Owner of Two of San Francisco’s Largest Hotels Pulling Out of City: ‘Path to Recovery Remains Clouded’

Not as many people work in downtown office buildings anymore. This is happening all over the country.
SF occupancy rates have not recovered and revenues per room are down 23% from pre-pandemic levels. Why have hotels in cities like LA and NY rebounded from 2019 levels and are now generating more revenue per room than before the pandemic?
 
SF occupancy rates have not recovered and revenues per room are down 23% from pre-pandemic levels. Why have hotels in cities like LA and NY rebounded from 2019 levels and are now generating more revenue per room than before the pandemic?
Great question. Why?
 
Great question. Why?
A major reason cited in the article is crime and safety - same reason retailers are leaving. It notes that for hotels, crime has been impacting the city’s tourism and conventions. Tourists don’t feel safe and many of the major conventions that SF used to host have relocated to Las Vegas.
 
A major reason cited in the article is crime and safety - same reason retailers are leaving. It notes that for hotels, crime has been impacting the city’s tourism and conventions. Tourists don’t feel safe and many of the major conventions that SF used to host have relocated to Las Vegas.
So the other cities don't have conventions?
 
A major reason cited in the article is crime and safety - same reason retailers are leaving. It notes that for hotels, crime has been impacting the city’s tourism and conventions. Tourists don’t feel safe and many of the major conventions that SF used to host have relocated to Las Vegas.

Vegas is better than SF anyway.

Less fog, more hookers, what's done in Vegas stays in Vegas...
 
So the other cities don't have conventions?
Of course they do, but as the most iconic tourist destination on the west coast, hotels in SF are heavily dependent on conventions. This is particularly true in the Union Square area near the Moscone center.
 
Of course they do, but as the most iconic tourist destination on the west coast, hotels in SF are heavily dependent on conventions. This is particularly true in the Union Square area near the Moscone center.
So democratic leadership only destroys one city....
 
So democratic leadership only destroys one city....
The article is about hotels writing off SF. Visitors don’t enjoy the smell of human feces and urine, don’t like stepping over homeless people sleeping on the sidewalks, don’t like being accosted by panhandlers, and they don’t feel safe.
 
The article is about hotels writing off SF. Visitors don’t enjoy the smell of human feces and urine, don’t like stepping over homeless people sleeping on the sidewalks, don’t like being accosted by panhandlers, and they don’t feel safe.
So that only happens in San Francisco
 
Per today’s WSJ, crime and quality of life issues are driving hotel owners out of SF while hotels in other large cities have bounced back.

“San Francisco’s once thriving hotel market is suffering its worst stretch in at least 15 years, pummeled by the same forces that have emptied out the city’s office towers and closed many retail stores.

“Hotel owners in New York and Los Angeles are filling nearly as many rooms this year as they did in 2019, according to hotel-data firm STR. Their revenue per available room exceeds what it was before the pandemic.

“But in San Francisco, hotels are still struggling badly in both occupancy and room rates compared with before the pandemic. Revenue per available room was nearly 23% lower in April compared with the same month in 2019.

“The city’s lodging business has been squeezed by crime and other quality-of-life issues that have kept many convention bookers away. Tech companies’ embrace of remote work also undercuts business travel to the city and hotel activity.“

https://www.wsj.com/articles/hotel-...-san-francisco-as-business-nosedives-e84c64ef
SF hasn’t had a Republican mayor since 1964, wonder if that has anything to do with SF’s demise?
 
The article doesn’t say other cities don’t have crime and filth. It says major hotels are writing the city of SF off.
But you posted that other cities have returned to ore pandemic levels. Is that not true?
 
Yes. Also noted why hotel operators are writing off SF.
You noted why the article claims as such.

But if crime is up in all major cities and only San Francisco is seeing a drop in hotels....something doesn't add up there.
 
SF hasn’t had a Republican mayor since 1964, wonder if that has anything to do with SF’s demise?
It has everything to do with the demise of SF and California in general. The last time CA elected a Republican to statewide office was 2006. All Republicans were out of statewide office in 2011. Nothing happening in CA today has anything to do with Republicans.
 
