Park Hotels & Resorts said it would sell another three non-core hotels that were on expiring ground leases, including the 266-room Embassy Suites Kansas City Plaza, the 850-room DoubleTree Hotel Seattle Airport, and the 245-room DoubleTree Hotel Sonoma Wine Country. The company provided this in an updated about its fourth quarter operating trends. Collectively, the hotels generated minimal EBITDA in 2025, according to the company..
Year-to-date, the company has sold or entered into agreements or letters of intent to sell five non-core hotels for anticipated gross proceeds of approximately $198 million at an average multiple of nearly 43x. Closed transactions include the sale of the 316-room Hyatt Centric Fisherman’s Wharf last May and the sale of an unconsolidated joint venture interest in the 559-room Capital Hilton D.C. last month. The three remaining transactions are expected to close by early 2026.
Estimated 2025 average RevPAR and adjusted hotel EBITDA margin for these eight hotels is just $124 and 7 percent, respectively. Park expects to dispose of the remaining marketable non-core hotels over the next 12 months - completing its portfolio transformation.
Operational Highlights:
- Park reaffirms its full-year 2025 outlook with October and preliminary November comparable RevPAR results 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.
- Preliminary November comparable RevPAR increased approximately 2 percent, excluding the Royal Palm South Beach Miami hotel, which suspended operations in mid-May 2025 for a comprehensive renovation, driven by strong results in Hawaii, New York, Denver and Orlando — up approximately 19 percent, 10 percent, 8 percent and 6 percent, respectively.
- Excluding the Royal Palm South Beach Miami hotel, the remainder of the core hotels saw strong results in October and November with RevPAR growth of 3.8 percent and 5.5 percent, respectively.
- Park’s Hilton Hawaiian Village Waikiki Beach Resort hotel in Honolulu continues to benefit from lapping the 2024 strike activity with October and November RevPAR increasing 20 percent and 26 percent, respectively, over the prior year period, contributing approximately 300 bps to the portfolio’s comparable RevPAR growth each of the two 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," Chairman and CEO Thomas Baltimore, Jr. said in a statement. "Although the transaction market remains episodic, in 2025 we successfully exited, or have executed agreements or letters of intent to sell, eight of our non-core hotels for anticipated gross proceeds of approximately $198 million at an average multiple of nearly 43x. We expect to accelerate our Non-Core disposition strategy over the next 12 months, and once complete, 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 U.S., including Hawaii, Orlando, New York, New Orleans, Boston, Key West, Miami and Santa Barbara."