Park Hotels & Resorts said it expects to reopen 12 hotels during the fourth quarter of this year, increasing the total number of open hotels to 58.
In its operational and liquidity update, the company said ten hotels have been reopened in July, two in August and two to date in September.
The remaining two suspended hotels are expected to be opened in the first quarter of 2021.
The company noted that occupancy improved to 32.3% for Park’s 33 consolidated hotels opened in July and 38.8% for 37 consolidated hotels inaugurated in August.
Park Hotels & Resorts has also agreed to amend its bank credit facilities to secure financial covenant relief and increase its carve out for acquisitions funded with equity proceeds from $500m to $1bn.
Park Hotels & Resorts chairman and CEO Thomas J. Baltimore said: “Over the past couple of months, we have opened additional hotels and experienced better than expected results through July and August, and we have begun to quantify and execute on cost-savings initiatives as we work with our operating and brand partners to reposition the operating model.
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“Additionally, we have completed an amendment process with our lending partners to extend our revolving credit facility by two years, further improving our liquidity position and providing us additional flexibility as we look to turn the corner and pursue opportunities as they develop in the coming months.”
Park’s portfolio features 60 premium-branded hotels and resorts with more than 33,000 rooms primarily situated in prime city center and resort locations.
In order to mitigate the effect on its business due to the COVID-19 virus, Park and its hotel management companies have suspended or started the suspension of operations at nearly half of Park’s 60 hotels.