Braemar Hotels & Resorts closed the sale of its 410‑room San Francisco property, The Clancy, on November 6, 2025, for $115 million, valuing the hotel at $280,487 per key and a 5.2% capitalization rate based on the trailing 12‑month net operating income ending September 30, 2025.
The transaction generated $115 million in gross proceeds, of which $64.7 million was applied to debt repayment. After transfer taxes and transaction costs, the company retained roughly $43.7 million in net proceeds, bolstering liquidity and providing additional capital for future investments or further debt reduction.
Braemar’s decision to divest The Clancy reflects a deliberate shift toward a high‑RevPAR luxury resort portfolio. By shedding an urban asset, the company reduces debt exposure and strengthens its balance sheet, aligning with its stated strategy of portfolio sharpening and deleveraging. The sale also signals that Braemar is actively exploring a broader sale of the company, a move that could reshape the ownership structure of its 14‑property portfolio.
The sale comes on the heels of Braemar’s Q3 2025 earnings, in which the company beat earnings expectations by $0.24 per share—largely driven by disciplined cost management and a robust performance in its resort segment, which saw a 5.5% increase in RevPAR and a 58% rise in comparable hotel EBITDA. The company’s net debt to gross assets ratio stood at 43.2%, and the $64.7 million debt paydown further improves that metric.
While no specific market reaction data is available for the sale announcement, the company’s share price remained flat in the days following the disclosure, and analysts have maintained a “Hold” rating with a $2.50 price target, indicating a cautious but neutral view of the transaction’s impact.
Richard Stockton, President and CEO, said, “We are glad to have completed the sale of The Clancy. This strategic move sharpens our portfolio and strengthens our capital position.”
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