Sixth Street Acquires Pier House Resort & Spa in Key West for $190 Million

Sixth Street, in partnership with Riller Capital, has acquired the Pier House Resort & Spa in Key West, Florida, from Braemar Hotels & Resorts (NYSE: BHR) for $190 million, the firm announced Aug. 13, 2026. Starwood Property Trust provided financing for the transaction, which values the 142-room oceanfront resort at approximately $1.34 million per room.

Deal Details: A Landmark Key West Property Changes Hands

The Pier House Resort & Spa sits on five acres at 1 Duval Street, at the waterfront gateway to Key West's Duval Street. The property includes two oceanfront dining venues, a full-service spa, a fitness center, an oceanfront pool, 75 linear feet of private beach frontage, and approximately 3,000 square feet of meeting and event space.

CBRE advised Sixth Street on the transaction, while The Plasencia Group served as advisor to Braemar. Latham & Watkins and Smith, Hawks, P.L. also provided counsel to the buyer.

Aman Gupta, a principal at Sixth Street, framed the acquisition around the property's market position. "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," Gupta said. "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."

Sixth Street's Real Estate Strategy

Sixth Street's real estate platform invests directly in properties and provides capital across the capital structure, including equity, preferred equity, and debt. The firm's real estate investments span hospitality, residential, office, industrial, data centers, retail, and other specialized sectors.

Founded in 2009, Sixth Street manages more than $135 billion in assets under management and committed capital and employs more than 750 people, including approximately 300 investment professionals.

Braemar Hotels & Resorts as Seller

Braemar Hotels & Resorts is a real estate investment trust focused on the luxury hotel and resort sector. The company targets high-performance luxury urban and resort properties, with a focus on assets that generate revenue per available room at least twice the U.S. national average. Braemar is externally advised by Ashford Hospitality Trusts.

The Plasencia Group advised Braemar on the transaction.

Market Context: Supply Constraints and Luxury Leisure Demand

Key West is one of the most supply-constrained resort markets in the United States, a characteristic Sixth Street cited explicitly in its announcement. Limited opportunities to develop new resort inventory in the market tend to support pricing power for existing properties, particularly in the upper-upscale and luxury segments where location and experience drive rate premiums.

Luxury leisure demand has remained among the more resilient segments of the hotel industry, with affluent travelers generally less sensitive to rate increases than mass-market travelers. That dynamic has continued to attract institutional capital to trophy hospitality assets, particularly when financing from lenders such as Starwood Property Trust remains available for well-located properties with strong brand identity.

Sources: Sixth Street — Sixth Street Acquires the Pier House Resort & Spa