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 (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.
Park Hotels & Resorts reported significant challenges in Q1 2021, with Pro-forma RevPAR at $40.79, down 70% from 2020. Net loss attributable to stockholders was $(190) million, and Adjusted EBITDA was $(49) million. However, Pro-forma Hotel Adjusted EBITDA improved 34.7% compared to Q4 2020. The company sold the W New Orleans for $24.1 million, increasing open hotels to 52. Park expects to reach break-even at the corporate level in H2 2021, driven by pent-up demand and vaccine distribution.
Park Hotels & Resorts (NYSE: PK) announced the sale of the 97-room W New Orleans – French Quarter for approximately $24.1 million, equating to $249,000 per key. The sale reflects a 4.3% capitalization rate on the hotel's 2019 net operating income. This transaction is part of Park's strategy to de-lever its balance sheet, with 25 non-core hotel sales since 2017 generating over $1.2 billion. Additionally, Park has reopened three West Coast hotels, increasing its operational hotels to 52, and reported a rise in occupancy from 21% in January to nearly 33% in March.
Park Hotels & Resorts (NYSE: PK) announced that four of its properties have received the 2020 ENERGY STAR certification from the U.S. Environmental Protection Agency for exceptional energy performance. The certified hotels include Hilton Seattle Airport, Hilton Santa Barbara, DoubleTree Ontario Airport, and Le Meridien San Francisco. Only 26 hotels nationwide achieved this certification in 2020. Park's commitment to energy efficiency reflects its dedication to environmental sustainability and public health while enhancing the value of its real estate portfolio.
Park Hotels & Resorts Inc. (NYSE: PK) announced plans to report its financial results for Q1 2021 on May 6, 2021, post-market. A conference call to discuss the earnings, operational environment, and business outlook will occur on May 7, 2021, at 11:00 a.m. ET. Participants can join via telephone or webcast, with instructions provided. Park is recognized as the second-largest publicly traded lodging REIT, managing a diverse portfolio of 60 premium-branded hotels and resorts totaling over 33,000 rooms.
Park Hotels & Resorts reported significant declines in its 2020 financial performance due to COVID-19, with Q4 RevPAR at $27.48, an 84.5% drop from Q4 2019. Full-year net losses reached $(1,444) million, and adjusted EBITDA was $(194) million. The company has increased operational capacity, reopening 50 of 60 hotels, and secured $1.4 billion in liquidity, extending credit facilities and raising capital. A cautious outlook remains for 2021, with no specific guidance provided due to ongoing market uncertainties. The company plans to address cash flow challenges and expects to reopen more hotels as demand improves.
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