Kevin V. Nguyen

Three months after taking over the long-struggling San Francisco Centre, representatives from Trident Pacific Real Estate Group and real estate firm JLL finally had their first face-to-face meeting with the mall’s remaining tenants on Wednesday.&nbsp;

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<p>Three months after taking over the long-struggling San Francisco Centre, representatives from Trident Pacific Real Estate Group and real estate firm JLL finally had their first face-to-face meeting with the mall’s remaining tenants on Wednesday.&nbsp;</p>

According to multiple workers who were in attendance, the new management group pledged to continue operating the mall amid widespread rumors that it would be closing after <a href="https://sfstandard.com/2024/01/24/san-francisco-centre-mall-store-owners-pray-for-turnaround/">a recent string of high-profile departures</a>.&nbsp;

Dead mall walking: Inside the reeling San Francisco Centre, store owners pray for a turnaround

<p>According to multiple workers who were in attendance, the new management group pledged to continue operating the mall amid widespread rumors that it would be closing after <a href="https://sfstandard.com/2024/01/24/san-francisco-centre-mall-store-owners-pray-for-turnaround/">a recent string of high-profile departures</a>.&nbsp;</p>

Several workers who asked not to be identified told The Standard the meeting took place on the largely vacant fourth floor of the mall and lasted about 90 minutes. There, the new management group committed to continue staffing more security personnel while trying to attract new businesses to the shopping center.

<p>Several workers who asked not to be identified told The Standard the meeting took place on the largely vacant fourth floor of the mall and lasted about 90 minutes. There, the new management group committed to continue staffing more security personnel while trying to attract new businesses to the shopping center.</p>

“It’s only the first meeting, but they seem committed,” a mall worker said.&nbsp;

<p>“It’s only the first meeting, but they seem committed,” a mall worker said.&nbsp;</p>

<strong>READ MORE</strong>: <a href="https://sfstandard.com/2024/01/24/san-francisco-centre-mall-store-owners-pray-for-turnaround/">Inside The Ailing San Francisco Centre, Store Owners Pray for a Turnaround</a>

<p><strong>READ MORE</strong>: <a href="https://sfstandard.com/2024/01/24/san-francisco-centre-mall-store-owners-pray-for-turnaround/">Inside The Ailing San Francisco Centre, Store Owners Pray for a Turnaround</a></p>

When asked about how they would improve foot traffic until then, the management group told attendees that they are looking into live programming, such as music and art shows, to reactivate dormant parts of the mall, sources said. The group also committed to engaging with local media to spread the word that the mall is still open.&nbsp;

<p>When asked about how they would improve foot traffic until then, the management group told attendees that they are looking into live programming, such as music and art shows, to reactivate dormant parts of the mall, sources said. The group also committed to engaging with local media to spread the word that the mall is still open.&nbsp;</p>

Representatives for Trident Pacific and JLL did not respond to The Standard’s requests for comment on the meeting.

<p>Representatives for Trident Pacific and JLL did not respond to The Standard’s requests for comment on the meeting.</p>

A private security guard stands in front of a store inside the San Francisco Centre Mall, formerly Westfield Mall, on Market Street on Friday, Jan. 12, 2024. After dozens of closures to various businesses within Westfield Mall, including Nordstrom’s, the remaining businesses and their workers continue to serve customers and clients although the future of the mall and its businesses are in question.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/inlined6_20240119-sfcentremall.jpg?w=1844" alt="security guard stands in front of store" class="wp-image-242087"/><figcaption class="wp-element-caption">A private security guard stands in front of a store inside San Francisco Centre. The new management group told shop owners and mall employees that they were committed to employing more security personnel.</figcaption></figure>


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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/inlined6_20240119-sfcentremall.jpg?w=1844" alt="security guard stands in front of store" class="wp-image-242087"/><figcaption class="wp-element-caption">A private security guard stands in front of a store inside San Francisco Centre. The new management group told shop owners and mall employees that they were committed to employing more security personnel.</figcaption></figure>

As the property’s custodian, Trident Pacific has the authority to manage, reposition and potentially sell the property. Previous owners Unibail-Rodamco-Westfield and Brookfield Properties <a href="https://sfstandard.com/2023/06/12/westfield-gives-up-downtown-san-francisco-mall/">defaulted on the mall</a> in June.&nbsp;

Westfield gives up downtown San Francisco mall

<p>As the property’s custodian, Trident Pacific has the authority to manage, reposition and potentially sell the property. Previous owners Unibail-Rodamco-Westfield and Brookfield Properties <a href="https://sfstandard.com/2023/06/12/westfield-gives-up-downtown-san-francisco-mall/">defaulted on the mall</a> in June.&nbsp;</p>

Soon after its <a href="https://sfstandard.com/2023/10/10/downtown-san-francisco-centre-receiver/">appointment by the courts in October</a>, Trident Pacific enlisted real estate firm JLL as its property manager to market vacant spaces to prospective tenants. The firm is also responsible for regularly reporting on the property’s financial position.&nbsp;

New development could lead to sale of struggling downtown San Francisco mall

<p>Soon after its <a href="https://sfstandard.com/2023/10/10/downtown-san-francisco-centre-receiver/">appointment by the courts in October</a>, Trident Pacific enlisted real estate firm JLL as its property manager to market vacant spaces to prospective tenants. The firm is also responsible for regularly reporting on the property’s financial position.&nbsp;</p>

Trident Pacific reported that in October, it collected around $740,000 in rent from existing tenants against more than $1.9 million in expenses for the property. The mall is currently more than 50% vacant with as many as five stores shuttering since the new year alone.&nbsp;

<p>Trident Pacific reported that in October, it collected around $740,000 in rent from existing tenants against more than $1.9 million in expenses for the property. The mall is currently more than 50% vacant with as many as five stores shuttering since the new year alone.&nbsp;</p>

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According to the most recent data from commercial mortgage analytics firm Trepp, the mall&#8217;s appraised value dropped nearly $1 billion since 2016—from $1.22 billion to $290 million—as a result of the pending change in ownership and store closures.&nbsp;

