The Hilton Union Square and Parc55 Sold for $408 Million, Though Were Previously Worth $1.5 Billion

"The SF Union Square hospitality industry was already in the dumps in mid-2023 when the city's largest hotel, the Hilton Union Square (333 O'Farrell Street), and the city's fourth-largest Parc 55 hotel (55 Cyril Magnin Street), saw their owners default on a $723 million mortgage and abandon the properties. Both hotels then operated in limbo for more than two years, until September of this year, when NY-based luxury hotel operators Newbond Holdings and real estate lenders Conversant Capital stepped up and bought both hotels."

"Now, three months later, the SF Business Times reports that the sale price was actually $408 million for both hotels. The Business Times refers to this as the biggest hotel deal of the year, which of course it was, because it involves SF's largest and fourth-largest hotels which together account for 10% of all hotel rooms available in the city. Though in dollar amounts, this is another fire-sale deal."

San Francisco's Hilton Union Square and Parc 55 hotels were defaulted and abandoned after owners failed on a $723 million mortgage in mid-2023. The two properties operated in limbo for more than two years before Newbond Holdings and Conversant Capital purchased them in September. The combined sale price was $408 million, far below the 2016 appraisal of over $1.5 billion, marking a fire-sale valuation. The two hotels constitute about 10% of the city's hotel rooms. Recent transactions, including a reported Four Seasons purchase for $130 million, signal signs of recovery in the downtown hospitality market.

Read at sfist.com