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Park Hotels And Resorts

All articles tagged with #park hotels and resorts

real-estate2 years ago•5 min saved

San Francisco's Hotel Industry Faces Uncertain Future as Major Companies Write Off Properties.

Park Hotels & Resorts Inc. has stopped making payments towards a $725 million loan tied to the Hilton San Francisco Union Square and the Parc 55 San Francisco due to "major challenges" in the city. The decision to stop debt service payments was "very difficult, but necessary" and "in the best interest for Park's stockholders." The challenges San Francisco is facing include record high office vacancy, concerns over street conditions, and weaker than expected numbers of citywide convention events booked through 2027. San Francisco's commercial real estate troubles are representative of a bigger picture, with a $1.5 trillion wall of mortgage debt that comes due for repayment before the end of 2025, causing headaches for commercial real estate investors.

via Yahoo Finance|

#commercial-real-estate #market-crash #mortgage-debt

business2 years ago•3 min saved

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.

via Live and Let's Fly|

#business #chase-bank #hilton-union-square

business2 years ago•1 min saved

San Francisco's largest hotel owner joins trend of abandoning city.

Park Hotels & Resorts, the owner of two of San Francisco's largest downtown hotels, has announced it will cease paying the loans and go into foreclosure on the properties due to concerns including crime. The decision comes after city officials launched a $6M ad campaign to lure tourists back to the city. The CEO of Park Hotels & Resorts said the decision was "very difficult, but necessary" due to record high vacancy, concerns over street conditions, and lower return to office than peer cities.

via NewsNation Now|

#business #crime #foreclosure

business2 years ago•2 min saved

San Francisco's Hotel Industry Faces Uncertain Future as Major Hotel Chains Abandon Properties.

Park Hotels & Resorts, one of the largest publicly traded real estate investment trusts in the US, is closing two major downtown hotels in San Francisco due to concerns over safety and security, and doubts about the area's ability to recover. The move is expected to save the company $30 million a year in interest payments and $200 million in maintenance expenses over the next five years. The decision comes amid a growing exodus of retailers fleeing downtown San Francisco due to retail theft, homelessness, and a drug crisis.

via Fox Business|

#business #economic-recovery #hospitality

business2 years ago•2 min saved

San Francisco's Hospitality Industry Faces Uncertain Future as Major Hotel Chains Abandon Properties and Skip Loan Payments

Park Hotels & Resorts is abandoning two hotels in downtown San Francisco due to the city's "major challenges," including record high office vacancy, street conditions, and a weaker than expected convention calendar. The move comes as San Francisco struggles to recover from the pandemic, with many office buildings still empty and retailers closing due to crime and homelessness. The city experienced the steepest drop in revenue from business travel of any major metro area in 2022, according to data from the American Hotel & Lodging Association.

via Yahoo Finance|

#business #business-travel #covid-19

business2 years ago•4 min saved

San Francisco's Biggest Hotel Owner Halts Debt Payments, Raises Concerns for Hospitality Industry

Park Hotels & Resorts, the owner of San Francisco's largest and fourth-largest hotels, has stopped making loan payments on a $725 million loan secured by the two properties. The company cites a lack of recovery in the San Francisco hotel industry and intends to remove the hotels from its portfolio. The hotels remain open and will likely be sold at a discount. The decision reflects the challenges facing the San Francisco hotel market, with lower demand due to remote work, reduced business travel, and fewer conventions.

via One Mile at a Time|

#business #hotels #loan-default

real-estate2 years ago•1 min saved

Park Hotels halts payments on $725M loan, reduces San Francisco presence.

Park Hotels & Resorts has stopped making payments on a $725m non-recourse CMBS loan secured by the Hilton San Francisco Union Square and Parc 55 San Francisco, and expects these hotels to be removed from its portfolio. The REIT plans to materially reduce its exposure to San Francisco due to concerns over street conditions, record high office vacancy, and a weaker than expected citywide convention calendar through 2027. Removing the loan and the hotels will improve Park Hotels' balance sheet and operating metrics, and the REIT expects a special dividend of $150m to $175m following the disposition of both hotels.

via Seeking Alpha|

#cmbs-loan #hilton-san-francisco-union-square #parc-55-san-francisco