Hotelier Stops Making Loan Payments on Two San Francisco Properties
The New York Times Park Hotels & Resorts said it stopped making payments on a $725 million loan tied to two prominent hotels in a city hit hard by pandemic-related changes.
Park Hotels & Resorts, the operator of two of the most prominent hotels in San Francisco, is handing in the keys on the properties and, in essence, giving up on a city that has fallen on hard times.
Park Hotel stopped making payments on a $725 million loan tied to the Hilton Union Square and Parc 55, the real estate investment trust said on Monday. The hotels, a few blocks from the once-bustling Moscone Center conference hall, have a combined total of nearly 3,000 rooms.
A slowing economy and a remote-work thunderclap have emptied offices across the country, with some warning of a ticking bomb in the commercial real estate market. Slammed by a wave of layoffs in the tech industry and a steep slowdown in Moscones conference calendar, downtown San Francisco has been hit hard.
