Sixth Street Acquires Iconic Pier House Hotel in Key West for $190M

An iconic luxury hotel in Key West, Fla., is changing hands. 

Sixth Street Partners and Riller Capital have acquired Pier House, a longstanding 142-room oceanfront resort in downtown Key West, from Braemar Hotels & Resorts in a $190 million deal, according to a release from Sixth Street.  

Starwood Property Trust provided the debt financing, a $141 million loan, according to sources close to the deal, while the Plasencia Group advised Braemar Hotels & Resorts on the sale. 

“Pier House is an irreplaceable waterfront resort in one of the most supply-constrained lodging markets in the country, and we are excited to finance a high-quality asset with strong in-place performance and significant long-term potential,” said Jeff DiModica, president, Starwood Property Trust.

Aman Gupta, principal at Sixth Street, noted in a statement that Pier House has access to a private beach and includes unobstructed sunset views for its guests while also being in the heart of Downtown Key West.

“This investment reflects Sixth Street’s commitment to identifying high-quality hospitality assets where we can drive long-term value,” said Gupta. 

Located at 1 Duval Street, Pier Street sits on five acres of beachfront land along the famous Duval Street, a top tourist destination and walkable retail and entertainment thoroughfare. The resort first opened in 1967 and had been owned by Braemar Hotels & Resorts since 2014. 

On-site amenities include two oceanfront restaurants, a spa, a fitness center, an oceanfront pool and 3,000 square feet of event space. 

“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,” said Gupta. 

Brian Pascus can be reached at bpascus@commercialobserver.com.