During 2025, Park Hotels & Resorts expects to spend approximately $310 million to $330 million in capital expenditures, including the $100 million renovation at the Royal Palm South Beach Miami, a Tribute Portfolio Resort, as well as continuing the second phase of guestroom renovations and room conversions at its Hawaii and New Orleans hotels.
The renovation at the Royal Palm South Beach Miami, a Tribute Portfolio Resort, will include a full renovation of all 393 guestrooms at the oceanfront hotel, along with the addition of 11 new guestrooms.
The project is expected to generate a 15 percent to 20 percent return on investment. Hotel operations are currently expected to be suspended in mid-May, with reopening planned for May 2026, resulting in an anticipated $17 million of disruption to hotel adjusted EBITDA for 2025.
In November 2024, Park completed phase one of guestroom renovations totaling $16 million at the main tower at the Hilton New Orleans Riverside, and so far in 2025, Park has completed the first phase of guestroom renovations and room conversions of the rainbow tower at the Hilton Hawaiian Village Waikiki Beach Resort and of the Palace Tower at the Hilton Waikoloa Village, totaling nearly $76 million.
During 2024, Park spent nearly $230 million on capital improvements at its hotels, with nearly $65 million spent during the fourth quarter.