The 1,024-key Parc 55 San Francisco – a Hilton Hotel entered court-ordered receivership in October 2023. Credit: Raymond Ahner / Shutterstock.com.
Park Hotels & Resorts has confirmed the sale of two of Hilton properties in San Francisco, California, US, through a court-appointed receiver.
The two properties are 1,921-key Hilton San Francisco Union Square and the 1,024-key Parc 55 San Francisco – a Hilton Hotel.
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The transaction included the transfer of both hotels and the assumption of the related mortgage loan by the new undisclosed buyer.
Park acquired the Hilton property in 2000 and purchased Parc 55 in 2015. In 2016, the trust secured a $725m loan to fund renovations for the properties. In 2023, Park Hotels did not meet its obligations on that debt, reported The San Francisco Standard.
The hotels entered court-ordered receivership in October 2023. From that point, the receiver assumed full control over operations, and Park ceased to have any economic interest in the assets.
During the receivership period, interest and fees linked to the mortgage loan appeared on Park’s statement of operations. The total outstanding amount, which reached $874m by 31 October, was accounted for on its balance sheet, said the company.
Following completion of the sale and transfer of ownership, the mortgage loan and all accrued interest and fees up to the date of sale were removed from Park’s consolidated financial statements. This adjustment had no impact on the company’s statement of operations
Park Hotels & Resorts chief executive officer Thomas Baltimore, Jr said: “We are extremely pleased that the court-appointed receiver successfully completed a sale of the Hilton San Francisco Hotels after a years-long process.
“While Park no longer has any economic interest in these assets, with the completion of this sale, Park is now able to remove the legacy items from our financial statements that remained following the transfer of these assets into receivership in 2023.
“As we look ahead to 2026, Park continues to remain laser-focused on executing our strategic plan to sell non-core assets, invest in ROI [return on investment] projects within our core portfolio and continue to strengthen our balance sheet.”
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