<p>According to the most recent data from commercial mortgage analytics firm Trepp, the mall's appraised value dropped nearly $1 billion since 2016—from $1.22 billion to $290 million—as a result of the pending change in ownership and store closures.&nbsp;</p>

<p>According to the most recent data from commercial mortgage analytics firm Trepp, the mall&#8217;s appraised value dropped nearly $1 billion since 2016—from $1.22 billion to $290 million—as a result of the pending change in ownership and store closures.&nbsp;</p>

Retail experts say a revival of the mall is only possible once a change in ownership is completed.&nbsp;

<p>Retail experts say a revival of the mall is only possible once a change in ownership is completed.&nbsp;</p>

“The thing about that mall is, as great as it was, it’s been in the same format for four decades,” said Cameron Baird, a longtime retail broker at Avison Young. “The costs of operating it were so high that it probably priced a lot of the emerging tenants out.”&nbsp;&nbsp;

<p>“The thing about that mall is, as great as it was, it’s been in the same format for four decades,” said Cameron Baird, a longtime retail broker at Avison Young. “The costs of operating it were so high that it probably priced a lot of the emerging tenants out.”&nbsp;&nbsp;</p>

Once a new owner purchases the mall at a steep discount, they won’t be under the same financial pressures that Westfield was under, Baird explained. So, similar to the office market, new players will be able to enter the market <a href="https://sfstandard.com/2023/12/22/downtown-san-francisco-commecial-real-estate-new-era-2024/">as soon as a reset gets underway</a>.

The next era of San Francisco commercial real estate will begin in 2024

<p>Once a new owner purchases the mall at a steep discount, they won’t be under the same financial pressures that Westfield was under, Baird explained. So, similar to the office market, new players will be able to enter the market <a href="https://sfstandard.com/2023/12/22/downtown-san-francisco-commecial-real-estate-new-era-2024/">as soon as a reset gets underway</a>.</p>

New management of downtown San Francisco mall vows to keep it open, make improvements

It has been two years since John and Raelynn Hickey pitched their concept for a skyscraper in the Outer Sunset, and they have failed to get any version of the project approved.&nbsp;

<p>It has been two years since John and Raelynn Hickey pitched their concept for a skyscraper in the Outer Sunset, and they have failed to get any version of the project approved.&nbsp;</p>

First, the developer couple wanted to tap into a state density bonus law (SB 330) to build a 50-story tower at 2700 Sloat Blvd., but it was rejected by city planners. Then, they pivoted to a version half the size, hoping a different state law would facilitate approval. That effort was knocked back last month.&nbsp;

<p>First, the developer couple wanted to tap into a state density bonus law (SB 330) to build a 50-story tower at 2700 Sloat Blvd., but it was rejected by city planners. Then, they pivoted to a version half the size, hoping a different state law would facilitate approval. That effort was knocked back last month.&nbsp;</p>

Now they’re filing for bankruptcy.&nbsp;

<p>Now they’re filing for bankruptcy.&nbsp;</p>

In documents filed last week in Nevada Bankruptcy Court, Raelynn Hickey — who is CEO of the Reno-based entity that owns the property, 2700 Sloat Holding — declared that it requires debt relief in the range of $10 million to $50 million. Among the creditors are the company’s architects, Solomon Cordwell Buenz, and its land-use attorneys at Reuben, Junius &amp; Rose.

<p>In documents filed last week in Nevada Bankruptcy Court, Raelynn Hickey — who is CEO of the Reno-based entity that owns the property, 2700 Sloat Holding — declared that it requires debt relief in the range of $10 million to $50 million. Among the creditors are the company’s architects, Solomon Cordwell Buenz, and its land-use attorneys at Reuben, Junius &amp; Rose.</p>

It’s yet another chapter in a twisty saga that raised the hackles of Outer Sunset residents and pissed off nearly all corners of the city.&nbsp;&nbsp;

<p>It’s yet another chapter in a twisty saga that raised the hackles of Outer Sunset residents and pissed off nearly all corners of the city.&nbsp;&nbsp;</p>

When the Hickeys unveiled their design for the tower in 2023, neighbors balked. Thousands of residents of the sleepy beachside neighborhood signed a petition in protest, and <a href="https://sfstandard.com/2023/07/05/sunset-skyscraper-50-stories-680-apartments-at-san-franciscos-ocean-beach/">officials called the plans</a> “categorically out of compliance with both state and local laws.”

Sunset skyscraper: 50 stories, 680 apartments at San Francisco&#8217;s Ocean Beach

<p>When the Hickeys unveiled their design for the tower in 2023, neighbors balked. Thousands of residents of the sleepy beachside neighborhood signed a petition in protest, and <a href="https://sfstandard.com/2023/07/05/sunset-skyscraper-50-stories-680-apartments-at-san-franciscos-ocean-beach/">officials called the plans</a> “categorically out of compliance with both state and local laws.”</p>

Critics characterized the design as a “spite project” submitted in response to SF Planning’s rejection of an earlier, more modest, 12-story plan.&nbsp;

<p>Critics characterized the design as a “spite project” submitted in response to SF Planning’s rejection of an earlier, more modest, 12-story plan.&nbsp;</p>

The skyscraper proposal was seized on by anti-development activists as an example of a project massively out of scope with the surrounding neighborhood, enabled by new housing legislation. Even developers traditionally aligned with building denser and taller housing denounced the project as unfeasible to pursue.&nbsp;

<p>The skyscraper proposal was seized on by anti-development activists as an example of a project massively out of scope with the surrounding neighborhood, enabled by new housing legislation. Even developers traditionally aligned with building denser and taller housing denounced the project as unfeasible to pursue.&nbsp;</p>

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<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="en" dir="ltr">This isn&#39;t a joke &#8211; it&#39;s a real proposal in San Francisco and neighborhoods all over California could be next – including yours. But we are fighting back &amp; standing up for our right to have a say about what gets built in our communities. Join us: <a href="https://t.co/rxJ3sWMFQ5">https://t.co/rxJ3sWMFQ5</a></p>&mdash; Our Neighborhood Voices (@OurVoicesCA) <a href="https://twitter.com/OurVoicesCA/status/1674900590416252930?ref_src=twsrc%5Etfw">June 30, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

John Hickey has a <a href="https://sfstandard.com/2023/07/13/sunset-tower-developers-past-ponzi-scheme-failed-high-rise-projects-raise-red-flags/">checkered history</a>. In 2004, he pitched plans for the largest residential towers in California, in San Francisco’s India Basin. Those failed to come to fruition after he was indicted and spent 97 months in prison in connection with a <a href="https://www.documentcloud.org/documents/23872701-hickey-appeal-05-10004">Ponzi scheme</a> to develop land in Napa and Sonoma counties; he and a co-conspirator bilked more than 700 investors out of roughly $20 million, according to court records.

