Braemar Hotels & Resorts Inc. has announced the successful closing of the sale of the Four Seasons Resort Scottsdale for $372 million. This transaction, finalized on November 3, 2026, is a significant step for the company as it continues to transition to a self-managed real estate investment trust (REIT).

The sale price of $1.8 million per key represents a capitalization rate of 5.8% on net operating income and a 15.0x Hotel EBITDA multiple for the trailing 12 months ended September 2026. Richard J. Stockton, President and CEO of Braemar, expressed satisfaction with the investment, stating, "This transaction further demonstrates our acquisition team’s ability to source and underwrite attractive opportunities, in addition to our asset management team’s ability to implement deliverable growth strategies." He noted that the sale generated an unlevered return of approximately 15%, significantly above the company's 10% minimum target.

Stockton added, "We expect the proceeds from this sale, together with cash on hand, to fund the remaining fees owed to our external advisor under our separation agreement. We remain on track to complete our transition to a self-managed REIT in mid-November. We look forward to updating shareholders as we finalize the remaining steps." This strategic move is expected to bolster Braemar's financial position as it navigates the competitive landscape of the luxury hotel sector.

Background

Braemar Hotels & Resorts Inc. is a real estate investment trust (REIT) focused on the luxury hotel and resort sector. The company trades on the New York Stock Exchange under the ticker symbols BHR, BHR-PB, and BHR-PD. Its portfolio includes high-growth luxury properties across the United States and U.S. territories in the Caribbean. The company has been actively engaged in various transactions, as evidenced by its recent filings, including a definitive proxy statement and several current reports.

What the Filing Says

The filing indicates that the sale of the Four Seasons Resort Scottsdale is a pivotal event for Braemar, highlighting the company's successful asset management and strategic planning. The transaction closed for $372 million, which includes anticipated capital expenditures of $23 million.

Impact

This sale may affect various stakeholders, including shareholders, as the proceeds are expected to support the company's transition to a self-managed REIT. The successful execution of this sale could also influence competitors in the luxury hotel market, prompting them to enhance their asset management strategies.

What's Next

The filing does not specify what happens next beyond the completion of the transition to a self-managed REIT, which is expected to occur in mid-November.