Two of San Francisco’s largest hotels are headed to their loan servicer after their owner announced it would stop paying the debt.
Park Hotels & Resorts stopped making payments this month on a $725M CMBS loan tied to two of its San Francisco hotels. The Virginia-based real estate investment trust is looking to strengthen its balance sheet and shed the assets in San Francisco as the city continues a moribund recovery from pandemic lows.
The loan is serviced by Wells Fargo, according to CoStar, and is scheduled to mature in November. It backs the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc…