The Kimpton Alton Hotel, located in San Francisco, has recently faced financial difficulties resulting in the surrender of the property to its lender. The undisclosed reports revealed that the hotel’s owner, an affiliate of DiNapoli Capital Partners, failed to repay an $85 million loan, leading to the transfer of ownership to an affiliate of investment firm AB CarVal. Additionally, a new management company, Crestline Hotels and Resorts, has taken over the operations of the 248-room property.
The Kimpton Alton Hotel is not the only establishment in San Francisco grappling with financial challenges in the aftermath of the pandemic. Several other hotels in the area have encountered similar issues, including the Hilton San Francisco Union Square, Parc 55 San Francisco, and Hilton San Francisco Financial District. These properties have either defaulted on loans or entered receivership due to the ongoing decrease in visitor numbers and hotel occupancy.
San Francisco has experienced a significant decline in visitor numbers and hotel occupancy rates compared to pre-pandemic levels. In 2023, the city welcomed 23.1 million visitors, marking a modest 5.2% increase from the previous year but falling short of the 2019 figure of 26.2 million visitors. Likewise, the hotel occupancy rate in San Francisco was recorded at 64.2% in 2023, a significant drop from the 82.7% rate achieved in 2019.
As the tourism industry in San Francisco continues to struggle with the repercussions of the pandemic, hotels in the city are likely to face ongoing financial challenges. The uncertainty surrounding travel restrictions, fluctuating visitor numbers, and evolving consumer behavior pose significant obstacles for hotel owners and operators. It remains to be seen how the hospitality sector will navigate these challenges and adapt to the changing landscape of the tourism industry in San Francisco.