Blackstone is reportedly shopping San Francisco's 686-room Hyatt Regency Downtown SOMA, a move that comes weeks after a confirmed SEC filing detailed the firm's agreement to acquire the 821-room Hyatt Regency San Francisco at the Embarcadero for $279 million.

Blackstone is reportedly marketing the 686-room Hyatt Regency Downtown SOMA, located at 50 Third Street in San Francisco's SoMa district, according to a Hoodline report. The property, San Francisco's sixth-largest hotel by room count, is being shown to investors by Eastdil Secured, as the city's battered lodging market seeks a rebound. No asking price for the asset has been disclosed.

This move comes mere weeks after Blackstone, through funds affiliated with its real estate division, agreed to acquire the 821-room Hyatt Regency San Francisco at the Embarcadero for $279 million. The agreement was officially disclosed by the seller, Sunstone Hotel Investors, Inc., in an SEC Form 8-K filing on June 23, 2026, with accession number 0001104659-26-076640. This verifiable transaction puts Blackstone in the unusual position of adding one major San Francisco Hyatt to its portfolio while simultaneously divesting another.

The SoMa hotel's journey to the market follows a reported financial restructuring. The property was handed to an affiliate of Blackstone Mortgage Trust in December 2024 after its previous operator, Highgate, failed to service approximately $290 million in debt and associated costs, as cited by Hoodline from a San Francisco Chronicle report. While the Hoodline report outlines these prior financial woes, the specific public filing details for this debt transfer have not been independently confirmed by The Dissent.

The simultaneous buy and sell actions by Blackstone underscore the complex and often opaque nature of commercial real estate transactions, particularly in a volatile market like San Francisco's. As of this report, the asking price for the SoMa hotel remains undisclosed, and broader, verifiable data on San Francisco's hotel market recovery—beyond anecdotal convention demand—is scarce, leaving the true 'comeback test' an open question.