Authorities were de-escalating a situation with a potentially armed suspect inside the Palace Hotel in downtown SF Saturday afternoon and evening — all while the hotel experienced a power outage. Market Street near the hotel was closed along with several side streets.
As the Chronicle reports, the San Francisco Police Department received a report at 12:16 pm Saturday of gunshots and threats of violence by someone who locked themselves inside San Francisco’s Palace Hotel. A hotel employee told KTVU that fourth floor guests were evacuated from their rooms. A hostage and crisis negotiation team was reportedly on the scene, but there was no mention of a hostage.
Per Bay City News, the power was out at the hotel during the standoff, along with over 200,000 other PG&E customers. Per the Chronicle, business remained open at the hotel throughout the afternoon.
“Officers responded to the scene and located a possible suspect in the building. The suspect has refused to comply to officers commands to exit. There are no reports of injuries at this time,” SFPD said. “Parts of the building that are affected by the incident have been evacuated.”
ALERTSF: Avoid the area of Market Street between Annie Street and New Montgomery Street due to Police Activity. Emergency crews are on scene.
— San Francisco Department of Emergency Management (@SF_emergency) December 20, 2025
Expect traffic delays, consider alternate routes, and allow for additional travel time. For live traffic i https://t.co/wVsVmd7FuX
AlertSF sent out a notice that Market Street was closed between Annie and New Montgomery streets. Per the Chronicle, numerous other side streets near the hotel were also blocked. The public was asked to avoid the area until the situation was resolved.
The story is developing, and updates will be provided.
Image: BrokenSphere/Wikimedia
Previously: Massive Power Outage In San Francisco Leaves 200,000+ In the Dark, Disrupts Muni and BART
