Braemar Hotels & Resorts entered into a definitive agreement to purchase the 210-room Four Seasons Resort Scottsdale at Troon North for $267.8 million or roughly $1.3 million per key. The property last traded in 2014 for $140 million.
According to a news release, the Dallas, Texas-based hotel real estate investment trust is buying the 210-room property in an all-cash deal that is expected to close in the fourth quarter of this year.
Emmy Hise, senior director of hospitality market analytics, CoStar Group, said this transaction is "by far the highest price per key paid in Phoenix market history," according to CoStar data. The next highest price per key in Phoenix was the Waldorf Astoria Arizona Biltmore at $857,871 per key in 2007.
The resort opened in 1999 and underwent a $20.7 million renovation in 2016. Its amenities include spa treatments, a bi-level pool, mountain views and proximity to two golf courses.
"The acquisition of the Four Seasons Resort Scottsdale is an exciting opportunity for us to acquire a timeless, luxury resort ideally located in picturesque North Scottsdale," Braemar President and CEO Richard Stockton said in the release. "This exquisite property fits perfectly with our strategy of owning high [revenue per available room] luxury hotels and resorts and further diversifies our portfolio."
Speaking with Hotel News Now in June at the 2022 NYU International Hospitality Industry Investment Conference, Stockton described the company's acquisition strategy as finding deals that are favorable to Braemar's shareholders and only investing in luxury properties.
Two of those deals within the past year include the Dorado Beach, a Ritz-Carlton Reserve, for $193 million, and the Mr. C Beverly Hills for $65.4 million.
Stockton said there are a finite number of markets that have the revenue per available room his company is looking for. As for the Four Seasons Resort Scottsdale at Troon North, Braemar projects it will achieve a RevPAR of $407 by the end of 2022.
In June, he said the REIT plans to be a net acquirer in 2022, with the goal of buying up to three hotels per year.
"I would love to complete another one before the end of the year. But, again, it comes down to being financially disciplined and ensure that I'm not overpaying," he said. "I can't guarantee you that we'll acquire something else this year because we've looked at so many things, and the numbers just haven't worked for us relative to the pricing that sellers are seeking."