TYSONS, Va., - Park Hotels & Resorts Inc. ('Park' or the 'Company') (NYSE:PK) today announced that it completed the previously announced sale of the Le Meridien San Francisco. The Company also provided an operational and liquidity update.
Recent Highlights
Closed on the sale of the 360-room Le Meridien San Francisco on August 31, 2021, for total proceeds of $221.5 million, or approximately $615,000 per key. When adjusted for Park's anticipated capital expenditures ('capex'), the sale price represents a 5.9% capitalization rate on 2019 net operating income (6.5% excluding capex), or 15.0x 2019 EBITDA (13.7x excluding capex). Proceeds from the sale were used to repay Park's sole remaining term loan, leaving just $78 million outstanding;
Pro-forma occupancy preliminarily estimated to be 49.9% in August 2021 for Park's 48 consolidated hotels, with a decrease in rate and RevPAR of 5.8% and 45.0%, respectively, when compared to the same period in 2019;
Pro-forma occupancy preliminarily estimated to be 56.4% for Park's 45 consolidated hotels open during the entirety of August, with a decrease in rate and RevPAR of just 3.8% and 35.6%, respectively, when compared to the same period in 2019;
Generated Pro-forma Hotel Revenues of $157 million and positive Pro-forma Hotel Adjusted EBITDA of $44 million in July 2021, with 36 of its 45 consolidated hotels that were open during July 2021 generating positive Pro-forma Hotel Adjusted EBITDA; and
Despite witnessing exceptionally strong results during the summer, the Company now anticipates fundamentals to be weaker than expected through at least October as the spread of the Delta variant has tempered group and business transient demand across its portfolio.
'I am pleased to announce that our previously disclosed sale of the Le Meridien San Francisco is completed. Proceeds from the sale have been used to reduce debt and further strengthen our balance sheet. With nearly $1.8 billion in liquidity, Park is well positioned to pursue internal and external growth strategies as we enter the post COVID cycle,' said Thomas J. Baltimore, Jr., Chairman and CEO of Park. 'On the operations side, I am very pleased with the positive momentum in demand that we saw in July and August in several of our markets. Our portfolio witnessed very strong growth in occupancy and ADR in July, and demand trends continued into August, with two of our hotels surpassing August 2019 occupancy rates and 17 of our hotels surpassing August 2019 average daily rates. As expected, demand trends moderated somewhat in August based on seasonal declines in leisure travel as well as some disruption from the Delta variant. As case counts remain elevated, and some office reopenings are delayed, we expect business demand to remain choppy in the near term; however, we remain confident in the overall trajectory of the recovery, particularly as we look to strong fundamentals for 2022.'
Operational Update
Pro-forma Occupancy, ADR and RevPAR for certain periods in 2021 and changes compared to the same periods in 2019 for Park's 48 consolidated hotels were as follows:
See full release at: https://www.pkhotelsandresorts.com/investors/news-and-events/press-releases/2021/09-07-2021-110053213
PARK HOTELS & RESORTS INC. 
