Strategic Hotels & Resorts, Chicago, announced on Tuesday that it has signed an agreement to acquire the 210-room Four Seasons Resort Scottsdale at Troon North from an affiliate of Walton Street Capital for US$140 million, which includes 13.8-acres of developable land zoned for an additional 88 hotel keys and potential incremental residential usage.
Strategic has valued the land parcels at US$6 million and expects the acquisition to close during the fourth quarter of 2014 with Four Seasons continuing as the property manager.
Strategic forecasts the property will contribute approximately US$10 million of EBITDA and US$8 million of NOI in 2015. The purchase price, net of the allocated land value, represents a 13.4 times multiple on forecasted 2015 EBITDA and a 6% capitalization rate on forecasted 2015 NOI.
“The resort is poised to continue to benefit from the positive Scottsdale market dynamics and includes significant value-enhancing opportunities to hotel operations and potentially through the future addition of hotel keys and amenities on two vacant and entitled adjacent parcels of land,” commented Raymond “Rip” Gellein, chairman and CEO of Strategic Hotels & Resorts.