Park Hotels & Resorts reports 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. The properties were acquired by a partnership between Newbond Holdings and Conversant Capital, which was formed to invest in large-format hospitality assets.
The combined purchase price for the two hotels, comprising approximately 3,000 rooms and representing roughly 10 percent of the city’s total room inventory, was $408 million.
As previously announced, the Hilton San Francisco Hotels were placed in a court-ordered receivership in October 2023, when the receiver took full authority and control over the hotels’ operations and Park no longer had any economic interest in the operations of the hotels.
“We are extremely pleased that the court-appointed receiver successfully completed a sale of the Hilton San Francisco Hotels after a years-long process," Thomas Baltimore, Jr., chairman and CEO, said in a statement. "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.”
During the receivership, interest, default interest and fees related to the SF Mortgage Loan were reflected on the company’s statement of operations, and the SF Mortgage 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 Hilton San Francisco Hotels to (and the related assumption of the SF Mortgage Loan by) the buyer, the SF Mortgage 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.