Welcome to our dedicated page for Park Hotels & Resorts news (Ticker: PK), a resource for investors and traders seeking the latest updates and insights on Park Hotels & Resorts stock.
Park Hotels & Resorts Inc. (NYSE: PK) is a leading publicly traded lodging real estate investment trust (REIT) with an extensive portfolio of market-leading hotels and resorts. With 67 premium-branded hotels and resorts offering over 35,000 rooms, the company is strategically positioned in prime U.S. and international markets with high barriers to entry. The majority of its properties operate under Hilton brands, reflecting its origins from a spinoff of Hilton Worldwide Holdings in 2017.
Park Hotels & Resorts' portfolio features upper-upscale and luxury hotels, including 23,428 rooms across 39 U.S. hotels and an additional 2,665 rooms through joint ventures. The company has focused on high-quality domestic assets, selling off all international properties and lower-quality U.S. hotels. This strategic focus aims to maximize real estate value and operational efficiency.
Recent achievements highlight the company's robust performance. Preliminary fourth-quarter and year-end 2023 results show that both Comparable RevPAR and Adjusted EBITDA exceeded expectations, driven by strong business travel and leisure demand. The Bonnet Creek Orlando complex and Casa Marina Key West hotel are undergoing transformative renovations anticipated to add long-term value.
For financial flexibility, Park is optimizing its balance sheet through non-core asset sales and reinvesting in high-return projects. As of December 31, 2023, Park's liquidity exceeded $1.3 billion, including $950 million in revolving credit capacity. The company also maintains a focus on shareholder returns, evidenced by the repurchase of 14.6 million shares and significant dividend payouts.
Park Hotels & Resorts is recognized for its commitment to sustainability and corporate responsibility, earning accolades such as the ENERGY STAR® Partner of the Year and recognition in America's Most Responsible Companies. It continues to enhance its portfolio's environmental performance through various initiatives.
Investors can expect continued growth and resilience from Park Hotels & Resorts as it leverages its premium assets and strategic market positioning. For more information, visit the company's website at www.pkhotelsandresorts.com.
Park Hotels & Resorts has completed the sale of the Le Meridien San Francisco for $221.5 million, using proceeds to repay its remaining term loan, leaving just $78 million outstanding. In August 2021, pro-forma occupancy for its consolidated hotels was estimated at 49.9%, with RevPAR down 45% compared to 2019. Despite strong summer performance, the company expects demand to weaken due to the Delta variant's impact. Nonetheless, liquidity stands at approximately $1.8 billion, positioning Park for future growth.
Park Hotels & Resorts reported a net loss of $114 million for Q2 2021, with pro-forma RevPAR increasing by 909.7% year-over-year to $78.46. The occupancy rate for 42 consolidated hotels was 55.6%. Adjusted EBITDA was $33 million, showing improvement from a loss of $(49) million in Q1 2021. Park reopened four hotels, 90% of total rooms are now operational, and anticipates positive cash flow for Q3. Net Debt stands at $4.4 billion, with $1.8 billion in liquidity. Sales of several properties have helped reduce debt significantly.
Park Hotels & Resorts (NYSE:PK) has announced the sale of the 360-room Le Meridien San Francisco and the 171-room Hotel Adagio for a total of $303.5 million. The average sale price is approximately $572,000 per key, with a blended sale price reflecting a 6.1% capitalization rate based on 2019 net operating income. The sales are expected to close within 60 days, reducing their exposure to San Francisco by 210 basis points. The net proceeds will partially repay existing debt, bringing corporate bank debt to approximately $80 million. Year-to-date, Park has achieved $477 million in gross proceeds from hotel sales in 2021.
Park Hotels & Resorts has successfully closed the sale of two properties: the 210-room Hotel Indigo in San Diego and the 204-room Courtyard in Washington, DC, for a total of $149 million. This equates to approximately $360,000 per key, at a 7.0% capitalization rate based on 2019 net operating income. Proceeds will be utilized to repay outstanding debt, contributing to the company's goal of $300 million to $400 million in asset sales for 2021. This move is intended to reduce net leverage and position the portfolio for sustainable growth.
Park Hotels & Resorts Inc. (NYSE: PK) will report its second quarter 2021 financial results on August 5, 2021, after market close. A conference call to discuss these results along with the current operational environment and future outlook is scheduled for August 6, 2021, at 11:00 a.m. ET. Interested parties can join via telephone or webcast. Park, as the second largest publicly traded lodging REIT, manages a portfolio of 59 premium-branded hotels and resorts with over 33,000 rooms, primarily in prime locations.
Park Hotels & Resorts (NYSE: PK) provided an operational update on June 8, 2021, reporting a significant recovery in hotel occupancy rates and revenue. As of May 2021, 55 out of 59 hotels were open, achieving 40.7% occupancy for consolidated hotels, a 3.7 percentage point increase from April. Pro-forma hotel revenues reached $82.8 million with positive EBITDA of $3.5 million in April. The company aims to break even at the corporate level by Q3 2021, supported by a liquidity of $1.9 billion. Positive trends in leisure demand are noted, especially in resort markets.
Park Hotels & Resorts announced the successful completion of a $750 million offering of 4.875% senior secured notes due 2029. The proceeds will be used to repay outstanding debt under its revolving credit facility and term loan, reducing liabilities significantly. Following the transaction, the company's liquidity improves to over $1.9 billion, extending its average debt maturities to over five years. CEO Thomas J. Baltimore, Jr. highlighted this as a key step towards returning to profitability amid ongoing challenges from the COVID-19 pandemic.
Park Hotels & Resorts (NYSE: PK) has successfully priced an offering of $750 million in senior secured notes, maturing in 2029, at an interest rate of 4.875%. The offering has been upsized from the initial $650 million proposal. Proceeds will primarily be used to reduce outstanding amounts on the company's revolving credit and term loan facilities. The offering is expected to close on May 14, 2021, subject to customary conditions. The notes will be secured by first priority interests in the capital stock of certain subsidiaries.
Park Hotels & Resorts Inc. (NYSE: PK) announced the intention to offer $650 million in senior secured notes due 2029. The proceeds will be used to repay a portion of outstanding amounts under its revolving credit and term loan facilities. The Notes will be guaranteed by Park and its subsidiaries. They will only be offered to qualified institutional buyers under specific exemptions from the Securities Act, meaning they won't be registered for public sale. This offering comes amid ongoing risks associated with COVID-19, which continue to impact the company's financial condition.
Park Hotels & Resorts has announced the sale of two properties for $149 million, equating to about $360,000 per key. The assets include the Hotel Indigo in San Diego and the Courtyard in Washington, D.C., both acquired in 2019. The sale reflects a capitalization rate of 7.0% on 2019 net operating income and allows Park to repay debt. This transaction will increase total asset sales to 27 since January 2017, amounting to approximately $1.4 billion. Management is optimistic about reaching a target of $300-$400 million in asset sales for 2021.
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