MCLEAN, Va.--(BUSINESS WIRE)--
Park Hotels & Resorts Inc. (NYSE:PK) (“Park”) today announced an update
with respect to its Florida and Puerto Rico hotels impacted by Hurricane
Irma. Park’s exposure in Florida consists of seven hotels located in Key
West (two properties), Miami (one property) and Orlando (four
properties, including one joint venture). Additionally, Park owns one
hotel in Puerto Rico. Overall, these hotels account for approximately
14% of Park’s total portfolio rooms on a pro rata basis, which is
inclusive of the pro rata share of rooms of joint venture assets.
Park’s update for each of the hotels is as follows:
Key West (less than 2% of pro rata portfolio rooms):
Park’s two hotels in Key West, the 311-room Casa Marina, a Waldorf
Astoria Resort, and the 150-room The Reach, a Waldorf Astoria Resort,
both remain closed following the mandatory evacuation of the Florida
Keys on September 6th. We are pleased to report that neither of these
assets sustained significant damage. The company currently has hotel
management and various contractors on the ground working to reopen the
hotels as promptly as possible. We currently anticipate that the hotels
will reopen in the next four to six weeks.
As critical infrastructure (including running water, sewer, electricity
and phone service) was severely impaired throughout the lower Keys,
access to the area remains restricted and is still closed to tourists.
Monroe County officials reopened U.S. Route 1 with access to the lower
Keys on Sunday, September 17th for residents, business
owners, disaster relief providers and supply trucks, subject to nightly
curfews. Additionally, the Key West airport has not yet resumed normal
operations for commercial or private aircrafts. Given the fluid nature
of the situation, it will be difficult to predict when Key West will
return to previous demand and visitation levels.
Orlando (8% of pro rata portfolio rooms):
Park’s four Orlando properties, the 1,009-room Hilton Orlando Bonnet
Creek, the 502-room Waldorf Astoria Orlando, the 814-room Hilton Orlando
Lake Buena Vista and the 1,417-room Hilton Orlando (20% joint venture
equity interest), remained open during the storm. The three
Hilton-branded hotels sustained minor damage, while the Waldorf Astoria
Orlando reportedly experienced water infiltration at approximately 90
rooms. These rooms are expected to be back in service within the next
week.
Miami (2% of pro rata portfolio rooms):
Park’s hotel in Miami, the 508-room Hilton Miami Airport, sustained
minimal damage and is open and operational.
Puerto Rico (2% of total portfolio rooms):
Park’s hotel in Puerto Rico, the 748-room Caribe Hilton, remained open
throughout the storm and sustained minimal physical damage. The hotel is
fully operational.
As an additional matter, we are closely monitoring Hurricane Maria,
which could potentially make landfall in Puerto Rico on Wednesday.
Hurricane Harvey Update
Park’s hotels in Texas and Louisiana were minimally impacted by
Hurricane Harvey. The company’s one hotel in Texas, the 259-room Embassy
Suites Austin Downtown Lake, and its two hotels in Louisiana, the
1,622-room Hilton New Orleans Riverside and the 317-room Hilton New
Orleans Airport, remained open and did not experience any measurable
impact from the storm.
“Our thoughts are with everyone who has been impacted by these historic
storms,” commented Thomas J. Baltimore, Jr., Chairman, President and
Chief Executive Officer. “Having just returned from touring our assets
in Key West, I want to personally thank all our teams on the ground for
their hard work and dedication during this very trying time. We are also
extremely grateful to all the hotel and emergency personnel that have
worked tirelessly to ensure the safety of all individuals in the paths
of these storms. We expect to provide additional updates on the
financial impact of the storms during our third quarter call unless
future events warrant additional disclosure.”
Damages to all of the hotels are expected to be covered under insurance
policies that pertain to property, casualty, flood and business
interruption, subject to corresponding deductibles. Our two Key West
assets are maintained on a separate policy that is subject to a combined
$5 million deductible, covering both property and business interruption
insurance.
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. Park’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 Park's website at www.pkhotelsandresorts.com.
For additional information or to receive press releases via e-mail,
please visit our website at
www.pkhotelsandresorts.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170919005558/en/
Park Hotels & Resorts Inc.
Ian Weissman, 703-584-7441
Senior
Vice President, Corporate Strategy
[email protected]
Source: Park Hotels & Resorts Inc.