Sixth Street has acquired the 142-room Pier House Resort & Spa in Key West, Florida, from Braemar Hotels & Resorts for $190 million. The deal, completed with Riller Capital, gives the investment firm an oceanfront luxury asset in a tightly constrained leisure market while advancing Braemar’s effort to reduce debt and reshape its hotel portfolio.
Key takeaways
- Sixth Street and Riller Capital acquired the 142-key Pier House Resort & Spa.
- The oceanfront property includes a private beach, spa, pool and two dining venues.
- The transaction follows Sixth Street’s $176 million purchase of Park Hyatt Beaver Creek from Braemar.
- Braemar is moving toward a self-managed REIT focused on roughly six to eight luxury hotels.
The acquisition expands Sixth Street’s hospitality holdings with a historic resort positioned near Duval Street, Key West’s main commercial thoroughfare. The property occupies about five acres and has direct access to one of the island’s relatively few private beaches.
A differentiated Key West resort
Pier House opened in 1967 and offers sunset views, proximity to downtown Key West and approximately 3,000 square feet of meeting and event space. Its amenities include a full-service spa, fitness center, pool, two restaurants and private beach frontage.
Sixth Street principal Aman Gupta said the firm sees the resort as a long-term value opportunity in one of the country’s most supply-constrained tropical destinations. Limited new hotel development in Key West supports the appeal of existing high-end properties with strong locations.
Braemar accelerates portfolio transition
The sale is part of Braemar’s broader deleveraging program and strategic shift away from its former external advisory arrangement with Ashford Inc. The company has said it intends to become a self-managed real estate investment trust and maintain a more focused luxury portfolio.
Braemar has recently sold several properties, including Park Hyatt Beaver Creek for $176 million, Marriott Seattle Waterfront for $145 million, and a group of three hotels—the Ritz-Carlton Sarasota, Hotel Yountville and Bardessono Hotel & Spa—for a combined $437.5 million. Other reported dispositions include The Clancy in San Francisco.
After the Pier House transaction, Braemar has eight hotels remaining, according to reporting on the deal. The company’s longer-term plan is to operate approximately six to eight luxury properties across the United States and the Caribbean.
Financing and market backdrop
Starwood Property Trust financed the Pier House acquisition. Sixth Street was advised by Latham & Watkins, Smith, Hawks, P.L., and CBRE, while The Plasencia Group advised Braemar.
The transaction comes as luxury hotel investment activity is expected to strengthen. Improving operating fundamentals and more favorable capital markets are encouraging buyers to pursue high-quality resorts, particularly in destinations where new supply is difficult to add.