Two of San Francisco’s largest hotels were sold together at a significant discount.
Bloomberg reports Parc 55 and Hilton San Francisco Union Square, which encompass a total of nearly 3,000 rooms, were sold for $408 million – a 75% drop from their combined $1.56 billion appraisal price in 2016. Newbond Holdings and Conversant Capital closed on the purchase and stated they would enact “extensive” investments to renovate the hotels, which were built in 1964 and 1983.
The sale followed a two-year marketing push after the previous owner Parc Hotels & Resorts, a spinoff from Hilton, stopped paying the mortgages on the properties in 2023 while casting doubt on San Francisco’s post-pandemic tourism industry. The hotels account for nearly 10% of San Francisco’s lodging units.
“We are committed for the long term with the city to further support its recovery, including a thriving and diverse lodging market,” said Michael Simanovsky, founder of Conversant Capital, in a statement.
Photo: Hilton San Francisco Union Square
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