There’s something seriously wrong with this story. The loans mature in 5-6 months, so why not pay it off instead of forfeiting the collateral? I would bet (even in SanFran) that the two hotels are still worth way more than the remaining loan balance!
The payoff on the loans must have been more than the value of the property. It would make sense then not to pay off the loans, and let go of the property. Instead, let the bond holders deal with it. They’ll take the loss, but won’t lose everything.