San Francisco-based investment firm Sixth Street has acquired The Clancy hotel, located at 299 Second Street, for $115 million. The purchase was completed in partnership with Riller Capital, according to a statement from Sixth Street.
The 410-room property was sold by Braemar Hotels & Resorts and is one of the largest hotel deals in the Bay Area this year. The transaction amounts to approximately $280,487 per room, making it the most expensive hotel sale of 2025 so far. This surpasses Park Hotels & Resorts’ sale of the Hyatt Centric Fisherman’s Wharf earlier in May, which sold for $80 million or about $253,000 per room.
The Clancy features 8,700 square feet of meeting space, two food and beverage venues, and parking for 140 vehicles. The rooms were renovated in 2020.
Sixth Street made the acquisition as part of its strategy to capitalize on a potential recovery in San Francisco’s lodging market. Marcos Alvarado, partner and head of U.S. real estate at Sixth Street, stated that the increasing presence of artificial intelligence and technology firms downtown has created “strong tenant demand” for local lodging.
Other significant transactions are expected soon. Newbond and Conversant are nearing completion of their court-approved purchase of the Hilton San Francisco Union Square and Parc 55 hotel complex for roughly $415 million—about $140,917 per room. Additionally, Blackstone is under contract to buy the Four Seasons Hotel San Francisco for about $130 million or $469,314 per room.
Sixth Street’s recent activity extends beyond hotels; earlier this year it acquired a 10 percent stake in the San Francisco Giants baseball team and last year invested in Bay FC women’s soccer team.
The broader hotel market in San Francisco has faced challenges over the past two years due to loan defaults, foreclosures, and closures. Sixth Street’s acquisition represents renewed interest from hospitality investors amid signs of market recovery.
“Strong tenant demand” for lodging is expected as more tech companies move into downtown San Francisco, according to Marcos Alvarado.
