Private equity firm The Blackstone Group, New York City, has bought a controlling stake in the Parc 55 hotel, located in San Francisco, for about US$70 million, Bloomberg reported on Tuesday.
According to two people familiar with the matter, Blackstone will hold 75% of the property, which will continue to be managed by Highgate Hotels, Irving, Texas, under its Wyndham flag. The purchase happened after Highgate and Rockpoint Group, Boston, had defaulted on US$221 million in debt earlier this month. The two companies had bought the hotel for US$220 million in 2006.