Summary:
- Two of San Francisco’s largest hotels are reportedly nearing sale despite missed deadlines.
- The buyer of the 1,921-room Hilton Union Square and 1,024-room Parc 55 is unidentified.
- The city’s hotels have posted higher revenue this year, according to STR.
TWO OF SAN FRANCISCO’S largest hotels are reportedly nearing sale despite missing multiple deadlines. An unidentified buyer filed a sale agreement in San Francisco Superior Court on July 28 for the 1,921-room Hilton Union Square and the 1,024-room Parc 55.
The hotels are among the largest buildings in the city and investment interest could indicate downtown is recovering from pandemic-related drops in tourism and foot traffic, though it still trails other U.S. cities, the San Francisco Chronicle reported.
Both were previously owned by Park Hotels & Resorts, a public company spun out of Hilton Worldwide Holdings. In 2023, Park defaulted on the $725 million mortgage on the properties and relinquished ownership due to San Francisco’s hotel market conditions.
An earlier court order set a July 29 deadline for the sale, but no deal was completed, the Chronicle reported. Judge Charles Haines recently approved extending the court-appointed receiver’s authority to sell the properties to Oct. 29, the fourth extension.
Receiver Michelle Russo of Hotel Asset Value Enhancement has sought to sell the hotels for nearly two years on behalf of Wilmington Trust, trustee for special servicer Wells Fargo. An attorney for Russo declined to identify the buyer but said a motion to approve the sale will be filed “soon.” Haines must approve the sale for it to proceed.
The hotels are not the only major properties with lengthy sales processes. San Francisco Centre, the city’s largest mall, has had its auction repeatedly delayed and is now set for Aug. 21. The mall, a block from Parc 55, is in the Powell Street area, which has seen retail and office vacancies and lower visitor traffic.
San Francisco hotel rooms have reported higher revenue this year compared with last, according to STR, but tourism officials are concerned about declining international visitors. Tourism from Mexico and Canada to California has fallen amid tensions with the Trump administration and tariffs.
Hong Kong’s Swire Properties reportedly sold its nearly 1-acre Miami site at Brickell City Centre to Dubai’s Kerzner International for $45 million.
