The Clancy Hotel in San Francisco Sold for $115 Million

Braemar Hotels & Resorts Inc. has agreed to sell The Clancy in San Francisco for $115 million, with the transaction expected to close in November 2025.

Braemar Hotels & Resorts Inc. has announced a definitive agreement to sell The Clancy, a 410-room hotel located in San Francisco, for $115 million. The agreed sale price equates to $280,487 per room. As part of the agreement, Braemar has received a non-refundable earnest money deposit of $3.5 million.

The sale of The Clancy is part of Braemar’s strategy to refine its portfolio. The transaction is based on a 5.0% capitalization rate applied to the hotel’s net operating income for the 12 months ended in August 2025. The closing of this transaction is anticipated in November 2025, pending customary conditions.

The agreement includes a provision allowing the buyer to extend the closing date by 30 days. If the buyer opts for this extension, an additional $1 million non-refundable deposit will be required. However, Braemar has noted that there is no guarantee the sale will be finalized under these terms.

The divestiture aligns with Braemar’s ongoing efforts to optimize its asset portfolio. Further details regarding the potential impact on the company’s broader strategic objectives or future transactions have not been disclosed.