Dear Stakeholders,
Park Hotels & Resorts Inc. (“Park” or the “Company”) is pleased to present our eighth annual Corporate Responsibility Report (“Report”), which highlights our 2024 initiatives. We are proud of Park’s progress over the past year as we continue to advance environmental stewardship, social impact, sound governance practices and responsible risk management.
Our corporate responsibility strategy remains aligned with our corporate strategy to focus on and enhance our core portfolio of hotels, and we remain committed to advancing our corporate responsibility initiatives through responsible investments in our core portfolio. We have been strategic sellers over the past few years, seeking to dispose of non-core hotels that do not benefit from multiple sources of demand and have limited amenities compared to our larger resorts and convention-centered hotels. We are focused on upgrading our core hotels in both guest-facing areas and back-of-house equipment through strategic renovations and replacements, and our corporate responsibility pillars of risk mitigation and environmental management complement this strategy, as we seek to make our buildings more resilient to the effects of climate change and improve efficiencies through proactive environment management and technological advancement.
On the risk side, Park’s proactive risk mitigation efforts continue to benefit the financial performance of our portfolio. For example, we upgraded the stormwater management infrastructure at our properties in both Hawaii and Key West, with additional work planned as part of Park’s long-term resiliency efforts for properties in these key markets. We also introduced proactive pipe inspections using nondestructive ultrasonic testing as part of all renovation projects, given that water leaks are the largest source of damage incidents at our properties. As a result of the efforts of Park’s risk management team, we achieved a 25% reduction in property insurance premiums in 2025 compared to the prior year, saving the Company approximately $8 million. Since 2019, Park’s proactive risk mitigation practices have removed $2.5 billion of risk from our portfolio.
We continue to advance our Green Park program, focusing on efficiency enhancements that are intended to make our portfolio more resilient and more profitable over time. During 2024, we completed retro-commissioning efforts at five core hotels, taking a deep dive into existing equipment and analyzing ways to improve the efficiency of operational systems and equipment. We also focused on our renewable energy strategy by seeking to incorporate purchased renewable energy and installing on-site renewable energy when economically feasible. We are currently working on our first solar project in Hawaii, and the initial phase is expected to be completed by the end of 2025. Furthermore, we seek to incorporate best practices in sustainability during the renovation of existing buildings, taking such opportunities to upgrade equipment and deploy new technology to enhance efficiencies. Due to such efforts, we are proud to announce our first LEED certification of a hotel building for Tapa Tower at Hilton Hawaiian Village.
Looking at our 2024 environmental performance, we continued to advance our environmental reduction efforts. We reduced greenhouse gas emissions intensity by 1.8% from 2023 and 11.0% from our 2019 baseline, partially driven by our efforts to increase the amount of purchased electricity that is sourced from renewable energy. As part of our corporate strategy of selling non-core hotels that typically have smaller footprints and enhancing and expanding our core hotels, 2024 energy intensity increased slightly year-over-year by 1.7%; however, on a like-for-like basis, 2024 energy intensity decreased 1.4%, highlighting the efforts of our Green Park team and hotel partners to increase efficiency through both mechanical and behavioral changes. Water consumption continues to be an area of opportunity for us, with water intensity increasing 6.2% versus 2023. Our strategic shift to larger hotels and resorts (which consume more water per occupied room) has driven this increase; we continue to work to refine our water reduction strategy. Finally, we enhanced our waste data collection efforts this past year, which led to a more comprehensive picture of our hotels’ waste generation. While overall waste intensity, which includes diverted waste from recycling, increased 27.6% from 2023 due to the availability of additional data, we are pleased to report that we increased our reported recycled waste by 116% over 2023.
We are fortunate to have passionate partners at our properties who have helped us on our journey to reduce environmental impact. In 2024, we awarded the inaugural Green Park Energy Partner of the Year award to Hilton Hawaiian Village Waikiki Beach Resort, and we awarded the inaugural Green Park Sustainability Partner of the Year to the Hilton New Orleans Riverside. We thank all our hotel operating partners for their diligence and partnership.
On the social side, we believe it is paramount to invest in our associates. During 2024, we focused on associate well-being, offering a variety of resources to support our associates with their mental and physical health. We continue to offer best-in-class medical benefits to our associates and their families. Additionally, we continue to offer training and development opportunities for all levels of associates in the Company. Our Leadership Development Program (“LDP”), now graduating its fifth class, has helped to equip our next generation of leaders with essential managerial skills and resources to aid in their career progression. Graduates of the LDP boast an impressive 89% retention rate. We continue to be guided by the belief that investing in and being committed to our associates will serve to strengthen us all, and we strive to create an environment where all Park associates feel valued.
We have worked diligently to refine our corporate responsibility reporting since our last Report. In an effort to increase the confidence in our data, in January 2025, we achieved limited assurance of our 2019 environmental baseline year for energy, water and greenhouse gas emissions. Additionally, following strategic enhancements to our waste data collection process, we also obtained limited assurance of our waste data for the first time with our 2024 limited assurance verification.. Finally, in this Report, we elected to introduce select elements of the IFRS S2 Climate-related disclosures to our TCFD report in support of the collective efforts to streamline environmental reporting. While we continually evaluate the ever-changing landscape of corporate responsibility reporting, we remain centered in our core corporate responsibility pillars.
Our corporate responsibility efforts continue to receive external validation and recognition. We are pleased to have been rated by ISS ESG as Prime for its ISS ESG Corporate Rating, valid as of the date of this Report. We also achieved our highest GRESB score to date for our efforts in 2024, achieving 87 points and marking a 6-point improvement over last year and an impressive 15-point improvement since we began reporting in 2020. We have been recognized by Newsweek and named to several of their lists, including America’s Most Responsible Companies, America’s Most Trustworthy Companies and America’s Greatest Companies.
I am deeply grateful for the continued efforts of our associates and the support of our stakeholders and partners as we seek to advance our corporate responsibility efforts throughout our business. We look forward to sharing our continued improvements with you.
Thomas J. Baltimore, Jr.
Chairman, President and Chief Executive Officer
December 2025
