Dive Brief:
- Park Hotels & Resorts has sold, or entered into agreements or letters of intent to sell, five non-core hotels, amounting to anticipated gross proceeds of about $198 million, according to a Tuesday release.
- Closed 2025 transactions include the May sale of the 316-room Hyatt Centric Fisherman’s Wharf in San Francisco, as well as the sale of an unconsolidated joint venture interest in the 559-room Capital Hilton DC in November. The three remaining transactions are expected to close by early 2026, per the release.
- Additionally, by the end of this year, Park will also have exited three non-core hotels on expiring ground leases. Those include the 266-key Embassy Suites Kansas City Plaza in Missouri, the 850-key DoubleTree Hotel Seattle Airport in Washington and the 245-key DoubleTree Hotel Sonoma Wine Country in California. Collectively, the hotels generated minimal EBITDA in 2025, Park said in the release.
Dive Insight:
For the eight hotels, estimated 2025 average RevPAR and adjusted hotel EBITDA margin are $124 and 7%, respectively.
Park added that it plans to complete its portfolio transformation by disposing of its remaining marketable non-core hotels over the next 12 months.
“I am very pleased with the meaningful progress we have made in executing our strategic priority to reshape the portfolio by divesting underperforming Non-Core hotels and further enhancing overall portfolio quality and long-term growth profile,” Park CEO Thomas Baltimore Jr. said in the release.
He added that despite an episodic transaction market, the company was able to successfully execute its 2025 non-core hotels exit strategy, and that disposition would accelerate in 2026. When it’s done, “Park will own one of the highest quality hotel portfolios in the sector, with expected Comparable RevPAR of $218 and a presence in some of the strongest lodging markets in the US, including Hawaii, Orlando, New York, New Orleans, Boston, Key West, Miami and Santa Barbara,” Baltimore said.
The company also reaffirmed its full-year 2025 outlook and said that October and preliminary November comparable RevPAR results were “largely in line with expectations, despite a slightly higher than expected impact from the government shutdown, due to the FAA’s temporary reduction in air traffic for a portion of November.”
In November, Newbond Holdings and Conversant Capital acquired San Francisco’s Parc 55 and Hilton Union Square, both previously owned by Park, for a combined $408 million. The hotels had lapsed into foreclosure after Park ceased loan payments in 2023. By 2024, the hotel complex saw its value drop by $1 billion.
Park’s current portfolio consists of 37 premium-branded hotels and resorts with approximately 24,000 rooms located in U.S. markets including Orlando, Key West and Miami in Florida; Hawaii; and New York.
