Braemar Hotels Sells 410-Room Clancy for $115M, Reduces $65M Debt
Braemar Hotels sold The Clancy, a 410-room San Francisco hotel, for $115 million (5.2% cap rate), using $65 million to pay down debt and keeping $44 million net. Q4 net loss was $46 million, with flat RevPAR and total revenue up 1.8%, driven by 4.1% resort RevPAR growth.
1. Q4 Financial Results
Braemar Hotels reported a fourth-quarter net loss of $46.0 million and AFFO per diluted share of negative $0.02, while adjusted EBITDAre reached $28.8 million. Total revenue rose 1.8% as renovations weighed on some properties but the overall resort-heavy portfolio supported performance.
2. Strategic Asset Sale
In Q4, the company sold The Clancy, a 410-room San Francisco hotel, for $115 million at a 5.2% capitalization rate, using $65 million of proceeds to pay down debt and retaining $44 million net. Braemar has engaged financial and real estate advisors to explore a full company sale or individual asset dispositions without a set deadline.
3. Operational Performance
Comparable RevPAR for the quarter was flat, driven by a 4.1% increase in resort RevPAR, while excluding renovation- and weather-impacted properties RevPAR grew 4.6%. Notable assets included Ritz-Carlton Sarasota with 26% RevPAR growth and Dorado Beach delivering a $1,806 RevPAR, up 10%.
4. Balance Sheet and Outlook
The balance sheet shows $124 million of unrestricted cash, $42.5 million restricted, and $1.1 billion in total loans at a weighted 6.7% rate, about 86% floating. Braemar spent $78 million on capex in 2025 and plans $25–35 million for 2026, with no 2026 common dividend declared during the sale process.