Park Hotels & Resorts Sells Hilton San Francisco Hotels for Seven Hundred Twenty-Five Million Dollars, Boosting Financial Position and Strategic Focus in the US!

Published on November 24, 2025

Park Hotels & Resorts Inc., a major player in the lodging real estate investment trust (REIT) market, has successfully completed the sale of the Hilton San Francisco Union Square and the Parc 55 San Francisco – A Hilton Hotel. The sale was finalized on November 21, 2025, following the completion of the receivership process initiated in October 2023. These properties, collectively known as the Hilton San Francisco Hotels, were sold for $725 million, securing a non-recourse CMBS Loan known as the SF Mortgage Loan.

With the sale now concluded, Park Hotels & Resorts is looking ahead, focusing on improving its financial performance and continuing its strategic plan to dispose of non-core assets while strengthening its portfolio. The transaction has allowed Park to remove the legacy financial items associated with the properties from its balance sheet.

The Role of Receivership in the Sale Process

In October 2023, the Hilton San Francisco Hotels were placed under court-appointed receivership due to ongoing operational and financial issues. This move gave the receiver full control over the properties’ operations, and Park Hotels & Resorts no longer had any economic interest in managing or operating the hotels. Over the course of the receivership, Park Hotels & Resorts worked closely with the appointed receiver to facilitate the eventual sale of the properties.

The receiver’s decision to complete the sale marked the end of a protracted process that began when the hotels were placed under receivership. The sale was necessary to resolve the financial issues surrounding the properties and bring a conclusion to the complex situation.

Impact of the Sale on Park Hotels & Resorts’ Financials

The completion of the sale of the Hilton San Francisco Hotels has significant financial implications for Park Hotels & Resorts. As Thomas J. Baltimore, Jr., the Chairman and Chief Executive Officer of Park, explained, this successful sale enables the company to remove the financial burden left over from the receivership. These items, including interest, default interest, and fees related to the SF Mortgage Loan, were previously reflected on Park’s financial statements.

Prior to the sale, the SF Mortgage Loan and its associated accrued interest and fees, which totaled $874 million as of October 31, 2025, were reflected on Park’s balance sheet. With the sale now complete, these liabilities have been derecognized, ensuring that there is no longer an effect on the company’s statement of operations. This allows Park to move forward with a cleaner balance sheet and focus on its core portfolio of assets.

Strategic Focus Moving Forward: Core Portfolio and ROI Projects

Looking ahead, Park Hotels & Resorts remains focused on executing its strategic plan, which includes the sale of non-core assets and continued investment in return-on-investment (ROI) projects within its core portfolio. The company aims to use the proceeds from the sale to strengthen its balance sheet, invest in its most profitable properties, and create long-term value for its shareholders.

While Park no longer has an economic interest in the Hilton San Francisco Hotels, the completion of the sale has allowed the company to refocus on its core business of managing high-quality hotels and resorts. Park is committed to maintaining and growing its portfolio of premium-branded hotels and resorts, all of which are strategically located in key city-center and resort destinations.

The Significance of the Sale for Park Hotels & Resorts

This sale represents a significant step for Park Hotels & Resorts in moving beyond the complexities of managing the Hilton San Francisco Hotels. The transaction removes a legacy issue from the company’s financials, positioning Park to continue its growth and realign its portfolio. As the company prepares for the future, it remains focused on investing in properties that drive the best return on investment and contribute to the long-term success of its operations.

Park’s leadership believes that the completion of the sale positions the company well for future opportunities and strengthens its overall financial position. With a continued focus on its core business and a commitment to enhancing the value of its portfolio, Park Hotels & Resorts is primed for continued success in the hospitality sector.

Forward-Looking Strategy: Strengthening the Portfolio

As Park Hotels & Resorts looks ahead to 2026, it will continue to focus on executing its strategic vision to sell non-core assets, invest in core properties, and strengthen its balance sheet. The company’s commitment to expanding its portfolio of market-leading hotels and resorts remains a priority. By divesting non-essential assets, Park aims to maximize shareholder value while focusing on investments that promise the highest returns.

Park’s approach to managing its portfolio allows the company to optimize the value of its assets, improve operational efficiency, and ensure that its hotel properties continue to deliver strong performance in the competitive hospitality industry.

Conclusion: A Key Milestone for Park Hotels & Resorts

The sale of the Hilton San Francisco Hotels is a key milestone for Park Hotels & Resorts, as it transitions away from the challenges posed by the receivership. By concluding this sale and derecognizing the associated liabilities, Park is now in a stronger financial position. The company’s focus on core assets and high-ROI projects ensures that it will continue to thrive and grow in the competitive hospitality sector.

With this sale, Park Hotels & Resorts is positioning itself for continued success and long-term profitability. By aligning its efforts with its strategic goals, Park remains committed to delivering exceptional value to its shareholders and guests alike.