Park Hotels & Resorts Announces the Sale of Additional Non-Core Hotels and Provides Update on Non-Core Hotel Disposition Activity and Recent Operating Trends
Park Hotels & Resorts Inc. ("Park" or the "Company") (NYSE:PK) today provided an update on its non-core disposition activity and fourth quarter operating trends.
Non-Core Asset Disposition Update:
- Year-to-date, the Company has sold or entered into agreements or letters of intent to sell five Non-Core hotels for anticipated gross proceeds of approximately $198 million at an average multiple of nearly 43x. Closed transactions include the sale of the 316-room Hyatt Centric Fisherman's Wharf in May 2025 and the sale of an unconsolidated joint venture interest in the 559-room Capital Hilton DC in November 2025. The three remaining transactions are expected to close by early 2026;
- In addition, by year-end, Park will have exited another three Non-Core hotels that were on expiring ground leases, including the 266-room Embassy Suites Kansas City Plaza, the 850-room DoubleTree Hotel Seattle Airport, and the 245-room DoubleTree Hotel Sonoma Wine Country. Collectively, the hotels generated minimal EBITDA in 2025;
- Estimated 2025 average RevPAR and Adjusted Hotel EBITDA margin for these eight hotels is just $124 and 7%, respectively; and
- Park expects to dispose of the remaining marketable Non-Core hotels over the next 12 months - completing its portfolio transformation.
Operational Highlights:
- Park reaffirms its full-year 2025 outlook with October and preliminary November Comparable RevPAR results largely in line with expectations, despite a slightly higher than expected impact from the government shutdown, due to the FAA's temporary reduction in air traffic for a portion of November;
- Preliminary November Comparable RevPAR increased approximately 2%, excluding the Royal Palm South Beach Miami hotel, which suspended operations in mid-May 2025 for a comprehensive renovation, driven by strong results in Hawaii, New York, Denver and Orlando—up approximately 19%, 10%, 8% and 6%, respectively;
- Excluding the Royal Palm South Beach Miami hotel, the remainder of our Core hotels saw exceptionally strong results in October and November with RevPAR growth of 3.8% and 5.5%, respectively; and
- Park's Hilton Hawaiian Village Waikiki Beach Resort hotel in Honolulu continues to benefit from lapping the 2024 strike activity with October and November RevPAR increasing 20% and 26%, respectively, over the prior year period, contributing approximately 300 bps to the portfolio's Comparable RevPAR growth each of the two months.
"I am very pleased with the meaningful progress we have made in executing our strategic priority to reshape the portfolio by divesting underperforming Non-Core hotels and further enhancing overall portfolio quality and long-term growth profile. Although the transaction market remains episodic, in 2025 we successfully exited, or have executed agreements or letters of intent to sell, eight of our Non-Core hotels for anticipated gross proceeds of approximately $198 million at an average multiple of nearly 43x. We expect to accelerate our Non-Core disposition strategy over the next 12 months, and once complete, Park will own one of the highest quality hotel portfolios in the sector, with expected Comparable RevPAR of $218 and a presence in some of the strongest lodging markets in the US, including Hawaii, Orlando, New York, New Orleans, Boston, Key West, Miami and Santa Barbara," said Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to Park's current expectations regarding the performance of its business, financial results, liquidity and capital resources, including the use of proceeds from Park's new 2025 Delayed Draw Term Loan and the anticipated repayment of certain of Park's indebtedness, the completion of capital allocation priorities, the expected repurchase of Park's stock, the impact from macroeconomic factors (including elevated inflation and interest rates, potential economic slowdown or a recession and geopolitical conflicts or trends, including trade policy, travel barriers or changes in travel preferences for U.S. destinations, including as a result of government shutdowns), the effects of competition and the effects of future legislation, executive action or regulations, tariffs, the expected completion of anticipated dispositions, the declaration, payment and any change in amounts of future dividends and other non-historical statements. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as the words "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates," "hopes" or the negative version of these words or other comparable words. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Park's control and which could materially affect its results of operations, financial condition, cash flows, performance or future achievements or events.
All such forward-looking statements are based on current expectations of management and therefore involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements and Park urges investors to carefully review the disclosures Park makes concerning risk and uncertainties in Item 1A: "Risk Factors" in Park's Annual Report on Form 10-K for the year ended December 31, 2024, as such factors may be updated from time to time in Park's filings with the Securities and Exchange Commission ("SEC"), which are accessible on the SEC's website at www.sec.gov. Except as required by law, Park undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
About Park Hotels & Resorts
Park is one of the largest publicly-traded lodging REITs with a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. Park's portfolio currently consists of 37 premium-branded hotels and resorts with approximately 24,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information.
PARK HOTELS & RESORTS INC.
DEFINITIONS
Comparable
The Company presents certain data for its consolidated hotels on a Comparable basis as supplemental information for investors: Comparable Hotel Revenues, Comparable RevPAR, Comparable Occupancy, Comparable ADR, Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin. The Company presents Comparable hotel results to help the Company and its investors evaluate the ongoing operating performance of its hotels. The Company's Comparable metrics include results from hotels that were active and operating in Park's portfolio since January 1st of the previous year and property acquisitions as though such acquisitions occurred on the earliest period presented. Additionally, Comparable metrics exclude results from property dispositions that have occurred through December 4, 2024.
Revenue per Available Room
Revenue per Available Room ("RevPAR") represents rooms revenue divided by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of the Company's performance as it provides a metric correlated to two primary and key factors of operations at a hotel or group of hotels: Occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods.
Core/Non-Core
The Company's Core portfolio includes 20 of Park's consolidated hotels and 1 of Park's unconsolidated joint ventures; however, metrics presented for its Core hotels are based on Park's 20 consolidated Core Hotels only. The remaining 15 consolidated hotels and 1 unconsolidated joint venture represent Park's Non-Core hotels.
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For more information, contact:
Ian Weissman
Senior Vice President, Corporate Strategy
571-302-5591
iweissman@pkhotelsandresorts.com