Park Hotels and Resorts owns the largest hotel in San Francisco - the Hilton Union Square - and one other - Parc 55. It has decided to stop making payments on their mortgages and allow the lender to take them over.
This reflects their estimation that the properties are not now profitable, and are unlikely to become so in the near future. Convention business in the city has declined dramatically as its woes with homelessness, crime and addiction have become generally known.
It is unclear if the lender will sell or operate the properties - at a loss in either case - or mothball them and await better times. Meanwhile, CA continues on a glide path to oblivion.