Man behind the massive Ocean Beach Tower went to prison for a Ponzi scheme

<p>John Hickey has a <a href="https://sfstandard.com/2023/07/13/sunset-tower-developers-past-ponzi-scheme-failed-high-rise-projects-raise-red-flags/">checkered history</a>. In 2004, he pitched plans for the largest residential towers in California, in San Francisco’s India Basin. Those failed to come to fruition after he was indicted and spent 97 months in prison in connection with a <a href="https://www.documentcloud.org/documents/23872701-hickey-appeal-05-10004">Ponzi scheme</a> to develop land in Napa and Sonoma counties; he and a co-conspirator bilked more than 700 investors out of roughly $20 million, according to court records.</p>

By filing for Chapter 11, Raelynn Hickey has left the door open for 2700 Sloat Holding to renegotiate terms with its lender, Loan Oak Fund, which moved to foreclose on the property this year after the Hickeys defaulted on a $10.2 million loan.&nbsp;&nbsp;

<p>By filing for Chapter 11, Raelynn Hickey has left the door open for 2700 Sloat Holding to renegotiate terms with its lender, Loan Oak Fund, which moved to foreclose on the property this year after the Hickeys defaulted on a $10.2 million loan.&nbsp;&nbsp;</p>

Once a debtor files for bankruptcy, the court puts a temporary stay on everything related to the property in question, meaning creditors cannot seize the asset. Last month, Loan Oak Fund attempted to auction off the property, but no buyer was found.&nbsp;

<p>Once a debtor files for bankruptcy, the court puts a temporary stay on everything related to the property in question, meaning creditors cannot seize the asset. Last month, Loan Oak Fund attempted to auction off the property, but no buyer was found.&nbsp;</p>

With the case now in bankruptcy court, the Hickeys have 45 days to publish a thorough accounting of their entity’s assets and liabilities, and another six months to propose a refinancing or organization restructuring plan to retain ownership of the property. They can also petition the court to oversee a separate auction in which they sell the property themselves.&nbsp;

<p>With the case now in bankruptcy court, the Hickeys have 45 days to publish a thorough accounting of their entity’s assets and liabilities, and another six months to propose a refinancing or organization restructuring plan to retain ownership of the property. They can also petition the court to oversee a separate auction in which they sell the property themselves.&nbsp;</p>

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Raelynn Hickey did not respond to a request for comment. She previously told the San Francisco Business Times that she <a href="https://www.bizjournals.com/sanfrancisco/news/2025/02/20/2700-sloat-notice-of-default.html">intended to offload the property</a> this year to a partnership of development organizations that convenes on a per-project basis. That deal was reportedly tied to the 2700 Sloat redevelopment getting entitled.&nbsp;

<p>Raelynn Hickey did not respond to a request for comment. She previously told the San Francisco Business Times that she <a href="https://www.bizjournals.com/sanfrancisco/news/2025/02/20/2700-sloat-notice-of-default.html">intended to offload the property</a> this year to a partnership of development organizations that convenes on a per-project basis. That deal was reportedly tied to the 2700 Sloat redevelopment getting entitled.&nbsp;</p>

Once the couple provide a restructuring plan, Loan Oak can accept the terms or come up with its own strategy. Separately, it can move to have the case dismissed and move forward with foreclosure.&nbsp;

<p>Once the couple provide a restructuring plan, Loan Oak can accept the terms or come up with its own strategy. Separately, it can move to have the case dismissed and move forward with foreclosure.&nbsp;</p>

Either way, each action sets off another deadline and hearing that both sides would have to prepare for, said bankruptcy expert Adam Stein-Sapir of Pioneer Funding Group, who is not involved in the case.&nbsp;

<p>Either way, each action sets off another deadline and hearing that both sides would have to prepare for, said bankruptcy expert Adam Stein-Sapir of Pioneer Funding Group, who is not involved in the case.&nbsp;</p>

“The U.S. bankruptcy system is very debtor-friendly,” Stein-Sapir said. “It is designed to give the debtor a breathing spell or help them buy time. But it is expensive for everybody to participate in.”

<p>“The U.S. bankruptcy system is very debtor-friendly,” Stein-Sapir said. “It is designed to give the debtor a breathing spell or help them buy time. But it is expensive for everybody to participate in.”</p>

An exterior view of Sloat Garden Center at 2700 Sloat Boulevard the proposed site for a 50 story tower in the Sunset District in San Francisco, on Wednesday July 12, 2023. The developers of a proposed 50-story tower at 2700 Sloat Boulevard in the Sunset have a checkered past, including a federal fraud conviction akin to a Ponzi scheme.

New plans and renderings show developers want to build a 24-story tower with more than 400 homes blocks from Ocean Beach. Nearly half would be affordable.


