close video With all the businesses leaving San Francisco, ‘you’re not going to have a city left’: David Lee
Tacorea restaurant owner David Lee describes being mentally drained by the crime wave, and says he hasn’t received victim help from San Francisco leadership.
One of the largest publicly traded real estate investment trusts in the U.S. plans to close two of San Francisco's major downtown hotels, saying the city's streets are unsafe and expressing doubts about the area's ability to recover.
Park Hotels & Resorts Inc. announced this week that it stopped making payments on a $725 million loan that secured both its 1,921-room Hilton San Francisco Union Square and 1,024-room Parc 55 San Francisco properties and expects to remove them from its portfolio, citing several "major challenges" in the California city.
A sign on the exterior of the Hilton San Francisco Union Square on Tuesday. (Justin Sullivan / Getty Images) Ticker Security Last Change Change % PK PARK HOTELS & RESORTS INC. 14.36 +0.21 +1.52%
"This past week we made the very difficult, but necessary decision to stop debt service payments on our San Francisco CMBS loan," Park Hotels CEO Thomas J. Baltimore Jr. said 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."
COMMERCIAL REAL ESTATE CRASH STILL LOOMING OVER US ECONOMY
"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," Baltimore said.
A view of the Parc 55 by Hilton Hotel in San Francisco on Tuesday. (Justin Sullivan / Getty Images)
In its June investor presentation, Park Hotels cited "on-going concerns over safety and security" as part of its rationale for giving up on the two prominent San Francisco hotels, and said the move would save $30 million a year in interest payments and some $200 million in maintenance expenses over the next five years.
BUSINESS OWNER ABANDONS ‘LAWLESS’ SAN FRANCISCO, CALLS OUT ‘HORRIFIC’ CITY LEADERSHIP: ‘WE’RE FED UP'
All told, Park operates 46 hotels and resorts mostly 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, Florida.
Homeless people gather in an encampment in the Tenderloin district of downtown San Francisco on Feb. 24, 2022. (Gary Coronado/Los Angeles Times via / Getty Images)
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Park's departure comes amid a growing exodus of retailers fleeing downtown San Francisco for various reasons as the city continues to struggle with retail theft, homelessness and a raging drug crisis.
DeFi’s promise of decentralized finance is being undermined by increasing compliance measures, leading to potential censorship and loss of user control.
Donald Trump’s second White House term has seen him berate Ukraine’s President Volodymyr Zelenskyy, attempt to pause all foreign aid, and put forward a plan to “own” Gaza – and he hasn’t even been in office for 50 days.
On the latest episode of Sky News podcast The World with Richard Engel and Yalda Hakim, Matt Pottinger – Mr Trump’s deputy national security adviser during his first term – joins the hosts to unpack the leader’s motivations.
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The world view that the US president subscribes to can be distilled down into five principles, according to Mr Pottinger: the five Rs.
Here, he breaks down the “things that matter” to Mr Trump.
Reciprocity
This idea is simple. “If a country, in terms of both its national security interest and its approach to trade with the United States, treats the US the way the US treats that country, things are going to work out okay,” Mr Pottinger explained.
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He continued: “President Trump carries around this sense of aggrievement that he feels that the United States has unfairly opened its markets or has heavily subsidised other countries’ security without those countries carrying enough of the burden.”
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Why are tariffs such a big deal?
Reindustrialisation
This is a term Mr Trump used during his first stint in office, but “you hear it even more now”, Mr Pottinger said.
He explained: “It’s this idea that the United States haemorrhaged too much of its industrial base to other countries, particularly America’s number one adversary, the People’s Republic of China under the Chinese Communist Party.
“He wants to draw foreign direct investment back directly.
“It’s not good enough just to go to friendly nations, so-called friend-shoring. He wants on-shoring of this industrial investment.”
Image: Volodymyr Zelenskyy and Donald Trump’s Oval Office meeting ended in a shouting match last week. Pic: Reuters
Reimbursement
Mr Pottinger said he first learnt this word when Mr Trump wanted to use it in a speech in Seoul back in 2017 – but advisers including himself managed to talk the US president out of it.
“We’d written a very nice speech for him […] and he wrote in a line in the middle of it saying that South Korea needs to reimburse the United States for everything that US has spent going back to 1950 to defend Korea,” he said. “We persuaded him not to use that line in that speech at that particular moment.
“It would have been the only thing that would have been reported about the speech and it would not have been taken well by the host. It would have been rude.
“But it’s still his belief that every country that the United States defends or has provided for defence for, needs […] to be reimbursed [the US] in some way.”
Image: President Trump addressed a joint session of Congress on Tuesday. Pic: Reuters
Real estate
Reimbursement, Mr Pottinger explained, leads perfectly into the fourth R: real estate.
Mr Trump got his start in the business world at his father’s real estate company in the late 1960s and went on to develop properties including the Trump Tower in New York and numerous Trump hotels worldwide.
In November last year, Forbes estimated that his real estate investments account for $1.1bn of the president’s $5.6bn net worth.
Mr Trump’s real estate interests have been reflected in some of his political proposals, including his redevelopment plan for Gaza.
“I would own this,” he said of the Gaza Strip last month – before sharing an AI video of the territory changed into a Middle Eastern paradise with skyscrapers, yachts and a ‘Trump Gaza’ building.
Respect
Mr Trump “wants to be treated respectfully,” Mr Pottinger said. “And he’s actually quite gracious as a host, when he feels that he’s being treated with respect, he’ll treat his counterpart with respect.
“I’ve been in the room in scores of meetings with foreign leaders, and that’s usually how it’s worked out.”
The world’s largest iceberg, A23a, has come to a standstill near South Georgia, a critical wildlife habitat in the South Atlantic. The British Antarctic Survey (BAS) confirmed on March 4 that the iceberg, comparable in size to Rhode Island, had run aground approximately 80 kilometres from the island. Having drifted through the Southern Ocean for months, its trajectory has been closely monitored by researchers. Scientists are now evaluating its potential impact on the region’s delicate ecosystem, particularly its effect on penguins, seals, and marine life.
Iceberg’s Journey and Previous Movements
According to the British Antarctic Survey, A23a initially calved from Antarctica’s Filchner Ice Shelf in 1986 but remained grounded on the seabed for decades. It began moving again in 2020, later getting temporarily stuck near the South Orkney Islands in early 2024. After breaking free in December, it continued northwards toward South Georgia. Scientists had previously raised concerns over its approach, fearing disruptions to the region’s biodiversity.
Impact on Wildlife and Marine Ecosystem
As reported by the BBC, Andrew Meijers, an oceanographer at the British Antarctic Survey, stated that if A23a remains stationary, significant threats to local wildlife are unlikely. However, should the iceberg shift closer to the island or fragment, challenges could arise. Meijers noted that disruptions to feeding pathways may force adult penguins and seals to travel longer distances, reducing the food supply for their offspring and potentially increasing mortality rates.
Potential Benefits and Risks
Marine ecologist Nadine Johnston told the BBC that the iceberg could also stimulate ocean productivity by introducing essential nutrients into surrounding waters. She described this phenomenon as a “nutrient bomb” that could enhance food availability for predators such as penguins and seals. On the other hand, commercial fishing operations may face obstacles. As per BAS reports, previous iceberg breakups have disrupted fisheries, and A23a’s eventual fragmentation could pose navigation hazards.
Ongoing monitoring will determine how A23a’s presence affects the South Georgia ecosystem in the coming months.
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