The value of San Francisco’s two largest hotels has plunged by $1 billion, with the city’s hospitality industry trailing the nation.
The 1,024-room Parc 55 and the 1,921-room Hilton San Francisco Union Square are worth a combined $553.8 million, 65 percent less than their appraised value in 2016 of $1.56 billion, the San Francisco Business Times reported, citing Kroll Bond Rating Agency via a note from Trepp.
Last summer, Virginia-based Park Hotels & Resorts defaulted on a $725 million loan tied to its Parc 55 at 55 Cyril Magnin Street and its Hilton San Francisco Union Square at 333 O’Farrell Street.
In October, a receiver took control of both hotels, with plans to sell them in less than a year. The receiver has until Sept. 1 to find a buyer for both hotels or they’ll go into nonjudicial foreclosure.
Despite their estimated plunge in value, the pool of would-be buyers is likely small, according to the Business Times.
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