Posted on 06/05/2023 7:52:40 PM PDT by Rummyfan
Another bit of bad news for downtown San Francisco arrived Monday morning with the revelation that the investment firm that owns the Hilton San Francisco Union Square and Parc 55 hotels is walking away from its debts and giving up hope on a return of SF's convention market.
Virginia-based REIT Park Hotels & Resorts has opted to cease payments on a $725 million loan, as the SF Business Times reports today, essentially surrendering over 2,900 hotel rooms and hospitality facilities to its lender. This includes the 1,921-room Hilton San Francisco Union Square, which is San Francisco's largest hotel, occupying an entire city block, and one of the country's largest hotels outside of Las Vegas.
Park Hotels & Resorts is also giving up on the 1,024-room Parc 55, citing the continued debt burden of the two hotels on its portfolio, and multiple factors that have made the SF market less desirable for their business.
"After much thought and consideration, we believe it is in the best interest for Park’s stockholders to materially reduce our current exposure to the San Francisco market," said Park Hotels CEO Thomas J. Baltimore in a statement. "Now more than ever, we believe San Francisco’s path to recovery remains clouded and elongated by major challenges, both old and new: record high office vacancy; concerns over street conditions; lower return to office than peer cities; and a weaker than expected citywide convention calendar through 2027 that will negatively impact business and leisure demand."
(Excerpt) Read more at sfist.com ...
Watch who buys it.
I’m betting it will be a Chinese subsidiary.
Don’t worry!
London Breed the welfare grrl from the projects will fill the buildings with people like her!
It’ll be paradise! No problems!
Has REIT Park Hotels & Resorts gone Galt?
Here. It's yours. Good luck, and bye.
Chinese owned San Francisco...POOF..Homeless gone.....
Cool. all businesses and productive people should pull out.
Frisco would make a great ghost town, populated by zombies.
“Watch who buys it. I’m betting it will be a Chinese subsidiary.”
Good, let them take a bath on it.
290 reparations benefactors can cover the debt and each will still have $2,500,000 left to live on for a while.
No worries, the gummit will pack the place with illegals who in turn will spend all their free money from taxpayers, the building will do just fine.
I say let;s just give it to the homeless, and get them off the street.
Sounds like more than a “bit of bad news”. Who will be next?
Oh poo....
“Free” housing for the illegals. Californians getting what they voted for.
Problem is that, the feds might pick up the tab, so, we’re all paying for it.
This is a huge deal.
Every business downtown is at risk and the losses are accelerating. Each one that goes makes it worse for the survivors.
I predict Macy’s goes soon. And the Westlake mall, including Bloomingdales. And Target, and the Metreon. At that point whatever is left on Union Square may as well go, including Nieman Marcus and Saks. And the remaining hotels, including the historic St. Francis.
A total wipeout.
Atlas Shrugs
Global elites are encouraging the destruction of American cities so they can be greatly devalued and the global elites will swoop in and buy entire cities then magically clean them up to make money.
“ I’m betting it will be a Chinese subsidiary.”
I have no doubt the Chinese can do better in San Francisco than today’s Californians can.
Smart people don’t invest in democrat hellholes.
2900 rooms. Perfect place for all the illegals to stay while they await their asylum hearings....ha ha ha ha ha
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