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New Owners Take Over San Francisco’s Hilton Union Square and Parc 55 in $408 Million Sale

The distressed deal clears Park Hotels & Resorts of an $874 million loan tied to the properties in receivership.

Overview

  • Newbond Holdings and Conversant Capital closed the purchase of the two Union Square hotels for a combined $408 million.
  • Together the properties total about 3,000 rooms, representing roughly 10% of San Francisco’s hotel inventory.
  • The price reflects an estimated 75% discount versus their 2016 valuation, according to industry reporting.
  • Park Hotels & Resorts had stopped paying a $725 million loan in 2023, and said the balance had risen to $874 million before the sale enabled it to remove loan-related items from its financials.
  • The buyers outlined a long-term plan with extensive capital improvements yet to be detailed, as city leaders tout recovering travel demand and other recent downtown hotel transactions by Blackstone and Sixth Street.