Another company is fleeing the filthy crime-ridden, drug-infested, liberal hellhole of San Francisco.
San Francisco, once known for the large number of business conventions that were held there each year and the positive impact they had on the city’s hotels, is now facing a different reality.
The owner of two major hotels in the city has decided to leave, citing the same reasons expressed by numerous other businesses in recent months. He is concerned about the prevailing crime rates and has doubts about the city’s ability to bounce back.
Fox Business reported:
One of the largest publicly traded real estate investment trusts in the U.S. plans to close two of San Francisco’s major downtown hotels, saying the city’s streets are unsafe and expressing doubts about the area’s ability to recover.
Park Hotels & Resorts Inc. announced this week that it stopped making payments on a $725 million loan that secured both its 1,921-room Hilton San Francisco Union Square and 1,024-room Parc 55 San Francisco properties and expects to remove them from its portfolio, citing several “major challenges” in the California city.
“This past week we made the very difficult, but necessary decision to stop debt service payments on our San Francisco CMBS loan,” Park Hotels CEO Thomas J. Baltimore Jr. said in a statement. “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.”
“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 and will likely significantly reduce compression in the city for the foreseeable future,” Baltimore said.
Complicating the situation, the city recently allocated millions of dollars towards an advertising campaign aimed at revitalizing tourism.
