Park Hotels & Resorts on Monday announced it has stopped making payments on a $725M CMBS loan backed by two of the largest hotels in San Francisco in order to pave the way for a divestiture of the properties.
The sister hotels, which sit side-by-side on O'Farrell Street, are the 1,921-room Hilton San Francisco Union Square—the city's largest hotel, also the largest Hilton on the West Coast—and its neighbor, Parc 55, which with 1,024 rooms is the fourth-largest lodging in the city.
The two hotels were valued at a combined $1.56B when the CMBS packaged for them was issued in 2016 by JPMorgan Chase. The loan is not delinquent: until this week's announcement, Park has been up to date on its $2.5M monthly debt service payments, the San Francisco Business Times reported.
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