San Francisco’s two largest hotels have lost $1 billion in value|@Parc55Hotel|X

San Francisco’s hospitality sector is facing severe financial strain post-pandemic. The delinquency rate on commercial mortgage-backed securities for hotels surged to 41.6% in June, up from 5.7% last year, according to Trepp.

It marks the largest increase among the top 25 metro areas in the US. 

Hotel occupancy in San Francisco-San Mateo has fallen 22% since 2019, compared to a 4% decline nationwide, as reported by CoStar Group.

The Hilton Parc 55 and Hilton San Francisco Union Square, the city’s two largest hotels, lost $1 billion in value. Park Hotels & Resorts, which sold these properties, reported that the sale improved their financial metrics.

Hotel workers are struggling with reduced hours and potential strikes, as the city projects a slow recovery in conference business.