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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."
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"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.
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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.
CHICAGO — There is no stopping Cal Raleigh at the moment.
Raleigh has a major-league-leading 31 homers after he helped the Seattle Mariners take two of three against the Chicago Cubs over the weekend. The switch-hitter went deep four times and drove in six runs in the series.
“Just trying to have good at-bats, really,” Raleigh said. “Trying to stay consistent. Really just trying to home in on my approach and not worry too much about what the pitcher is trying to do to me.”
Raleigh had two hits, walked twice and scored three runs in Seattle’s 14-6 victory Sunday. He is batting .327 (37-for-113) with 16 homers and 34 RBIs in his past 29 games.
Raleigh was the designated hitter for the series finale after being behind the plate Saturday. He hammered the first pitch of his at-bat against Colin Rea — a 93.8 mph fastball — for a two-run shot in the top of the first on a hot afternoon at Wrigley Field. The massive drive to center had an exit velocity of 105 mph.
The DH walked in the third and singled and scored in the fifth. After popping out softly for the final out of the sixth, he walked again in the eighth and scored on Randy Arozarena‘s two-run double.
“Thirty-one home runs, he just continues to march through history here,” Mariners manager Dan Wilson said. “It’s fun to watch. … He’s a smart player, so later in the game, not getting too anxious, not trying to out of the zone, not trying to get away from his identity as a hitter and who he is. Just staying right where he needs to stay.”
The 28-year-old Raleigh, who agreed to a $105 million, six-year contract with Seattle in March, is the first switch-hitter to mash at least 30 homers before the All-Star break. He needs four more homers to match Ken Griffey Jr. for the most before the break in Mariners history.
“I think a lot of people don’t watch to pitch to him, and then if you do and fall behind, he hits a lot of homers, obviously,” Seattle pitcher Logan Gilbert said. “He can beat you in a lot of different ways, and it seems like he’s doing it every game, too.”
“I was so sweaty. My socks were wet. Everything had just slipped straight out,” he said.
Chisholm doubled twice, including a go-ahead, two-run drive off the right-center-field wall in the eighth inning, then slid into catcher Gary Sánchez for the final run as New York put the shoe on the other foot, so to speak. The AL East-leading Yankees won their second straight after losing seven of eight in a game that will be remembered for Chisholm’s size 10½ Jordan 1 spikes.
Shoeless Joe supposedly was given his nickname on June 6, 1908, playing semipro ball for the independent Greenville Spinners against the Anderson Electricians. New cleats had caused blisters, and he took them off and hit a long home run in the seventh inning.
Jackson won a World Series title with the Chicago White Sox in 1917, then was among eight players on the so-called “Black Sox” who were banned for life after they were accused of intentionally losing the 1919 Series to Cincinnati in exchange for money from gamblers. He finished with a .356 average in 13 major league seasons.
Asked whether he should be called Shoeless Jazz, Chisholm responded: “Wow. Is that how Shoeless Joe got his name? He ran out of his shoe?” When told Jackson earned the nickname in the 1910s, Chisholm quipped: “Oh, so he wasn’t wearing shoes.”
“I saw a lot of firsts,” Yankees captain Aaron Judge said. “11:30 game to a guy losing both his shoes. I’ve seen one cleat kind of running but not both like that. That was awesome.”
Chisholm is hitting .350 (21-for-60) with 11 RBIs since returning from a strained right oblique that caused him to miss 28 games. He raised his average to .242.
“That’s what I live for. That’s how I grew up playing baseball in high school, little league,” he said. “I don’t feel like it’s no need to change.”
New York trailed 2-0 when Chisholm hit a two-out double off Dean Kremer and headed for home on DJ LeMahieu‘s single to left.
“They say he’s the best shoe tier. I didn’t understand it until he actually did. It took me like a minute to take off my shoes just now.”
Jazz Chisholm Jr. on asking rookie Jasson Domínguez to tie his laces after putting on fresh socks and his spikes
Chisholm’s left shoe popped off between third and home. Seeing rookie catcher Maverick Handley move to his left for Colton Cowser‘s throw up the third-base line, Chisholm tried to veer to avoid contact. He caught the catcher with his right arm as Cowser was spun to the ground and the ball popped out of his mitt. Chisholm fell past the plate as the right shoe was jarred off and from his knees slapped a hand across the plate.
“He had dirt all over his face when I walked out there to get him. Looked like glitter on his face,” Yankees manager Aaron Boone said. “We were all kind of screaming.”
After he reached the dugout, Chisholm stretched out with his stockinged feet on the bench. He put on a fresh pair of socks and then his spikes, and Chisholm asked rookie Jasson Domínguez to tie the laces.
“They say he’s the best shoe tier,” Chisholm recalled in the postgame clubhouse. “I didn’t understand it until he actually did. It took me like a minute to take off my shoes just now.”
Baltimore led 2-1 in the eighth when Ben Rice singled leading off against Bryan Baker for his third hit. Giancarlo Stanton singled to put runners at the corners, and Paul Goldschmidt pinch ran for his fellow former MVP — the first pinch-running appearance of Goldschmidt’s big league career, according to the Elias Sports Bureau.
Baker fell behind 3-0 in the count and left a belt-high fastball over the plate. Chisholm drove it 384 feet off the middle of the wall.
“I wasn’t going to swing if it wasn’t a fastball,” he said.
Goldschmidt, 37, slid in just ahead of Sánchez’s tag. Chisholm was a minor leaguer in Arizona’s system when Goldschmidt starred for the Diamondbacks.
“He was the guy that everybody really watched doing baserunning,” Chisholm said. “Even when I got to Miami, he was still the blueprint of how to run the bases.”
Goldschmidt took pride in his baserunning.
“It’s something that wasn’t secondary behind hitting and defense,” he said.
Chisholm took third on the throw and LeMahieu followed with a chopper to shortstop Gunnar Henderson, who threw home. Chisholm slid headfirst and was at first called out by umpire Jansen Visconti, who didn’t realize Sánchez dropped the ball as he applied the tag.
His first run, however, was the one that will live on in replays for the flying footwear.
“Go out there. Keep playing like that,” Stanton had told him. “You don’t need them.”
Alvarez, however, has struggled at the plate this season, hitting .236 with three home runs and 11 RBIs in 35 games. He has an OPS of .652 with 38 strikeouts.
Alvarez, 23, was baseball’s No. 1 prospect in 2022 and hit 25 home runs as a rookie in 2023. In parts of four seasons with the Mets since debuting in 2022, Alvarez is a .223 hitter with 40 homers and 122 RBIs in 263 games.
Senger, 28, made his major league debut this season with the Mets, appearing in 13 games and hitting .179 in 28 at-bats.
The Mets (46-31) enter Sunday night’s game against the Phillies (46-31) tied for first place in the National League East standings.