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/v03.jpg?w=2500" alt="A modern high-rise building with green terraces overlooks a street lined with smaller residential buildings. The scene is set under a clear, sunset-lit sky." class="wp-image-345241"/><figcaption class="wp-element-caption">The developers are pushing a revised, shorter version of the project.</figcaption></figure>


The Hickeys purchased the property beneath the Sloat Garden Center in 2020 for $8.5 million. The land had been owned by the family of David Straus, who was once dubbed the “<a href="https://www.sfgate.com/entertainment/article/The-Meanest-Man-In-San-Francisco-3316366.php">Meanest Man in San Francisco</a>” for his desire to tear down the historic Doggie Diner.&nbsp;

<p>The Hickeys purchased the property beneath the Sloat Garden Center in 2020 for $8.5 million. The land had been owned by the family of David Straus, who was once dubbed the “<a href="https://www.sfgate.com/entertainment/article/The-Meanest-Man-In-San-Francisco-3316366.php">Meanest Man in San Francisco</a>” for his desire to tear down the historic Doggie Diner.&nbsp;</p>

Shortly after buying the land, the Hickeys proposed demolishing the garden center to make way for a 589-foot-tall structure that would yield more than 700 apartments and 15,000 square feet of retail. To bypass the neighborhood’s height restrictions, the developers argued that the project qualified for SB 330, also known as the Builder’s Remedy, which restricts local jurisdictions from downsizing or delaying new housing.&nbsp;

<p>Shortly after buying the land, the Hickeys proposed demolishing the garden center to make way for a 589-foot-tall structure that would yield more than 700 apartments and 15,000 square feet of retail. To bypass the neighborhood’s height restrictions, the developers argued that the project qualified for SB 330, also known as the Builder’s Remedy, which restricts local jurisdictions from downsizing or delaying new housing.&nbsp;</p>

The city rejected the proposal after determining that the developers had inaccurately interpreted the zoning laws. The Hickeys withdrew the application last year.&nbsp;

<p>The city rejected the proposal after determining that the developers had inaccurately interpreted the zoning laws. The Hickeys withdrew the application last year.&nbsp;</p>

Since then, they have opted to <a href="https://sfstandard.com/2024/12/17/outer-sunset-residential-towers-24-stories/">pursue a revised project</a> — this time with Housing America Partners and the San Francisco Housing Development Corporation — seeking approval for a two-tower, 22-story housing complex. Last month, city planners determined that it was also ineligible for streamlined approvals and a state density bonus.&nbsp;

A 50-story tower in the Sunset flopped. This 446-unit building could take its place

<p>Since then, they have opted to <a href="https://sfstandard.com/2024/12/17/outer-sunset-residential-towers-24-stories/">pursue a revised project</a> — this time with Housing America Partners and the San Francisco Housing Development Corporation — seeking approval for a two-tower, 22-story housing complex. Last month, city planners determined that it was also ineligible for streamlined approvals and a state density bonus.&nbsp;</p>

They tried to pitch a 50-story tower in the Sunset. Now they’re filing for bankruptcy

The historic Huntington Hotel at the top of Nob Hill celebrated its 100th birthday while its doors were shuttered in 2022. But unlike other major hotels in San Francisco, the 12-story, 135-room luxury property never managed to re-open under the previous owners once the pandemic ended.&nbsp;

<p>The historic Huntington Hotel at the top of Nob Hill celebrated its 100th birthday while its doors were shuttered in 2022. But unlike other major hotels in San Francisco, the 12-story, 135-room luxury property never managed to re-open under the previous owners once the pandemic ended.&nbsp;</p>

Instead, they <a href="https://sfstandard.com/2022/09/30/san-francisco-property-defaults-tick-up-from-pandemic-lows/">walked away from it</a> with a $56.2 million loan still left to pay just as the Federal Reserve began <a href="https://sfstandard.com/2024/06/25/federal-reserve-chair-addresses-san-francisco-economy/">raising interest rates</a>. After being put up for auction by lenders eager to rid themselves of the property, a group led by local businessman and billionaire Greg Flynn purchased the debt <a href="https://sfstandard.com/2023/03/20/historic-nob-hill-hotel-acquired-by-local-magnate-following-closure-default-during-covid/">for less than half that figure</a>. 

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<p>Instead, they <a href="https://sfstandard.com/2022/09/30/san-francisco-property-defaults-tick-up-from-pandemic-lows/">walked away from it</a> with a $56.2 million loan still left to pay just as the Federal Reserve began <a href="https://sfstandard.com/2024/06/25/federal-reserve-chair-addresses-san-francisco-economy/">raising interest rates</a>. After being put up for auction by lenders eager to rid themselves of the property, a group led by local businessman and billionaire Greg Flynn purchased the debt <a href="https://sfstandard.com/2023/03/20/historic-nob-hill-hotel-acquired-by-local-magnate-following-closure-default-during-covid/">for less than half that figure</a>. </p>

“Make no mistake, we are market timers,” Flynn told The Standard during a recent sit-down at his office on Bush Street, a 15-minute stroll down the hill from the Huntington. “San Francisco has always risen from the ashes. The best time to buy is when things look bleak.”&nbsp;

<p>“Make no mistake, we are market timers,” Flynn told The Standard during a recent sit-down at his office on Bush Street, a 15-minute stroll down the hill from the Huntington. “San Francisco has always risen from the ashes. The best time to buy is when things look bleak.”&nbsp;</p>

Having spent the better part of his life in San Francisco, where he would go on to build a sprawling global real estate empire of franchise restaurants, hotel chains and luxury resorts, Flynn said he was heartbroken to see the Huntington Hotel shut down.&nbsp;

<p>Having spent the better part of his life in San Francisco, where he would go on to build a sprawling global real estate empire of franchise restaurants, hotel chains and luxury resorts, Flynn said he was heartbroken to see the Huntington Hotel shut down.&nbsp;</p>

His purchase had become personal. The Big 4 restaurant, named after the railroad magnates of the Old West, was the site of many memorable martini-fueled dinners, Flynn recalled while giving a tour of the property.&nbsp;

<p>His purchase had become personal. The Big 4 restaurant, named after the railroad magnates of the Old West, was the site of many memorable martini-fueled dinners, Flynn recalled while giving a tour of the property.&nbsp;</p>

Inside the historic Big 4 restaurant at the Huntington Hotel in San Francisco on Friday, Jun. 21, 2024. The hotel, shuttered since 2020, was purchased by Flynn, who plans to restore and reopen it. SF's hotel industry is buckling. The biggest brand name properties are up for grabs. Within that fall, a local billionaire is buying in and wants to restore a historic hotel to its former glory.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/wtfisgoingonwithhotels-20240613-adahlia-cole-30-lowres-edited.jpg" alt="The image shows a richly decorated room with wooden panels, green leather chairs, framed historical prints, ornate fireplace with a statue, and warm lighting." class="wp-image-289579"/><figcaption class="wp-element-caption">Inside the historic Big 4 restaurant at the Huntington Hotel, which never reopened after closing its doors for the pandemic.</figcaption></figure>


Workers work on remodeling the Huntington Hotel in San Francisco on Friday, Jun. 21, 2024. The hotel, shuttered since 2020, was purchased by billionaire Greg Flynn, who plans to remodel and reopen it. SF's hotel industry is buckling. The biggest brand name properties are up for grabs. Within that fall, a local billionaire is buying in and wants to restore a historic hotel to its former glory.


