Braemar agrees to divest The Clancy hotel for $115m

Core Viewpoint - Braemar Hotels & Resorts is strategically refining its portfolio by selling The Clancy hotel in San Francisco for $115 million, aiming to maximize shareholder value [1][2][6] Transaction Details - The sale of The Clancy, a 410-room hotel, is valued at $115 million, equating to a per-key value of $280,487 and a 5% capitalization rate based on net operating income for the trailing 12 months ending August 2025 [1] - Braemar has received a $3.5 million non-refundable earnest money deposit from the prospective purchaser, with the deal expected to complete in November, pending standard closing conditions [2] - The purchaser has the option to extend the closing by 30 days with an additional $1 million non-refundable deposit [2] Company Strategy - The completion of the sale is not guaranteed, and Braemar will not provide updates unless a specific transaction is approved by the board or required by law [3] - The Clancy is part of the Autograph Collection by Marriott and features various amenities including a lobby bar, fitness center, and event spaces [4] - Braemar previously sold the Marriott Seattle Waterfront for $145 million in August 2025 and is undergoing a sale process to maximize shareholder value [4][6] Portfolio Overview - Braemar's portfolio includes nine resort and five urban properties, operated under various prestigious brands such as Four Seasons, Hilton, and Ritz Carlton [5] - A Special Committee has explored multiple strategic alternatives, including potential internalization of management, but has decided that pursuing a sale process is the best option to address the disconnect between share price and intrinsic real estate value [5][6]