Hilton hotel in San Francisco defaults on its mortgage as 544-room facility where a nights stay cost $166 misses $97million loan payments in growing ‘doom loop’ for liberal city
A Hilton hotel in San Francisco has defaulted on its mortgage and missed $97 million in loan repayments – the latest in a “doom loop” crisis for the liberal city.
The city’s hospitality sector is teetering, alongside a rise in rampant crime, debilitating homelessness and dangerous public drug use – with fewer people wanting to visit San Fran compared to before the pandemic.
The owner of the Hilton Financial District, a 544-room hotel, said last Wednesday it could default on its loan, according to a securities filing. It warned that the lenders could potentially try to seize the property if an agreement is not reached.
According to the San Francisco ChronicleHilton Financial District reported $11.1 million in revenue in the third quarter of 2023, compared to $12.3 million a year earlier.
The hotel had also reduced room rates, from an average of $218 per night compared to $230, as the number of people occupying the hotel rooms also fell.
The owner of the Hilton Financial District, a 544-room hotel, said last Wednesday it could default on its loan, according to a securities filing. It warned that the lenders could potentially try to seize the property if an agreement is not reached
In October, corporations and billionaires poured millions of dollars into a new campaign to “save San Francisco” and improve its image, even as the crime-ridden city enters a “doom loop” spiral of economic collapse.
“It All Starts Here” is a $4 million civic pride campaign funded by cryptocurrency company Ripple Chairman Chris Larsen and Gap board member Bob Fisher.
“We are frustrated by our city’s negative national narrative and instead of complaining about it, a group of leaders have come together to do something about it,” the campaign website said.
Gap Inc., Levi’s, Lyft, OpenAI, SF Giants and Uber are involved in the effort as 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 downtown San Francisco announced they planned to close as the city struggles with crime, drug use and a homelessness epidemic.
The coffee company announced the locations of the stores that will close from October 22 as part of a review of the company’s portfolio.
Just days ago, a famous TikTok food critic cut short his trip to the Bay Area due to “shocking” safety concerns — as he claimed San Francisco and Oakland are filled with tents and burned-out cars.
Keith Lee, who has 15.6 million followers on TikTok, announced Thursday he would abandon the expected trip, citing unsafe conditions and inferior food choices.
“The Bay Area food tour is officially over early,” the content creator said before explaining the top three reasons behind his decision.
The hotel had also reduced room rates, from an average of $218 per night compared to $230, as the number of people occupying hotel rooms also fell.
The hotel was warned that its lenders could potentially try to foreclose on the property if an agreement is not reached
He added: “I really don’t think the bay is a place for tourists at the moment… the people of the bay are just focused on survival…. The amount of tents, residential structures and burned out cars we saw people living in was shocking to say the least.
“From the outside looking in, it doesn’t look like there’s been much interference from the city.”
The food available in the Bay Area was also not up to par, Lee said, explaining that he went to six places to eat that he decided not to review because he had “nothing constructive” to say.
He said: ‘I’ve always been big on honesty, I’ve always been big on transparency, but I’ve never been big on completely tearing anyone down, and I feel like those six videos just did that.’
Lee claimed that if he could not post the videos, he would lose the money he invested during the trip.
Finally, Lee shared that he was hospitalized after having an allergic reaction to the food served to him in the Bay Area. He claimed he asked the restaurant to clean the grill after cooking shellfish, but it “blew up like a balloon” after eating his meal.
Lee had previously claimed he wasn’t worried about his trip to the Bay Area, posting a TikTok where he shared comments on social media in which people warned him about the safety there.
‘I go where I feel like I should go, I go by faith and not by sight, and I heard a lot of people call the Bay Gotham City, and the way my mind works, that’s even more reason for me to go ,” he said before the trip.