Blackstone Acquires SF Four Seasons Amid AI-Driven Hospitality Rebound
Blackstone Real Estate has acquired the Four Seasons Hotel San Francisco, a 277-room property located on Market Street in the city’s downtown core. The firm did not disclose the financial terms, but T
Blackstone Real Estate has acquired the Four Seasons Hotel San Francisco, a 277-room property located on Market Street in the city’s downtown core. The firm did not disclose the financial terms, but The Wall Street Journal reported the sale price at approximately $130 million.
The acquisition signals renewed confidence in San Francisco’s hospitality sector, which has struggled to recover from the pandemic. Jon Gray, Blackstone’s President and COO, described the city as being in the middle of an economic transformation led by artificial intelligence. In a recent video posted to LinkedIn, Gray called San Francisco a clear investment opportunity, linking the deal to growing demand driven by companies like OpenAI and Anthropic.
Scott Trebilco, Senior Managing Director at Blackstone, added that the city is seeing increased office utilization and travel activity fueled by new AI investment. He characterized the current market as experiencing a “strong rebound.” Stéphane Gras, general manager of the hotel, said in a statement that the new ownership brings operational expertise that will enhance the guest experience.
The Four Seasons Hotel features high-end amenities including the Spa at Equinox, the Equinox Sports Club, the MKT Restaurant & Bar, and a rooftop venue called Veranda Terrace. Blackstone’s investment adds to recent activity in San Francisco’s hotel real estate market, where buyers are responding to discounted valuations with long-term optimism.
In November, Newbond Holdings and Conversant Capital jointly acquired the Hilton San Francisco Union Square and Parc 55 for a combined $408 million. That sale came after the properties entered foreclosure due to loan payment defaults in 2023. Their prior owner, Park Hotels & Resorts, had walked away from the complex amid declining revenues. The hotels’ combined value had dropped by $1 billion over the previous seven years, according to earlier reporting.
Despite those setbacks, commercial real estate firm JLL has projected a recovery for the local hospitality industry. In an investment outlook published this year, the firm pointed to the city’s “burgeoning AI sector” as a major growth driver for business travel and hotel demand.
Blackstone’s purchase of the Four Seasons in San Francisco is part of a broader strategy. The firm recently sold the 1,003-room Sheraton Phoenix Downtown to Brookfield and received an $800 million investment from Realty Income toward its CityCenter properties in Las Vegas, which include Aria Resort & Casino and Vdara Hotel & Spa.
For San Francisco, the city’s battered hotel market appears to be regaining traction. Investors like Blackstone are betting that growth in AI and related sectors will restore the city’s appeal to both business travelers and tourists.