MCLEAN, Va.--(BUSINESS WIRE)--
Park Hotels & Resorts Inc. (NYSE: PK) (the “Company”) today announced
that its Board of Directors has declared a special dividend of $2.79 per
share (the “E&P Dividend”), or approximately $551 million in cash and
shares of the Company’s common stock, payable to stockholders of record
as of January 19, 2017. The E&P Dividend represents the Company’s
estimated share of C corporation earning and profits attributable to the
period prior to January 4, 2017, which the Company is required to pay to
its stockholders in connection with its election to be treated as a real
estate investment trust (“REIT”).
Stockholders on the January 19, 2017 record date will be entitled to
elect to receive their portion of the E&P Dividend in cash or shares of
the Company’s common stock, with no more than 20% of the E&P Dividend in
the aggregate to be paid in cash. If cash elections exceed the approved
amount, stockholders will receive a pro-rata amount of their
distribution in cash and the remaining portion in stock. Stockholders
will be required to make their elections no later than February 28,
2017. The Company expects to pay the E&P Dividend on or as soon as
practicable after March 9, 2017.
Election materials and forms to be mailed to stockholders promptly after
the record date will describe in more detail the election process for
the E&P Dividend, the limitations on the total amount of cash the
Company will pay and related logistical matters. Regardless of the form
in which it is received, the Company expects that the E&P Dividend will
be a taxable dividend to stockholders. The E&P Dividend may be subject
to applicable withholding taxes. Although REIT dividends generally are
not eligible for taxation at the preferential income tax rates (i.e.,
the 20% maximum U.S. federal rate that applies to qualified dividends
received from taxable corporations by most U.S. stockholders that are
individuals, trusts or estates), the E&P Dividend will be considered a
qualified dividend eligible for tax at the preferential rates to the
extent that it is attributable to the Company’s accumulated C
corporation earnings and profits from pre-REIT years.
About Park Hotels & Resorts
Park Hotels & Resorts Inc. (NYSE: PK) is one of the largest publicly
traded lodging real estate investment trusts with a diverse portfolio of
market-leading hotels and resorts with significant underlying real
estate value. The Company’s portfolio currently consists of 67
premium-branded hotels and resorts with over 35,000 rooms located in
prime U.S. and international markets with high barriers to entry. For
additional information, please visit the Company's website at www.pkhotelsandresorts.com.
Special Note About Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, that are
based on the beliefs and assumptions of management of Park Hotels &
Resorts Inc. (the “Company”) and on information currently available to
the Company’s management. Forward-looking statements include, but are
not limited to, statements related to the Company’s future payment of
the E&P Dividend. Forward-looking statements include all statements that
are not historical facts and can be identified by the use of
forward-looking terminology such as the words “outlook,” “believes,”
“expects,” “potential,” “continues,” “may,” “will,” “should,” “could,”
“seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,”
“estimates,” “anticipates” or the negative version of these words or
other comparable words.
Forward-looking statements involve risks, uncertainties and assumptions.
Actual results may differ materially from those expressed in these
forward-looking statements. You should not put undue reliance on any
forward-looking statements in this press release. The Company does not
have any intention or obligation to update any forward-looking
statements contained in this press release.
Factors that could cause the Company’s results to differ materially from
those expressed in forward-looking statements are included in the
section entitled “Risk Factors” of the Company’s Registration Statement
on Form 10, originally filed with the Securities and Exchange Commission
on June 2, 2016, as amended and supplemented. There may be other risks
and uncertainties that the Company is unable to predict at this time or
that the Company currently does not expect to have a material adverse
effect on the Company’s business. Any such risks could cause the
Company’s results to differ materially from those expressed in
forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170109005782/en/
Park Hotels & Resorts Inc.
Ian Weissman
Investor
Contact
703-584-7441
[email protected]
Source: Park Hotels & Resorts Inc.