A major reason cited in the article is crime and safety - same reason retailers are leaving. It notes that for hotels, crime has been impacting the city’s tourism and conventions. Tourists don’t feel safe and many of the major conventions that SF used to host have relocated to Las Vegas.
Crime is up all over the nation, so it doesn't make sense that only hotels in SF are being impacted. There is crime in Las Vegas, and specifically crimes against tourists and in major hotels. Why does crime deter people & businesses in SF but not in Vegas?

"Murders rose in cities nationwide and in jurisdictions of all types. Relative to 2019, the number of murders jumped by more than 30 percent in the largest cities and by 20 percent in places designated by the FBI as “suburban” — cities with fewer than 50,000 inhabitants that are within a Metropolitan Statistical Area. Murders rose by comparable levels in rural areas too — an important fact that is only now beginning to receive press attention.

Despite politicized claims that this rise was the result of criminal justice reform in liberal-leaning jurisdictions, murders rose roughly equally in cities run by Republicans and cities run by Democrats. So-called red states actually saw some of the highest murder rates of all. This data makes it difficult to pin recent trends on local policy shifts and reveals the central flaw in arguments that seek to politicize a problem as complex as crime. Instead, the evidence points to broad national causes driving rising crime."

https://www.brennancenter.org/our-w...UBYz_coBa7yTwfewuZ0wdrRBpVsCMDjRoCGVEQAvD_BwE

Man arrested during sting operation at Las Vegas Strip hotel accused of breaking into 7 rooms within 2 hours, stole over $5,000, police say​

https://www.8newsnow.com/news/local...ges-broke-into-7-rooms-in-2-hours-police-say/

This one happened in the last 2 hours.

Suspect at large after deadly shooting on Las Vegas Strip​

https://news3lv.com/news/local/susp...de-investigation-clark-county-southern-nevada
 
You noted why the article claims as such.

But if crime is up in all major cities and only San Francisco is seeing a drop in hotels....something doesn't add up there.
You noted why the article claims as such.

But if crime is up in all major cities and only San Francisco is seeing a drop in hotels....something doesn't add up there.
The operators of Parc 55 and Hilton cited their reasons for leaving. Anyone who has spent time at conferences at Moscone understands. The area in and around Moscone Center and Union Square where these nice hotels are located is really, really bad.
 
BLUE CITY BLUES: Hotel Owners Start to Write Off San Francisco as Business Nosedives.

Hotel owners in New York and Los Angeles are filling nearly as many rooms this year as they did in 2019, according to hotel-data firm STR. Their revenue per available room exceeds what it was before the pandemic.
But in San Francisco, hotels are still struggling badly in both occupancy and room rates compared with before the pandemic. Revenue per available room was nearly 23% lower in April compared with the same month in 2019.
The city’s lodging business has been squeezed by crime and other quality-of-life issues that have kept many convention bookers away. Tech companies’ embrace of remote work also undercuts business travel to the city and hotel activity.
Now, a growing number of San Francisco hoteliers are signaling they may be ready to give up. In recent months, the owner of the city’s Huntington Hotel sold the property after facing foreclosure and the Yotel San Francisco hotel sold in a foreclosure auction. Club Quarters San Francisco, which has been in default on its loan since 2020, may also be headed to foreclosure, according to data company Trepp.
Other lodging properties in the city are also vulnerable. More than 20 additional San Francisco hotels are facing loans due in the next two years, according to data company CoStar.
In San Francisco’s biggest potential hotel default yet, Park Hotels & Resorts last week said it has stopped making loan payments on debt secured by the Hilton San Francisco Union Square and Parc 55 San Francisco. The two hotels, with nearly 3,000 rooms between them, are in the heart of San Francisco’s shopping and cultural district.
Decline is a choice and San Francisco keeps choosing it, again and again.
 
