San Francisco’s hotel scene just got a major plot twist that would make even the most seasoned real estate drama queen take notice.

After years of sitting abandoned like forgotten props in a post-apocalyptic movie set, two massive hotels in the heart of the city are finally getting a second act.

The Backstory of Abandoned Luxury

Park Hotels & Resorts, a Virginia-based real estate investment trust, essentially ghosted their own multibillion-dollar properties back in 2023, defaulting on a whopping $725 million loan. The Parc 55 and Hilton Union Square - with nearly 3,000 rooms between them - were left in hospitality purgatory.

The Rescue Squad

Enter the heroes of our story: three New York-based firms - Newbond Holdings, the Witkoff Group, and Conversant Capital. These real estate mavens are swooping in to rescue these hospitality giants from total abandonment.

The Financial Rollercoaster

What’s wild is how dramatically these properties have depreciated. Once valued at a stunning $1.56 billion in 2016, they’re now worth a mere $450-500 million. Talk about a financial nosedive that would make even Wall Street traders wince.

The sale isn’t a done deal yet - it still needs court approval. But if successful, these firms will inherit hotels managed by Hilton through 2040, with options to extend even further.

San Francisco’s real estate saga continues, proving once again that in this city, nothing - not even massive hotels - stays static for long.