– 30 San Francisco Hotels Face Incoming Debt Maturity Wall As Default Dominos Begin:
Park Hotels & Resorts stopped making payments on a $725 million loan secured by two San Francisco hotels this week. The loan is due in November, and dozens of other hotels in the crime-ridden metro area could experience a similar fate.
Emmy Hise, senior director of hospitality analytics at CoStar, provided San Francisco Chronicle with a reality check that San Francisco hotels, at least 30, are facing loans due in the next two years.
A debt maturity wall for the hotel industry is ahead as the Marxist shit (covered) city implodes under progressive leadership whose social justice policies have royally backfired, sparking a crime wave that has forced businesses to shutter doors and people to exit the city.
Here’s Park Hotels’ explanation of why it reduced 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.”
Hise warned San Francisco is experiencing the slowest recovery of any large metro area in the country. She explained that daily room rates of $234 this past year are below 2019 levels and are a margin crusher for hotel operators because of high inflation.
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