CHICAGO—Strategic Hotels & Resorts, Inc. has signed an agreement to acquire the Four Seasons Resort Scottsdale at Troon North from an affiliate of Walton Street Capital, L.L.C. for $140 million, which includes 13.8-acres of developable land zoned for an additional 88 hotel keys and potential incremental residential usage. Management has valued the land parcels at $6 million.
The acquisition, which is expected to close during the fourth quarter of 2014, remains subject to customary due diligence, closing conditions and working capital adjustments.
The 210-guestroom resort is located on approximately 40 acres in the northern region of Scottsdale, AZ. The hotel features 22 suites, 24,000 sq. ft. of indoor meeting space, a 14-treatment room spa, four food and beverage outlets and contractual access to 36 holes of championship golf at the adjacent Troon North Golf Club. Four Seasons will continue to manage the property subsequent to the closing of the acquisition.
The company forecasts the property will contribute approximately $10 million of EBITDA and $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, according to the company.