#United States #San Francisco #Braemar Hotels #The Clancy #Hotels Sale

Braemar Hotels & Resorts Completes Sale of The Clancy

Braemar Hotels & Resorts Inc. (NYSE: BHR) has officially announced the sale of its prestigious property, The Clancy, located in the heart of San Francisco. The sale, finalized at an impressive price of $115 million, translates to approximately $280,487 per room, reflecting the high value of the 410-room hotel. This strategic decision is anticipated to bolster Braemar's financial standing and facilitate future investment endeavors.

Richard Stockton, Braemar's President and CEO, expressed satisfaction with the completion of the sale, emphasizing the importance of this transaction in refining the company's portfolio. He indicated that the sale was not just a routine transaction but a vital maneuver to strengthen the company's capital position, allowing Braemar to focus on more lucrative opportunities within the luxury hospitality sector.

With the closure of this deal, Braemar has also successfully managed to reduce its debt load by approximately $64.7 million, thus enhancing its financial agility. After accounting for transfer taxes and transaction costs, the company retained about $43.7 million of the net proceeds from the sale, which could be directed toward further strengthening its investment strategies or funding new acquisitions.

The Clancy's sale comes at a time when the hospitality industry is witnessing significant shifts, and Braemar aims to navigate these changes with a sharper focus on luxury investments. As a real estate investment trust (REIT) specializing in upscale hotels and resorts, Braemar is positioning itself strategically to capitalize on market opportunities while effectively managing its portfolio.

The details shared in the announcement reveal that the sale's pricing was based on a capitalization rate of 5.2%, calculated on the net operating income over the trailing 12 months ending on September 30, 2025. This measure underscores the property's profitability and reinforces the successful operational management implemented by Braemar.

In terms of financial performance, the unaudited figures for the preceding 12-month period indicate a net income loss of $3.3 million. Despite this, the property's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at $8.0 million, culminating in a net operating income of $6.0 million after accounting for necessary capital reserves. These numbers reflect the inherent value of The Clancy and its potential within the broader context of Braemar's portfolio.

As Braemar Hotels & Resorts moves forward, industry experts will be closely monitoring how the company utilizes the capital resulting from this sale. The ability to successfully navigate the changing landscape of the hospitality market will be a critical factor in determining the future success of the company.

As the company looks to the future, it remains steadfast in its commitment to enhancing shareholder value while investing in new opportunities that align with its strategic vision. The sale of The Clancy is a clear indication of Braemar's proactive approach in adapting to market demands and ensuring its continued growth within the luxury hotel segment.

In conclusion, Braemar's recent sale of The Clancy not only exemplifies a strategic realignment but also reinforces the company's commitment to maintaining a robust and profitable portfolio. As the hospitality landscape continues to evolve, Braemar Hotels & Resorts is poised to leverage its financial strengths for future successes.