Park Hotels & Resorts(US:PK)2020-11-19 17:26Company Overview - Park Hotels & Resorts owns a portfolio of 60 premium-branded hotels and resorts with over 33,000 rooms[13] - The company's net debt was $4.2 billion as of September 30, 2020[19] - The company has $1.6 billion of liquidity, with a $50 million monthly burn rate, equating to 32 months of liquidity runway[19] - The company trades at a 63% discount to replacement cost[22] Operational Update - 49 of the company's 60 hotels are currently open[22, 32] - The company's October occupancy rate was 43%[22, 36] - 12 hotels achieved break-even EBITDA in Q3 2020[22, 32] Financial Performance - The company's Core 30 RevPAR in 2019 was $204, which is $20 higher than peers[19, 43] - The company's Core 30 EBITDA/Key in 2019 was $35,500, which is 14% above peers[19, 43] - The company expects $70 million in annual savings from permanent reduction of full-time, hotel-level staffing[32, 47] COVID-19 Impact and Response - The company suspended operations at 38 of 60 hotels and reduced expenses by over 75% at the outset of the crisis[34] - The company issued $650 million of 5-year senior secured notes and $725 million of 8-year senior secured notes to pay down over $1 billion of debt[34] Portfolio Transformation - The company sold or disposed of 24 lower quality, non-core legacy assets since January 2017[30] - The company's comparable RevPAR increased by 16% from $161 in 2016 to $186 in 2019[30] - The company's comparable Hotel Adjusted EBITDA Margins increased by 180bps from 27.7% in 2016 to 29.5% in 2019[30]