Blackstone Might Buy San Francisco Hotel After 10 Years

Blackstone Inc., one of the world’s largest investment firms, is reportedly close to finalizing a $130 million deal to purchase the Four Seasons Hotel in San Francisco.

If completed, this would be Blackstone’s first hotel acquisition in the city in roughly ten years, signaling renewed investor confidence in San Francisco’s hospitality market.

The Four Seasons Hotel San Francisco is a luxury property with 277 rooms located along Market Street, close to both Union Square and the financial district. The expected purchase price, which works out to about $469,300 per room, is seen as a meaningful benchmark for high-end hotels in the downtown area.

Blackstone is also evaluating a plan to invest an additional $225 million in renovations. These upgrades would modernize the property, elevate guest amenities, and position the hotel to capture increasing demand from premium leisure and business travelers.

This acquisition is viewed as a positive sign for San Francisco’s broader economic recovery. After years of pandemic-related challenges, downtown hotels have begun to see stronger occupancy levels, fueled by a return of conferences, corporate travel, and international visitors.

Blackstone’s move could also prompt other institutional investors to reconsider opportunities in urban hotel markets that were previously avoided due to weaker demand.

This deal fits into Blackstone’s strategy of acquiring established hotels in metropolitan areas where long-term asset appreciation and operational improvements can create strong returns.

For example, earlier this year, the firm bought the 785-room Sunseeker Resort Charlotte Harbor in Florida from Allegiant Travel Co. for $200 million. The resort includes multiple dining venues, two swimming pools, a championship golf course, and 60,000 sq ft of indoor event space.

Photo by Garrett Overheul on Unsplash