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Yea - Union square is pretty much on the brink of the Tenderloin. While there are nice hotels and shopping districts around the area, be weary as there are also crackheads, drug dealers, zombies, and prostitutes frequenting these streets at night.
The first time I visited SF I ended up in a very nice time-share condo we rented on Sutter St (close to Union Sq.) and at night all the zombies came out to play.
I hear very good things about the Fairmont which is closer to Nob Hill. Much nicer area less bum traffic.
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