Park Hotels & Resorts Inc. said it drew the remaining $650 million of its $1 billion revolving credit facility as a precautionary measure to mitigate the effects of the coronavirus pandemic on its business.
The real estate investment trust now has roughly $1.3 billion of cash on hand, including an earlier draw of $350 million from the credit facility. The company's quarterly dividend to be paid in April will be sourced from these funds, according to a release. The weighted average rate for the entire revolving credit facility is 2.46%.
Park and its hotel management companies also suspended or commenced suspension of operations of roughly half of Park's 60 properties to minimize expenditures.
The REIT and its hotel management companies are also pursuing alternative sources of revenue from applicable government authorities and hospitals, including providing temporary lodging for first responders, other medical personnel, military personnel, displaced guests and local residents.