Park Hotels & Resorts Inc. Reports Third Quarter 2025 Results
TYSONS, Va.--( BUSINESS WIRE)--Park Hotels & Resorts Inc. (“Park” or the “Company”) (NYSE: PK) today announced results for the third quarter ended September 30, 2025 and provided an operational update.
Third Quarter Highlights Include:
Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, “During the third quarter, we remained laser-focused on our strategic objective to preserve a strong and flexible balance sheet. We significantly increased our liquidity to $2.1 billion to address maturing loans. In addition, we continued to reshape our portfolio through non-core asset dispositions, with the permanent closure of the Embassy Suites Kansas City Plaza at the end of September, while continuing to invest in our core portfolio with significant renovations ongoing at our two Hawaii resorts and the Hilton New Orleans Riverside, and our transformative ROI project at the Royal Palm in Miami.
Comparable RevPAR declined by 4.9% for the third quarter compared to prior year when excluding the Royal Palm, as softer leisure and government transient demand added to an expected decrease in group demand, due to tough comparisons from strong citywide calendars in many of our markets last year, negatively impacting our hotels in Hawaii, New Orleans, San Diego and Washington D.C. Partially offsetting those headwinds was otherwise strong performance at our hotels in San Francisco, Puerto Rico, New York, Orlando and Key West, with combined Comparable RevPAR across these markets increasing by over 4% when compared to prior year.
Looking ahead, we expect a meaningful improvement in group demand as Comparable Group Revenue Pace for the fourth quarter is projected to increase over 12%, compared to the same period in 2024, with double-digit increases across several of our key hotels, including the JW Marriott San Francisco Union Square, our Hawaii and Bonnet Creek Orlando hotels, the Hilton Denver City Center, the Hilton Caribe in Puerto Rico and the New York Hilton Midtown. We expect the Hilton Hawaiian Village Waikiki Beach Resort to considerably improve as we lap the labor strike that disrupted operations during the fourth quarter last year, with Group Revenue Pace projected to increase nearly 57%. I continue to be incredibly proud of our team’s disciplined execution on cost controls, which further limited total expense growth at our Comparable hotels to just 10 basis points this quarter, and we expect additional savings to flow through in the fourth quarter.”
Selected Statistical and Financial Information
(unaudited, amounts in millions, except RevPAR, ADR, Total RevPAR and per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
Change (1)
2025
2024
Change (1)
Comparable RevPAR (2)
$
180.93
$
192.59
(6.1
)%
$
185.85
$
191.31
(2.9
)%
Comparable Occupancy
74.7
%
78.2
%
(3.5
)% pts
73.6
%
75.8
%
(2.2
) % pts
Comparable ADR
$
242.25
$
246.38
(1.7
)%
$
252.45
$
252.19
0.1
%
Comparable Total RevPAR
$
287.20
$
300.29
(4.4
)%
$
302.56
$
307.35
(1.6
)%
Net (loss) income
$
(14
)
$
57
(124.6
)%
$
(73
)
$
153
(147.7
)%
Net (loss) income attributable to stockholders
$
(16
)
$
54
(129.6
)%
$
(78
)
$
146
(153.4
)%
Operating income
$
59
$
95
(37.5
)%
$
131
$
308
(57.4
)%
Operating income margin
9.7
%
14.6
%
(490
) bps
6.8
%
15.6
%
(880
) bps
Comparable Hotel Adjusted EBITDA
$
141
$
167
(15.9
)%
$
483
$
533
(9.4
)%
Comparable Hotel Adjusted EBITDA margin
24.1
%
27.4
%
(330
) bps
26.4
%
28.6
%
(220
) bps
Adjusted EBITDA
$
130
$
159
(18.2
)%
$
457
$
514
(11.1
)%
Adjusted FFO attributable to stockholders
$
70
$
102
(31.4
)%
$
291
$
350
(16.9
)%
(Loss) earnings per share – Diluted (1)
$
(0.08
)
$
0.26
(130.8
)%
$
(0.40
)
$
0.69
(158.0
)%
Adjusted FFO per share – Diluted (1)
$
0.35
$
0.49
(28.6
)%
$
1.45
$
1.67
(13.2
)%
Weighted average shares outstanding – Diluted (3)
200
208
(8
)
200
210
(10
)
______________________________________________
(1)
Amounts are calculated based on unrounded numbers.
