US-headquartered Braemar Hotels & Resorts has agreed to sell The Clancy, a 410-room hotel located in San Francisco, for $115m.
The transaction assigns a per-key value of $280,487 and reflects a 5% capitalisation rate based on the net operating income for the trailing 12 months ending August 2025.
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Braemar Hotels & Resorts president and chief executive officer Richard Stockton said: “We are strategically refining our portfolio with one clear objective: to maximise its value for our shareholders.
“This divestiture will help us to ensure that a future sale of the company results in the best possible outcome for our investors.”
As part of the agreement, Braemar has received a $3.5m non-refundable earnest money deposit from the prospective purchaser.
The deal is anticipated to complete in November, pending standard closing conditions.
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By GlobalDataThe purchaser has an option to extend the closing by 30 days with an additional $1m non-refundable deposit.
Braemar stated that completion of the sale is not guaranteed under the present terms.
The company said in a statement: “Braemar does not expect to disclose or provide an update concerning developments related to this process unless and until the board of directors has approved a specific transaction or other course of action requiring disclosure, or the company determines that a disclosure is required by law or otherwise deemed appropriate.”
Located in San Francisco’s SoMa district, The Clancy is part of the Autograph Collection by Marriott.
The property includes a lobby bar, public spaces, a fitness centre, and the Seven Square Taproom. The hotel also accommodates indoor and outdoor events through multiple venue spaces.
Braemar finalised the sale of the Marriott Seattle Waterfront located in Washington, US, for $145m in August 2025.
In the same month, the company said that its board commenced a sale process for Braemar following a review of “strategic options to maximise value for shareholders”.
A Special Committee formed by the board explored “a range of strategic alternatives”.
Braemar’s portfolio consists of nine resort and five urban properties. These are operated under brands including Autograph Collection by Marriott, Four Seasons, Hilton, Park Hyatt, Ritz Carlton, Ritz-Carlton Reserve, and Sofitel.
The Special Committee chairperson Rebeca “Becky” Odino-Johnson said: “We explored multiple alternatives for Braemar including a potential internalisation of management.
“However, given the sustained disconnect between our share price and our iconic portfolio’s intrinsic real estate value, the board believes pursuing a sale process is the right step at this time. The board also believes that this is the best opportunity for shareholders to realise a premium to the existing share price.”