<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/wtfisgoingonwithhotels-20240613-adahlia-cole-13-lowres-edited.jpg" alt="A brick building with symmetrical windows has fire escape stairs on the left side and scaffolding with workers on the right, against a partly cloudy sky." class="wp-image-289577"/><figcaption class="wp-element-caption">Workers work on renovations at the Huntington Hotel. A local billionaire bought the property last year and wants to restore it to its former glory as a luxury destination.</figcaption></figure>


Unlike another previous owner a decade ago, which rebranded the hotel as The Scarlet Huntington, Flynn said he wants to restore the hotel’s history and turn it into the “best luxury experience in the city” now that the traditional five-star players are starting to buckle under the weight of expensive pre-pandemic debt.&nbsp;

<p>Unlike another previous owner a decade ago, which rebranded the hotel as The Scarlet Huntington, Flynn said he wants to restore the hotel’s history and turn it into the “best luxury experience in the city” now that the traditional five-star players are starting to buckle under the weight of expensive pre-pandemic debt.&nbsp;</p>

“The bones of the building are just great,” Flynn said, adding that the hotel’s large rooms feel more like apartments than studios. “We don’t have to roll the dice on a new concept. Buying [the Huntington] at this [cost] basis is what is allowing us to spend to make it perfect.”&nbsp;

<p>“The bones of the building are just great,” Flynn said, adding that the hotel’s large rooms feel more like apartments than studios. “We don’t have to roll the dice on a new concept. Buying [the Huntington] at this [cost] basis is what is allowing us to spend to make it perfect.”&nbsp;</p>

But projections of when the industry will return to normal have been consistently pushed out even as some players look to batten down the hatches or prepare for a “perfect” return.&nbsp;

<p>But projections of when the industry will return to normal have been consistently pushed out even as some players look to batten down the hatches or prepare for a “perfect” return.&nbsp;</p>

A cable car passes the Huntington Hotel in San Francisco on Friday, Jun. 21, 2024. The hotel, shuttered since 2020, was purchased by billionaire Greg Flynn, who plans to remodel and reopen it. SF's hotel industry is buckling. The biggest brand name properties are up for grabs. Within that fall, a local billionaire is buying in and wants to restore a historic hotel to its former glory.


<figure class="wp-block-image size-large"><img height="2500" width="2477" src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined02_wtfisgoingonwithhotels20240613.jpg?w=2477" alt="A man on a trolley car looks towards a motorcyclist riding in front of an entrance to the Huntington Hotel. The building is covered in ivy with scaffolding above the entrance." class="wp-image-289456"/><figcaption class="wp-element-caption">A cable car passes the Huntington Hotel in San Francisco. The historic property is currently undergoing renovations with an eye towards reopening in 2025.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined02_wtfisgoingonwithhotels20240613.jpg?w=2477" alt="A man on a trolley car looks towards a motorcyclist riding in front of an entrance to the Huntington Hotel. The building is covered in ivy with scaffolding above the entrance." class="wp-image-289456"/><figcaption class="wp-element-caption">A cable car passes the Huntington Hotel in San Francisco. The historic property is currently undergoing renovations with an eye towards reopening in 2025.</figcaption></figure>

The shuttered doors of The Big 4 within the closed Huntington Hotel in San Francisco on Friday, Jun. 21, 2024. The hotel, closed since 2020, was purchased by billionaire Greg Flynn, who plans to remodel and reopen it. SF's hotel industry is buckling. The biggest brand name properties are up for grabs. Within that fall, a local billionaire is buying in and wants to restore a historic hotel to its former glory.


<figure class="wp-block-image size-large"><img height="1667" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined12_wtfisgoingonwithhotels20240613.jpg?w=2500" alt="The image shows a rustic wooden door with &quot;The Big 4&quot; etched on its glass panels, partially covered by intersecting metal bars. Dense, ivy-like vines and green foliage surround the doorway." class="wp-image-289467"/><figcaption class="wp-element-caption">Behind the shuttered doors of The Big 4 restaurant, lies an impressive collection of original artifacts, historical photographs and memorabilia from California&#8217;s unique history.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined12_wtfisgoingonwithhotels20240613.jpg?w=2500" alt="The image shows a rustic wooden door with &quot;The Big 4&quot; etched on its glass panels, partially covered by intersecting metal bars. Dense, ivy-like vines and green foliage surround the doorway." class="wp-image-289467"/><figcaption class="wp-element-caption">Behind the shuttered doors of The Big 4 restaurant, lies an impressive collection of original artifacts, historical photographs and memorabilia from California's unique history.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined12_wtfisgoingonwithhotels20240613.jpg?w=2500" alt="The image shows a rustic wooden door with &quot;The Big 4&quot; etched on its glass panels, partially covered by intersecting metal bars. Dense, ivy-like vines and green foliage surround the doorway." class="wp-image-289467"/><figcaption class="wp-element-caption">Behind the shuttered doors of The Big 4 restaurant, lies an impressive collection of original artifacts, historical photographs and memorabilia from California&#8217;s unique history.</figcaption></figure>

Realistically though, like all corners of the commercial real estate industry after the pandemic, things might get worse before they get better.&nbsp;

<p>Realistically though, like all corners of the commercial real estate industry after the pandemic, things might get worse before they get better.&nbsp;</p>

‘When this industry does well, so does the city’


<h2 class="wp-block-heading" id="h-when-this-industry-does-well-so-does-the-city">‘When this industry does well, so does the city’</h2>


core/heading

<h2 class="wp-block-heading" id="h-when-this-industry-does-well-so-does-the-city">‘When this industry does well, so does the city’</h2>

Flynn is a clear outlier in deciding to invest in the San Francisco hotel industry while many of the biggest brand operators in the city are packing up and leaving. In perhaps the most arresting example, Park Hotels and Resorts, which owned two of the city’s largest hotels—the 1,024-room Parc 55 and the 1,921-room Hilton San Francisco Union Square— surrendered<a href="https://sfstandard.com/2023/06/05/real-estate-group-halts-loan-payments-two-san-francisco-hotels/"> both properties back</a> to lenders last summer.

