San Francisco's Hotel Industry Faces Major Challenges
The owner of the Hilton Union Square in San Francisco, the largest US hotel outside of Las Vegas, has abandoned the property and stopped paying its mortgage to Chase Bank, relinquishing ownership to the lender. Park Hotels & Resorts cited concerns including abandoned office buildings, a lower return-to-office rate than peers, fewer conventions through 2027, and poor street conditions. Chase will likely bring in a management company to operate the property until new ownership can be secured. The move will forfeit ownership of the estimated $1.5 bn property with about half that remaining on the note.