Park Hotels & Resorts Stock Price, News & Analysis

Park Hotels & Resorts reported Q3 2021 results, highlighting a Pro-forma RevPAR of $105.48, up 301.6% from 2020 but down 43.4% from 2019. The company posted a net loss of $(82) million and adjusted EBITDA of $77 million, improving 141% from Q2 2021. Notably, 38 of 45 consolidated hotels exceeded break-even levels, and total liquidity reached $1.8 billion. Park sold five hotels for about $477 million and reduced its debt significantly, maintaining a positive outlook despite challenges from the Delta variant.

Park Hotels & Resorts (NYSE: PK) announced it will report its third-quarter 2021 financial results after market close on November 3, 2021. A conference call to discuss earnings, operational updates, and business outlook will take place on November 4, 2021, at 11:00 a.m. ET. Participants can join via telephone or webcast, with recommended login 10 minutes prior to the call. Park is the second largest lodging REIT with 55 premium-branded hotels, offering over 32,000 rooms in prime locations.

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.