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 ...
Or hell, just skip right to "This is John Galt speaking" instead of reading the whole thing...
Related...
Interesting list at that link.
Barracks for all those unmated adult males it intends to import.
Maybe the Chinese should bring their police force over as well.
BLM is really not going to enjoy Chinese policing.
“…concerns over street conditions…”
So, after losing that kind of money, still can’t say exactly why. Riiight…
Thank you. It’s really too bad the beautiful cities of the United States are in such decline.
I visited London and Barcelona last Fall. And visited Rome in 2019. Why can’t our cities be as beautiful, world-class, and as stunningly classy as Europe’s?
I don’t see why we can’t do better.
“I don’t see why we can’t do better.”
One visit to Lagos and you will understand.
“Get out of REIT’s NOW.”
My elderly parents had a “wealth management” company put a lot of their money in REITS.
When they died I dumped that garbage in a heartbeat.
No elderly person should be near that stuff—and the professional financial advisors that put them in it should all go to jail.
Have visited each of the cities you mention multiple times. Much of Europe is struggling with immigration. Paris is in a pickle, most recently with the decision to raise pension age, in addition to worker demands for higher wages. The locals have not taken the news without widespread strikes and protests. We live in interesting times.
I wonder when the DOJ is going to start their investigation into the hotel asset overvaluation by the REIT Parks Hotels & Resorts, just as they did to President Trump?
Let’s face it, getting over triple the asset value - as did Wells Fargo in the building just sold in S.F. - less than two years ago is pretty well impossible.
Looks like all of these REITs are going to be falling out of favor.
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