Park Hotels & Resorts Inc. Reports Third Quarter 2020 Results
TYSONS, Va. - Park Hotels & Resorts Inc. ("Park" or the "Company") (NYSE: PK) today announced results for the third quarter ended September 30, 2020 and an operational update on COVID-19.
Third-quarter financial highlights include:
- Pro-forma RevPAR was $26.14, a decrease of 86.1% from the same period in 2019, which was an improvement from a 95.9% year-over-year decline reported last quarter;
- Occupancy for Park's 33 consolidated hotels open during the entirety of the third quarter was 36.4%;
- Net loss and net loss attributable to stockholders were both $(276) million;
- Adjusted EBITDA was $(89) million;
- Adjusted FFO attributable to stockholders was $(149) million;
- Diluted loss per share was $(1.17); and
- Diluted Adjusted FFO per share was $(0.63).
Additional highlights include:
- Reopened 16 hotels since June, increasing the total number of hotels open to 48 of 60 hotels (80%), or 64% of total room count;
- Issued $725 million of senior secured notes due 2028 ("2028 Senior Secured Notes") and utilized the net proceeds to fully repay its $631 million term loan due December 2021 (the "2016 Term Loan") and $80 million of its revolving credit facility ("Revolver");
- Increased commitments under the Revolver by $75 million to $1.075 billion and extended the maturity date for $901 million of the aggregate commitments under the Revolver from December 2021 to December 2023, including all $75 million of the increased Revolver commitments;
- Amended its bank credit facilities to obtain additional financial covenant relief and increase its carve out for acquisitions funded with equity proceeds from $500 million to $1 billion, among other amended provisions;
- Continued to take proactive measures to preserve cash and improved Park's baseline burn rate to approximately $50 million per month; and
- Amended certain mortgage loan agreements to defer interest and principal payments for three to six months and obtained temporary suspensions from required cash reserves.
Thomas J. Baltimore, Jr., Chairman, President and Chief Executive Officer, stated, "I am extremely proud of the continued proactive efforts by our team as we navigate the severe impact that COVID-19 has had on all facets of our business. During the third quarter, we made significant improvements to our liquidity and balance sheet by reducing our monthly burn rate, completing another successful senior notes offering to pay off our 2016 Term Loan and extending our Revolver, pushing out significant debt maturities until 2023. On the operations front, we continue to make significant progress reopening hotels, and witnessed a steady increase in demand across our portfolio during the third quarter as September occupancy topped 42% for our opened hotels. Although our industry continues to face unprecedented challenges from COVID-19, I am confident that our efforts have positioned Park to get to the other side of this crisis with opportunities to create value for our stockholders."
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About Park Hotels & Resorts Inc.
Park Hotels & Resorts Inc. (NYSE: PK) is the second largest publicly traded lodging real estate investment trust with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park's portfolio currently consists of 60 premium-branded hotels and resorts with over 33,000 rooms located in prime U.S. markets with high barriers to entry. For additional information, please visit Park's website at www.pkhotelsandresorts.com.