This is a

is CBS I on the world with John Bachelor.

Here's John Bachelor.

San Francisco.

The Hilton Financial District in San Francisco has defaulted on a $97 million loan

reflecting ongoing challenges in the city's real retail and tourism

sectors. The hotel reported a revenue decline in net operating loss in the

third quarter of 23 and the 24 convention calendar is lighter than in 23 impacting big business.

This is San Francisco often talked of as the Doom Loop because of of retailers fleeing. However, I welcome Chris Regal, the CEO of scholar.com. This is the

scholar report, a global technology firm with business on all the major continents. And Chris, you and I have been talking about commercial real estate

which the Hilton qualifies for for you tell me a year and a half. The reason is not to do with the Doom Loop of San Francisco. It's with the

change of work habits after the pandemic. Large buildings in major cities, New York is the one I'm most

familiar with, are half occupied or two-thirds occupied. Sometimes they come in Mondays and Tuesdays, sometimes they don't come in at all.

That has meant that these buildings are vastly underutilized and yet the mortgages are held by major property owners.

Is the San Francisco default different than that or is this representative of what we're seeing across the country?

Good evening to you.

Good evening, John.

In San Francisco, it's an accelerated version of what you're seeing in other areas of the

country. I can say from personal experience,

as the pandemic started, we closed our office

in San Francisco, moved our employees out of that region

because there are problems with safety of people commuting

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