Ethan Huff – Natural News June 11, 2023
One of America’s largest publicly traded real estate investment trusts is leaving San Francisco because of the city’s rapid decline into anarchy and post-apocalyptic demise.
Two major downtown hotels owned by Park Hotels & Resorts Inc., the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco, are both expected to be removed from the trust’s portfolio due to “major challenges” in the California city.
Because many of San Francisco’s streets are now too unsafe to walk, Park Hotels & Resorts no longer wants the liability of having these two properties in its portfolio.
“This past week we made the very difficult but necessary decision to stop debt service payments on our San Francisco CMBS loan,” announced Park Hotels & Resorts CEO Thomas J. Biltmore Jr. in a statement.
“After much thought and consideration, we believe it is in the best interest for Park’s stockholders to materially reduce our current exposure to the San Francisco market.”
“Now more than ever, we believe San Francisco’s path to recovery remains clouded and elongated by major challenges – both old and new: record high office vacancy; concerns over street conditions; lower return to office than peer cities; and a weaker than expected citywide 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.”
(Related: Rampant homelessness, curbside drug use, and shoplifting have all been driving businesses out of San Francisco for years.)
Will San Francisco survive the retail and now hospitality exodus?
At its June investor presentation, Park Hotels emphasized the “ongoing concerns over safety and security” that continue to plague the city of San Francisco. By divesting these two properties from its portfolio, the trust can save $30 million a year in interest payments, as well as about $200 million in maintenance expenses over the next five years.
Right now, the company operates 46 hotels and resorts, most of which are located in city centers and resort locations, including the New York Hilton Midtown, the Hyatt Regency in Boston, the Hilton Hawaiian Village Waikiki Beach Resort in Honolulu, and the Orlando Waldorf Astoria in Orlando, Fla.
Park Hotels is hardly the only company pulling its assets out of San Francisco. Many, many different retailers are fleeing the city due to ongoing problems with theft, homelessness, and what Fox Business described as “a raging drug crisis.”
If businesses continue to leave San Francisco as has been the trend over the past several years, business tax revenues will only continue to decline. As this happens, there will be increasingly more empty and abandoned buildings littering the city, which in turn will attract more vagrants and other anti-business presence, further driving the city into oblivion.
“Laid-off employees no longer pay income tax but instead sign up for unemployment benefits, welfare, food stamps, etc. which the city / state then has to pay out of less and less tax revenues,” one commenter wrote about how the whole situation is likely to continue spiraling in San Francisco.
“So now who are they going to raise taxes on to pay for their grandiose giveaway programs? When no one is left but the unemployed and / or homeless, you collect nothing. This is the only way these cities will ever learn to reverse their anti-police, anti-business, woke policies – by hitting them in the wallet.”
Another asked how San Francisco’s guaranteed minimum income entitlement is working out these days in light of all the businesses fleeing the city.
“San Francisco is an example of what happens when cities pander to the debit side of the budget instead of the credit side,” this person added.
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““San Francisco is an example of what happens when cities pander to the debit side of the budget instead of the credit side,” this person added.”
Nope! This is what happens when cities pander to the BLM nonsense.
I still do not know who planned all this and what for, unless China is being given the West Coast. If the Nazis had won, Japan was getting it
The decay of society starts with human sh!t in the streets.
Whole foods, a.k.a “whole paycheck” leaving is a blessing for any city. Their products are wildly overpriced, and some of the stores I have been in were kind of dirty. Their 365 brand makes products no different than what you can buy in a regular grocery store, or walmart, then jacks up the price exponentially. I used to know a guy who worked there, and he told me that they try to hire only people who are “edgy.” That is why you see mostly hippies/liberals/”crunchy” tie-dye clothes wearing organic new ager types wandering around discussing their emotions and meditation practices/spiritual growth nonsense with each other. You also see a lot of wealthy, self absorbed, psuedo-educated, white professional types who shop there to signal how smart and superior they are. I dislike them all, and hate whole foods.
SFO will soon be nicknamed “brown town” and the official language nigmex.
Once in decline,,, always in decline. The sickness just gets worse. The beginning of the end for San Fran was it’s acceptance of homosexuality many decades ago. Today anything goes. The state is right behind them and the nation right behind the state. Once perversity is loosed,,, it is only stopped when it destroys everything in its path and finally itself.
I live in SF. The REAL reason for turning Demorat lead cities into Sh*holes is so that BlackRock/Vanguard can acquire them for cheap at a later date. The best way to get a mansion for cheap is open a Skunk Farm upwind. This is also why the Democrat’s are passing all kinds of bills at the State and Local levels to facilitate shoplifting. All those SME’s that go bankrupt make for lots of cheap Real Estate. Put the Fire in FIRE as in Fire Sale.
People in San Francisco wear flowers in their hair, which is highly commendable because it keeps local florists in business.
I’ve heard tell, that there’s a fortune to be made in daisy chain manufacture in California.
It’s funny how these finance execs word their statements so politely so as not to offend the city ‘leaders’ with their specific failures and ineptitude.
yes Biden send all illegales to failed cities
San Francisco, Portland, Chicago, Detroit, NY !
there is enough space .
Kind of realized when I first visited San Francisco back in the late 90’s and very early Y2+. That a lot of of the so called gloss from former and more prosperous years had already been taken off the city’s natural beauty.
Which is not surprising surprising when you see how the city. Along with others such as New York, Sydney (Australia) that seemed to embrace the sexual revolution of the late 60’s to late 70’s. Then the so called gay communities of the 80’s and 90’s onward. After which came the following transsexual/transgender revolution in many areas of Western Society. Of which the aftermath then coincided with the introduction of political correctness to perversely enslave humanity and the new generation from the millennia onward.
We are now having very similar problems in places like London (UK). Where you can barely look at someone or say anything slightly out of the ordinary without being brandished a harasser, racist, bigot or homophobic.
Quite frankly these societal attitudes are well overdue for being put to sleep. Otherwise we will be heading for a soddom/gommorah style abyss.
Though it is one partly of our own doing. Especially in countries like the UK & US.
As I believe. We are now well and truly in the last throws of Armageddon…..
Its an (((acquisition plan))) like everything else, of course.. -but the fault is ours as we let hit happen.
It’s certainly the great reset alright. They did this in the 1800’s and before that. The reset is a reset, as the word says. Horse and cart days are coming back….to……everywhere. Once everyone has become digitally dependent, they’ll pull the rug. A classic rug-pull. It’s not idiots, it’s not the disillusioned, it’s not the communists or Marxists. It’s the great reset in the true sense. Get ready for an Amish-like life if your lucky, or roam around and die. Reincarnate in 100 years and play the cycle again and again and again and again and…..