SAN FRANCISCO—Hilton Worldwide has acquired the Parc 55 Wyndham San Francisco, a 1,024-room hotel in Union Square. The hotel, which will be renamed the Parc 55 San Francisco a Hilton Hotel, was purchased using funds from the hotel operator's sale of the Waldorf Astoria New York last year.

Hilton purchased the hotel to augment its footprint in the San Francisco market, which, after New York, has the highest RevPAR of any US urban market, according to the research team at JLL. And, according to Smith Travel Research, the city has an 84.1%, ADR at $207.81 and RevPAR at $174.81. To further tip the scales, JLL research shows that the San Francisco hotel market was weak during the mid-2000 cycle, and did not return to its previous peak occupancy until 2013, compared to other US markets that had fully rebounded by 2006 and 2007. As a result, San Francisco is having stronger growth in this cycle compared to the previous cycle. Hilton declined to provide an additional comment about the sale.

Hilton has an adjacent hotel in the area—the Hilton San Francisco Union Square, which it purchased 50 years ago—that will serve as a complement to the Parc 55, which has a contemporary design and can serve both business and leisure clients. The existing hotel manager, John LaFortune, will continue to manage the property. In addition to the 1,024 guestrooms, the hotel features 30,000 square feet of meeting space and can accommodate groups of 10 to 700. Combined with the adjacent sister property, the Hilton can offer 165,000 square feet of meeting space and nearly 3,000 rooms in the immediate Union Square area.

The Parc 55 purchase was part of a $1.76 billion five-hotel purchase using the proceeds from the Waldorf Astoria sale. The other hotels purchased include Hilton Orlando Bonnet Creek in Orlando, FL, Waldorf Astoria Orlando in Orlando, FL, the Reach, a Waldorf Astoria Resort in Key West, FL, and the Casa Marina. It leaves about $100 million in proceeds that will be used to make additional hotel purchases over the next six months.