Blackstone, the global investment firm, is reportedly nearing completion of a deal to acquire the Four Seasons Hotel San Francisco — a transaction that would mark its first hotel purchase in San Francisco in about ten years.

According to sources cited by the Wall Street Journal, the acquisition is close to $130m.

A landmark deal for San Francisco’s hotel market

The Four Seasons Hotel San Francisco is a 277-room luxury property situated on Market Street, near Union Square and the city’s financial district.

The proposed purchase price is approximately $130 million, which industry observers note is among the most significant recent hotel transactions in the city’s downtown core.

This deal would represent the first San Francisco hotel acquisition by Blackstone in roughly a decade — signalling renewed confidence in a market that has struggled in the years following the pandemic.

Signs of recovery in the San Francisco hotel sector

The timing of the acquisition aligns with improving performance metrics across San Francisco’s hospitality sector. Data for 2025 shows that the city’s hotel occupancy rate has climbed to around 70%, up from below 50% in 2021.

Revenue per available room (RevPAR) has also made a strong recovery, helping to rebuild investor confidence in downtown hotel assets.

The broader hotel market in San Francisco has seen other major transactions recently.

For instance, the combined sale of two large downtown hotels, Parc 55 San Francisco and Hilton San Francisco Union Square, fetched $408 million — highlighting how owners and investors are reshaping holdings in response to evolving demand.

Implications for investors and the global hotel industry

If finalised, Blackstone’s acquisition of the Four Seasons Hotel could serve as a benchmark for future investment in urban U.S. hotel markets.

The deal suggests that major investors are reconsidering previously sidelined assets in central business districts, betting on a rebound in both leisure and corporate travel.

For the global hotel industry, the transaction may encourage other real-estate and institutional investors to re-enter the San Francisco market or re-evaluate under-performing assets.

Given San Francisco’s history as a premium destination for both domestic and international guests, securing a landmark property such as the Four Seasons could signal a turning point for luxury hotels in cities still recovering from pandemic-related travel downturns.

It remains to be seen whether the deal will close as early as later this week, as reported. The outcome could shape how stakeholders view risk and opportunity in major urban hospitality markets moving forward.