Braemar Hotels & Resorts Inc. has entered into a definitive agreement to sell the Four Seasons Resort Scottsdale in Arizona for $372 million. The sale, valuing the resort at approximately $1.8 million per key, includes a $10 million nonrefundable earnest money deposit and is expected to close on October 22, 2026, subject to customary prorations and adjustments. Including projected capital expenditures of $23 million, the transaction reflects a 6.2% capitalization rate based on net operating income for the 12 months ended August 2026.
2026 Portfolio Disposals
Earlier in 2026, Braemar sold multiple properties as part of its strategic downsizing. In July, it divested
The Ritz-Carlton Sarasota in Florida, Hotel Yountville, and Bardessono Hotel and Spa in Napa Valley, California, in a package deal totaling $437.5 million. In August, the company sold Pier House Resort & Spa in Florida for $190 million. These sales, combined with the Four Seasons Scottsdale transaction, form a significant portion of Braemar’s asset reduction efforts this year.
Financial Strategy and Transition
Proceeds from the 2026 disposals, along with planned refinancing in the coming months, will fund Braemar’s ongoing separation from Ashford Inc. The company has committed to a $480 million termination fee to end its management agreement with Ashford. Annual corporate general and
administrative expenses are projected to drop from $42 million to $15 million after completing the transition to self-management by mid-November 2026. Targeted refinancing transactions over the next three to six months are expected to reduce weighted-average interest rates by more than 150 basis points, yielding $4.8 million to $5.5 million in interest savings in 2027 and extending debt maturities. Net debt as a percentage of gross assets is projected to decline from about 50% to 36% on a pro forma basis.
Post-Sale Hotel Portfolio
Following the Four Seasons Resort Scottsdale sale, Braemar will retain ownership of seven hotels across key U.S. and Caribbean
locations. These include Ritz-Carlton Reserve Dorado Beach (Puerto Rico), The Ritz-Carlton St. Thomas (U.S. Virgin Islands), Capital Hilton (Washington, DC), The Notary Hotel, Autograph Collection (Philadelphia), Sofitel Chicago Magnificent Mile (Illinois), The Ritz-Carlton Lake Tahoe (California), and Cameo Beverly Hills, LXR Hotels & Resorts (California).
2027 Financial Outlook
For 2027, Braemar forecasts revenue between $407 million and $412 million with comparable hotel EBITDA margins ranging from 24.5% to 25.4%. The company expects adjusted EBITDAre between $85 million and $90 million, alongside a GAAP net loss of $6 million to $11 million. These projections assume $405 million in net debt and $407 million in
preferred equity outstanding at the end of 2026. Forward bookings as of September 2026 show a revenue pace approximately 25% higher than the prior year for the next 12 months, driven by a 27% increase in average daily rate (ADR). Occupancy levels currently trail modestly behind prior year.
Executive Statements and Industry 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 added that “current sector tailwinds and strong fundamentals support our luxury hotel investment strategy.” Stockton
highlighted the company’s selective growth approach and commitment to the luxury segment, emphasizing openness to opportunities that maximize portfolio value.
The 2026 hotel industry demonstrated strong fundamentals amid increased business travel and significant events such as the World Cup. Hotel occupancy rose by 80 basis points year-over-year in the second quarter, with demand outpacing supply additions. Average daily rates in the sector increased by 4.4%, and revenue per available room (RevPAR) grew by 5.7% compared to the prior year, though occupancy remains below 2019 levels.
Settlement with Largest Shareholder
Braemar reached a cooperation and settlement agreement with its largest shareholder, Al Shams Investments Limited,
resolving outstanding legal disputes. As part of the settlement, Al Shams withdrew its board of directors nominations for the 2026 annual meeting and agreed to voting and standstill commitments. The terms of the agreement have not been further disclosed.
