San Francisco, CA
Westfield to give up SF location amid declining sales, Nordstrom closure, company says
SAN FRANCISCO (KGO) — Westfield is giving up its downtown San Francisco shopping mall and will surrender to its lender, the company said on Monday.
“We have made the difficult decision to begin the process to transfer management of the shopping center to our lender to allow them to appoint a receiver to operate the property going forward. San Francisco Centre’s debt is non-recourse and this action has no impact on the rest of URW’s debt,” Westfield wrote in a statement on Monday.
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The company said it has seen a significant decrease in sales in the San Francisco location from $455 million in 2019 to $298 million in December 2022.
In that same period, Westfield Valley Fair in San Jose has seen a 66% increase in sales, the company said.
“The center’s occupancy level has decreased dramatically to approximately 55% including already announced closures of tenants such as Nordstrom, Banana Republic and others. Our US Flagship portfolio occupancy averages around 93%,” the company wrote in the press release.
This also comes as Banana Republic closed its Union Square store and its anchor store, Nordstrom, is set to close.
According to the San Francisco Chronicle, the company stopped making payments on a $558 million loan. Earlier this month, Westfield and its partner, Brookfield Properties, started transferring control of the mall at 865 Market St., the newspaper reported.
Here is the full statement Westfield provided to ABC7 News:
“For more than 20 years, Westfield has proudly and successfully operated San Francisco Centre, investing significantly over that time in the vitality of the property. Given the challenging operating conditions in downtown San Francisco, which have led to declines in sales, occupancy and foot traffic, we have made the difficult decision to begin the process to transfer management of the shopping center to our lender to allow them to appoint a receiver to operate the property going forward. San Francisco Centre’s debt is non-recourse and this action has no impact on the rest of URW’s debt.
The unprecedented impact to the performance trends at San Francisco Centre are counter to positive increases in sales, occupancy and foot traffic across the rest of our portfolio.
We have seen a significant decrease in total sales at San Francisco Centre from $455 million in 2019 to $298 million in Dec 2022 YTD, a period where Westfield Valley Fair in neighboring San Jose experienced a +66% increase in sales, URW’s California Flagships center’s sales increased by +26% and our overall US Flagship sales have increased by +23%.
Since 2019 foot traffic has decreased to 5.6 million visits (Dec 2022 YTD) from 9.7 million, a 43% drop at a time when our US Flagship portfolio has seen a 98% recovery.
The center’s occupancy level has decreased dramatically to approximately 55% including already announced closures of tenants such as Nordstrom, Banana Republic and others. Our US Flagship portfolio occupancy averages around 93%.”
Stay with ABC7 News for the latest details on this developing story.
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San Francisco, CA
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San Francisco, CA
San Francisco hotel workers agree pay rise after 3-month strike
What’s New
Hilton hotel workers in San Francisco voted on Christmas Eve to approve a new union contract after a 93-day strike, according to the Unite Here Local 2 union.
The union, which represents about 15,000 workers in the region, announced that the deal settles the last of the city’s 2024 hotel strikes, covering approximately 900 Hilton workers.
Newsweek has contacted Unite Here Local 2 and Hilton via email for comment.
Why It Matters
The new contracts after this year’s strikes establish significant improvements in wages, health care and workload protections for workers at Hilton, Hyatt and Marriott-operated hotels.
The agreements conclude months of labor unrest that involved thousands of workers and disrupted San Francisco’s hotel industry.
What To Know
Hilton workers voted 99.4 percent in favor of the agreement on Christmas Eve, which includes a $3 per hour immediate wage increase, additional raises, and protections against understaffing and increased workloads.
The four-year contract preserves affordable union health insurance and provides pension increases. The deal covers workers at Hilton San Francisco Union Square and Parc 55, with 650 workers having actively participated in the strike.
This agreement follows similar contracts reached with Hyatt workers on Friday and Marriott workers last Thursday, covering a total of 2,500 workers who had been on strike since late September.
What People Are Saying
Bill Fung, a housekeeping attendant at Hilton San Francisco Union Square for 29 years, said: “These 93 days have not been easy, and I’m so proud that my coworkers and I never gave up. We stood together through the rain and cold, and even though there were some hard days, it was all worth it. We will go back to work with our health care, good raises, and the confidence of knowing that when we fight, we win.”
Lizzy Tapia, President of Unite Here Local 2, said: “Hilton, Hyatt, and Marriott workers refused to give up their health care or go backwards – and we proved on the picket line that we’re not afraid of a tough fight. As contract talks begin with the city’s other full-service hotels in the new year, they should know that this is the new standard they must accept for their own employees.”
San Francisco Mayor-elect Daniel Lurie said on X: “All those that have been out on strike will be back to work, and just in time for Christmas. So, things are looking bright as we head into 2025.
What Happens Next
Unite Here Local 2 said it would push for other full-service hotels in San Francisco to adopt the same standards established by the Hilton, Hyatt, and Marriott agreements when contract negotiations resume in 2025.
San Francisco, CA
San Francisco hotel workers approve new contract, ending 3-month strike
SAN FRANCISCO — San Francisco Hilton hotel workers who have been on strike for the past three months voted Tuesday to approve a new union contract.
The approval by Unite Here Local 2 in San Francisco settles the last of three hotel strikes in San Francisco this year, union officials said.
The strikes at Marriott, Hyatt and Hilton hotels throughout the city began in the fall. Marriott workers reached agreements on Thursday, with Hyatt doing the same on Friday.
San Francisco Hyatt Hotel union workers unanimously approve new contract
The Hilton agreement is the same as those ratified by striking Hyatt and Marriott workers last week, according to Ted Waechter, spokesperson for the Unite Here Local 2 union.
The agreement applies to about 900 workers, 650 of which have been on strike for over three months, according to Waechter. The hotels include the Hilton San Francisco Union Square and about 250 workers at Hilton’s Parc 55 hotel, who had been prepared to go on strike.
All the deals with hotels include keeping the workers’ health plan, wage increases, and protections against understaffing and workload increases.
Many of the 2,500 hotel workers had been striking for about 93 days, picketing daily in Union Square, which is the site of a Hilton and the nearby Grand Hyatt on Stockton Street.
SF Hyatt Hotel union workers on strike to vote on ratifying tentative agreement for new contract
“These 93 days have not been easy, and I’m so proud that my coworkers and I never gave up,” said Bill Fung, a housekeeping attendant at the Hilton San Francisco Union Square for 29 years. “We stood together through the rain and cold, and even though there were some hard days, it was all worth it. We will go back to work with our health care, good raises, and the confidence of knowing that when we fight, we win.”
Hilton media representatives did not immediately respond to a request for comment.
San Francisco Mayor-elect Daniel Lurie on Tuesday issued a statement welcoming an end to the strike, saying it came just in time for the holiday season and allows workers to return to work for key events such as the JP Morgan Health Care Conference and NBA All-Star Game.
Unite Here Local 2 represents about 15,000 hotel, airport and food service workers in San Francisco and San Mateo counties and represented the striking hotel workers.
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