San Francisco-based investment firm Sixth Street has acquired the 142-room Pier House Resort & Spa in Key West, Florida, for $190 million.
Sixth Street purchased the resort from luxury hotel real estate investment trust Braemar Hotels & Resorts, which has been aggressively selling off properties this year as it cuts ties with external adviser Ashford Inc. Sixth Street completed the deal in partnership with Riller Capital.
"We believe Pier House represents an opportunity to acquire a historic luxury resort in one of the country's most supply-constrained and sought-after tropical leisure markets," Aman Gupta, principal at Sixth Street, said in the news release announcing the deal. "With direct access to one of the island's few private beaches, unobstructed sunset views, and 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 drive long-term value."
In May, Sixth Street also bought the 193-room Park Hyatt Beaver Creek Resort and Spa from Braemar for $176 million.
Other recently sold properties sold by Braemar include:
- The Marriott Seattle Waterfront in Seattle.
- The Clancy in San Francisco.
- The Ritz-Carlton Sarasota in Sarasota, Florida.
- The Hotel Yountville in Yountville, California.
- The Bardessono Resort & Spa in Yountville, California.
While Braemar originally planned to sell off its full portfolio, the company has since changed plans to pay off $505 million in termination fees for Ashford Inc. and continue to operate as a publicly traded REIT with a portfolio of six to eight hotels. After the Pier House sale, the company now has a portfolio of eight properties.
The Pier House was was originally opened in 1967 and purchased in 2013 by Ashford Hospitality Trust, before that REIT's luxury properties were spun off to form the company that would eventually become Braemar Hotels & Resorts.
Latham & Watkins, Smith, Hawks, P.L., and CBRE advised Sixth Street on the deal. The Plasencia Group advised Braemar. Starwood Property Trust financed the deal.