Union Square woes: San Francisco hotel owner stops debt payments on Hilton, Parc 55

<p>Flynn is a clear outlier in deciding to invest in the San Francisco hotel industry while many of the biggest brand operators in the city are packing up and leaving. In perhaps the most arresting example, Park Hotels and Resorts, which owned two of the city’s largest hotels—the 1,024-room Parc 55 and the 1,921-room Hilton San Francisco Union Square— surrendered<a href="https://sfstandard.com/2023/06/05/real-estate-group-halts-loan-payments-two-san-francisco-hotels/"> both properties back</a> to lenders last summer.</p>

It’s no big secret why many owners are throwing in the towel.&nbsp;

<p>It’s no big secret why many owners are throwing in the towel.&nbsp;</p>

Iconic San Francisco hotel has lost 90% of its value, filing says

In the first year of shutdown, San Francisco saw an unprecedented drop of 90% in hotel room tax revenue compared to pre-pandemic levels, according to data from the mayor’s budget office. The most recent number of $253 million is barely half of 2019’s $408 million number. Add that to a threadbare 2024 convention schedule and the equation does not look promising.&nbsp;

<p>In the first year of shutdown, San Francisco saw an unprecedented drop of 90% in hotel room tax revenue compared to pre-pandemic levels, according to data from the mayor’s budget office. The most recent number of $253 million is barely half of 2019’s $408 million number. Add that to a threadbare 2024 convention schedule and the equation does not look promising.&nbsp;</p>

According to loan reports, the occupancy rates of both the Parc 55 and the Hilton San Francisco Union Square have only recovered to a hair over 50%. As a result, the properties have <a href="https://www.bizjournals.com/sanfrancisco/news/2024/07/01/hilton-sf-union-square-parc-55-valuation-eastdil.html">lost over $1 billion in value</a>. Meanwhile, both of The Four Seasons hotels in San Francisco, once regarded as the city’s swankiest, were also <a href="https://www.bizjournals.com/sanfrancisco/news/2024/05/30/four-seasons-sf-embarcadero-for-sale-westbrook.html?utm_source=st&amp;utm_medium=en&amp;utm_campaign=BN&amp;utm_content=FR&amp;ana=e_FR_BN&amp;j=35550421&amp;senddate=2024-05-30">quietly listed for sale</a> after their owners defaulted on a commercial loan taken out right before the pandemic.&nbsp;

<p>According to loan reports, the occupancy rates of both the Parc 55 and the Hilton San Francisco Union Square have only recovered to a hair over 50%. As a result, the properties have <a href="https://www.bizjournals.com/sanfrancisco/news/2024/07/01/hilton-sf-union-square-parc-55-valuation-eastdil.html">lost over $1 billion in value</a>. Meanwhile, both of The Four Seasons hotels in San Francisco, once regarded as the city’s swankiest, were also <a href="https://www.bizjournals.com/sanfrancisco/news/2024/05/30/four-seasons-sf-embarcadero-for-sale-westbrook.html?utm_source=st&amp;utm_medium=en&amp;utm_campaign=BN&amp;utm_content=FR&amp;ana=e_FR_BN&amp;j=35550421&amp;senddate=2024-05-30">quietly listed for sale</a> after their owners defaulted on a commercial loan taken out right before the pandemic.&nbsp;</p>

A person walks past an entrance of Hotel Nikko in San Francisco on Friday, June 21, 2024. SF's hotel industry is buckling. The biggest brand name properties are up for grabs. Within that fall, a local billionaire is buying in and wants to restore a historic hotel to its former glory.


<figure class="wp-block-image size-large"><img height="2500" width="2455" src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined06_wtfisgoingonwithhotels20240613.jpg?w=2455" alt="The image shows the entrance of Hotel Nikko San Francisco with a floral arrangement above the entrance. A person with a backpack walks by in the foreground." class="wp-image-289460"/><figcaption class="wp-element-caption">At the Japanese-owned Hotel Nikko in San Francisco, an operational staff of over 350 hotel workers was whittled down to only a dozen in the early days of the pandemic shutdown. That year, the city&#8217;s hotel room tax revenue plummeted by 90%.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined06_wtfisgoingonwithhotels20240613.jpg?w=2455" alt="The image shows the entrance of Hotel Nikko San Francisco with a floral arrangement above the entrance. A person with a backpack walks by in the foreground." class="wp-image-289460"/><figcaption class="wp-element-caption">At the Japanese-owned Hotel Nikko in San Francisco, an operational staff of over 350 hotel workers was whittled down to only a dozen in the early days of the pandemic shutdown. That year, the city's hotel room tax revenue plummeted by 90%.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined06_wtfisgoingonwithhotels20240613.jpg?w=2455" alt="The image shows the entrance of Hotel Nikko San Francisco with a floral arrangement above the entrance. A person with a backpack walks by in the foreground." class="wp-image-289460"/><figcaption class="wp-element-caption">At the Japanese-owned Hotel Nikko in San Francisco, an operational staff of over 350 hotel workers was whittled down to only a dozen in the early days of the pandemic shutdown. That year, the city&#8217;s hotel room tax revenue plummeted by 90%.</figcaption></figure>

A guest stands in front of the Hilton San Francisco Union Square on June 6, 2023. As San Francisco continues to struggle with post-pandemic recovery, the investment firm Park Hotels &amp; Resorts Inc. owns the Hilton San Francisco Union Square and Parc 55 by Hilton hotels have stopped payment on their $725 million dollar non-recourse loan and has surrendered the properties to the bank. The two hotels will remain open as the bank seeks new ownership. 


