30 San Francisco Hotels Face Incoming Debt Maturity Wall As Default Dominos Begin

Park Hotels & Resorts 

Also, occupancy rates have yet to recover from pre-Covid times as those on holiday or business refuse to visit the crime-ridden city.

As the hotel debt maturity wall quickly approaches, high-interest rates and credit tightening make it challenging for operators to refinance and could spark a wave of defaults.

And maybe the dominos have already fallen. Park Hotels is one of many. As the Chronicle detailed:

Other San Francisco hotels such as the Huntington on Nob Hill and Yotel on Market Street were recently sold in foreclosure auctions.

Is Hilton near Chinatown the next domino to fall? 

The owner of SF’s biggest and fourth-biggest hotels is surrendering them. Over 30 more SF hotel owners have mortgage deadlines in next two years

Next biggest is a Hilton near Chinatown, which has a $97 million loan due in January, $9.3 million paid off.https://t.co/b7hp9rxmBz

— Roland Li (@rolandlisf) June 7, 2023

So it’s clear a perfect storm of terrible liberal policies transforming San Fran into a ‘hellhole’ that has crippled its recovery plus tightening credit conditions via the Federal Reserve has likely doomed a whole bunch of hotel operators across the metro area that might have no other choice but to default in the coming quarters, if not sooner. 

What’s next for these empty skyscrapers? Office conversions are off the table since that side of the CRE space is imploding. So maybe apartments, but even then, who wants to live in a city where Democrats have turned it into Grand Theft Auto-esque conditions?

One last thing, just days before ParkHotels‘ announcement, San Francisco’s Mayor, London Breed, made a significant U-Turn to re-fund police after pushing for years to defund it. What a nightmare Democrats have created for everyone.