Friday, 27 March 2020

Park Hotels & Resorts to close 60 properties in response to coronavirus COVID-19

Park Hotels & Resorts Inc. has announced to mitigate the effect on its business from the national emergency that has arisen as a result of the COVID-19 virus, have suspended or commenced the suspension of operations at nearly half of Park’s 60 hotels.  Park’s remaining hotels are currently expected to remain open under reduced operations so long as incremental savings are achieved.

Park is also proactively pursuing alternative sources of revenue from applicable government authorities and hospitals such as providing temporary lodging for first responders, other medical personnel, military personnel, displaced guests and residents of communities where Park’s hotels are located.

Park has drawn the remaining $650 million of its $1 billion unsecured revolving credit facility as a precautionary measure, with the result that Park’s cash on hand is now approximately $1.3 billion. On April 15, 2020.

“Park owns some of the largest hotels in San Francisco, New York, Honolulu, New Orleans and Chicago – and we are proactively seeking opportunities for these market-leading assets and other major Park assets to support their cities, the COVID-19 responder community and others,” said Thomas J. Baltimore, Jr., Chairman and CEO of Park. “As well, we have further fortified Park’s ability to endure the COVID-19 disruption by drawing on our credit facility – and now have $1.3 billion in funds to wait out this difficult period and meet our commercial obligations as needed. Our lenders have been invaluable partners to us through this time – and we thank them for their ongoing confidence in Park.”

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