Park Hotels & Resorts Inc. has revealed that a court-appointed receiver has completed the sale of the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco – a Hilton Hotel, which secured a $725 million non-recourse CMBS loan.
As previously announced, the two hotels were placed in a court-ordered receivership in October 2023, when the receiver assumed full authority and control over the hotels’ operations, and Park no longer had any economic interest in their operations.
“We are extremely pleased that the court-appointed receiver successfully completed a sale of the Hilton San Francisco hotels after a years-long process,” said Thomas J. Baltimore Jr., chairman/CEO, Park Hotels & Resorts. “While Park no longer has any economic interest in these assets, with the completion of this sale, we are 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 noncore assets, invest in ROI projects within our core portfolio and continue to strengthen our balance sheet.”
During the receivership, interest, default interest and fees related to the mortgage loan were reflected on the company’s statement of operations, and the loan plus accrued interest and fees (which totaled $874 million as of Oct. 31) were reflected on the company’s balance sheet. In conjunction with the sale of the hotels to (and the related assumption of the mortgage loan by) the buyer, the loan and associated accrued interest and fees through and including the date of the sale, as well as other items on the company’s consolidated financial statements associated with the receivership, were derecognized with no effect on the statement of operations.
