In a significant development for San Francisco’s hospitality landscape, the city’s largest hotel complex, the Hilton Union Square and Parc 55, has secured new ownership after languishing in receivership for two years.

The hotels, located in the heart of downtown San Francisco, have been in a state of financial limbo since their previous owner defaulted on a $725 million mortgage in 2023. The properties, which have seen their valuations slashed by nearly half, will now be purchased by a trio of New York-based hoteliers under the entity NB Acquisitions LLC.

The potential sale comes at an interesting time for San Francisco’s tourism and convention industry. Despite challenges in recent years, the city is preparing for major events like the upcoming Super Bowl and World Cup in 2026, which could signal a potential resurgence in hospitality demand.

Contrary to earlier speculation that the properties might be converted to housing, the new owners appear committed to maintaining their hotel status. This suggests confidence in San Francisco’s recovery and future tourism potential.

The buyers, Newbond and Conversant, are relatively unknown in San Francisco’s market but bring experience managing luxury hotel assets and real estate investments. Their purchase indicates a strategic bet on the city’s economic recovery.

While the exact sale price remains confidential, the transaction is expected to be finalized at a court hearing scheduled for September 25th. This development represents a potential turning point for downtown San Francisco’s commercial real estate sector, which has faced significant challenges in recent years.

The sale underscores the ongoing transformation and resilience of San Francisco’s urban landscape, offering a glimmer of optimism for a city working to reinvent its economic narrative.