- Sixth Street Partners and Riller Capital bought the 142-room Pier House Resort in Key West from Braemar Hotels for $190 million.
- Starwood Property Trust financed the deal with a $141 million loan, and the Plasencia Group advised Braemar on the sale.
- The trade reflects growing investor appetite for scarce, supply-constrained hospitality assets in Florida leisure markets.
Sixth Street Buys Historic Key West Resort
Sixth Street Partners and Riller Capital have acquired the Pier House Resort in Key West, Fla., from Braemar Hotels & Resorts for $190 million, according to Commercial Observer.
The 142-room oceanfront property sits on five acres along Duval Street in downtown Key West and has operated since 1967. Braemar had owned the resort since 2014 before agreeing to the sale.
The Plasencia Group advised Braemar on the transaction, while Starwood Property Trust stepped in as the deal’s debt financier.
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The Details
Starwood Property Trust provided a $141 million loan to finance the acquisition, according to sources close to the deal. That debt covers roughly 74% of the $190 million purchase price.
Pier House includes two oceanfront restaurants, a spa, a fitness center, an oceanfront pool and 3,000 square feet of event space. The resort also has access to a private beach with unobstructed sunset views.
Jeff DiModica, president of Starwood Property Trust, said the asset sits in “one of the most supply-constrained lodging markets in the country” and has strong in-place performance.
Another Big Florida Hospitality Trade
The deal adds to a run of large hospitality trades in Florida this year, including Ryman Hospitality’s $1.38 billion move to acquire an Orlando resort and Ritz-Carlton property.
Aman Gupta, a principal at Sixth Street, said the firm is targeting “historic luxury” assets in constrained, high-demand leisure markets rather than broader hotel portfolios.
Key West’s limited land supply and strict development rules have kept new hotel construction scarce, a dynamic that has drawn investors seeking pricing power in existing assets.
Why It Matters
The trade signals continued institutional appetite for trophy hospitality assets in the Florida Keys even as broader hotel transaction volume remains uneven nationally. It follows a broader pattern described in our coverage of the Florida Keys hotel rebound, where investors have returned to the market betting on constrained supply.
Sixth Street’s willingness to back a 59-year-old asset with fresh capital underscores how scarcity, not just brand or age, is driving valuations in leisure-heavy coastal markets.
What’s Next
Sixth Street and Riller Capital are expected to maintain Pier House’s existing operations while evaluating capital improvements to the property over time.
Braemar’s exit from the asset frees up capital the REIT could redeploy into its remaining hotel portfolio, and further Florida hospitality sales are likely if pricing stays firm.
