Union Square Hotel Part Of A $350M Refinancing Loan

A bed in a hotel room

The Westin St. Francis San Francisco on Union Square, a luxury hotel with 1,195 rooms, is one of three hotels recently refinanced through a $350M loan from Goldman Sachs.

The loan values the properties at $1.55B, according to the San Francisco Business Times.

A CMBS industry report appraised the hotel itself at $760M earlier this month. The Westin is expected to receive $170M as part of the loan, according to a pre-sale report from Moody’s.

The terms of the loan are dependent upon the hotel reaching an average daily rate of $309.05 and revenue per available room of $249.91, as well as an occupancy rate of 80.9% over the course of the next two years — the length of the loan.

The hotel’s occupancy for June clocked in at 83.2%, but for the 12 months ending June 30, occupancy was a shade below 60%, with an ADR of $212.30, and the subsequent RevPAR of $126.94.

The city’s overall hotel occupancy rate has been on the upswing in recent months, but recovery has been slow going. Hotel occupancy rates increased from 31.79% to 71.56%, and the average daily rate in that same period rose from $113.54 to $278.98, between January 2021 and August 2022.

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