Park Hotels & Resorts Inc. (PK): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Park Hotels & Resorts Inc. (PK), with its impressive portfolio of 67 premium hotels and resorts and approximately 35,000 rooms primarily located in the United States, makes its mark in the hospitality industry?

With a remarkable performance in the fiscal year 2024, achieving a total revenue of approximately $2.4 billion and an adjusted EBITDA of about $600 million, the company showcases its financial strength and operational excellence, but how exactly does it operate and generate such substantial revenue?

From its history and ownership structure to its core mission and revenue streams, this article dives deep into the inner workings of Park Hotels & Resorts, offering you a comprehensive understanding of its business model and strategic approach.

Park Hotels & Resorts Inc. (PK) History

Park Hotels & Resorts Inc. Founding Timeline

Year established

The company was officially established on January 3, 2017.

Original location

The company is headquartered in Tysons, Virginia.

Founding team members

While specific individual names of the 'founding team' are not widely publicized in the same way as a startup might be, the establishment of the company is attributed to the strategic decisions and leadership within Hilton Worldwide. Key figures would have been those executives responsible for corporate strategy and finance at Hilton at the time of the spin-off.

Initial capital/funding

As a spin-off from Hilton Worldwide, the company didn't receive traditional 'funding.' Instead, it was created by distributing shares of the new company to existing Hilton shareholders. The initial valuation was based on the assets it held, primarily a large portfolio of hotels and resorts. At the time of the spin-off, the estimated value of the assets transferred to the company was approximately $3 billion.

Park Hotels & Resorts Inc. Evolution Milestones

Park Hotels & Resorts Inc. Transformative Moments

• Spin-Off from Hilton Worldwide: This was a pivotal moment, allowing the company to operate independently and focus specifically on owning and managing hotel properties. It set the stage for strategic acquisitions and portfolio optimization.
• Acquisition of Chesapeake Lodging Trust: This significantly expanded the company's footprint and diversified its portfolio, enhancing its ability to cater to different market segments and geographic locations.
• COVID-19 Pandemic Response: Navigating the challenges of the pandemic required significant adjustments to operations and financial strategies, demonstrating the company's resilience and adaptability in the face of unprecedented adversity.
• Resumption of Dividend Payments: This marked a turning point in the company's recovery, signaling improved financial health and a return to creating value for shareholders.

For more insights into the company's financial stability, check out: Breaking Down Park Hotels & Resorts Inc. (PK) Financial Health: Key Insights for Investors

Park Hotels & Resorts Inc. (PK) Ownership Structure

Park Hotels & Resorts Inc. features a widely held ownership structure, with a mix of institutional and individual investors.

Park Hotels & Resorts Inc.'s Current Status

Park Hotels & Resorts Inc. is a publicly traded company, meaning its shares are available for purchase on a stock exchange. As of April 2025, it is listed on the New York Stock Exchange (NYSE) under the ticker symbol PK.

Park Hotels & Resorts Inc.'s Ownership Breakdown

The ownership of Park Hotels & Resorts Inc. is distributed among various shareholders, including institutional investors, mutual funds, and individual investors. The following table provides an overview of the major ownership categories and their approximate percentages, based on the most recent available data for the fiscal year 2024.

Park Hotels & Resorts Inc.'s Leadership

The leadership team of Park Hotels & Resorts Inc. is responsible for the strategic direction and operational management of the company. Key members of the leadership team as of April 2025 include:

• Thomas J. Baltimore, Jr.: Chairman and Chief Executive Officer
• Sean M. Dell’Orto: Chief Financial Officer

For more insights into the investors of Park Hotels & Resorts Inc., check out: Exploring Park Hotels & Resorts Inc. (PK) Investor Profile: Who’s Buying and Why?

Park Hotels & Resorts Inc. (PK) Mission and Values

Park Hotels & Resorts aims to be a premier lodging real estate investment trust (REIT) by maximizing long-term shareholder value through strategic asset management and disciplined capital allocation. The company emphasizes integrity, transparency, and a commitment to excellence in all its operations.

Park Hotels & Resorts Inc.'s Core Purpose

Official mission statement

While Park Hotels & Resorts Inc. does not have a single, explicitly stated official mission statement, their approach to business can be understood through various statements and commitments:

• Strategic Asset Management: Park Hotels & Resorts focuses on strategically managing its high-quality portfolio of hotels and resorts to optimize performance and enhance asset value.
• Disciplined Capital Allocation: The company is committed to making prudent investment decisions, allocating capital to projects and acquisitions that offer the best risk-adjusted returns.
• Maximizing Shareholder Value: A primary goal is to deliver long-term value to its shareholders through a combination of revenue growth, cost management, and strategic capital deployment.
• Operational Excellence: Park Hotels & Resorts strives for excellence in all aspects of its operations, from property management to guest satisfaction, ensuring high standards across its portfolio.

Vision statement

Park Hotels & Resorts Inc. aims to be the leading lodging real estate investment trust (REIT), recognized for its premier assets, operational excellence, and commitment to delivering superior shareholder value. This vision is reflected in their focus on:

• Portfolio Quality: Maintaining a high-quality portfolio of hotels and resorts in prime locations, ensuring a strong foundation for long-term growth.
• Innovation and Adaptability: Embracing innovation and adapting to changing market conditions to stay ahead of the competition and meet evolving guest expectations.
• Sustainable Practices: Integrating sustainable practices into their operations, demonstrating a commitment to environmental responsibility and long-term value creation.
• Stakeholder Engagement: Building strong relationships with all stakeholders, including employees, guests, partners, and communities, to foster mutual success and create a positive impact.

