Then … We think Matthew has eluded the pod people and is still in human form, but we can’t be sure. Here we see him watching a pod delivery taking place.
… and Now, this alley is on the south side of Market Street between 8th and 9th (map).
A group of pod people carry the pods into a side door that leads into a hotel; each pod is destined for a targeted victim.
Then … He walks east along Market where we see that the hotel is the PSA San Franciscan at 1231 Market. PSA Airlines leased the San Franciscan in 1968 as part of a diversification into the car rental and hotel business. Never profitable, the venture lasted only until 1979.
Uh,oh … those children’s buses outside … say it ain’t so!
… and Now, the hotel is still there, now called the Whitcomb. The entrance to Beppino’s restaurant has since been closed off and merged seamlessly with the exterior but there’s still an eatery inside - the Market Street Grill.
The alien takeover continues on plan as the children are led into the hotel for a rendezvous with the pods.