A high vacancy rate in large part due to crime has been cited as a primary reason.
This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: CaliforniaGlobe.com and NationalReview.com.
I write extensively about the ongoing exodus of major national chains based in San Francisco for NewsBreak. Today, word has come that a major U.S. hotel chain — and one other hotel group owned by the same company — has announced plans to foreclose in the beleaguered city.
Firstly, a May 8th report from CaliforniaGlobe.com, entitled “T-Mobile, Williams-Sonoma Latest Stores To Close In San Francisco,” offers some perspective: San Francisco’s Union Square faced two more major losses on Monday following the pull out of T-Mobile’s flagship store at 1 Stockton Street and the closure of Williams-Sonoma at 340 Post by the end of the year.
Not unexpectedly, crime in the city has been cited as the primary reason for these and other other 2023 closings.
In terms of said “other” downtown area locations that have recently shuttered, the report goes on to state: For example, Walgreens has closed more and more stores in the city due to the massive amount of crime within its stores. And just within the last two months, all Amazon Go stores, Anthropologie, several high-end Union square stores, and the flagship Whole Foods store have all announced that their doors will be closing, along with multiple non-chain stores throughout the city. Less than a week ago, both Nordstrom and Saks Off 5th announced the closure of 3 main locations in the city.
In terms of the recent hotel news, let us explore further.
San Francisco, 2023
According to a June 6th report from NationalReview.com, entitled “Owner of Two of San Francisco’s Largest Hotels Pulling Out of City: ‘Path to Recovery Remains Clouded,’” crime was also a determining factor in said owner allowing the hotels to fall into foreclosure.
As excerpted from the report: The owner of two of San Francisco’s largest downtown hotels is stopping mortgage payments and going into foreclosure on the properties, stating that the city faces “major challenges” and that reducing exposure to the market is in the best interest of investors.
The report goes on to state: Park Hotels & Resorts said Monday that it was stopping payment on a $725 million loan secured by the two hotels, the 1,921-room Hilton San Francisco Union Square and 1,024-room Parc 55. The Hilton is San Francisco’s largest hotel, and Parc 55 is the fourth largest.
Company CEO Thomas J. Baltimore Jr. reportedly expressed concerns over decreased convention business and poor street conditions that collectively led to record-high vacancies for the hotels.
The ongoing exodus of major U.S. chains from downtown San Francisco is a developing story. In the event of pertinent updates to this matter, inclusive of potential city turnaround progress and official announcements of milestone dates, I will share them here on NewsBreak.
Thank you for reading.