Sixth Street, a global investment firm, announced on 13 August 2026 the acquisition of the Pier House Resort & Spa, a 142-room luxury beachfront resort in Key West, Florida. The deal was concluded for $190 million, approximately €164.7 million, and was acquired from Braemar Hotels & Resorts (NYSE: BHR). Sixth Street carried out the transaction alongside its partner, Riller Capital.
A landmark beachfront asset on Duval Street
Spanning roughly 2 hectares at 1 Duval Street, the Pier House Resort & Spa occupies a strategic position at the entrance to Key West’s famous main thoroughfare, offering direct access to both the Gulf of Mexico and the buzz of downtown. The property features two beachfront restaurants, a full-service spa, a fitness centre, an oceanfront pool, roughly 23 linear metres of private beach, and close to 280 square metres of meeting and event space.
On a per-key basis, the transaction values the property at approximately €1.16 million per room, a level that reflects the scarcity of available hotel supply in this particularly constrained island market.
A sale that confirms Braemar’s strategic portfolio reshuffle
The sale continues the deleveraging and portfolio-focusing strategy pursued by Braemar Hotels & Resorts, which earlier this year also divested the Park Hyatt Beaver Creek Resort & Spa in Colorado.
🔗 Also on LTH: Braemar Hotels & Resorts sells the Park Hyatt Beaver Creek
This pattern of targeted disposals is also visible among other listed US hotel REITs, such as Ashford Hospitality Trust, a former external advisor to Braemar, which is likewise pursuing successive disposals to optimise its own portfolio.
Braemar was advised on the transaction by The Plasencia Group, while financing was provided by Starwood Property Trust.
Sixth Street’s firm conviction in leisure hospitality
According to Aman Gupta, Principal at Sixth Street: “We believe Pier House represents an opportunity to acquire a historic luxury resort in one of the country’s most sought-after and supply-constrained tropical leisure markets. With direct access to one of the island’s few private beaches, stunning sunset views and immediate proximity to the heart of Key West, the hotel offers a truly differentiated guest experience. This investment reflects Sixth Street’s commitment to identifying high-quality hospitality assets where we can create long-term value.”
Sixth Street Real Estate invests directly in real estate and offers solutions spanning the full capital structure — equity, preferred equity and debt — in partnership with operational players across the sector. Its real estate investments cover a broad range of asset classes, including residential, office, hospitality, industrial, data centres and retail. Founded in 2009, the firm manages more than $135 billion in assets and commitments, approximately €117 billion, and employs more than 750 people, including around 300 investment professionals worldwide.
Advisory and financial structuring of the deal
Sixth Street was advised by law firms Latham & Watkins and Smith, Hawks, P.L., along with CBRE. The closing of the deal confirms major investment funds’ ability to rapidly deploy capital into niche resort assets, at a time when luxury hotel supply remains structurally limited in the United States’ most sought-after coastal destinations.
At a Glance
Buyer: Sixth Street, in partnership with Riller Capital
Seller: Braemar Hotels & Resorts (NYSE: BHR)
Asset: Pier House Resort & Spa, 142 keys, Key West, Florida
Deal value: $190 million (approx. €164.7 million)
Advisors: Latham & Watkins, Smith Hawks P.L., CBRE (Sixth Street); The Plasencia Group (Braemar)
Financing: provided by Starwood Property Trust
