Park Hotels Acquires Full Stake in Hilton Hawaiian Village
Ticker: PK · Form: 8-K · Filed: Jun 3, 2024 · CIK: 1617406
Sentiment: neutral
Topics: acquisition, real-estate, joint-venture
Related Tickers: BX
TL;DR
PHR buying out Blackstone's 50% stake in Hilton Hawaiian Village for full ownership.
AI Summary
Park Hotels & Resorts Inc. announced on June 1, 2024, that it has entered into a definitive agreement to acquire the remaining 50% interest in the Hilton Hawaiian Village Waikiki Beach Resort from its joint venture partner, an affiliate of Blackstone Real Estate. The transaction is expected to close in the third quarter of 2024 and will result in Park Hotels & Resorts owning 100% of the resort.
Why It Matters
This acquisition allows Park Hotels & Resorts to gain full control of a significant asset, potentially leading to increased operational efficiencies and profitability from the Hilton Hawaiian Village Waikiki Beach Resort.
Risk Assessment
Risk Level: medium — The acquisition is subject to customary closing conditions and potential market fluctuations affecting the hospitality industry.
Key Numbers
- 50% — Interest acquired (Park Hotels & Resorts is acquiring the remaining 50% interest in the Hilton Hawaiian Village Waikiki Beach Resort.)
Key Players & Entities
- Park Hotels & Resorts Inc. (company) — Registrant
- Hilton Hawaiian Village Waikiki Beach Resort (company) — Asset being acquired
- Blackstone Real Estate (company) — Joint venture partner
- June 1, 2024 (date) — Date of agreement
- third quarter of 2024 (date) — Expected closing period
FAQ
What is the exact purchase price for the remaining 50% interest?
The filing does not disclose the specific purchase price for the remaining 50% interest in the Hilton Hawaiian Village Waikiki Beach Resort.
Who is the joint venture partner in this transaction?
The joint venture partner is an affiliate of Blackstone Real Estate.
When is the acquisition expected to be completed?
The acquisition is expected to close in the third quarter of 2024.
What is the significance of this acquisition for Park Hotels & Resorts?
This acquisition will result in Park Hotels & Resorts owning 100% of the Hilton Hawaiian Village Waikiki Beach Resort, giving them full control of the asset.
What is the current ownership structure of the Hilton Hawaiian Village Waikiki Beach Resort?
Prior to this agreement, Park Hotels & Resorts Inc. and an affiliate of Blackstone Real Estate were joint venture partners, each holding a 50% interest.
Filing Stats: 511 words · 2 min read · ~2 pages · Grade level 11.5 · Accepted 2024-06-03 16:05:33
Key Financial Figures
- $0.01 — ange on which registered Common Stock, $0.01 par value per share PK New York Stock E
- $338,527,000 — the previously announced redemption of $338,527,000 aggregate principal amount of the 7.500
Filing Documents
- pk-20240601.htm (8-K) — 27KB
- 0001617406-24-000058.txt ( ) — 151KB
- pk-20240601.xsd (EX-101.SCH) — 2KB
- pk-20240601_lab.xml (EX-101.LAB) — 22KB
- pk-20240601_pre.xml (EX-101.PRE) — 13KB
- pk-20240601_htm.xml (XML) — 3KB
01 Other Events
Item 8.01 Other Events On June 1, 2024, Park Hotels & Resorts Inc. ("Park") completed the previously announced redemption of $338,527,000 aggregate principal amount of the 7.500% Senior Notes due 2025 (the "Notes") issued by Park's subsidiaries, Park Intermediate Holdings LLC, a Delaware limited liability company, PK Domestic Property LLC, a Delaware limited liability company, and PK Finance Co-Issuer Inc., a Delaware corporation (collectively, the "Issuers"), representing all of the outstanding Notes. The Notes were redeemed pursuant to the terms of an Indenture, dated as of May 29, 2020, as amended or supplemented, between the Issuers, Park, the other guarantors party thereto and The Bank of New York Mellon, as trustee, at a price equal to 100% of the principal amount of the Notes redeemed, plus accrued and unpaid interest up to, but excluding, June 1, 2024.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Park Hotels & Resorts Inc. Date: June 3, 2024 By: /s/ Sean M. Dell'Orto Sean M. Dell'Orto Executive Vice President and Chief Financial Officer