<figure class="wp-block-image size-large"><img height="1605" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/07/gettyimages-1496470489.jpg?w=2500" alt="The image shows the entrance of the Hilton San Francisco with a man looking at his phone while standing on the sidewalk in front of the glass doors." class="wp-image-289578"/><figcaption class="wp-element-caption">The Union Square Hilton hotel in San Francisco is currently under the management of a court-appointed receiver after Park Hotels and Resorts defaulted on its commercial loan.  </figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/gettyimages-1496470489.jpg?w=2500" alt="The image shows the entrance of the Hilton San Francisco with a man looking at his phone while standing on the sidewalk in front of the glass doors." class="wp-image-289578"/><figcaption class="wp-element-caption">The Union Square Hilton hotel in San Francisco is currently under the management of a court-appointed receiver after Park Hotels and Resorts defaulted on its commercial loan.  </figcaption></figure>

Even though hotel jobs account for only 11% of the city’s jobs, the industry contributes an outsized amount of its tax revenue, says Ted Egan, San Francisco’s chief economist.

<p>Even though hotel jobs account for only 11% of the city’s jobs, the industry contributes an outsized amount of its tax revenue, says Ted Egan, San Francisco’s chief economist.</p>

According to the San Francisco Controller’s Office, monthly hotel revenue per room night in the city continues to ebb between 60% to 80% compared to the same month in 2019. Average daily rates and occupancy levels have also largely remained under pre-pandemic levels this year.&nbsp;

<p>According to the San Francisco Controller’s Office, monthly hotel revenue per room night in the city continues to ebb between 60% to 80% compared to the same month in 2019. Average daily rates and occupancy levels have also largely remained under pre-pandemic levels this year.&nbsp;</p>

“The importance of the hotel industry is not fully understood in the discourse about the city’s recovery,” said Alex Bastian, the president and CEO of the Hotel Council of San Francisco. “When this industry does well, so does the city.”&nbsp;

<p>“The importance of the hotel industry is not fully understood in the discourse about the city’s recovery,” said Alex Bastian, the president and CEO of the Hotel Council of San Francisco. “When this industry does well, so does the city.”&nbsp;</p>

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The numbers in 2019 represented a peak of a near decade of continued growth of both leisure travelers and the convention business that makes up the lifeblood of the industry.&nbsp;

<p>The numbers in 2019 represented a peak of a near decade of continued growth of both leisure travelers and the convention business that makes up the lifeblood of the industry.&nbsp;</p>

“San Francisco went from being one of the most desirable hotel markets to being hit with a trifecta of negative impacts,” said Alan Reay, president of hotel consulting firm Atlas Hospitality Group. “Expenses are way up, net operating income is down and interest rates are too high. If lenders aren’t making office loans right now, then they certainly aren’t going to do hotels right now either.”&nbsp;

<p>“San Francisco went from being one of the most desirable hotel markets to being hit with a trifecta of negative impacts,” said Alan Reay, president of hotel consulting firm Atlas Hospitality Group. “Expenses are way up, net operating income is down and interest rates are too high. If lenders aren’t making office loans right now, then they certainly aren’t going to do hotels right now either.”&nbsp;</p>

As opposed to, say, the Four Seasons, Flynn and his partners, Highgate Hotels, will operate the historic Huntington Hotel independently without any major branding, aiming to reopen its doors by 2025. Other renovations will include restoring the downstairs spa and transforming the old gift shop into “the coolest bar in San Francisco.”&nbsp;

<p>As opposed to, say, the Four Seasons, Flynn and his partners, Highgate Hotels, will operate the historic Huntington Hotel independently without any major branding, aiming to reopen its doors by 2025. Other renovations will include restoring the downstairs spa and transforming the old gift shop into “the coolest bar in San Francisco.”&nbsp;</p>

Billionaire Greg Flynn sits in the bar of the Huntington Hotel in San Francisco on Friday, Jun. 21, 2024. The hotel, shuttered since 2020, was purchased by Flynn, who plans to restore and reopen it. SF's hotel industry is buckling. The biggest brand name properties are up for grabs. Within that fall, a local billionaire is buying in and wants to restore a historic hotel to its former glory.


<figure class="wp-block-image size-large"><img height="2246" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined10_wtfisgoingonwithhotels20240613.jpg?w=2500" alt="A middle-aged man with gray hair, wearing a dark sweater and light blue shirt, sits at a table with a lamp, smiling slightly, in a warmly lit room." class="wp-image-289465"/><figcaption class="wp-element-caption">Billionaire Greg Flynn sits at the bar inside The Big 4 restaurant at the Huntington Hotel. His group is doing a full-scale renovation of the hotel&#8217;s interiors, which includes turning a gift shop into a bar. </figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined10_wtfisgoingonwithhotels20240613.jpg?w=2500" alt="A middle-aged man with gray hair, wearing a dark sweater and light blue shirt, sits at a table with a lamp, smiling slightly, in a warmly lit room." class="wp-image-289465"/><figcaption class="wp-element-caption">Billionaire Greg Flynn sits at the bar inside The Big 4 restaurant at the Huntington Hotel. His group is doing a full-scale renovation of the hotel's interiors, which includes turning a gift shop into a bar. </figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined10_wtfisgoingonwithhotels20240613.jpg?w=2500" alt="A middle-aged man with gray hair, wearing a dark sweater and light blue shirt, sits at a table with a lamp, smiling slightly, in a warmly lit room." class="wp-image-289465"/><figcaption class="wp-element-caption">Billionaire Greg Flynn sits at the bar inside The Big 4 restaurant at the Huntington Hotel. His group is doing a full-scale renovation of the hotel&#8217;s interiors, which includes turning a gift shop into a bar. </figcaption></figure>

The surface of the Anzu restaurant bar reflects the view of employees passing by in Hotel Nikko in San Francisco on Friday, June 21, 2024. SF's hotel industry is buckling. The biggest brand name properties are up for grabs. Within that fall, a local billionaire is buying in and wants to restore a historic hotel to its former glory.


