Posted on 01/15/2024 12:33:47 AM PST by Libloather
A Hilton hotel in San Francisco has defaulted on its mortgage, missing its $97 million loan payment - in the latest in the 'doom loop' crisis for the liberal city.
The city’s hospitality sector is faltering alongside the rise in rampant crime, debilitating homelessness, and dangerous public drug use - with fewer people wanting to visit San Fran compared to before the pandemic.
According to a securities filing, the owner of the Hilton Financial District, a 544-room hotel, said it defaulted on a loan last Wednesday. It was warned that its lenders could potentially seek to foreclose on the property if an agreement is not reached.
According to the San Francisco Chronicle, the Hilton Financial District reported $11.1 million in revenue in the third quarter of 2023, down from $12.3 million a year prior.
The hotel had also dropped its room prices, from an average of $218-a-night compared to $230, as the number of people occupying the hotel rooms also fell.
In October, businesses and billionaires funneled millions of dollars into a new campaign to 'save San Francisco' and improve its image, even as the crime-ridden city falls into a 'doom loop' spiral of economic collapse.
'It All Starts Here' is a $4 million civic pride campaign financed by chairman of the cryptocurrency company Ripple, Chris Larsen, and Gap board member Bob Fisher.
'We are frustrated by the negative national narrative of our City and instead of complaining about it, a group of leaders have come together to do something about it,' said the campaign website.
Gap Inc., Levi's, Lyft, OpenAI, SF Giants and Uber are involved in the effort, while the city has reported more than 40,000 crimes this year and is experiencing a mass exodus of businesses.
In October, seven Starbucks stores in San Francisco's downtown area announced...
(Excerpt) Read more at dailymail.co.uk ...
Bank won’t care about blame-game...there’s virtually no one with ample cash to buy what they are stuck with. Even if it were a candidate for converting to studio apartments...the downsizing of the job-market in SF is blocking future re-use.
I’ll predict the city buys it...converts to a homeless shelter, and within ten years has it condemned as a toxic waste dump.
Blackrock
My guess is that the hotel’s financial trouble started when the local government allowed the city’s homeless to poop in the streets.
Was that Hilton designed by a North Korean?
One mortgage payment is $97 million?! How much did it cost to build?!
Onsite self-parking: $68.40/day
https://www.hilton.com/en/hotels/sfofdhf-hilton-san-francisco-financial-district/
A balloon payment?
Real-estate types know that when they go bust it’s best to go bust big.
“Blackrock”
Absolutely.
The local government works with ‘developers’ to drive away private ownership. Then the abandoned properties are bought on the cheap by the same (or re-shelled) gov-developer syndicate and accorded favorable tax rates. The police and fire are directed to protect the property and business is restored with proceeds/low-no tax benefits going to the gov-developer syndicate members as business profits.
As long as they don’t overstate the value of their properties to obtain financial relief, Fani will leave them alone.
San Fransicko is dying. There’s no reason whatsoever to pay the outrageous prices demanded to live in that crime ridden shithole.
No, it’s the “negative national narrative” against SF that is at fault, nothing to do with the crime, addicts and 💩 all over the place.
House the illegals and get Uncle Sugar to pay for it.
EC
Once enough real estate has been sold to the right people, suddenly council will become all big on law and order.
Count on this.
“I’ll predict the city buys it...converts to a homeless shelter, and within ten years has it condemned as a toxic waste dump.”
Even though it’s well under a day’s worth of Migrants, my money is that they fill it with Migrants.
But, ironically, the Migrants will likely demand to return home once they step outside in SF.
All of the West Coast is being allowed to be destroyed so it can be sold off and bought by the elites.
The Brutalist style was common in communist countries and where socialists were power in Western Europe, and, for a time, in the US when a leftist architect got control of a building project. The style is now out of favor though for inescapable reasons.
While an isolated building in the Brutalist style can be striking, cities dominated by such architecture have a dull and dispiriting sameness. Worse, even more so than the rest of modern architecture, Brutalist buildings tend to have structural and maintenance issues and be poorly adaptable. That can make them a poor investment.
Oddly, what are now an occasional older Brutalist building in a city can be both familiar and striking. Nevertheless, the Brutalist style is a dead end because of its formal rigidity and deliberate offense to the human craving for style, beauty, and visual coherence.
The farmers in Calif. are being driven out by lack of water which there is plenty of but blocked by the democrats. The train to nowhere needs land cheap.
I would not set foot in the City now if you paid me to do so, This kills me because I loved spending time there in the late ‘80’s.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.