Braemar Hotels Lines Up $115 Million Hotel Sale

The Clancy hotel in downtown San Francisco is headed for new ownership.

Dallas-based real estate investment trust Braemar Hotels & Resorts has entered into a non-binding deal with an unnamed potential buyer to offload The Clancy, Autograph Collection for $115 million, the San Francisco Business Times reported.

At that price, the 410-room hotel at 299 Second Street would sell for $280,500 per room, making it the priciest hotel transaction in San Francisco so far this year. Prior to this, the Hyatt Centric Fisherman’s Wharf sold in May for $80 million, or $253,000 per key. When the deal to sell the Hilton San Francisco Union Square and Parc 55 closes later this year, it will likely outdo the Clancy sale.

Braemar is in the midst of a shakeup as the REIT has agreed to “immediately” begin the sale process for the entire company, per the Business Times. That includes its portfolio of 14 luxury properties, some of which flying under Ritz-Carlton and Four Seasons banners. Braemar acquired The Clancy, previously known as the 405-room Courtyard San Francisco Downtown SoMa, in 2007 for $92.4 million, or about $228,000 per key.

The Clancy struggled in the pandemic but reached nearly break-even net income in 2023 and was profitable in the first half of 2025 with a net income of $2.5 million and a margin of 11.8 percent, according to the Business Times. Occupancy at the Clancy was 74 percent in the second quarter with an average daily rate of $321 and revenue per available room of $239.

The high-end hotel reopened in 2020 as the Clancy after undergoing a three-year, $30 million renovation and rebranding to join Marriott’s Autograph Collection. In March, Braemar completed refinancing of a nearly $300 million interest-only mortgage loan secured by five properties including the Clancy.

Besides the Clancy, Braemar holds three other properties in Northern California: the 65-room Bardessono Hotel and Spa and 80-room Hotel Yountville in Yountville, and the 170-room Ritz-Carlton Lake Tahoe in Truckee.

The lodging market in the Bay Area has had a rough go over the past year as loan defaults and foreclosures abound. In San Francisco, the Hilton Union Square and Parc 55 were recent victims of loan defaults and foreclosure sales. Hotel investment in the city fell to a record low last year of $83 million, according to the Business Times.

— Chris Malone Méndez