One of America’s richest cities sinks in massive hotel debt – as tourists stop choosing it for their vacations.
San Francisco’s glitzy hotels have been plunged into massive debt following a dramatic drop off in tourism to the Golden Gate City.
The Californian city’s two biggest hotels, the Hilton Parc 55 and Hilton San Francisco Union Square, have lost a combined $1billion in value, according to the Kroll Bond Rating Agency.
Their worth is now $553.8 million.
Meanwhile, the delinquency rate among commercial mortgage-backed security loans for the sector jumped to 41.6 percent in June from 5.7 percent the same time last year, according to data from real estate analytics firm Trepp.
Delusions of Adequacy 