Hilton Picks Up SF, Florida Hotels With Waldorf Money
Hilton Worldwide will acquire five hotels with $1.76B of the proceeds from its Waldorf Astoria sale last fall. The properties in the deal are the Parc 55 in San Francisco, two hotels in Orlando and another pair of lodgings in Key West. The move is part of a strategic shift by the world's largest hotel operator away from New York, where room revenue growth has slowed thanks to an ever-growing supply of new hotel developments.
Room revenue in Key West has outpaced the NYC and US averages. Meanwhile, San Francisco's occupancy rate is 84.1% compared to the nationwide 64.4% average. Parc 55 is the city's fourth-largest hotel, at 1,024 rooms. Its sellers according to Bloomberg include Rockpoint Group and Blackstone, which is also unloading the Key West properties. Hilton expects to acquire more properties over the next six months with the remaining Waldorf proceeds.
