San Francisco’s Hotel Sale Signals Tourism Comeback

Published on November 22, 2025

San Francisco’s tourism industry is doing well after selling the Hilton San Francisco Union Square and the Parc 55 San Francisco Hotels. Sold at 408 million dollars, the hotels had an appraised value of 1.6 billion dollars. This is a 75 percent loss of value and is a true epitome of the value loss seen due to the recent distress experienced by the city and the tourism industry. The loss of value can indicate a loss of potential as well, hence epitomizing the valley the industry is currently trying to recover from. The sale is a true landmark to the positive future potential of the industry as well as the tourism industry.

The purchase by Newbond Holdings and Conversant Capital shows confidence is growing in the city. The hotels, in the prime spot of Union Square, will benefit from the positive confidence and a revitalised city as. The infrastructure of the city has experienced a positive confidence and a revitalised city as. The infrastructure of the city has experienced a positive transformation due to a mix of economic benefits and improvement in travel trends.

Tourism Sector Shows Signs of Growth

The tourism industry in San Francisco has faced a tumultuous period, largely driven by the Covid-19 pandemic, changes in the business landscape, and a notable decline in convention activity. As the city’s economy began to recover, there was a noticeable slowdown in hotel revenue, with October 2023 showing a more than 10 percent drop in room revenue compared to the same period in 2019. However, there are signs that the tide is turning, especially with the increasing number of conventions and large-scale events scheduled for the coming years.

Recent data from the San Francisco Travel Association indicates that the number of conventions planned for the city is on the rise. In 2023, the city hosted 34 conventions, a significant jump from the 25 held the previous year. This upward trend is expected to continue, with projections indicating that 36 conventions will take place in 2026. Such events are critical drivers for the local economy, bringing in large numbers of visitors and providing a significant boost to the hotel and hospitality sectors.

Hotel Market Recovery Underway

The hotel market in San Francisco, while still facing challenges, is showing signs of recovery. The sale of the Hilton San Francisco Union Square and Parc 55 San Francisco highlights the changing dynamics of the city’s hotel sector, where investors are starting to see value in properties that were once viewed as liabilities. This acquisition is not the only sign of recovery Blackstone Inc. and Sixth Street, two of the world’s largest investment firms, have also made moves in the local hotel market, indicating their belief in the city’s future prospects.

The new owners of the Hilton and Parc 55 have announced plans for an extensive capital improvement programme aimed at enhancing the properties and positioning them to capitalise on the expected growth in tourism. With the backing of the Hilton brand, one of the world’s most recognisable hotel names, these properties are well-placed to cater to both business and leisure travellers, further bolstering the city’s tourism offering.

Government Support for Tourism Revival

The local government has been working actively to promote tourism and create an environment conducive to economic recovery. San Francisco’s Mayor and tourism officials have been vocal in their support for the sector, highlighting the importance of convention and event-based tourism as a key pillar for the city’s recovery. Investments in infrastructure, coupled with the city’s rich cultural offerings, are expected to attract both international and domestic visitors in the coming years.

Additionally, efforts to improve street conditions, ensure safety, and enhance public spaces are seen as critical steps in making San Francisco a more attractive destination for tourists. The sale of key properties in prime locations like Union Square reflects the confidence that both the private sector and government entities have in the long-term sustainability of San Francisco’s tourism industry.

Outlook for San Francisco’s Tourism Industry

The San Francisco brand image is once again a global tourism magnet after overcoming the short-term tourism market challenges. With Hotel Investments and Convention Activity Re-Start the City Tourism Recovery is well underway.

In the wake of renewed focus and recovering from previous headwinds, the tourism economy will be driven by the nimble focus on revitalizing the tourism products, Hotels and Public Infrastructure. Business and holiday travelers alike will experience the revitalized offer from and enhanced tourism support City which is determined to reclaim global brand image derived from one of the top tourism destinations.