More San Francisco Hotels Face Loan Pressures
Skift Take
- Stock Market: DJIA, Nasdaq, and S&P 500 showed gains, while lodging stocks had mixed performance.
- San Francisco Hotels: Park Hotels plans to surrender ownership, raising concerns about more foreclosures. Multiple hotels face loan due dates in the next two years.
- Hotel Updates: Various hotels undergo management changes, renovations, and new openings in different locations, including California, Illinois, Texas, and Canada.
The DJIA rose 190 points, Nasdaq was up 203, the S&P 500 was up 40 and the 10-year treasury yield was up .02 to 3.77%. Lodging stocks were mixed. The mover of note to the upside was ABNB, up 6% but SOND plunged -17% and VCSA was down -7%.
The Wall Street Journal followed up on a San Francisco Chronicle article, predicting more foreclosures and jingle mail for hotels in San Francisco. This follows Park Hotels’ announcement they were planning to surrender ownership of their Hilton San Francisco Union Square and Parc 55 properties back to the lenders, what will be the largest US hotel default since the pandemic. CoStar said there are more than 30 additional San Francisco hotels facing loans due in the next two years. The WSJ said that number is more than 20. The WSJ article said Club Quarters San Francisco has been in default on its loan since 2020 and may be headed to foreclosure. PK
