Jump to content

Park Hotels & Resorts

From Wikipedia, the free encyclopedia
Park Hotels & Resorts Inc.
Company typePublic company
NYSE: PK
S&P 400 Component
Russell 1000 Component
IndustryReal estate / Hotels
FoundedJanuary 4, 2017; 7 years ago (2017-01-04)
HeadquartersTysons, Virginia
Key people
Thomas J. Baltimore, Jr. (Chairman & CEO)
Revenue$1.4 billion (2021)
−$452 million (2021)
Total assets$9.7 billion (2021)
Total equity$4.4 billion (2021)
Number of employees
488 (2019)
Websitepkhotelsandresorts.com
Footnotes / references
[1]

Park Hotels & Resorts is a real estate investment trust (REIT) focused on hotel properties, based in Tysons, Virginia. It was formed in 2017 as a spin-off from Hilton Worldwide.

History

[edit]

Hilton Worldwide CEO Christopher Nassetta stated in June 2015 that the company was evaluating a corporate spin-off of a REIT to hold its $13-billion real estate portfolio.[2] The plan was part of Nassetta's strategy of moving Hilton to an "asset-light" business model, to enable rapid international growth.[3][4][5] It was also meant to take advantage of the lack of corporate income taxes on REITs.[6] Hilton announced definitive plans in February 2016 to spin off a REIT (Park Hotels & Resorts) and its timeshare business (Hilton Grand Vacations) as separate companies.[7][8] The spin-offs were completed on January 4, 2017.[9][10] Park Hotels became the second-largest publicly traded hotel REIT, with holdings of 67 hotels.[8][10]

In 2018, Park Hotels sold 13 hotels that it considered "non-core" assets, including 10 of its 14 international properties, for a total of $519 million.[11][12][13]

HNA Group, which had owned 25 percent of the company, sold all its shares in March 2018 in a stock buyback and a secondary offering for a total of $1.4 billion.[14][15][16]

In 2019, Park acquired Chesapeake Lodging Trust for $1 billion in cash plus $978 million in stock.[17] The purchase added eighteen hotels to Park's portfolio, and diversified it by adding hotel brands franchised from Marriott, Hyatt, and others.[17][18]

The company sold another 10 hotels in 2019 and 2020, including its last remaining properties outside of the United States, for total proceeds of $688 million.[19] Another 5 hotels were sold in 2021 for proceeds of $477 million, producing a net loss of $5 million on these properties.[1] Four more properties were sold in 2022 for a total of $260 million, as part of the company's long-term deleveraging plan.[20]

In June 2023, the company surrendered two of its San Francisco properties, the Hilton San Francisco Union Square and the nearby Parc 55 San Francisco, to its lender JPMorgan Chase. In a press release, the company stated that "we believe San Francisco's path to recovery remains clouded and elongated by major challenges" and cited the city's "record high office vacancy; concerns over street conditions; lower return to office than peer cities; and a weaker than expected citywide convention calendar through 2027 that will negatively impact business and leisure demand and will likely significantly reduce compression in the city for the foreseeable future. Unfortunately, the continued burden on our operating results and balance sheet is too significant to warrant continuing to subsidize and own these assets."[21] The two hotels were valued together at over $1.5 billion when the $725 million loan from JPMorgan Chase was issued to the company in 2016, leading the Financial Times to suggest that the company believed the value of both properties had more than halved by the time of the buildings' surrender.[22]

Properties

[edit]

Park Hotels & Resorts has whole or partial ownership of 50 hotels, containing 30,000 rooms.[20] The bulk of the hotels operate under brands licensed from Hilton Worldwide, including Hilton, DoubleTree, and Embassy Suites.[23] Park Hotels manages four of the properties itself; the remainder are managed by other companies, most of them by Hilton Worldwide.[24]

Notable hotels owned by the company include:[25][23]

Former properties

[edit]

