Park Hotels Repays $1.275 Billion Hilton Hawaiian Village CMBS Loan

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Park Hotels & Resorts has repaid the $1.275 billion commercial mortgage-backed securities loan secured by the Hilton Hawaiian Village Waikiki Beach Resort, removing one of the hotel REIT’s largest near-term debt maturities and leaving the flagship Hawaii property unencumbered.

The company announced the repayment Wednesday, one month before the mortgage’s scheduled Nov. 1 maturity. Park said it funded the payoff with proceeds from a $700 million delayed-draw mortgage financing on its Bonnet Creek resort complex in Orlando and a $600 million draw from its delayed-draw term loan facility.

The transaction pushes Park’s weighted-average debt maturity out by roughly 1.5 years to 3.1 years, including extension options, according to the company. Less than 11% of its total debt now matures through the end of 2027.

The payoff also changes the financing position of one of Park’s most important assets. Hilton Hawaiian Village, a sprawling Waikiki resort, had backed a fixed-rate mortgage carrying a 4.20% interest rate. Park’s first-quarter financial disclosure listed $1.275 billion outstanding on the loan as of March 31.

Park had been preparing for the maturity

The repayment was not an unexpected refinancing scramble. Park had been laying out the plan to investors for months.

In its 2025 annual report, the company said it intended to use its delayed-draw term loan together with anticipated financing on the Bonnet Creek complex to fully repay the Hilton Hawaiian Village CMBS debt in September. Park subsequently closed the $700 million Bonnet Creek delayed-draw facility in April.

By the second quarter, the company was still telling investors that the Bonnet Creek financing was expected to be drawn in September to address upcoming maturities. Wednesday’s announcement confirms that the planned capital structure move has now been completed.

Thomas J. Baltimore Jr., Park’s chairman and CEO, said the transaction “meaningfully extends our debt maturity profile” while unencumbering the resort. The company said the absence of property-level debt on Hilton Hawaiian Village gives it greater flexibility in how it manages the asset.

A major asset behind the debt

Hilton Hawaiian Village has also been a focus of Park’s capital spending. The company said earlier this year that it completed the second and final phase of guestroom renovations and room conversions, totaling approximately $85 million and begun in 2025, at two towers of its flagship Hawaii properties: the 822-room Rainbow Tower at Hilton Hawaiian Village and the 414-room Palace Tower at Hilton Waikoloa Village.

Park reported in August that comparable revenue per available room across its portfolio rose 5.8% year over year in the second quarter of 2026. Its second-quarter results also showed $50 million of net income and $47 million of net income attributable to stockholders.

The company’s debt-management strategy has included more than the Hawaii refinancing. In June, Park drew $200 million from its $800 million senior unsecured delayed-draw term loan facility, using part of the proceeds to repay the $120 million mortgage on the Hyatt Regency Boston. It has also been selling non-core hotels and has said proceeds from those dispositions are expected to help reduce leverage.

Park owns a portfolio of 30 premium-branded hotels and resorts totaling more than 21,000 rooms. The company has said its longer-term balance-sheet objective is to reduce leverage below five times.

With the Hilton Hawaiian Village mortgage now retired, attention shifts to Park’s remaining maturities and the cost of the debt used to replace the 4.20% CMBS financing. The company is scheduled to report third-quarter results in November.