Posted BY: | NwoReport
Two major downtown hotels owned by Park Hotels & Resorts Inc., the 1,921-room Hilton San Francisco Union Square, and the 1,024-room Parc 55 San Francisco, are both expected to be removed from the trust’s portfolio due to “major challenges” in the California city.
Because many of San Francisco’s streets are now too unsafe to walk, Park Hotels & Resorts no longer want the liability of having these two properties in its portfolio.
This past week we made the very difficult but necessary decision to stop debt service payments on our San Francisco CMBS loan,” announced Park Hotels & Resorts CEO Thomas J. Biltmore Jr. in a statement.
“After much thought and consideration, we believe it is in the best interest of Park’s stockholders to materially reduce our current exposure to the San Francisco market.”