Three more deals coming beyond five already in progress;
Park also reaffirms full-year guidance.
TYSONS, Virginia – Park Hotels & Resorts has updated its
non-core disposition activity, which it said will included exiting another
three properties 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.
Year-to-date, Park said it 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.
Estimated 2025 average RevPAR and Adjusted Hotel EBITDA
margin for these eight hotels is just $124 and 7%, respectively. Park added that it expects to dispose of the
remaining marketable non-Core hotels over the next 12 months - completing its
portfolio transformation.
Operational highlights
Park also reaffirmed 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 and the resulting FAA 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. The
increase was driven by strong results in Hawaii, New York, Denver and
Orlando—up approximately 19%, 10%, 8% and 6%, respectively.
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 U.S.
Thomas Baltimore, Jr.
Excluding the Royal Palm South Beach Miami hotel, the
remainder of Park’s core hotels saw 3.8% RevPAR growth in October and 5.5% growth
in November.
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,” said Park Chairman and CEO Thomas Baltimore, Jr.
He went on to say Park expects to accelerate its non-core
disposition strategy over the next 12 months. “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 U.S.,
including Hawaii, Orlando, New York, New Orleans, Boston, Key West, Miami and
Santa Barbara,” Baltimore said.