Park Hotels ceases payments on $725M SF CMBS loan, expects hotel removal

Park Hotels & Resorts Inc.

Cessation of payments on $725M non-recourse CMBS loan secured by Hilton San Francisco Union Square and Parc 55.
No June 1 interest payment; maturity Nov 2023; lenders may accelerate and foreclose.
Expected removal of both hotels from portfolio; net leverage to improve 0.9x to 5.1x.
Annual interest savings of ~$30M; potential special dividend $150-175M post-disposition.
CEO cites record office vacancy, weak convention calendar, prolonged SF recovery.

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