A wave of disposals to fund the separation
The Four Seasons Resort Scottsdale is being sold for $1.8 million per key, or around €1.5m. Braemar has already received a non-refundable deposit of $10 million (around €8.6m). Including $23 million of planned capital expenditure, the price represents a capitalisation rate of 6.2% on net operating income for the trailing twelve months to the end of August 2026. The REIT notes that it cannot guarantee the sale will close on these terms.
The transaction concludes a series of disposals launched over the summer. On 14 July 2026, Braemar completed the sale of the Ritz-Carlton Sarasota, the Hotel Yountville and the Bardessono Hotel and Spa for $437.5 million (around €374m), or $1 million per key. On 21 August, the Pier House Resort & Spa in Key West was sold for $190 million (around €163m).
The proceeds from these sales, supplemented by refinancings, are intended to settle the balance of the fees owed to Ashford Inc., namely the disposition fee and the termination fee under the advisory agreement. The separation, announced in June 2026, is expected to be completed by mid-November.
A portfolio streamlined to seven luxury assets
Following these disposals, Braemar will retain seven properties, totalling 2,062 keys. The resort segment comprises the Ritz-Carlton Reserve Dorado Beach (96 keys) in Puerto Rico, set on the former Rockefeller estate of around 20 hectares, and The Ritz-Carlton, St. Thomas (180 keys) in the US Virgin Islands. These are joined by The Ritz-Carlton, Lake Tahoe (170 keys) in California, which offers ski-in, ski-out access from Northstar.
The urban segment includes the Capital Hilton (559 keys) in Washington, two blocks from the White House, and The Notary Hotel, Autograph Collection (499 keys) in Philadelphia. It also includes the Sofitel Chicago Magnificent Mile (415 keys), housed in a 32-storey glass tower designed by the French architect Jean-Paul Viguier. Finally, the Cameo Beverly Hills (143 keys) joined Hilton’s LXR Hotels & Resorts collection in January 2026 following an extensive renovation.
Over the trailing twelve months to the end of June 2026, these seven hotels generated revenue of $381.4 million (around €326m). Their hotel EBITDA amounted to $87.9 million (around €75m), a margin of 23%. Weighted average RevPAR reached $328 (around €281). Dorado Beach stands out clearly, with RevPAR of $1,727 (around €1,478) and $27.9 million in EBITDA. The Cameo Beverly Hills is still ramping up, with EBITDA remaining negative following its conversion.
A leaner cost structure
Internalising management is expected to reduce annual general and administrative expenses, including advisory fees, from approximately $42 million to approximately $15 million. The savings will therefore exceed $25 million a year (around €21m).
Braemar is also planning a series of targeted refinancings over the next three to six months. These are expected to lower the weighted average interest rate on the assets concerned by more than 150 basis points and to extend maturities significantly. The anticipated interest savings for 2027 are estimated at between $4.8 million and $5.5 million (around €4.1m to €4.7m). On a pro forma basis, the ratio of net debt to gross assets at the end of September 2026 would fall from approximately 50% to approximately 36%.
The REIT acknowledges that the transition will lead to lower EBITDA in the short term, mainly as a result of the recent disposals. It nevertheless believes that permanent savings and a stronger capital structure will create a more profitable and more scalable platform.
Bookings driven by rate
Booking trends across the go-forward portfolio are considered robust. At the end of September 2026, revenue pace for the next twelve months was up by around 25% year on year. This increase stems from a rise of around 27% in average daily rate. Occupancy on the books remains slightly below last year’s level.
For 2027, Braemar is publishing full-year guidance on an exceptional basis. The REIT is targeting RevPAR growth of between 4.5% and 6.5%, for comparable RevPAR of $354 to $361. Total revenue is expected to be between $407 million and $412 million (around €348m to €353m). Comparable hotel EBITDA margin should be between 24.5% and 25.4%.
Adjusted EBITDAre is expected to be between $85 million and $90 million (around €73m to €77m). Adjusted FFO per diluted share should reach $0.25 to $0.31. Net income under US GAAP would remain negative, with a loss of between $6 million and $11 million. These projections assume net debt of approximately $405 million and approximately $407 million of preferred equity as at 31 December 2026.
A selective growth strategy
Richard Stockton, President and Chief Executive Officer of Braemar, believes the company is well positioned to create long-term value, with the Four Seasons Resort Scottsdale under contract and the transition to self-management on schedule. In his view, the favourable industry backdrop and strong fundamentals reinforce the strategy of investing in luxury hospitality.
He highlights the group’s ability to grow selectively and accretively. He states that Braemar will remain disciplined in assessing complementary acquisitions while staying focused on luxury. He adds that the company remains open to any option that would maximise the value of the portfolio.
An agreement with Al Shams ahead of the annual meeting
Finally, Braemar has entered into a cooperation agreement with its largest shareholder, Al Shams Investments Limited. Al Shams has withdrawn its nomination of candidates to the board of directors for the 2026 annual meeting. The agreement includes customary standstill and voting commitments and settles all litigation between the two parties.
The annual meeting will be held on 21 December 2026. The proxy materials, which will present the candidates nominated by the board, will be published in due course.
At a glance by The Hospitality Tribune
Braemar sells Four Seasons Scottsdale, completes Ashford exit
Four Seasons Resort Scottsdale sold for $372M ($1.8M per key), 6.2% cap rate, closing expected October 22, 2026
Separation from Ashford Inc. due by mid-November; Braemar becomes a self-managed REIT
Go-forward portfolio: 7 luxury hotels, 2,062 keys, $87.9M TTM hotel EBITDA
Corporate G&A cut from ~$42M to ~$15M; net debt to gross assets down from ~50% to ~36%
2027 guidance: RevPAR +4.5% to +6.5%, Adjusted EBITDAre $85M-$90M
