Newbond Holdings and Conversant Capital completed the purchase of the Hilton San Francisco Union Square and the Parc 55 San Francisco – a Hilton Hotel on November 25, 2025. The $408 million transaction covers roughly 3,000 rooms, representing about 10 % of San Francisco’s hotel inventory and adding two flagship Hilton brands to the partnership’s portfolio of large‑format hospitality assets.
The deal reflects a strategic bet on San Francisco’s post‑pandemic recovery. Both properties were previously owned by Park Hotels & Resorts, which stopped servicing a $725 million loan in 2023, leading to receivership. The sale price is a significant discount to the 2016 valuation of over $1.5 billion, underscoring the value Newbond and Conversant see in prime locations and Hilton’s global brand strength. The partnership plans an extensive capital‑improvement program to modernize the hotels while Hilton retains franchise and management agreements, allowing the company to generate recurring revenue without the capital burden of ownership.
Hilton Worldwide Holdings Inc. reported Q3 2025 adjusted earnings per share of $2.11, beating the consensus estimate of $2.05 by $0.06. Revenue of $1.30 billion fell short of the $3.01 billion estimate, reflecting a 1.1 % decline in system‑wide RevPAR compared with Q3 2024. The earnings beat was driven by disciplined cost management and a favorable mix of high‑margin leisure and business transient segments, while the revenue miss stemmed from weaker demand in the group and corporate segments during the quarter. Management highlighted strong pricing power in leisure markets and continued growth in business transient and group results as key drivers of the positive earnings outcome.
The acquisition aligns with Hilton’s asset‑light strategy, which focuses on franchise and management fee streams rather than direct property ownership. By transferring ownership of the Union Square and Parc 55 hotels, Hilton preserves its revenue from franchise and management agreements while freeing capital that can be deployed to other growth initiatives. The transaction also expands Hilton’s presence in a high‑traffic market that is expected to reach pre‑pandemic RevPAR levels by 2027‑2028, reinforcing the company’s long‑term growth outlook. Hilton’s Q4 2025 guidance of $1.94–$2.03 EPS and FY2025 guidance of $7.97–$8.06 EPS indicate confidence in maintaining profitability amid the market recovery.
The San Francisco hotel market is recovering from pandemic‑induced declines, driven by return‑to‑office mandates, a burgeoning AI sector, and a robust convention calendar. Despite challenges such as crime and cleanliness concerns, the city remains the least recovered major U.S. market outside Maui. The acquisition positions Newbond and Conversant to capture the upside of this recovery while Hilton benefits from a stable franchise income stream. The deal also signals to investors that Hilton’s portfolio strategy is resilient and that the company can continue to generate value through its franchise model even as it divests high‑cost assets.
Overall, the transaction represents a strategic realignment for both parties: Newbond and Conversant gain a foothold in a key market with strong growth prospects, while Hilton continues to monetize its brand through franchise and management agreements, supporting its broader asset‑light growth plan.
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