Blackstone is shopping one of San Francisco’s biggest hotels just weeks after buying another, putting a 686-room SoMa property back in play as downtown’s battered lodging market tries to prove its comeback is more than a convention-week sugar rush. The Hyatt Regency San Francisco Downtown SOMA is now being shown to investors, with the next owner potentially getting a major meeting hotel, a recently renovated Hyatt brand, and plenty of room to make its own bet on the city. No buyer has been announced.
The hotel at 50 Third Street is San Francisco’s sixth-largest by room count and Blackstone’s second-largest hotel holding, according to The Real Deal’s report. Eastdil Secured is marketing the property, but no asking price has been disclosed. The offering is being presented without a management contract, which could give a buyer flexibility to keep the Hyatt flag, bring in another operator, or rework the property’s positioning.
That makes this a different Blackstone-Hyatt story from the 821-room Hyatt Regency San Francisco at the Embarcadero. Blackstone agreed in June to buy that waterfront hotel for $279 million, or roughly $340,000 per room, in a deal disclosed by SEC filing; the SoMa hotel is now the one on the sell-side of the equation. The contrast puts Blackstone in the unusual position of adding one San Francisco Hyatt while testing investor demand for another.
From Distressed Handoff To Fresh Listing
Highgate handed the SoMa hotel to an affiliate of Blackstone Mortgage Trust in December 2024 after failing to pay about $290 million in debt and associated costs, The San Francisco Chronicle reported. Hyatt had announced the property’s 2022 rebrand after a multi-million-dollar renovation, giving the lender an asset that was newer on the inside than its distress headline suggested. Its convention-heavy business was nevertheless hit by pandemic-era travel disruption, weak office demand, and a thinner citywide events calendar.
Eastdil is pitching the property on the recovery ahead: revenue per available room rose 25% year over year through June, while the hotel sits two blocks from Moscone Center and near Salesforce Tower and San Francisco’s AI-heavy office corridor, The Real Deal notes. The sales argument is straightforward: more conventions could fill the rooms, and a rebound in office leasing could feed weekday business travel. Whether investors agree will likely depend on how much of that demand is durable after the biggest events roll through.
San Francisco’s Hotel Recovery Has A Real Test Ahead
San Francisco Travel, the city’s official destination marketing organization, expects 38 events in 2026 to generate more than 674,000 hotel room nights. Its forecast calls for 69% hotel occupancy and revenue per available room of $177.85, up 7.9% from 2025, after citywide RevPAR climbed 14.4% last year, according to the group’s May forecast. Those numbers are moving in the right direction, but they still leave large hotel owners betting on continued momentum rather than a fully healed market.
The backdrop has already produced several major ownership changes. The 1,921-room Hilton San Francisco Union Square and 1,024-room Parc 55 completed their sale in November 2025, according to Park Hotels & Resorts. Blackstone’s purchase of the Four Seasons San Francisco added another marquee downtown deal, as Hoodline previously reported.
As of today, Hyatt’s property page continued to list the SoMa hotel under the Hyatt Regency brand with 686 rooms, meeting facilities, and a location close to Moscone Center. The listing does not announce an immediate change for guests; it simply puts a major San Francisco lodging asset in front of investors with the branding question still open.
