Company type | Public company |
---|---|
NYSE: PK S&P 400 Component Russell 1000 Component | |
Industry | Real estate / Hotels |
Founded | January 4, 2017 |
Headquarters | Tysons, 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) |
Website | pkhotelsandresorts |
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.
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, Hilton San Francisco Union Square and 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]
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]
Hilton Worldwide Holdings Inc. is an American multinational hospitality company that manages and franchises a broad portfolio of hotels and resorts. Founded by Conrad Hilton in May 1919, the company is now led by Christopher J. Nassetta. Hilton is headquartered in Tysons, Virginia, United States.
Hilton Hotels & Resorts is a global brand of full-service hotels and resorts and the flagship brand of American multinational hospitality company Hilton.
MGM Resorts International is an American global hospitality and entertainment company operating destination resorts in Las Vegas, Massachusetts, Michigan, Mississippi, Maryland, Ohio, and New Jersey, including Bellagio, Mandalay Bay, MGM Grand, and Park MGM.
The Disney Vacation Club (DVC) is a vacation timeshare program owned and operated by Disney Vacation Development, Inc., a subsidiary of Disney Signature Experiences, a division of Disney Experiences, a segment of The Walt Disney Company. It allows buying a real estate interest in a DVC resort via a flexible points-based membership system. There are an estimated 220,000 club members.
Penn Entertainment, Inc., formerly Penn National Gaming, is an American entertainment company and operator of integrated entertainment, sports content, and casino gambling. It operates 43 properties in 20 states, under brands including Hollywood Casino, Ameristar, and Boomtown. It also offers sports betting in 15 jurisdictions and online casino gaming in 5, under brands such as ESPN BET and theScore.
Wyndham Hotels & Resorts, Inc. is an American hotel company based in Parsippany, New Jersey, United States. It describes itself as the largest hotel franchisor in the world, with 9,280 locations. It has a portfolio of 20 hotel brands, including Baymont, Days Inn, Howard Johnson, La Quinta, Ramada, Super 8, Travelodge, and Wyndham.
Wyndham International, previously Patriot American Hospitality, was an American hotel company based in Dallas, Texas.
Marriott Hotels & Resorts is Marriott International's brand of full-service hotels and resorts based in Bethesda, Maryland. As of June 30, 2020, there were 582 hotels and resorts with 205,053 rooms operating under the brand, in addition to 160 hotels with 47,765 rooms planned for development.
Le Méridien is an American upscale, design-focused international hotel brand with a European perspective. It was originally founded by Air France in 1972 and was later based in the United Kingdom. Marriott International now owns the chain. As of June 2021, it had a portfolio of 109 open hotels with 29,439 rooms and a pipeline of 37 hotels with 9,585 upcoming rooms.
Loews Hotels is an American luxury hospitality company that owns or operates 26 hotels in the United States and Canada. Loews' hotels and resorts are located in major North American city centers and resort destinations.
Travel + Leisure Co. is an American timeshare company headquartered in Orlando, Florida. It develops, sells, and manages timeshare properties under several vacation ownership clubs, including Club Wyndham and WorldMark by Wyndham, and provides timeshare exchange services, primarily through RCI.
Hilton Grand Vacations Inc. is a multi-national company that is based in Orlando, Florida, United States. It is Hilton's timeshare and vacation ownership brand that was formerly a wholly owned subsidiary of Hilton Worldwide until it was spun off into a publicly traded company in 2017. Though HGV is technically an independent company, Hilton Worldwide still retains full ownership of the "Hilton Grand Vacations" brand name itself, and HGV is still one of Hilton's 22 brands that is included in the Hilton portfolio of hotels and resorts. As of January 2024, HGV has over 700,000 club members and 186 properties across its brands and its subsidiaries. 77 of HGV's resorts are branded with the Hilton name, while the remaining resorts are branded as one of the company's subsidiary resort brands.
Le Méridien New Orleans is a 23-story high-rise building in the Central Business District of New Orleans, Louisiana. The building rises 279 feet, and is currently tied with Charity Hospital as the 29th-tallest building in the city. It also stands as the 8th-tallest hotel in New Orleans.
The Hyatt Regency San Francisco Downtown SOMA is a 36-story highrise hotel at 50 Third Street in San Francisco, California.
Omni Hotels & Resorts is an American privately held, international luxury hotel company based in Dallas, Texas. The company was founded in 1958 as Dunfey Hotels, and operates 50 properties in the United States, Canada, and formerly had a property in Mexico, totaling over 20,010 rooms and employing more than 23,000 people.
Le Méridien San Francisco is a luxury 360-room hotel in the financial district of San Francisco, California, United States. The property was formerly the Park Hyatt San Francisco.
CNL Financial Group (CNL), formerly Commercial Net Lease, is an Orlando, Florida based private investment management and commercial real estate company. It was started in 1973 by James Seneff. The company has been a major player in efforts to redevelop Orlando's downtown. The original CNA tower was downtown Orlando's first modern skyscraper when it was completed in 1971. A new CNL Tower was constructed on the east side of Orange Avenue.
Gaming and Leisure Properties, Inc. is a real estate investment trust (REIT) specializing in casino properties, based in Wyomissing, Pennsylvania. It was formed in November 2013 as a corporate spin-off from Penn National Gaming. The company owns 57 casino properties, all of which are leased to other companies.
EPR Properties, formerly Entertainment Properties Trust, is a real estate investment trust based in Kansas City, Missouri, that invests in amusement parks, movie theaters, ski resorts, and other entertainment properties. It owns 353 properties as of 2022.
Vici Properties Inc. is a real estate investment trust (REIT) specializing in casino and entertainment properties, based in New York City. It was formed in 2017 as a spin-off from Caesars Entertainment Corporation as part of its bankruptcy reorganization. It owns 54 casinos, hotels, and racetracks, 4 golf courses, and 38 bowling alleys around the United States and Canada.