Park Hotels & Resorts

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.

Park Hotels & Resorts Inc.
Public company
Traded asNASDAQ: PK
S&P 400 Component
Russell 1000 Component
ISINUS7005171050 
IndustryReal estate / Hotels
FoundedJanuary 4, 2017 (2017-01-04)
HeadquartersTysons, Virginia
Key people
Thomas J. Baltimore, Jr. (Chairman & CEO)
Revenue$2.8 billion (2019)
$316 million (2019)
Total assets$11.3 billion (2019)
Total equity$6.5 billion (2019)
Number of employees
488 (2019)
Websitepkhotelsandresorts.com
Footnotes / references
[1]

History

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]

Properties

Park Hotels & Resorts has whole or partial ownership of 60 hotels.[20][21] The bulk of the hotels operate under brands licensed from Hilton Worldwide, including Hilton, DoubleTree, and Embassy Suites.[21] Park Hotels manages four of the properties itself; the remainder are managed by other companies, most of them by Hilton Worldwide.[22]

Notable hotels owned by the company include:[20][21]

Former properties

References
  1. Form 10-K: Annual Report (Report). Park Hotels & Resorts. February 27, 2020. pp. 11 & 66–67 – via EDGAR.
  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. 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. 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. 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. "Portfolio". Park Hotels & Resorts. Retrieved 2020-03-14.
  21. Form 10-K: Annual Report (Report). Park Hotels & Resorts. February 27, 2020. pp. 35–36 – via EDGAR.
  22. Form 10-K: Annual Report (Report). Park Hotels & Resorts. February 27, 2020. pp. 3 & 6 – via EDGAR.
  23. Dorothy Crouch (December 26, 2019). "Park Hotels & Resorts completes sale of Ace Hotel Downtown Los Angeles". Apparel News. Retrieved 2020-01-18.
  24. Rebecca Cooper (February 21, 2020). "Park Hotels sells Embassy Suites in West End". Washington Business Journal. Retrieved 2020-03-14.
  25. "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.
  26. Anthony McAuley (January 8, 2020). "Le Meridien New Orleans sold by Park Resorts for $84M to consortium". The Times-Picayune. Retrieved 2020-01-18.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.