<figure class="wp-block-image size-large"><img height="2442" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined05_wtfisgoingonwithhotels20240613.jpg?w=2500" alt="The image shows a sleek, modern bar with mirrored surfaces reflecting bottles and lights. A bartender is working, while a suited man with a drink stands nearby." class="wp-image-289459"/><figcaption class="wp-element-caption">The surface of the Anzu restaurant bar reflects the view of employees passing by in Hotel Nikko in San Francisco.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined05_wtfisgoingonwithhotels20240613.jpg?w=2500" alt="The image shows a sleek, modern bar with mirrored surfaces reflecting bottles and lights. A bartender is working, while a suited man with a drink stands nearby." class="wp-image-289459"/><figcaption class="wp-element-caption">The surface of the Anzu restaurant bar reflects the view of employees passing by in Hotel Nikko in San Francisco.</figcaption></figure>

New owners like Flynn are the key to jumpstarting the flagging hotel industry, according to Bastian. “They have more incentive to invest in the capital improvements that will benefit both workers and customers,” he said.&nbsp;

<p>New owners like Flynn are the key to jumpstarting the flagging hotel industry, according to Bastian. “They have more incentive to invest in the capital improvements that will benefit both workers and customers,” he said.&nbsp;</p>

One idea Bastian brought up was potentially allowing for a short-term grace period where the transfer tax for hotel properties changing hands is either lowered or waived, in order to move more “reset” transactions along.&nbsp;

<p>One idea Bastian brought up was potentially allowing for a short-term grace period where the transfer tax for hotel properties changing hands is either lowered or waived, in order to move more “reset” transactions along.&nbsp;</p>

In a city not known for its tax cuts, such conversations are becoming more commonplace the longer the city’s downturn continues. For example, in March, San Francisco voters <a href="https://sfstandard.com/2024/03/05/san-francisco-election-2024-prop-c-result-office-conversions/">narrowly approved Proposition C</a>, which will allow for a one-time transfer tax exemption on office buildings that will be converted into housing. A <a href="https://sfstandard.com/2024/05/07/business-tax-reform-san-francisco/">business tax reform measure</a>, which would effectively cut taxes for a swath of industries also appears headed for the November ballot.&nbsp;

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<p>In a city not known for its tax cuts, such conversations are becoming more commonplace the longer the city’s downturn continues. For example, in March, San Francisco voters <a href="https://sfstandard.com/2024/03/05/san-francisco-election-2024-prop-c-result-office-conversions/">narrowly approved Proposition C</a>, which will allow for a one-time transfer tax exemption on office buildings that will be converted into housing. A <a href="https://sfstandard.com/2024/05/07/business-tax-reform-san-francisco/">business tax reform measure</a>, which would effectively cut taxes for a swath of industries also appears headed for the November ballot.&nbsp;</p>

Attendees of the JP Morgan Healthcare Conference exit the Westin Hotel on Powell St. in San Francisco on Tuesday, Jan. 9, 2024. The 42nd annual conference ends on Thursday.


<figure class="wp-block-image size-large"><img height="2500" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/07/20240109_jpmconference-19-edited.jpg" alt="In front of The Westin St. Francis hotel, several professionally dressed men stand in conversation, while others walk by the red canopy entrance on a bustling sidewalk." class="wp-image-289580"/><figcaption class="wp-element-caption">Last year, the owners of The Westin St. Francis hotel on Powell Street filed for a more than 90% decrease in the building&#8217;s assessed value of $787 million all the way down to $76 million.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/20240109_jpmconference-19-edited.jpg" alt="In front of The Westin St. Francis hotel, several professionally dressed men stand in conversation, while others walk by the red canopy entrance on a bustling sidewalk." class="wp-image-289580"/><figcaption class="wp-element-caption">Last year, the owners of The Westin St. Francis hotel on Powell Street filed for a more than 90% decrease in the building's assessed value of $787 million all the way down to $76 million.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/20240109_jpmconference-19-edited.jpg" alt="In front of The Westin St. Francis hotel, several professionally dressed men stand in conversation, while others walk by the red canopy entrance on a bustling sidewalk." class="wp-image-289580"/><figcaption class="wp-element-caption">Last year, the owners of The Westin St. Francis hotel on Powell Street filed for a more than 90% decrease in the building&#8217;s assessed value of $787 million all the way down to $76 million.</figcaption></figure>

A seating area decorates the terrace for hotel guests who do not have pets at Hotel Nikko in San Francisco on Friday, June 21, 2024. SF's hotel industry is buckling. The biggest brand name properties are up for grabs. Within that fall, a local billionaire is buying in and wants to restore a historic hotel to its former glory.


<figure class="wp-block-image size-large"><img height="2500" width="2193" src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined08_wtfisgoingonwithhotels20240613.jpg?w=2193" alt="The image shows an outdoor seating area with an orange cushioned sectional sofa and striped pillows. It is set against angular, tiled building walls under a clear blue sky." class="wp-image-289462"/><figcaption class="wp-element-caption">The Hotel Nikko near Union Square was built by one of Japan&#8217;s major general contractors in the 1980s. It is still operated by the Tokyo-based brand today.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined08_wtfisgoingonwithhotels20240613.jpg?w=2193" alt="The image shows an outdoor seating area with an orange cushioned sectional sofa and striped pillows. It is set against angular, tiled building walls under a clear blue sky." class="wp-image-289462"/><figcaption class="wp-element-caption">The Hotel Nikko near Union Square was built by one of Japan's major general contractors in the 1980s. It is still operated by the Tokyo-based brand today.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/07/inlined08_wtfisgoingonwithhotels20240613.jpg?w=2193" alt="The image shows an outdoor seating area with an orange cushioned sectional sofa and striped pillows. It is set against angular, tiled building walls under a clear blue sky." class="wp-image-289462"/><figcaption class="wp-element-caption">The Hotel Nikko near Union Square was built by one of Japan&#8217;s major general contractors in the 1980s. It is still operated by the Tokyo-based brand today.</figcaption></figure>

<br>“People are still willing to pay a premium to be here in San Francisco,” Bastian said. “We just have to make sure it is worth doing so.”&nbsp;

<p><br>“People are still willing to pay a premium to be here in San Francisco,” Bastian said. “We just have to make sure it is worth doing so.”&nbsp;</p>

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