Braemar Hotels & Resorts is set to acquire the 210-room Four Seasons Resort Scottsdale (Ariz.) at Troon North. The acquisition is expected to close in the fourth quarter, subject to certain customary closing conditions, at a total cost $267.8 million ($1.28 million per key), funded with existing cash on hand. 

"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 a statement. "This exquisite property fits perfectly with our strategy of owning high RevPAR luxury hotels and resorts and further diversifies our portfolio." 

Four Seasons Resort Scottsdale at Troon North opened in 1999 and has had $20.7 million ($98,700 per key) of capital improvements since 2016. This included the renovation of all guestrooms, indoor meeting space, lobby, and food and beverage outlets.

The guestrooms include 22 suites that average 1,214 square feet in size, all with private patios or balconies overlooking the desert. Public spaces include the 9,000-square-foot spa and a bi-level pool. Dining options include the 100-seat Talavera steakhouse, the 180-seat Proof cantina, the 55-seat Saguaro Blossom poolside restaurant and the 100-seat Onyx Bar and Lounge. The property has 35,900 square feet of total indoor and landscaped outdoor event space including three ballrooms and a variety of private meeting rooms including two dedicated boardrooms. 

No common equity will be issued to fund the acquisition. Of the total consideration, $250 million is allocated to the existing resort and represents a capitalization rate of 5.7 percent on hotel net operating income of $14.2 million and a 15.2x hotel earnings before interest, taxes, depreciation and amortization multiple, based on unaudited operating financial data provided by the sellers and forecasted financial results for 2022. The company expects to realize a stabilized yield of approximately 8 percent on its investment in the next three to five years. On a trailing 12-month basis as of Aug. 30, the property achieved RevPAR of $423.20, with 48.5 percent occupancy and an average daily rate of $873.24, according to unaudited operating financial data provided by the seller.