A partnership between Newbond Holdings and Conversant Capital, formed to invest in large-format hospitality assets, has closed on the acquisition of two of San Francisco’s largest hotels: the Hilton San Francisco Union Square and Parc 55 San Francisco – a Hilton Hotel. The combined purchase price for the two hotels, comprising approximately 3,000 rooms and representing roughly 10% of the city’s total room inventory, was $408 million.
As reported yesterday, the two hotels, formerly owned by Park Hotels & Resorts, were placed in a court-ordered receivership in October 2023, when the receiver assumed full authority and control over the hotels’ operations.
“Today is a great moment for downtown San Francisco’s hospitality sector,” said Vann Avedisian, founding partner, Newbond. “We are thrilled to complete the acquisition of Hilton Union Square and Parc 55, and to embark on an extensive capital improvement plan for the assets. 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, which is well underway thanks to Mayor Daniel Lurie’s leadership. That leadership was essential to us in making the investment.”
Michael Simanovsky, founder, Conversant Capital, commented, “This investment, which highlights the strengths of our partnership across capital allocation, operational expertise and structuring, is a unique opportunity to acquire and reposition two iconic hotels for the next phase of San Francisco’s recovery. We are committed to the long term with the city to further support its recovery, including a thriving and diverse lodging market.”
Mayor Lurie said, “San Francisco is coming back, and major investments like this one show that momentum is building every day. Visitors are returning, conferences are coming back to San Francisco, and it’s a good time to bet on our city. We’re showing the world: San Francisco is open for business, and we’re on the rise.”
Chris Nassetta, president/CEO, Hilton, added, “The partnership with Newbond and Conversant marks an exciting new chapter for the Hilton San Francisco Union Square and Parc 55. We are proud to be a part of the revitalization of these iconic properties in San Francisco, one of the country’s great destinations, and are confident that once completed, these hotels will deliver the highest standards of hospitality to Hilton guests from all around the world.”
