Form 4: Park Hotels & Resorts EVP, CFO & Treasurer Sean M. Dell'Orto Reports Share Transactions

Sean M. Dell'Orto, EVP, CFO & Treasurer of Park Hotels & Resorts Inc., reports acquisition of shares through vested performance stock units and disposition of shares for tax obligations.

Summary

• On January 24, 2025, Sean M. Dell'Orto, EVP, CFO & Treasurer of Park Hotels & Resorts Inc., acquired 48,510 shares of common stock related to vested performance stock units.
• These units were granted on February 24, 2022, under the company's 2017 Omnibus Incentive Plan.
• The number of shares earned was based on the company's total shareholder return (TSR) relative to a peer group over a performance period from January 1, 2022, to December 31, 2024, achieving 99% of the target.
• Dell'Orto also disposed of 14,881 shares at $13.78 per share to cover tax withholding obligations.
• Following these transactions, Dell'Orto beneficially owns 408,743 shares of Park Hotels & Resorts Inc.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of performance stock units suggests the company met a significant portion of its performance targets. The sale of shares for tax obligations is a routine transaction.

Positives

• The vesting of performance stock units indicates that Park Hotels & Resorts Inc. achieved a significant portion (99%) of its performance goals related to total shareholder return compared to its peer group.

Negatives

• The sale of 14,881 shares to cover tax obligations, while a standard practice, slightly reduces Dell'Orto's holdings in the company.

Industry Context

Executive compensation through stock awards is a common practice in the hospitality industry to align management's interests with those of shareholders. Performance-based awards, like the TSR-based units in this case, are designed to incentivize executives to achieve specific financial goals.

Comparison to Industry Standards

• Comparing Park Hotels & Resorts' executive compensation structure to peers like Host Hotels & Resorts, Pebblebrook Hotel Trust, and Ryman Hospitality Properties would provide a broader context.
• These companies also utilize performance-based equity awards, often tied to metrics like RevPAR (Revenue Per Available Room), EBITDA growth, and total shareholder return.
• The specific TSR target of 99% achievement suggests a strong alignment with shareholder value creation, which is a positive indicator compared to industry norms.

Stakeholder Impact

• The vesting of performance stock units based on TSR performance positively impacts shareholders by aligning management's interests with shareholder value creation.

Key Dates