Ownership Group Abandons Largest Hilton Hotel in California Citing Record High Vacancy Rate; Foreclosure Forthcoming

The company is defaulting on a $725 million loan; high-crime throughout the location’s city is reportedly the reason behind the vacancies.

Hilton Hotel, Union SquarePhoto byAdobe Stock

Author’s Note

This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: PKHotelsandResorts.com and NationalReview.com.

Introduction

I write extensively about the ongoing exodus of major national chains based in San Francisco, California for NewsBreak. In that spirit, today has come word 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.

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.

Conclusion

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.