On Oct 07, 2025, Braemar Hotels & Resorts Inc. announced today that it has entered into a definitive agreement to sell its 410‑room property, The Clancy, in San Francisco for $115 million—$280,487 per key—representing a 5.0% capitalization rate on the trailing 12‑month net operating income.
The sale is part of Braemar’s ongoing portfolio‑refinement strategy, aimed at maximizing value for shareholders by divesting non‑core assets and concentrating on its high‑RevPAR luxury portfolio. The transaction aligns with the company’s broader objective of streamlining operations and enhancing asset quality across its portfolio.
Financially, the $115 million proceeds will be used to strengthen the balance sheet, reduce debt, and potentially fund future capital expenditures or share‑buyback initiatives. The deal is expected to close in November 2025, subject to customary conditions, and the company has already received a $3.5 million non‑refundable earnest money deposit.
For investors, the divestiture signals continued focus on portfolio optimization and liquidity enhancement, positioning Braemar to deliver stronger cash flows and potentially higher returns in the coming years. The transaction underscores the company’s commitment to creating long‑term shareholder value through disciplined asset management.
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