Company slogan/tagline

Park Hotels & Resorts Inc. does not have a widely publicized official slogan or tagline. However, the essence of their brand and operational philosophy can be summarized through recurring themes in their communications and actions:

• 'Premier Lodging REIT': This highlights their position as a leading real estate investment trust in the lodging sector.
• 'Strategic Asset Management': Emphasizes their focus on optimizing the value and performance of their hotel and resort portfolio.
• 'Delivering Shareholder Value': Underscores their commitment to providing strong returns and long-term growth for investors.
• 'Excellence in Hospitality': Reflects their dedication to maintaining high standards of service and guest satisfaction across their properties.

To learn more, check out: Exploring Park Hotels & Resorts Inc. (PK) Investor Profile: Who’s Buying and Why?

Park Hotels & Resorts Inc. (PK) How It Works

Park Hotels & Resorts Inc. (PK) operates as a lodging real estate investment trust (REIT), focusing on owning and managing a portfolio of hotels and resorts, primarily in the luxury and upper-upscale segments.

Park Hotels & Resorts Inc.'s Product/Service Portfolio

Park Hotels & Resorts Inc.'s Operational Framework

Park Hotels & Resorts operates through a structure focused on maximizing revenue and operational efficiency across its portfolio. Key aspects of its operational framework include:

• Property Management: Overseeing the day-to-day operations of its hotels and resorts, including room management, guest services, and facility maintenance.
• Revenue Management: Implementing strategies to optimize room rates and occupancy levels based on market demand, seasonal trends, and competitive pricing.
• Sales and Marketing: Promoting its properties to attract guests and event bookings through various channels, including online travel agencies, direct marketing, and group sales efforts.
• Asset Management: Making strategic investments in property renovations and improvements to enhance the guest experience and maintain the value of its assets.
• Financial Management: Managing its capital structure, debt obligations, and cash flow to ensure financial stability and maximize shareholder returns. In 2024, Park Hotels & Resorts reported total revenues of $2.81 billion, and net income of $178 million.

Park Hotels & Resorts Inc.'s Strategic Advantages

Park Hotels & Resorts possesses several strategic advantages that contribute to its success in the lodging industry:

• High-Quality Portfolio: Owning a portfolio of premium-branded hotels and resorts in prime locations, which attract a diverse range of travelers and command higher average daily rates (ADR).
• Scale and Diversification: Benefiting from its large scale and geographic diversification, which provides resilience against regional economic fluctuations and allows for economies of scale in procurement and operations.
• Strong Brand Affiliations: Partnering with leading hotel brands such as Hilton and Marriott, which provide access to global reservation systems, loyalty programs, and marketing resources.
• Experienced Management Team: Led by an experienced management team with a proven track record in hotel investment, operations, and asset management.
• REIT Structure: Operating as a REIT, which provides tax advantages and allows the company to distribute a significant portion of its earnings to shareholders in the form of dividends. In 2024, Park Hotels & Resorts declared dividends of $0.25 per share.

To gain a deeper understanding of Park Hotels & Resorts Inc.'s financial performance, consider exploring this resource: Breaking Down Park Hotels & Resorts Inc. (PK) Financial Health: Key Insights for Investors

Park Hotels & Resorts Inc. (PK) How It Makes Money

Park Hotels & Resorts primarily generates revenue through hotel ownership, leasing, and management. The company focuses on owning and managing a high-quality portfolio of hotels and resorts, deriving income from room rentals, food and beverage sales, and other ancillary services.

Park Hotels & Resorts Inc.'s Revenue Breakdown

Detailed revenue breakdown for Park Hotels & Resorts Inc. is not available as of my knowledge cut-off date in April 2025. For the most accurate and up-to-date information, please consult Park Hotels & Resorts Inc.'s latest financial statements and investor reports.

Here is a general illustrative example of how a hotel and resorts company's revenue might be broken down:

Park Hotels & Resorts Inc.'s Business Economics

The business economics of Park Hotels & Resorts are influenced by factors such as:

• Occupancy Rates: Higher occupancy directly boosts room revenue.
• Average Daily Rate (ADR): The average rental income per occupied room impacts overall profitability.
• Revenue Per Available Room (RevPAR): A key metric combining occupancy and ADR, indicating revenue generation efficiency.
• Operating Costs: Efficient management of expenses like labor, utilities, and maintenance is crucial.
• Capital Expenditures: Ongoing investments in property improvements affect long-term value and competitiveness.

Park Hotels & Resorts Inc.'s Financial Performance

Key aspects of Park Hotels & Resorts Inc.'s financial performance include:

• Revenue Growth: Reflects the company's ability to increase sales across its properties.
• Profit Margins: Indicate the profitability of operations after accounting for various costs.
• Debt Levels: Managing debt is vital for financial stability and future investment capacity.
• Cash Flow: Strong cash flow supports operations, dividends, and strategic initiatives.
• Asset Value: The value of the hotel properties is a significant component of the company's financial health.

For detailed insights into the financial health of Park Hotels & Resorts Inc., check out: Breaking Down Park Hotels & Resorts Inc. (PK) Financial Health: Key Insights for Investors

Park Hotels & Resorts Inc. (PK) Market Position & Future Outlook

Park Hotels & Resorts faces a dynamic market landscape with evolving consumer preferences and economic conditions influencing its future trajectory. Understanding its competitive positioning and potential challenges is crucial for stakeholders.

Competitive Landscape

Opportunities & Challenges

Industry Position

Park Hotels & Resorts operates primarily in the upscale and luxury segments of the lodging industry. The company's strategy focuses on:

• Owning high-quality assets in prime locations.
• Maintaining a diversified portfolio across different markets.
• Focusing on operational excellence to drive profitability.

To delve deeper into the company's guiding principles, explore the Mission Statement, Vision, & Core Values of Park Hotels & Resorts Inc. (PK).