The owner of the Kimpton Alton Hotel in San Francisco has surrendered the property to its lender, according to reports.
The development follows the failure of the hotel's owner, an affiliate of DiNapoli Capital Partners, to repay an $85 million loan on the property. Subsequently, ownership of the 248-room Kimpton Alton has been handed over to an affiliate of investment firm AB CarVal.
Concurrently, the Fisherman's Wharf hotel has new management. Crestline Hotels and Resorts is now the operator.
The Kimpton Alton is among other San Francisco hotels that have encountered financial challenges following the pandemic. Last year, Park Hotels & Resorts stopped making payments on the Hilton San Francisco Union Square and the Parc 55 San Francisco, both of which are currently in receivership. Earlier this year, the Hilton San Francisco Financial District, owned by Justice Operating Co., also defaulted on a loan.
The spate of loan failures come as San Francisco’s visitor numbers and hotel occupancy continue to hover well below prepandemic levels. According to the San Francisco Travel Association, the city attracted 23.1 million visitors in 2023, a 5.2% increase from 2022 but well short of 2019's 26.2 million visitors.
The San Francisco Travel Association also reported that the city's hotel occupancy was 64.2% in 2023, much lower than the 82.7% rate achieved in 2019.