Hilton Worldwide Holdings, Inc. negotiated to buy Parc 55 San Francisco and four other hotel properties in Florida backed by the proceeds from the $1.95 billion sale of the Waldorf-Astoria New York last month. The sale of the Waldorf Astoria New York to the Chinese Anbang Insurance Group Co. fetched the biggest price for a hotel in U.S. history.
Proceeds from the sale of Waldorf Astoria New York were used to buy Hilton Orlando Bonnet Creek and the Waldorf Astoria Orlando in Orlando, Fla., The Reach and Casa Marina Waldorf Astoria resorts in Key West, Fla.; and the Parc 55 in San Francisco. The purchase price for these five hotels was $1.76 billion. Hilton already managed the four other hotels, so Parc 55 is the only new hotel added to the Hilton portfolio.
The sale price for Parc 55 San Francisco was predicted to be the largest hotel real estate transaction in San Francisco of 2014 at $550 million or $537,000 per room. Ritz-Carlton San Francisco sold in summer 2014 for $161 million or $437,000 per room. Hotel Vitale San Francisco sold in April 2014 for $130 million or $800,000 per room.
Los Angeles real estate investor Michael Rosenfeld bought the Nob Hill hotel Stanford Court in 2014, formerly a Renaissance brand hotel managed by Marriott. Rosenfeld now owns three of the major hotel properties on San Francisco’s Nob Hill with Stanford Court, Fairmont San Francisco purchased in 2012 for $200 million, and InterContinental Mark Hopkins, purchased for $120 million in February 2014.
The average price of hotel rooms in San Francisco has increased 40% in the past five years. Those price increases have kept me out of the city hotels for most of the past four years since prices increased rapidly in 2012. It was a good San Francisco run from 2008 to 2011 when recession hotel rate bargains were prevalent.
San Francisco’s Largest Hotels
- Hilton San Francisco Union Square: 1,908 rooms
- Marriott marquis San Francisco: 1,500 rooms
- Westin St. Francis: 1,195 rooms
- Parc 55 San Francisco, a Hilton Hotel: 1,024 rooms
Bloomberg.com Feb 11, 2015 – Hilton to Buy Five Hotels With Waldorf Astoria Proceeds
Oyster.com – Parc 55 San Francisco (373 photos)
Hilton HHonors Reward Category
Parc 55 San Francisco is available at 50,000 points for standard reward nights as HHonors category 7. The hotel is not listed yet on HHonorspointssearchtool.com.
Hilton San Francisco Union Square and Hilton San Francisco Financial District are also at 50,000 points for most months. Hilton Union Square rises to 60,000 points for September and October (peak season for San Francisco weather) and Hilton Financial District is 60,000 points from May through October 2015.