Park Hotels & Resorts Inc. PK – 5.77 % shares fell by 0.7% on Monday in premarket trade after the lodging REIT said that it had made the “very hard, but necessary” choice to stop paying its $725,000,000 commercial mortgage-backed securities (CMBS) secured loan. The REIT plans to work closely with the loan servicers in order to determine the most appropriate path. This is expected to eventually be the removal of these hotels from the REIT’s portfolio. These hotels are the Hilton San Francisco Union Square, and the Parc 55 San Francisco. Thomas Baltimore, Chief Executive Officer of Park’s, said: “After careful consideration and much thought we feel it is in Park’s best interest to reduce our exposure to the San Francisco Market.” The San Francisco market is facing a number of challenges, including a record amount of office vacancies, concerns about street conditions and fewer conventions than expected. The stock is up 16.5% for the year, according to Friday’s closing price, while the Real Estate Select Sector exchange-traded funds XLRE has dropped 0.3%, and the S&P500 SPX, +1.45% is up 11.5%.