437.5 million. In August, it sold the Pier House Resort & Spa for $190 million to a partnership between Sixth Street and Riller Capital.
Asset Sales to Fund Separation
Proceeds from these sales, along with planned refinancing, are intended to cover the termination fee owed to Ashford and support Braemar’s transition to self-management. The company expects to finalize this process by mid-November 2026. The termination
fee to end the management agreement with Ashford totals $480 million.
Richard Stockton, Braemar’s president and CEO, said the company is positioned to deliver long-term shareholder value with the Four Seasons Resort Scottsdale sale advancing as planned. He cited favorable market conditions and robust fundamentals supporting Braemar’s focus on luxury hotel investments.
Post-Sale Portfolio and Financial Outlook
After divesting the Scottsdale resort, Braemar will retain seven hotels: 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.
The company projects a reduction in annual corporate general and administrative expenses, including advisory fees, from about $42 million to $15 million due to ending its management agreement with Ashford. It also plans refinancing initiatives over the next three to six months expected to lower weighted-average interest rates on affected assets by more than 150 basis points.
These refinancing efforts are anticipated to generate interest savings between $4.8 million and $5.5 million in 2027 while extending debt maturities. Braemar forecasts its net debt to gross assets ratio will decline from
approximately 50% to 36% on a pro forma basis.
Forward Booking and 2027 Financial Guidance
As of September 2026, Braemar reported that revenue pace for the next 12 months is about 25% ahead of the previous year, driven by a 27% rise in average daily rate (ADR). Occupancy on the books is slightly below prior year levels.
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, and comparable hotel EBITDA margins are expected to be 24.5% to 25.4%.
The company anticipates adjusted EBITDAre
of $85 million to $90 million and a GAAP net loss between $6 million and $11 million for 2027. Net debt and preferred equity at the end of 2026 are forecast at approximately $405 million and $407 million, respectively.
Shareholder Agreement and Strategic Focus
Braemar resolved a legal dispute with its largest shareholder, Al Shams Investments Limited, through a cooperation and settlement agreement. Al Shams withdrew its board nomination notice for the 2026 annual meeting. The agreement includes voting and standstill commitments and settles outstanding legal issues.
Stockton stated, “We have consistently demonstrated an ability to grow selectively and accretively. We will remain disciplined and
deliberate in evaluating opportunities to add complementary properties to our portfolio while maintaining our focus on the luxury hotel segment.” He added that Braemar is open to any pathway that maximizes the portfolio’s value.
