Dajia Weighs $1 Billion Sale of Four Seasons Jackson Hole, Four Seasons Scottsdale and Montage Hotel Laguna Beach
Locations: Jackson Hole, Wyoming, Scottsdale, Arizona and Laguna Beach, California, USA
Names: Four Seasons Resort and Residences Jackson Hole; Four Seasons Resort Scottsdale at Troon North, Arizona and Montage Laguna Beach in California
Guide Price: US$1bn
Guide Price per Key: Around $1.6m
No. of Keys: Jackson Hole: 158 including 18 suites and 34 resort residences; Scottsdale: 210 including 22 suites; Laguna Beach: 250 including some bungalows
The Opportunity:
Dajia Insurance Group Co. is exploring a sale of some of its luxury hotels, seeking to cash in on surging travel demand even as rising interest rates make financing real estate transactions more expensive.
Dajia, which took over most of the operations of China’s Anbang Insurance Group Co., is tapping advisers for a potential transaction, said people familiar with the process.
The hotels that could be sold include the Montage Laguna Beach in California and Four Seasons resorts in Jackson Hole, Wyoming, and Scottsdale, Arizona — a trio of properties that could bring in more than $1 billion, one of the people said.
A representative for Dajia in New York declined to comment. The hotels are well-known in the lodging industry, both for their high-end locations and the recent saga surrounding their ownership.
The properties were transferred to Dajia when the Chinese government restructured Anbang following that company’s collapse. In 2019, Anbang agreed to sell a group of 15 hotels to South Korea’s Mirae Asset Management Co. for $5.8 billion. That transaction, which included the three properties that Dajia may now sell, fell through in 2020 as the Covid-19 pandemic hobbled the hotel industry.
Now, Dajia is exploring a smaller transaction at a moment when lodging demand is surging in the US, especially at lavish resorts like the Laguna Beach, Jackson Hole and Scottsdale properties. Across all US hotels, revenue per available room increased 33% last week from the same period in 2021, and 26% from 2019, before the pandemic, according to data from STR cited by Raymond James & Associates.
At the same time, rising interest rates and uncertainty in capital markets could make it harder for a buyer to line up financing for a transaction. In May, Dajia halted efforts to refinance a separate hotel portfolio, citing market volatility.
Dajia refinanced the Laguna Beach, Jackson Hole and Scottsdale hotels last year.
Flag & Management: Almost certainly Four Seasons and Montage would be required to remain as brand and management
Current Owner: Daija Insurance Group
Main Photo: The Fours Seasons Jackson Hole
Financials: 2019 financials with EOI
Tenure: Freehold
Agent: Unknown….THPT will investigate for an interested buyer
Date Posted: June 2022
THPT Comment: Three of the most prestigeous resort hotels in the West side of the USA – not cheap at $1.6m a key, but with associated leisure facilities, not dear either.
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