Sixth Street Buys Pier House Resort for $190M

Sixth Street has partnered with Riller Capital to acquire the 142-room Pier House Resort & Spa in Key West, Florida, from Braemar Hotels & Resorts for $190 million [1]. The waterfront property sits on five acres at the gateway to Duval Street, supported by acquisition financing from Starwood Property Trust [1].

What are the terms and physical assets in the Pier House transaction?

The transaction transfers the 142-room oceanfront resort to the buyer partnership for a total price of $190 million [[1], [2]]. Situated on five acres on the Key West waterfront, the property includes 75 linear feet of private beach frontage [[1], [3]].

On-site resort facilities include two oceanfront dining venues, a full-service spa, a fitness center, an oceanfront swimming pool, and approximately 3,000 square feet of dedicated meeting and event space, Lodging Magazine reported [1].

Who advised the buyer and seller on the deal?

Multiple real estate, legal, and financial brokerages steered the transaction to closing [[1], [3]]. Sixth Street took counsel from legal advisors Latham & Watkins and Smith, Hawks, P.L., alongside real estate advisory services from CBRE, according to Hotel Business [3].

Braemar Hotels & Resorts engaged The Plasencia Group as its sole transaction advisor for the disposition [[1], [3]]. Debt financing across the capital stack was provided directly by Starwood Property Trust [1].

Why is Braemar Hotels & Resorts selling luxury assets?

Braemar is liquidating assets to deleverage its balance sheet and complete a transition into an internally managed real estate investment trust [2]. In June, the company terminated its advisory agreement with Ashford Inc. and affiliates to establish a self-managed structure, ending a formal review process initiated in August of the prior year [2].

This restructuring path faces internal pushback, as Hotel Dive reported that Braemar's largest shareholder, Al Shams Investments Limited, has contested the internalisation move [2]. Braemar CEO Richard Stockton confirmed in an August 5 earnings report that property sales directly support the company's management spin-out while reducing corporate leverage [2].

What is Sixth Street's acquisition track record with Braemar?

The Pier House purchase marks the second luxury resort Sixth Street has bought from Braemar within a single calendar year [2]. In May, Sixth Street purchased the Park Hyatt Beaver Creek Resort & Spa in Avon, Colorado, from Braemar for $176 million [2].

Sixth Street principal Aman Gupta noted that the Key West resort provides private beach access, sunset views, and location advantages in an island destination with strict supply constraints [[1], [3]]. Gupta highlighted that the acquisition reflects the investment firm's focus on securing hospitality assets capable of driving long-term value [[1], [2]].

How will Braemar's remaining hotel portfolio look?

Braemar intends to maintain a concentrated operational footprint consisting of approximately six to eight luxury properties distributed across the United States and the Caribbean, according to Hotel Dive [2].

The company has executed extensive disposals over the past year to hit this target footprint [2]. Prior to the Pier House sale, Braemar offloaded the Marriott Seattle Waterfront for $145 million, followed by a combined $437.5 million July disposition covering The Ritz-Carlton Sarasota in Florida, Hotel Yountville, and the Bardessono Hotel and Spa in California [2]. Stockton reported that the majority of Braemar's retained luxury portfolio delivered high property-level operational performance during the second quarter [2].