San Francisco’s largest hotel, the Hilton San Francisco Union Square, along with the nearby Parc 55, is headed for auction, raising concerns about the potential loss of key hotel rooms in the city’s recovery. With nearly 3,000 rooms combined, the properties, surrendered in June 2023, represent 10% of the city’s hotel stock. However, with the Hilton struggling post-pandemic and suffering from a large hotel-worker strike, some buyers may consider converting these properties into apartment housing. Experts warn that while conversion is possible, city leaders may challenge such plans. A deal must be struck by March 2025, or the lender, JPMorgan Chase, will foreclose.