References

[edit]
  1. ^ a b Form 10-K: 2021 Annual Report (Report). Park Hotels & Resorts. February 18, 2022. p. 4.
  2. ^ Reem Nasr (June 1, 2015). "Hilton Worldwide CEO: Looking at possible REIT". CNBC. Retrieved 2018-06-07.
  3. ^ Thomas Heath (July 6, 2014). "Christopher Nassetta: The man who turned around Hilton". Washington Post. Retrieved 2018-06-07.
  4. ^ Arash Massoudi; James Fontanella-Khan; Anna Nicolaou (December 16, 2015). "Hilton aims to inject hotel portfolio into REIT". Financial Times. Retrieved 2018-06-07.
  5. ^ Rebecca Cooper (February 26, 2016). "More details on the Hilton REIT and timeshare spinoffs". Washington Business Journal. Retrieved 2018-06-07.
  6. ^ Lisa Beilfuss (February 28, 2016). "Hilton to spin off hotels into REIT, separate timeshare business". Wall Street Journal. Retrieved 2018-06-07. (subscription required)
  7. ^ Ankit Ajmera (February 26, 2016). "Hilton to spin off real estate, timeshare businesses". Reuters. Retrieved 2018-06-07.
  8. ^ a b Dalia Fahmy (June 2, 2016). "Hilton property spinoff to create Park Hotels & Resorts REIT". Bloomberg. Retrieved 2018-06-07.
  9. ^ "Hilton completes spin-off of Park Hotels & Resorts and Hilton Grand Vacations" (Press release). Hilton Worldwide. January 4, 2017 – via EDGAR.
  10. ^ a b Abha Bhattarai (January 6, 2017). "Hilton completes split into three independent companies". Washington Post. Retrieved 2018-06-07.
  11. ^ Form 10-Q: Quarterly Report (Report). Park Hotels & Resorts. May 4, 2018. p. 7 – via EDGAR.
  12. ^ "Park Hotels & Resorts Inc. announces the sale of the Hilton Berlin and declaration of special dividend" (Press release). Park Hotels & Resorts. May 18, 2018. Retrieved 2018-06-07 – via Business Wire.
  13. ^ Victcoria Rosenthal (May 21, 2018). "Park Hotels & Resorts sells Hilton Berlin". Hotel Management. Retrieved 2018-06-07.
  14. ^ Julie Steinberg; Anjani Trivedi (March 1, 2018). "China's HNA Group to sell stake in Hilton spinoff Park Hotels & Resorts". Wall Street Journal. Retrieved 2018-06-07. (subscription required)
  15. ^ Miriam Gottfried (March 13, 2018). "China's sovereign fund sells out of pre-crisis Blackstone investment". Wall Street Journal. Retrieved 2018-06-07. (subscription required)
  16. ^ "Park Hotels & Resorts Inc. announces HNA secondary offering/repurchase completion, updated 2018 earnings guidance and new corporate headquarters" (Press release). Park Hotels & Resorts. March 12, 2018 – via Nasdaq.com.
  17. ^ a b Form 10-Q: Quarterly Report (Report). Park Hotels & Resorts. November 7, 2019. p. 8 – via EDGAR.
  18. ^ "Absorbing Chesapeake gives Park a path for 2020 growth". Hotel News Now. November 8, 2019. Retrieved 2020-01-18.
  19. ^ Form 10-K: Annual Report (Report). Park Hotels & Resorts. February 27, 2020. pp. 78 & 93 – via EDGAR.
  20. ^ a b c "Park Hotels & Resorts Inc. completes the sales of the Homewood Suites by Hilton Seattle Convention Center and its 25% joint venture interest in the Hilton San Diego Bayfront" (Press release). Park Hotels & Resorts. June 23, 2022. Retrieved 2022-07-10 – via GlobeNewswire.
  21. ^ a b c "Park Hotels & Resorts Inc. Announces Cessation of Payment on $725 Million Non-Recourse CMBS Loan Secured By Two of Its San Francisco Hotels". www.pkhotelsandresorts.com. Retrieved 2023-09-20.
  22. ^ Kinder, Tabby (2023-06-17). "Defaults raise alarm over stability of San Francisco's commercial property". Financial Times. Retrieved 2023-09-20.
  23. ^ a b Form 10-K: Annual Report (Report). Park Hotels & Resorts. February 27, 2020. pp. 35–36 – via EDGAR.
  24. ^ Form 10-K: Annual Report (Report). Park Hotels & Resorts. February 27, 2020. pp. 3 & 6 – via EDGAR.
  25. ^ "Portfolio". Park Hotels & Resorts. Retrieved 2020-03-14.
  26. ^ Dorothy Crouch (December 26, 2019). "Park Hotels & Resorts completes sale of Ace Hotel Downtown Los Angeles". Apparel News. Retrieved 2020-01-18.
  27. ^ Rebecca Cooper (February 21, 2020). "Park Hotels sells Embassy Suites in West End". Washington Business Journal. Retrieved 2020-03-14.
  28. ^ "Park Hotels & Resorts Inc. announces the sale of the Le Meridien New Orleans" (Press release). Park Hotels & Resorts. December 23, 2019. Retrieved 2020-01-18.
  29. ^ Anthony McAuley (January 8, 2020). "Le Meridien New Orleans sold by Park Resorts for $84M to consortium". The Times-Picayune. Retrieved 2020-01-18.
  30. ^ Alex Barreira (September 13, 2021). "Buyers of two large San Francisco hotels identified". San Francisco Business Times. Retrieved 2021-09-26.
[edit]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Park_Hotels_%26_Resorts&oldid=1239189081"