Crime is up all over the nation, so it doesn't make sense that only hotels in SF are being impacted. There is crime in Las Vegas, and specifically crimes against tourists and in major hotels. Why does crime deter people & businesses in SF but not in Vegas?

"Murders rose in cities nationwide and in jurisdictions of all types. Relative to 2019, the number of murders jumped by more than 30 percent in the largest cities and by 20 percent in places designated by the FBI as “suburban” — cities with fewer than 50,000 inhabitants that are within a Metropolitan Statistical Area. Murders rose by comparable levels in rural areas too — an important fact that is only now beginning to receive press attention.

Despite politicized claims that this rise was the result of criminal justice reform in liberal-leaning jurisdictions, murders rose roughly equally in cities run by Republicans and cities run by Democrats. So-called red states actually saw some of the highest murder rates of all. This data makes it difficult to pin recent trends on local policy shifts and reveals the central flaw in arguments that seek to politicize a problem as complex as crime. Instead, the evidence points to broad national causes driving rising crime."

https://www.brennancenter.org/our-work/research-reports/myths-and-realities-understanding-recent-trends-violent-crime?ms=gad_crime statistics_617000456634_8626214133_143843260761&gclid=CjwKCAjwhJukBhBPEiwAniIcNb1V9TwkWHEoy4E0B1NI9gUBYz_coBa7yTwfewuZ0wdrRBpVsCMDjRoCGVEQAvD_BwE

Man arrested during sting operation at Las Vegas Strip hotel accused of breaking into 7 rooms within 2 hours, stole over $5,000, police say​

https://www.8newsnow.com/news/local...ges-broke-into-7-rooms-in-2-hours-police-say/

This one happened in the last 2 hours.

Suspect at large after deadly shooting on Las Vegas Strip​

https://news3lv.com/news/local/susp...de-investigation-clark-county-southern-nevada
I’ve been to plenty of conferences in SF and Vegas. There is no comparison in the street scenes near the major hotel and conference venues in Vegas and Moscone Center in SF. You literally smell shit and piss around Moscone and Union Square, step over homeless people, and get confronted by aggressive panhandlers. Hotel operators and major retailers are leaving for a reason.
 
The operators of Parc 55 and Hilton cited their reasons for leaving. Anyone who has spent time at conferences at Moscone understands. The area in and around Moscone Center and Union Square where these nice hotels are located is really, really bad.
I'm not disputing that crime is an issue. But if crime is an issue everywhere, why are hotels elsewhere not seeing a drop in patronage?
 
I'm not disputing that crime is an issue. But if crime is an issue everywhere, why are hotels elsewhere not seeing a drop in patronage?
Because it’s much worse near SF’s major conference center and hotel district.
 
Absolutely! I worked in tech for 35 years and have been to more conferences and trade shows than I can count in most major cities in the US and many in Europe. The situation around Moscone is exceptionally bad. I first noticed the deterioration in the early 2000s and it just kept getting progressively worse. It is highly visible and in your face there.
 
The operators of Parc 55 and Hilton cited their reasons for leaving. Anyone who has spent time at conferences at Moscone understands. The area in and around Moscone Center and Union Square where these nice hotels are located is really, really bad.
Neither of those hotels have left & neither said anything about crime.

“The Hilton Union Square and the Parc 55 are open for business and will stay open for business. They are more vital than ever as we approach the summer high tourist season with a continuing increase in inbound visitors,” Alex Bastian, president and CEO of the Hotel Council of San Francisco told KRON4. “It is not uncommon for hotel ownership to change. While the timing of this may appear less than ideal, we fully expect new ownership to come forth.”

https://www.kron4.com/news/bay-area...n-parc-55-cease-payments-on-hotel-properties/
 
I’ve been to plenty of conferences in SF and Vegas. There is no comparison in the street scenes near the major hotel and conference venues in Vegas and Moscone Center in SF. You literally smell shit and piss around Moscone and Union Square, step over homeless people, and get confronted by aggressive panhandlers. Hotel operators and major retailers are leaving for a reason.
You would need a citation for any of that.
 
Back
Top