Park Hotel & Resorts will continue its campaign of selling off hotel properties to boost the liquidity of its balance sheet, aiming to sell another $400M worth of assets by the end of the year, the REIT said in a Q2 earnings call.
Thus far this year, the company has sold five hotels worth a total of $270M. Park said the hotel sales had been executed at or near pre-pandemic 2019 valuations. The funds have been invested back into the company in stock buybacks and debt reduction.
"Despite recent choppiness in the debt markets, interest in hotel real estate remains high. Accordingly, we expect to sell another $300 million to $400 million of assets to reduce leverage and reinvest back in our portfolio," said Tom Baltimore, Park Hotels & Resorts CEO, during the Q2 earnings call.
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