Park Hotels Sets New ESG Benchmark for the Hospitality Sector
Garnering top ESG ratings, multiple Newsweek awards, and its first LEED certification, Park Hotels proves sustainability is a core business strategy.
Park Hotels Sets New ESG Benchmark for the Hospitality Sector
TYSONS, VA – January 07, 2026 – Park Hotels & Resorts Inc. is cementing its position as a leader in corporate responsibility, backing its claims with a suite of prestigious external awards, tangible environmental achievements, and a detailed new report that outlines a strategy where sustainability and financial performance are deeply intertwined. The company's eighth annual Corporate Responsibility (CR) Report, released this week, is accompanied by news of its first hotel LEED certification and a "Prime" rating from ISS ESG, signaling to investors and consumers that its commitment goes beyond rhetoric.
The lodging real estate investment trust (REIT) has been recognized by Newsweek on four separate lists for 2025: America’s Greatest Companies, America’s Most Responsible Companies, America’s Most Trustworthy Companies, and World’s Most Trustworthy Companies. These accolades, combined with significant progress in its environmental and governance metrics, illustrate a comprehensive approach that is setting a new standard in the competitive hospitality industry.
Validated Leadership in a Crowded Field
In an era where "greenwashing" can obscure genuine effort, Park Hotels & Resorts has sought and achieved significant third-party validation for its environmental, social, and governance (ESG) programs. The company earned a "Prime" rating from ISS ESG Corporate Rating, a designation awarded to companies that meet ambitious sustainability performance requirements relative to their industry peers. This rating is a key indicator for a growing number of investors who use ESG criteria to screen potential investments.
Further bolstering its credentials are the multiple recognitions from Newsweek. The "America's Most Responsible Companies" list, for example, is not a simple popularity contest. It involves a rigorous two-part analysis of the 2,000 largest U.S. public companies, combining quantitative data from over 30 ESG key performance indicators with a broad public survey of more than 26,000 U.S. residents. Similarly, the "Most Trustworthy Companies" rankings are built on a foundation of extensive surveys measuring customer, investor, and employee trust, supplemented by a social media sentiment analysis. Earning a spot on these lists suggests that Park's strategy resonates with stakeholders on multiple levels, from Wall Street to Main Street.
This external validation is crucial in the hospitality sector, where consumer and investor trust can directly impact brand reputation and financial results. By subjecting its practices to the scrutiny of established ratings agencies, Park is demonstrating a level of transparency that aims to build long-term credibility.
From Boardroom Strategy to Greener Hotel Stays
The company's sustainability efforts are not just confined to reports and ratings; they are becoming a tangible part of the guest experience. A landmark achievement for Park is the recent LEED certification of the Tapa Tower at its iconic Hilton Hawaiian Village Waikiki Beach Resort. This is the first hotel in Park's portfolio to receive the coveted Leadership in Energy and Environmental Design certification from the U.S. Green Building Council.
The certification followed an extensive $85 million renovation of the tower's guestrooms. LEED-certified buildings are designed to be healthier, more efficient, and cost-effective, focusing on metrics like energy and water conservation, waste reduction, and indoor environmental quality. For guests, this translates to a stay in a space with better air quality and the knowledge that the property is actively working to minimize its environmental footprint. For the company, the benefits extend to significant long-term operational savings on utilities and maintenance. Research has shown that LEED-certified hotels can command a higher Average Daily Rate (ADR) and demonstrate superior overall financial performance compared to non-certified competitors, making it a sound business decision as well as an environmental one.
"We are pleased to share our annual CR Report with our stakeholders as part of our steadfast commitment to responsible risk mitigation, environmental reduction, social advancement and sound governance practices,” said Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park, in the company's announcement. “We firmly believe that our corporate responsibility initiatives are integral to Park’s success."
Looking ahead, Park is not resting on its laurels. The company announced plans for its first solar PV panel project, slated for integration at the Hilton Waikoloa Village in Hawaii in 2026. This move toward on-site renewable energy generation represents a significant step in reducing reliance on the grid and controlling energy costs, with potential for additional LEED certifications also on the horizon.
The Financial Case for Doing Good
Park's strategy underscores a growing consensus in the corporate world: robust ESG programs are not just a moral imperative but a financial one. The company's performance in the 2025 GRESB Real Estate Assessment, a leading global benchmark for real assets, provides a clear metric for investors. Park's score jumped six points to 87, placing it in the top 17% of all publicly listed GRESB participants in the Americas. This consistent improvement—a 16-point increase since 2020—is a powerful signal to capital markets that the company is effectively managing sustainability-related risks and opportunities.
The CR report itself highlights a proactive risk management program that the company states has removed $2.5 billion of risk from its portfolio through a focus on asset resiliency and mitigation. This includes preparing its prime city-center and resort properties for the physical risks associated with climate change.
The report also provides a transparent look at the company's data. While overall waste intensity saw an increase, it was attributed to more comprehensive data collection, and the company simultaneously reported a 116% increase in recycled waste over the previous year. This commitment to data integrity, including achieving limited assurance for its environmental data, aligns with global frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB). This level of detail allows for a more nuanced understanding of the company's progress and challenges.
The "S" in ESG is also a clear focus. The report highlights continued investment in employee well-being and development, noting an impressive 89% retention rate for graduates of its Leadership Development Program. In a high-turnover industry like hospitality, this focus on human capital is a key differentiator and a driver of long-term stability and service quality. As Park continues to integrate these principles across its portfolio of 35 premium-branded hotels, its journey demonstrates that a commitment to responsibility can be a powerful engine for growth and resilience.
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