Hotel Owners Start to Write Off San Francisco as Business Nosedives
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Re: Hotel Owners Start to Write Off San Francisco as Business Nosedives
#2Re: Hotel Owners Start to Write Off San Francisco as Business Nosedives
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Re: Hotel Owners Start to Write Off San Francisco as Business Nosedives
#4Wolf Richter rips on this article pretty hard:
https://wolfstreet.com/2023/06/12/ive-had-it-with-stupid-stu...
> Park Hotels failed to pay off a $725 million interest-only non-recourse mortgage that matured last November. The mortgage was secured by two run-down mega-hotels in San Francisco, the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco.
> Park Hotels only owns the properties. The hotels themselves are operated by other companies, and when Park Hotel defaults on a mortgage and walks away from the property, it means ownership of the property will change. That’s all it means for the hotel. The operating company remains the same.
> Park Hotels has been a catastrophic nightmare for retail investors. The misdeeds that sank Park Hotels’ shares didn’t happen on the streets of San Francisco – as the company ridiculously alleged – but in the C-suite of Park Hotels and on Wall Street. And its investors and now the holders of the CMBS are getting ripped off.
Re: Hotel Owners Start to Write Off San Francisco as Business Nosedives
#5Me thinks similar things are going to happen (if they're not already) to Portland. I grew up there and then worked on SW 5th Ave from 2013 to 2018 and loved it. Since then I've been in Germany working. I went back last year to see family and my old "stomping grounds" near my old office and other places that I'd love to go eat at and such were overrun with folks with substance abuse issues, homelessness, etc., and many of the food carts and businesses/restaurants that I used to get fat at (I put on so much weight eating while going into the office it was hilarious) have closed and moved into suburbs or to other locations.
SW 5th and surrounding areas near the waterfront used to be the "nice" parts of town with very little open drug use, homeless camps, etc. (Don't get it twisted, I am 100% for more taxes, charity, efforts to help people get housed, get off drugs, whatever they need) But since returning the volume of people who need help is clearly turning the city into a place where businesses are reticent to invest in.
Re: Hotel Owners Start to Write Off San Francisco as Business Nosedives
#6I happened to be digging around hotel trade publications yesterday (before deciding that the PMS space is a crowded mess with too many incumbents and a nightmare of necessary integrations), and found this, which may back up the article somewhat:
> The steepest RevPAR declines were seen [for the last week in May] in San Francisco (-15.6% to US$108.49) and Orlando (-12.8% to US$109.48).
https://www.hotel-online.com/press_releases/release/str-u-s-...
Re: Hotel Owners Start to Write Off San Francisco as Business Nosedives
#7Me thinks similar things are going to happen (if they're not already) to Portland. I grew up there and then worked on SW 5th Ave from 2013 to 2018 and loved it. Since then I've been in Germany working. I went back last year to see family and my old "stomping grounds" near my old office and other places that I'd love to go eat at and such were overrun with folks with substance abuse issues, homelessness, etc., and man…
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Re: Hotel Owners Start to Write Off San Francisco as Business Nosedives
#8Wolf Richter rips on this article pretty hard: https://wolfstreet.com/2023/06/12/ive-had-it-with-stupid-stu... > Park Hotels failed to pay off a $725 million interest-only non-recourse mortgage that matured last November. The mortgage was secured by two run-down mega-hotels in San Francisco, the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco. > Park Hotels only owns the properti…
> run down
These aren’t run down hotels. These are both rated 4.2 [0, 1] and while aren’t the greatest in the world are both Hiltons and decent hotels.
The criticism doesn’t change the nature of the original article in that San Francisco is less good as it once was and as a result businesses are defaulting on pretty big things rather than invest in keeping them up.
The inaccurate language seems to have a “everything’s fine here” kind of vibe to me.
[0] Hilton San Francisco Union Square (415) 771-1400 https://maps.app.goo.gl/EPnQC4pbbwRKNjNh9?g_st=ic
[1] Parc 55 San Francisco - a Hilton Hotel (415) 392-8000 https://maps.app.goo.gl/p9SprpPdGZxzbejf8?g_st=ic
Re: Hotel Owners Start to Write Off San Francisco as Business Nosedives
#9[flagged]
Re: Hotel Owners Start to Write Off San Francisco as Business Nosedives
#10Me thinks similar things are going to happen (if they're not already) to Portland. I grew up there and then worked on SW 5th Ave from 2013 to 2018 and loved it. Since then I've been in Germany working. I went back last year to see family and my old "stomping grounds" near my old office and other places that I'd love to go eat at and such were overrun with folks with substance abuse issues, homelessness, etc., and man…
It's going to be interesting with the new ordinance to outlaw camping from dawn to sundown. If you camp during those hours, you face jail time. The theory is probably that this will separate hard core drug users from homeless people who aren't willing to go into a shelter. That'll be an interesting experiment.