Park Hotels & Resorts Inc., which owns and operates the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco, has announced that it is pulling out of Pelosiville, and can you blame them? The inaptly named Thomas J. Baltimore, Jr., Chairman and CEO of Park Hotels & Resorts, announced Monday that it was going to stop payments on a $725 million commercial mortgage-backed securities (CMBS) loan that is secured by the Hilton Union Square and the Parc 55. That means that unless someone steps in to take them over, those two hotels will close up, and their shells will become new monuments to the cost of electing Leftists to run cities.
Baltimore (wasn’t Joe San Francisco available?)
announced, “This past week we made the very difficult, but necessary decision to stop debt service payments on our San Francisco CMBS loan.” His explanation for this was devastating: “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.” Why, Baltimore? Did someone get misgendered? Not exactly: “Now more than ever, we believe San Francisco’s path to recovery remains clouded and elongated by major challenges – both old and new: record high office vacancy; concerns over street conditions; lower return to office than peer cities; and a weaker than expected citywide convention calendar through 2027 that will negatively impact business and leisure demand and will likely significantly reduce compression in the city for the foreseeable future.” Thomas J. Baltimore, Jr. is risking the wrath of the woke by making all this clear, but who can deny that he is actually understating his case?
All the points he made go back to the same root cause. Why is San Francisco suffering from “record high office vacancy” and a “lower return to office than peer cities”? Because people don’t want to work in a place where they could have their car broken into and their possessions stolen, only to have police
dismiss the incident as a “basic city experience.” Why are there “concerns over street conditions”? Because in San Francisco today, people die of drug overdoses on the street virtually
every day. At any given moment, people walking down the street could be menaced by violent drug addicts, and once again, the cops will do nothing. Why is there a “weaker than expected citywide convention calendar through 2027”? Because no one wants to attend a convention in a city where there are actually
maps to help people avoid stepping in all the human excrement that is all over the city sidewalks.