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. reports recurring developments for a publicly traded lodging REIT with premium-branded hotels and resorts in prime city center and resort locations. Company updates commonly cover quarterly and annual results, RevPAR performance, group and corporate demand, Hotel Adjusted EBITDA, and the operating impact of renovations at properties such as Royal Palm South Beach Miami and Hilton Hawaiian Village Waikiki Beach Resort.
Park news also includes non-core hotel disposition activity, capital improvement projects within its core portfolio, dividend tax treatment for common stock distributions, earnings conference calls, corporate responsibility reporting, and governance or leadership updates. Completed asset sales and receivership-related hotel transitions are framed through their effects on the lodging portfolio, balance sheet, and financial statements.
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.
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.