Park Hotels & Resorts is a company that owns 43 hotels in the United States, with a total of 27,062 rooms. They also have joint ventures in four U.S. hotels that have 2,656 rooms. Most of their hotels still use Hilton brands because the company was spun out of Hilton Worldwide Holdings in 2017. They sold all their international hotels and low-quality U.S. hotels to focus on high-quality assets in domestic gateway markets.
Park works to become the preeminent lodging REIT by delivering superior, risk-adjusted returns to stockholders. They also strive to achieve operational excellence through active asset management and a thoughtful external growth strategy while still maintaining a strong and flexible balance sheet. To do this, they focus on continually improving property-level operating performance and implementing revenue management initiatives to optimize market pricing and segment mix.
Additionally, they focus on prudently allocating capital by leveraging scale, liquidity, and M&A expertise to create value throughout the lodging cycle. They also employ an active capital recycling program with a focus on brand and operator diversification in order to reduce exposure to slower-growth assets and markets. Finally, Park Hotels & Resorts also focuses on preserving a strong and flexible balance sheet with a targeted leverage ratio of 3x to 5x, maintaining strong liquidity throughout the lodging cycle, and seeking an investment grade rating.
Overall, Park Hotels & Resorts is committed to providing superior returns for its stockholders while still focusing on operational excellence and a strong balance sheet. They continue to expand their presence in target markets while reducing exposure to slower-growth assets and markets, creating value for all stakeholders involved.