A partnership between Newbond Holdings and Conversant Capital has closed on the acquisition of two of San Francisco’s largest and most recognizable 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 keys and representing more than 8% of the city’s total room inventory, was $408 million.

Bloomberg News reported that the purchase price represents a roughly 75% discount to the two hotels’ appraised value of $1.56 billion in a 2016 financing. In the interim, former owner Park Hotels & Resorts stopped making payments on a $725-million loan backed by the two properties and handed over the keys in 2023.

“San Francisco is coming back, and major investments like this one show that momentum is building every day,” said San Francisco Mayor Daniel Lurie. “Visitors are returning, conferences are coming back to San Francisco, and it’s a good time to bet on our city.”

The new owners plan to implement “an extensive capital improvement plan for the assets,” said Newbond founding partner Vann Avedisian. Eastdil Secured advised on the transaction.