's largest hotels has stopped making payments on a $725 million loan, they announced on Monday. It's the latest setback for a city's downtown besieged by vacancies.
"The Company intends to work in good faith with the loan's servicers to determine the most effective path forward, which is expected to result in ultimate removal of these hotels from its portfolio," a news release read. "Now more than ever, we believe San Francisco's path to recovery remains clouded and elongated by major challenges – both new and old: record high office vacancy; concerns over street conditions, lower return to office than peer cities; and a weaker than expected convention calendar through 2027 that will negatively impact business and leisure demand and will likely significantly reduce compression in the city for the foreseeable future," the company said.
UPDATE: President & CEO of Hotel Council of San Francisco says the hotels are open for business and expects new ownership to come forth. 'It is not uncommon for hotel ownership to change.'