Hotel-focused real estate investment trust Park Hotels & Resorts continues its planned sell down of non-core assets by offloading two hotels so far this year with plans to sell off 12 more.
The company has sold the 396-room Hilton Seattle Airport & Conference Center and the 193-room Hilton Checkers Los Angeles for a combined $31 million, and saving an estimated $36 million in expected capital expenditures.
"We remain disciplined in our approach to prioritize transactions that improve our portfolio's growth profile and maximize shareholder returns," Chairman and CEO Tom Baltimore Jr. said. "While the transactions market remains challenging, our track record speaks for itself."
Of the 12 assets Park officials still plan to sell, nine are currently being marketed while three are subject to ongoing litigation with Safehold Inc., which holds the ground leases of the three properties. Baltimore said he believes that will resolve by some point in 2027.
He said the remaining hotels left to sell are among the more complicated in the portfolio.
"Some have short-term ground leases. Some are joint venture. Some have various challenges. I would say, obviously, the last mile is always the most difficult," he said, noting the company has already sold 52 properties for more than $3 billion. "I would hope the market would give us credit for the perseverance, the discipline and our ability to reshape the portfolio."
At the same time, the company has announced that the repositioning and renovation work at the Royal Palm South Beach Miami, a Tribute Portfolio Resort is slated to complete in June, with the next wave of renovations including $96 million of work at the Hilton Hawaiian Village Waikiki Beach Resort's Ali'i Tower, which is slated to start in the third quarter.
In the first quarter of 2026, the company spent $83 million on capital improvements for the 20 hotels Park executives have deemed to be core.
Baltimore noted the planned reopening of the Royal Palm is likely to be a boon for his company.
"Miami continues to be one of the strongest hotel markets in the country, and we remain highly confident in the long-term outlook for this asset," he said. "We're already seeing strong group demand."
The company also announced a new $700 million mortgage on its Bonnet Creek complex, which includes the 1,009-room Signia by Hilton Orlando Bonnet Creek, the 502-room Waldorf Astoria Orlando and the adjacent golf course. The proceeds from that loan will be used "to address upcoming debt maturities, while also extending Park's overall maturity profile," according to the company's most recent earnings release.
Quarterly performance
Park executives said first quarter metrics came in better than expected, with comparable revenue per available room up 2.2% year over year to $191.05. That growth figure jumps up to 5.5% when you remove the impact of the Royal Palm, which closed in May 2025.
Total revenue for the quarter came in at $622 million, while net income for the quarter was $12 million. The company realized adjusted earnings before interest, taxes, depreciation and amortization of $143 million in the first quarter.
As of press time, Park's stock was trading at $11.35 a share, up 8.51% year to date. The NYSE Composite Index was up 4.85% for the same period.