BRAEMAR HOTELS & RESORTS ANNOUNCES SALE OF THE CLANCY
Rhea-AI Summary
Braemar Hotels & Resorts (NYSE: BHR) closed the sale of the 410-room The Clancy in San Francisco for $115.0M ($280,487 per key) on Nov 7, 2025.
The sale equates to a 5.2% capitalization rate on trailing 12-month net operating income and reflects trailing hotel EBITDA of $8.0M and hotel NOI of $6.0M for the 12 months ended Sept 30, 2025. Braemar used proceeds to pay down approximately $64.7M of debt and retained roughly $43.7M after transfer taxes and transaction costs.
The company described the transaction as strategic portfolio sharpening and noted the financial metrics are based on unaudited operating data for the 12 months ended Sept 30, 2025.
Positive
- Sale proceeds of $115.0M
- Debt reduction of $64.7M
- Retained net proceeds of $43.7M
Negative
- Trailing 12-month hotel NOI of $6.0M
- Trailing 12-month hotel EBITDA of $8.0M
News Market Reaction – BHR
On the day this news was published, BHR gained 4.21%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"We are glad to have completed the sale of The Clancy," said Richard Stockton, president and CEO. "This strategic move sharpens our portfolio and strengthens our capital position."
In conjunction with the sale, the Company paid down approximately
Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.
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Braemar Hotels & Resorts Inc. |
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The Clancy |
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Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and Hotel Net Operating Income |
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(Unaudited, in millions) |
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|
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12 Months Ended |
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September 30, 2025 |
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Net income (loss) |
$ |
(3.3) |
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Interest income |
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(0.3) |
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Interest expense |
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4.8 |
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Amortization of loan cost |
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0.4 |
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Depreciation and amortization |
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6.4 |
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Hotel EBITDA |
$ |
8.0 |
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Capital reserve |
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(2.0) |
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Hotel Net Operating Income |
$ |
6.0 |
All information in this table is based upon unaudited operating financial data for the twelve month period ended September 30, 2025. This data has not been audited or reviewed by the Company's independent registered public accounting firm. The financial information presented could change.
EBITDA is defined as net income (loss), computed in accordance with generally accepted accounting principles ("GAAP"), before interest, taxes, depreciation and amortization. Hotel EBITDA multiple is defined as the purchase price divided by the trailing 12 month EBITDA. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's hotel EBITDA minus a capital expense reserve of
Forward-Looking Statements
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about the Company's strategy and future plans. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Braemar's control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; anticipated or expected purchases or sales of assets; our projected operating results; completion of any pending transactions; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board's decision whether to pay further dividends at levels previously disclosed or to use available cash to pay dividends; our understanding of our competition; market trends; projected capital expenditures; the impact of technology on our operations and business; general volatility of the capital markets and the market price of our common stock and preferred stock; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the markets in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in Braemar's filings with the Securities and Exchange Commission.
The forward-looking statements included in this press release are only made as of the date of this press release. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. Investors should not place undue reliance on these forward-looking statements. The Company can give no assurance that these forward-looking statements will be attained or that any deviation will not occur. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations, or otherwise, except to the extent required by law.
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SOURCE Braemar Hotels & Resorts, Inc.
FAQ
What price did Braemar (BHR) sell The Clancy for and when was the sale closed?
How much debt did Braemar (BHR) pay down with proceeds from The Clancy sale?
What net proceeds did Braemar (BHR) retain after taxes and transaction costs from The Clancy sale?
What were The Clancy's trailing 12-month EBITDA and NOI used in the sale calculation?
What capitalization rate did Braemar (BHR) report for The Clancy sale?
How many rooms does The Clancy have and what is the price per key?
