Park Hotels Stops Debt Payments on Two San Francisco Properties

  • CEO says city’s recovery ‘remains clouded,’ faces challenges
  • Company expects it will remove hotels from its portfolio
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Park Hotels & Resorts Inc. has stopped making payments on a loan tied to the Hilton San Francisco Union Square and the Parc 55 San Francisco, two of the city’s largest hotels, dealing another blow to a downtown struggling with remote work and mounting public safety concerns.

Park is working with servicers on the $725 million loan to determine the best path forward for the 1,921-room Hilton property and the 1,024-room Parc 55 hotel, according to a statementBloomberg Terminal Monday. The company expects that it will eventually remove the hotels from its portfolio.