Park Hotels & Resorts to stop paying $725m loan on 2 of San Francisco’s largest downtown hotels
Park Hotels & Resorts has plans to cease making payments, starting in June, toward the $725 million non-recourse CMBS loan that is scheduled to mature in November 2023 and is secured by two of its San Francisco hotels — the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco, which recently reopened.
The company intends to work in good faith with the loan’s servicers to determine the most effective path forward, which is expected to result in removal of these hotels from its portfolio.
“This past week we made the very difficult, but necessary decision to stop debt service payments on our San Francisco CMBS loan,” said Thomas J. Baltimore Jr., chairman and CEO of Park. “After much thought and consideration, we believe it is in the best interest for Park’s stockholders to materially reduce our current exposure to the San Francisco market. Now more than ever, we believe San Francisco’s path to recovery remains clouded an