## Park Hotels Strengthens Portfolio Strategy Through Strategic Asset Dispositions

Park Hotels & Resorts Inc. (PK) is making decisive moves to reshape its real estate portfolio. The lodging REIT has successfully completed or committed to the sale of five non-core properties since the start of 2025, generating approximately $198 million in combined proceeds at an average valuation of 43X revenue multiple. Two transactions have already closed—the Hyatt Centric Fisherman's Wharf sold in May and the Capital Hilton DC joint venture stake disposed in November. The company targets three additional property exits by early 2026, specifically the 266-room Embassy Suites Kansas City Plaza, the 850-room DoubleTree Hotel Seattle Airport, and the 245-room DoubleTree Hotel Sonoma Wine Country, all of which contributed minimal EBITDA during 2025. Management projects liquidating remaining non-core marketable assets within 12 months, aligning with the broader $300-$400 million annual dispositions target aimed at capital redeployment and balance sheet optimization.

## Operating Momentum Drives Full-Year Confidence

Despite near-term disruptions from November's temporary FAA air traffic constraints, PK's comparable RevPAR metrics remained resilient. The company reiterated its full-year 2025 guidance, bolstered by preliminary November RevPAR expansion approaching 2% across the portfolio. Geographic concentration in high-demand markets proved instrumental—Hawaii delivered approximately 19% RevPAR growth, New York contributed 10%, Denver added 8%, and Orlando climbed 6%. The Hawaiian Village Waikiki Beach Resort in Honolulu emerged as a standout performer, posting October and November RevPAR increases of 20% and 26%, respectively, significantly enhancing portfolio metrics. Excluding the Royal Palm South Beach Miami property undergoing renovation, core hotel RevPAR advanced 3.8% in October and 5.5% in November, demonstrating that operational quality persists amid strategic portfolio reshuffling.

## Strategic Implications and Market Positioning

PK's disposition strategy functions as both a capital efficiency mechanism and a portfolio quality filter. By liquidating underperforming non-core assets, the company simultaneously strengthens its balance sheet flexibility and concentrates future investment toward high-return properties. This disciplined approach—shedding low-yielding assets while retaining and optimizing core market exposure—positions Park Hotels to execute opportunistic growth initiatives from a position of financial strength. The convergence of successful asset sales on schedule and resilient operating metrics in key markets reinforces management's strategic thesis, even as the broader hotel REIT sector navigates near-term cyclical headwinds. Investors tracking PK should monitor the completion timeline of remaining 2026 dispositions and any capital allocation announcements tied to balance sheet proceeds.