Park Hotels & Resorts Provides Business Update
June 08 2021 - 06:00AM
GlobeNewswire Inc.
Park Hotels & Resorts Inc. (“Park” or the “Company”) (NYSE: PK) today provided an operational and liquidity update.
Highlights:
Increased the number of open hotels to 55 of 59 hotels (93%), or 86% of total room count;
40.7% occupancy in May 2021 for Park’s 52 consolidated hotels (an increase of 3.7 percentage points from April 2021), with a decrease in rate of 20.1% compared to May 2019;
53.8% occupancy for Park’s 45 consolidated hotels open during the entirety of May (an increase of 4.4 percentage points from April 2021) with a decrease in rate of 14.6% compared to May 2019;
Generated Pro-forma Hotel Revenues of $82.8 million and positive Pro-forma Hotel Adjusted EBITDA of $3.5 million in April 2021, with 24 of its 45 consolidated hotels that were open during April 2021 generating positive Pro-forma Hotel Adjusted EBITDA; and
Decreased Park’s monthly burn rate to $23 million in April 2021 and expected to remain on track to break-even at the corporate level in the third quarter of 2021.
Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, “I continue to be extremely encouraged by our portfolio’s performance over the past several months. Leisure demand trends continue to accelerate at a faster pace than we had initially anticipated, with impressive pricing power seen in most of our resort assets, while early indications of group booking activity and business transient travel should translate to a broader based recovery across all demand segments over the back half of 2021 and well into 2022. We remain laser-focused on executing on our near-term strategic priorities, including continuing to reopen our hotels, reducing our burn rate and further de-levering our balance sheet through asset sales, as we enter what we expect to be a promising period of demand recovery over the coming months.”
Hotel Reopening Update
Park has reopened three additional hotels since early May due to improving demand trends in the respective markets, and the Company expects to open one additional hotel this week. Details are as follows:
The 403-room W Chicago - City Center and the 1,921-room Hilton San Francisco Union Square both reopened in May;
The 128-room Hilton Garden Inn Chicago/Oakbrook Terrace reopened in early June;
The 1,544-room Hilton Chicago is expected to reopen later this week, which will increase the total open hotels to 56 out of 59 hotels accounting for nearly 90% of the Company’s total room count; and
The remaining three suspended hotels in Park’s portfolio are currently expected to reopen over the next several months as travel restrictions ease and demand recovers.
