SoMa Hotel Gets New Owner, Name in $350M Deal

The Westin Market Street hotel in San Francisco recently traded hands, as LaSalle Hotel Properties purchased the property in a deal worth $350 million. The buyer used cash on hand and borrowings from its senior unsecured credit facility in order to fund the acquisition of the hospitality property. Upon closing, the Westin Market Street was renamed by the new owner as Park Central San Francisco. The deal will not affect the current management contract, with Highgate Hotels set to continue to handle asset management duties as an independent hotel on behalf of the new owner.

The Westin Market Street hotel in San Francisco has a new owner and a new name. LaSalle Hotel Properties purchased the 681-key property in a $350 million deal and has rebranded it the Park Central San Francisco.

The property is located at 50 Third St. near Market Street. A variety of major venues, attractions and corporate offices are readily accessible, including Moscone Convention Center, Yerba Buena Gardens, Yerba Buena Center for the Arts, AT&T Park and the headquarters of Twitter, Instagram and Pinterest.

In a Jan. 26 statement, Bethesda, Md.-based LaSalle Hotel Properties said that it funded the acquisition with cash on hand and borrowings from its senior unsecured credit facility. Highgate Hotels will continue to manage the property.

Completed in 1984, the Park Central underwent a $28.3 million renovation in 2007 and has received an additional $14 million in capital investment since 2009. LaSalle plans a normal life-cycle renovation during the fourth quarter of 2016. Guest rooms average 347 square feet, and the property provides 23,000 square feet of flexible meeting and event space, including a 9,000-square-foot ballroom that can host up to 1,200 guests. The property’s only restaurant, the MaSo, offers locally-sourced cuisine and an outdoor terrace and can accommodate 300 guests.

Image courtesy of starwoodhotels.com