Sixth Street buys Four Seasons Scottsdale for $372 million

Sixth Street bought the Four Seasons Resort Scottsdale at Troon North from Braemar Hotels & Resorts for $372 million, according to IREI. The 210-room resort sits on about 38 acres in Scottsdale, Ariz.

Sixth Street completed the purchase with Riller Capital, IREI reported on Oct. 29. The property sits at the base of Pinnacle Peak in North Scottsdale. The sale includes roughly 13 acres of developable land beyond the existing footprint. IREI cited limited land availability in the market as part of the appeal.

For allocators underwriting Scottsdale resorts, $372 million across 210 rooms works out to about $1.77 million per room. Because the price includes the 13 acres as well as the hotel, that per-room figure is an upper bound on the basis for the resort alone. The price is about 39% above the $267.8 million Braemar paid in 2022, as Private Wealth Daily previously reported. The gap is not a return because both prices include the land.

Private Wealth Daily reported on Oct. 13, citing Connect CRE, that Evergreen Acquisitions, a newly created public company, was the buyer at the same $372 million price. IREI's report names Sixth Street and Riller Capital.

Sixth Street has been building U.K. property-debt capacity with Lloyds Banking Group through an asset-based finance platform, as Private Wealth Daily reported in September. The Scottsdale purchase is an equity deal rather than a loan against the property.

Braemar is selling hotels to fund a $480 million Ashford termination fee. Private Wealth Daily reported on Oct. 10, when the resort went under contract, that disclosed hotel sales under the program total about $1 billion.