Park Hotels & Resorts Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Park Hotels & Resorts Inc. has filed its 2023 10-K annual report detailing its financial performance and operational data for the fiscal year ending December 31, 2023.</b>

AI Summary

Park Hotels & Resorts Inc. (PK) filed a Annual Report (10-K) with the SEC on February 28, 2024. Park Hotels & Resorts Inc. reported its 2023 fiscal year results on February 28, 2024. The company operates in the Hotels & Motels industry, SIC code 7011. The filing covers the period from January 1, 2023, to December 31, 2023. Park Hotels & Resorts Inc. is incorporated in Delaware. The company's principal business address is in Tysons, VA.

Why It Matters

For investors and stakeholders tracking Park Hotels & Resorts Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Park Hotels & Resorts Inc.'s financial health, operational segments, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and outlook. The detailed segment information and financial data within the report are essential for understanding revenue streams, profitability, and the company's strategic positioning within the hotel industry.

Risk Assessment

Risk Level: medium — Park Hotels & Resorts Inc. shows moderate risk based on this filing. The company's reliance on the cyclical hotel industry and potential economic downturns present a medium risk, as indicated by the nature of its business operations and the need for detailed risk factor analysis in its 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess the company's resilience and growth prospects in the current economic climate.

Key Numbers

• 2023-12-31 — Fiscal Year End (The end date of the reporting period.)
• 2024-02-28 — Filing Date (Date the 10-K was filed.)
• 7011 — SIC Code (Standard Industrial Classification for Hotels & Motels.)

Key Players & Entities

• Park Hotels & Resorts Inc. (company) — Filer of the 10-K report.
• Hilton Worldwide, Inc. (company) — Former company name.
• Tysons, VA (location) — Business and mailing address city and state.

FAQ

Industry Context

Park Hotels & Resorts Inc. operates within the hotel and lodging industry, a sector sensitive to economic conditions, travel trends, and consumer spending.

Regulatory Implications

The company is subject to various U.S. federal and state regulations pertaining to corporate reporting, financial disclosures, and business operations, as mandated by the Securities and Exchange Commission (SEC).

What Investors Should Do

1. Analyze the detailed financial statements and operational data within the 10-K for the fiscal year ended December 31, 2023.
2. Review the risk factors section to understand potential challenges and their impact on the company's future performance.
3. Compare key financial metrics from this filing with previous periods to identify trends and assess performance changes.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-28: Filing Date — Date Park Hotels & Resorts Inc. submitted its 10-K filing.

Year-Over-Year Comparison

This filing represents the 2023 annual report (10-K) for Park Hotels & Resorts Inc., providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share PK New York Stock E
• $725 million — f our decision to cease payments on the $725 million non-recourse CMBS loan ("SF Mortgage Lo
• $220 million — tly completed projects include the over $220 million of projects at our Bonnet Creek complex
• $80 million — s, which was completed in January 2024, $80 million of renovations to all guestrooms, publi
• $85 million — antially completed during 2023, and the $85 million of guestroom renovations at the Tapa To
• $2 b — kets for a combined sales price of over $2 billion, which provided us with additiona
• $50 million — . In February 2023, we fully repaid the $50 million outstanding under our amended and resta
• $75 million — , and in June 2023, we fully repaid the $75 million mortgage loan secured by the W Chicago

Filing Documents

• pk-20231231.htm (10-K) — 2186KB
• ex-21q42023.htm (EX-21) — 90KB
• ex-23q42023.htm (EX-23) — 6KB
• ex-311q42023.htm (EX-31.1) — 10KB
• ex-312q42023.htm (EX-31.2) — 10KB
• ex-321q42023.htm (EX-32.1) — 5KB
• ex-322q42023.htm (EX-32.2) — 5KB
• ex-971q42023.htm (EX-97.1) — 36KB
• image_0.jpg (GRAPHIC) — 18KB
• pk-20231231_g1.jpg (GRAPHIC) — 21KB
• pk-20231231_g2.jpg (GRAPHIC) — 35KB
• pk-20231231_g3.jpg (GRAPHIC) — 127KB
• 0001617406-24-000018.txt (&nbsp;) — 11215KB
• pk-20231231.xsd (EX-101.SCH) — 79KB
• pk-20231231_cal.xml (EX-101.CAL) — 106KB
• pk-20231231_def.xml (EX-101.DEF) — 335KB
• pk-20231231_lab.xml (EX-101.LAB) — 854KB
• pk-20231231_pre.xml (EX-101.PRE) — 560KB
• pk-20231231_htm.xml (XML) — 1577KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 28 Item 1C. Cybersecurity 29 Item 2.

