The hotel's move-out is/will be part of the larger spiral. Tourists, shoppers and conventions are staying away, due to obvious reasons, and with this reduction of high-end hotel space, even more tourists and conventions will stay away. Consequently, SF's sales tax revenue is declining and will do so even more, as is and will its revenue from the Moscone Convention Center.
The biggest obstacles to SF stopping their downward spiral are the ideology and pride of its Board of Stuporvisors and failure to muzzle the city's activists.
Speaking personally, I haven't done a running event in SF since April 2013, and probably have not been to SF since May 2014. I avoid the place (and not just due to it politics and bumfestation).