Park Hotels & Resorts Inc. PK recently announced the completion of the disposition of the Hilton San Francisco Hotels. The hotels include Hilton San Francisco Union Square, comprising 1,921 rooms, and Parc 55 San Francisco, with 1,024 rooms.
The move is in line with the company’s strategic plan to sell off non-core assets worth $300-$400 million for 2025 to focus on its core portfolio operations. The same will lend balance sheet strength and flexibility to undertake future expansionary steps, which will be value accretive in the long run for the company.
The hotels under consideration were placed in a court-ordered receivership in October 2023, which secured a $725 million non-recourse CMBS Loan. The receiver was entitled to full authority and control over the hotels’ operations. As such, Park Hotels had no economic interest in the same. However, with the completion of this sale, Park will now be able to remove legacy assets from its financial statements.
PK’s Strategic Portfolio-Rebalancing Efforts
Park Hotels has been strategically reshaping its portfolio to maximize shareholders’ return. In May 2025, the company closed on the sale of the 316-room Hyatt Centric Fisherman’s Wharf in San Francisco, CA, for $80 million. Since 2017, Park has disposed of 46 assets for more than $3 billion.
Shares of this Zacks Rank #3 (Hold) company have gained 2.1% month to date compared with the industry’s upside of 1.3%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Digital Realty Trust DLR and W.P. Carey WPC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for DLR’s 2025 FFO per share is pegged at $7.35, which indicates year-over-year growth of 9.5%.
The Zacks Consensus Estimate for WPC’s full-year FFO per share is pinned at $4.92, which calls for an increase of 4.7% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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This article originally published on Zacks Investment Research (zacks.com).
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