Newbond Holdings and Conversant Capital are the new owners of the Hilton in Union Square.

By Jeffrey Weinstein | November 23, 2025

Newbond Holdings and Conversant Capital could be buying at a bargain as the market starts to rebound, attracting capital from the likes of Blackstone.

SAN FRANCISCO – A $408 million sale price has been reported for Park Hotels & Resorts’ former Hilton San Francisco Union Square and Parc 55 San Francisco (3,000 total rooms), recently acquired by Newbond Holdings and Conversant Capital. The price marks a reported 75% discount to the appraised values in a 2016 financing.

The hotels were subject to a $725 million non-recourse CMBS loan and were placed in court-ordered receivership in October 2023. At that time, Park no longer had any economic interest in the operations of the hotels. 

This can be considered a great deal for the buyers in what has been a rebounding market, especially for group business, and the completion of the process for Park, who just reported seeing an upswing in group demand with its Hilton Hawaiian Village Waikiki Beach Resort reporting a 57% surge.

Park Hotels & Resorts Chairman and CEO Thomas Baltimore, Jr., stated, “We are extremely pleased that the court-appointed receiver successfully completed a sale of the Hilton San Francisco Hotels after a years-long process. While Park no longer has any economic interest in these assets, with the completion of this sale, Park is now able to remove the legacy items from our financial statements that remained following the transfer of these assets into receivership in 2023. As we look ahead to 2026, Park continues to remain laser-focused on executing our strategic plan to sell non-core assets, invest in ROI projects within our core portfolio and continue to strengthen our balance sheet.”

The new owners of the San Francisco properties stated they are planning extensive capital improvements, adding, “These hotels, anchored in the heart of Union Square and backed by Hilton’s strong global brand, are uniquely positioned to benefit from San Francisco’s resurgence as a leading global destination.”

The sale of the Parc 55 and Hilton Union Square is very significant as these two hotels comprise 20% of the room supply in the city of San Francisco, according to Alan Reay of Atlas Hospitality Group, Newport Beach, California.

Reay told Hotel Investment Today that the huge drop in value from the $1.561 billion appraisal in 2016 can be attributed to a number of factors:

1. Huge increase in downtown office vacancy due to remote working.

2. Loss of major meetings and convention business in the city.

3. Negative publicity associated with spike in the number of homeless and crime in the downtown area.

“At a purchase price of only $138,634 per room it sold at a fraction of replacement cost and will be viewed long term as a great acquisition price as San Francisco is already showing positive revenue growth for hotels,” Reay added.

City in recovery

While city leaders are excited about the deal closing, it comes after Park stopped making payments on a $725 million loan on the properties in 2023 due to weak revenues and soft demand.

While the rebound is on, San Francisco is not all the way back. Room revenue was $242 million in October — down more than 10% from October 2019, according to CoStar data.

But it seems to be enough for investors this month with Blackstone announcing the acquisition of the Four Seasons hotel in the financial district and Sixth Street closing on The Clancy.

Blackstone is acquiring the 277-room for $130 million, according to the Wall Street Journal. It would be Blackstone’s first acquisition in the city in almost 10 years. The price for the property in the heart of the city’s financial district is reportedly $20-30 million less than what seller Westbrook Partners had listed it for more than a year ago.

Sixth Street, a global investment firm, acquired The Clancy, a 410-room lifestyle hotel in San Francisco, from Braemar Hotels & Resorts for $115 million. The fee-simple hotel will continue to be managed by Marriott International as an Autograph Collection hotel.

“This investment reflects our deep conviction in the San Francisco recovery story, which we believe is in its early innings,” said Marcos Alvarado, partner and head of US Real Estate at Sixth Street. “Improving leisure and convention travel is bolstered by strong tenant demand from expanding AI firms, which provides a constructive backdrop for future performance at The Clancy.”