Properties

Properties 30 Item 3.

Legal Proceedings

Legal Proceedings 31 Item 4. Mine Safety Disclosures 31 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32 Item 6. [Reserved] 34 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 50 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 84 Item 9A.

Controls and Procedures

Controls and Procedures 84 Item 9B. Other Information 84 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 84 PART III Item 10. Directors, Executive Officers and Corporate Governance 85 Item 11.

Executive Compensation

Executive Compensation 85 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 85 Item 13. Certain Relationships and Related Transactions, and Director Independence 85 Item 14. Principal Accounting Fees and Services 85 PART IV Item 15. Exhibits, Financial Statement Schedules 86 Item 16. Form 10-K Summary 90 2 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). Forward-looking statements include, but are not limited to, statements related to the effects of our decision to cease payments on the $725 million non-recourse CMBS loan ("SF Mortgage Loan") secured by two of our San Francisco hotels – the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco – a Hilton Hotel (collectively, the "Hilton San Francisco Hotels") and the lender's exercise of its remedies, including placing such hotels into receivership, as well as our current expectations regarding the performance of our business, our financial results, our liquidity and capital resources, including anticipated repayment of certain of our indebtedness, the completion of capital allocation priorities, the expected repurchase of our stock, the impact from macroeconomic factors (including inflation, elevated interest rates, potential economic slowdown or a recession and geopolitical conflicts), the effects of competition, the effects of future legislation or regulations, the expected completion of anticipated dispositions, the declaration and payment of future dividends and other non-historical statements. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as the words "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates", "hopes" or the negative version of these words or other comparable words. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some ca

Business

Item 1. Business Our Company We are one of the largest publicly-traded lodging real estate investment trusts ("REIT") with a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. On January 3, 2017, Hilton Parent completed the spin-off of a portfolio of hotels and resorts that established us as an independent, publicly traded company. As of February 28, 2024, our portfolio consists of 43 premium-branded hotels and resorts with over 26,000 rooms, located in prime United States ("U.S.") markets with high barriers to entry. Approximately 86% of our rooms are luxury and upper upscale and all of our rooms are located in the U.S. and its territories. We are focused on consistently delivering superior risk-adjusted returns to stockholders through active asset management and a thoughtful external growth strategy while maintaining a strong and flexible balance sheet. On September 18, 2019, pursuant to the terms and subject to the conditions set forth in the Agreement and Plan of Merger (the "Merger Agreement"), dated as of May 5, 2019, by and among Park Parent, PK Domestic Property LLC, an indirect subsidiary of Park Parent ("PK Domestic"), PK Domestic Sub LLC, a wholly owned subsidiary of PK Domestic ("Merger Sub") and Chesapeake Lodging Trust ("Chesapeake"), Chesapeake merged with and into Merger Sub (the "Merger"). Park Intermediate Holdings LLC (our "Operating Company") continues to directly or indirectly hold all of our assets and conduct all of our operations. Park Parent owned 100% of the interests in our Operating Company until December 31, 2021 when the business undertook an internal reorganization transitioning our structure to a traditional umbrella partnership REIT ("UPREIT") structure . Effective January 1, 2022, Park Parent became the managing member of our Operating Company and PK Domestic REIT Inc., a direct subsidiary of Park Parent, became a member of our Operating Company. We may, in the future,

View Full Filing

View this 10-K filing on SEC EDGAR