Park Hotels & Resorts completed the sale of eight non‑core hotels, generating $198 million in gross proceeds at an average multiple of 43×. The properties include the Hyatt Centric Fisherman’s Wharf, a joint‑venture interest in the Capital Hilton DC, and three hotels whose ground leases are set to expire by year‑end 2025, with three additional transactions expected to close in early 2026.
The proceeds are earmarked to reduce the company’s net debt, which stood at approximately $3.8 billion as of March 31 2025. By trimming the portfolio to 20 high‑quality core assets, Park aims to improve its leverage profile and free capital for high‑return renovations across its remaining properties. The sale also removes assets that contributed only 7% of adjusted EBITDA and a 2025 average RevPAR of $124, underscoring the strategic focus on higher‑performing hotels.
Park’s portfolio strategy has been to concentrate on premium‑branded hotels in domestic gateway markets. The divestitures are a key step in that plan, moving the company closer to a 20‑asset core that represents the majority of its value. Management has emphasized that the remaining assets deliver stronger RevPAR and EBITDA margins, which should translate into higher operating leverage and a more resilient earnings profile.
In Q3 2025, Park reported a net loss and missed EPS estimates, reflecting softer leisure and government transient demand and a 4.9% decline in comparable RevPAR. The company’s core hotels, however, posted a 3.2% increase in RevPAR, driven by robust performance in markets such as Hawaii, New York, Denver, and Orlando. The contrast between the sold properties and the core portfolio highlights the strategic rationale for the sale and the expected improvement in overall profitability.
Chairman and CEO Thomas J. Baltimore Jr. said the divestitures “strengthen our balance sheet and position us to invest in high‑return renovations that will enhance the value of our core portfolio.” He added that the company’s liquidity position remains strong, with $2.1 billion in liquidity and no pressing debt maturities as of October 31 2025.
The transaction is part of a broader portfolio transformation that has already seen the company sell or agree to sell several non‑core assets throughout 2025. While the sale does not immediately change the company’s earnings trajectory, it signals a disciplined approach to capital allocation and a focus on long‑term shareholder value.
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