The REIT generated a 15% unlevered return on the 210-room luxury resort it acquired in 2022, exceeding its 10% minimum target.
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What were the sale price and investment returns on Braemar Hotels' Four Seasons Scottsdale disposal?
Braemar Hotels & Resorts (NYSE: BHR) closed the sale of the 210-room Four Seasons Resort Scottsdale for $372 million, or $1.8 million per key, on November 3, 2026. The deal priced at a 5.8% capitalization rate and a 15.0x Hotel EBITDA multiple on trailing 12-month NOI ended September 2026. Braemar generated an unlevered return of approximately 15%, against its 10% minimum target, having acquired the property in 2022.
Key facts
- Braemar Hotels & Resorts closed the sale of the Four Seasons Resort Scottsdale for $372 million, equating to $1.8 million per key, according to a November 3, 2026 press release.
- Including anticipated capital expenditures of $23 million, the sale price represents a 5.8% capitalization rate on net operating income for the trailing 12 months ended September 2026, according to Braemar Hotels & Resorts.
- The Four Seasons Resort Scottsdale transaction closed at a 15.0x Hotel EBITDA multiple on trailing 12-month performance ended September 2026, according to Braemar Hotels & Resorts.
- Braemar Hotels & Resorts generated an unlevered return of approximately 15% on the Four Seasons Scottsdale, significantly above the company's stated 10% minimum target, said Richard J. Stockton, President and Chief Executive Officer.
- Braemar Hotels & Resorts said it expects proceeds from the Four Seasons Scottsdale sale, together with cash on hand, to fund the remaining fees owed to its external advisor under the company's separation agreement.
- Braemar Hotels & Resorts said it remains on track to complete its transition to a self-managed REIT in mid-November, according to the November 3, 2026 press release.
Braemar Hotels & Resorts closed the sale of the 210-room Four Seasons Resort Scottsdale for $372 million, or $1.8 million per key, the company said Tuesday. The sale price represents a 5.8% capitalization rate on net operating income and a 15.0x Hotel EBITDA multiple for the trailing 12 months ended September 2026. Including anticipated capital expenditures of $23 million, the transaction metrics remain unchanged.
Braemar acquired the property in 2022. The sale generated an unlevered return of approximately 15%, significantly above the company's 10% minimum target, chief executive Richard Stockton said.
The company expects the proceeds from the sale, together with cash on hand, to fund the remaining fees owed to its external advisor under a separation agreement. Braemar remains on track to complete its transition to a self-managed REIT in mid-November, Stockton said.
Braemar is a real estate investment trust focused on luxury hotels and resorts. Its portfolio features luxury properties across the United States and the U.S. territories in the Caribbean.
The transaction demonstrates the company's acquisition team's ability to source and underwrite attractive opportunities, in addition to its asset management team's ability to implement growth strategies, Stockton said.
The Deployment Angle
Family Office Real Estate Daily Desk · our analysis, not the source's
A 15% unlevered return on a four-year hold implies Braemar bought the Four Seasons Scottsdale at roughly $257 million in 2022, then drove value through the $23 million capital program and operational improvements before exiting at $372 million. That pencils to a 3.7% annual NOI growth assumption embedded in the 5.8% exit cap rate, assuming stable operations at entry.
For family offices evaluating luxury hospitality co-investment, this exit argues for partnering with operators who can underwrite renovation-and-reposition plays rather than passive stabilized holds. The 15.0x EBITDA multiple paid by the buyer suggests institutional demand for trophy resort assets remains strong enough to reward active asset management, even as cap rates have compressed industrywide.
The structure to watch is co-GP equity alongside an experienced hotel operator on properties with deferred capex and revenue-management upside. Direct ownership of a single luxury resort exposes a family office to property-level execution risk and illiquidity, while an LP commitment to a commingled hotel fund dilutes control and blends returns across disparate geographies. A separate-account partnership on one or two assets—where the family office takes a board seat and approves the capital plan—captures the return profile Braemar delivered here without the overhead of a fully self-managed portfolio.
Underwrite exit multiples conservatively. If the buyer here is paying 15.0x EBITDA in late 2026, that buyer is betting on continued NOI growth or a future exit to an even more aggressive purchaser. Family offices entering today should price in a reversion to 12.0x to 13.0x EBITDA and stress-test the hold-period cash flow against refinancing at 200 to 250 basis points above today's rates.
