Officials with Park Hotels & Resorts declared a special REIT E&P dividend of $2.79 per share, or $551 million in cash and common stock.
MCLEAN, Virginia--9 January 2017--Park Hotels & Resorts Inc. (NYSE: PK) (the “Company”) today announced that its Board of Directors has declared a special dividend of $2.79 per share (the “E&P Dividend”), or approximately $551 million in cash and shares of the Company’s common stock, payable to stockholders of record as of January 19, 2017. The E&P Dividend represents the Company’s estimated share of C corporation earning and profits attributable to the period prior to January 4, 2017, which the Company is required to pay to its stockholders in connection with its election to be treated as a real estate investment trust (“REIT”).
Stockholders on the January 19, 2017 record date will be entitled to elect to receive their portion of the E&P Dividend in cash or shares of the Company’s common stock, with no more than 20% of the E&P Dividend in the aggregate to be paid in cash. If cash elections exceed the approved amount, stockholders will receive a pro-rata amount of their distribution in cash and the remaining portion in stock. Stockholders will be required to make their elections no later than February 28, 2017. The Company expects to pay the E&P Dividend on or as soon as practicable after March 9, 2017.
Election materials and forms to be mailed to stockholders promptly after the record date will describe in more detail the election process for the E&P Dividend, the limitations on the total amount of cash the Company will pay and related logistical matters. Regardless of the form in which it is received, the Company expects that the E&P Dividend will be a taxable dividend to stockholders. The E&P Dividend may be subject to applicable withholding taxes. Although REIT dividends generally are not eligible for taxation at the preferential income tax rates (i.e., the 20% maximum U.S. federal rate that applies to qualified dividends received from taxable corporations by most U.S. stockholders that are individuals, trusts or estates), the E&P Dividend will be considered a qualified dividend eligible for tax at the preferential rates to the extent that it is attributable to the Company’s accumulated C corporation earnings and profits from pre-REIT years.
About Park Hotels & Resorts
Park Hotels & Resorts Inc. (NYSE: PK) is one of the largest publicly traded lodging real estate investment trusts with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. The Company’s portfolio currently consists of 67 premium-branded hotels and resorts with over 35,000 rooms located in prime U.S. and international markets with high barriers to entry. For additional information, please visit the Company's website at www.pkhotelsandresorts.com.
Park Hotels & Resorts Inc.
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