Park Hotels & Resorts To Sell Two San Francisco Hotels

(RTTNews) - Park Hotels & Resorts Inc. (PK) on Tuesday announced its decision sell two of its San Francisco Hotels for a total of $303.5 million.

The company has signed two agreements to sell the 360-room Le Meridien San Francisco for $221.5 million and 171-room Hotel Adagio, Autograph collection, San Francisco for $82 million. It plans to partially repay debt on its bank term loan using the net proceeds from the sales.

Park Hotels sees increase in demands and expects to break-even in June, an improvement from the $15 million burn rate achieved in May.

Occupancy at the company's 50 consolidated hotels increased to an expected 49.8% in June from 32.6% in March. It expects to report an occupancy of 59% for hotels opened for the entire month of June.

"Operationally, we continue to witness strong demand trends across many of our core markets, while average RevPAR during the month of June exceeded 2019 levels at nearly 20% of our hotels within our consolidated hotel portfolio. Our portfolio's performance over the past two months, along with sequential improvement expected to continue into July, has accelerated our expectations to break-even at the corporate level," said Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park.