Hotel real estate investment trust Braemar Hotels & Resorts has announced its latest hotel sale, confirming its reached a definitive agreement to sell The Clancy in San Francisco.
Braemar will sell the 410-key hotel to an undisclosed buyer for $115 million, or $280,487 per key, and has confirmed receipt of a $3.5 million non-refundable earnest money deposit. According to a Braemar news release, "the sale price represents a 5% capitalization rate on net operating income for the trailing 12 months ended August 2025."
The sale is expected to close in November, but the buyer has the right to extend the closing for 30 days with an incremental $1 million non-refundable deposit, per the release.
Several weeks ago, Braemar, an affiliate of Dallas-based Ashford Inc., announced that it planned to sell its entire portfolio of luxury hotels, revealing that it was already under contract to sell The Clancy.
"We are strategically refining our portfolio with one clear objective: to maximize its value for our shareholders," said Richard J. Stockton, president and CEO, in the release. "This divestiture will help us to ensure that a future sale of the company results in the best possible outcome for our investors."
Braemar completed the $145 million sale of the 369-room Marriott Seattle Waterfront in August. The REIT previously owned 14 properties under luxury brands such as Ritz-Carlton, Four Seasons and Park Hyatt across the U.S. and Caribbean.
Earlier this year, Braemar announced it secured a two-year, floating rate interest-only mortgage loan for $363 million from JPMorgan Chase Bank. The loan was intended to refinance $355 million of existing debt and pay an estimated $8 million in closing-related costs.