(2)
For the three and nine months ended September 30, 2025, Comparable RevPAR excluding the Royal Palm, which suspended operations in mid-May 2025 for a comprehensive renovation, decreased (4.9)% and (2.1)%, respectively, compared to the same periods in 2024.
(3)
Diluted loss per share for the three and nine months ended September 30, 2025 was calculated based on weighted average shares of 199 million for both periods, which excludes shares that were anti-dilutive. For purposes of Diluted Adjusted FFO per share, weighted average shares were 200 million for both periods.
Operational Update
Results for Park’s Comparable hotels in each of the Company’s key markets and by hotel type are as follows:
(unaudited)
Comparable ADR
Comparable Occupancy
Comparable RevPAR
Hotels
Rooms
3Q25
3Q24
Change (1)
3Q25
3Q24
Change
3Q25
3Q24
Change (1)
Hawaii
2
3,525
$
295.48
$
312.86
(5.6
)%
81.4
%
87.0
%
(5.6
) % pts
$
240.57
$
272.29
(11.6
)%
Orlando
3
2,325
207.43
201.39
3.0
64.4
65.1
(0.7
)
133.67
131.18
1.9
New York
1
1,878
320.25
304.42
5.2
89.9
91.0
(1.1
)
287.95
277.19
3.9
New Orleans
1
1,622
168.64
173.42
(2.8
)
56.0
64.2
(8.2
)
94.46
111.44
(15.2
)
Boston
3
1,536
266.30
281.13
(5.3
)
88.0
87.5
0.5
234.46
246.23
(4.8
)
Southern California
5
1,773
235.96
250.89
(5.9
)
80.6
85.0
(4.4
)
190.13
213.29
(10.9
)
Key West
2
461
341.44
362.17
(5.7
)
69.7
65.3
4.4
238.06
236.53
0.6
Chicago
3
2,467
229.31
237.93
(3.6
)
78.1
77.1
1.0
179.10
183.56
(2.4
)
Puerto Rico
1
652
241.04
264.86
(9.0
)
84.0
68.5
15.5
202.55
181.39
11.7
Washington, D.C.
2
1,085
181.83
181.93
(0.1
)
63.0
75.0
(12.0
)
114.64
136.56
(16.1
)
Denver
1
613
184.67
204.78
(9.8
)
77.9
74.4
3.5
143.84
152.25
(5.5
)
Miami (2)
1
393
—
185.86
(100.0
)
—
72.9
(72.9
)
—
135.57
(100.0
)
Seattle
2
1,246
181.15
182.67
(0.8
)
88.7
86.0
2.7
160.69
157.16
2.2
San Francisco
1
344
294.09
271.12
8.5
72.1
68.9
3.2
211.96
186.79
13.5
Other
7
2,209
193.44
191.67
0.9
66.6
72.2
(5.6
)
128.77
138.40
(7.0
)
All Markets
35
22,129
$
242.25
$
246.38
(1.7
)%
74.7
%
78.2
%
(3.5
) % pts
$
180.93
$
192.59
(6.1
)%
Comparable ADR
Comparable Occupancy
Comparable RevPAR
Hotels
Rooms
3Q25
3Q24
Change (1)
3Q25
3Q24
Change
3Q25
3Q24
Change (1)
Resort
12
8,313
$
272.56
$
282.21
(3.4
)%
72.6
%
77.5
%
(4.9
) % pts
$
197.83
$
218.61
(9.5
)%
Urban
11
8,381
242.11
241.78
0.1
76.4
78.2
(1.8
)
185.08
188.99
(2.1
)
Airport
6
3,464
196.81
198.05
(0.6
)
76.9
81.8
(4.9
)
151.42
162.10
(6.6
)
Suburban
6
1,971
199.40
203.57
(2.0
)
72.1
74.6
(2.5
)
143.83
151.98
(5.4
)
All Types
35
22,129
$
242.25
$
246.38
(1.7
)%
74.7
%
78.2
%
(3.5
) % pts
$
180.93
$
192.59
(6.1
)%
______________________________________________
(1)
Calculated based on unrounded numbers.
(2)
In mid-May 2025, operations at the Royal Palm were suspended for a comprehensive renovation.
Park experienced softer group demand during the third quarter across its portfolio; however, Comparable Group Revenue Pace for the fourth quarter of 2025 is projected to increase by over 12%, compared to what group bookings were for the same time period in 2024 at the end of September 2024, while average Comparable group rates are projected to exceed 2024 average Comparable group rates by over 2% for the same time period.
The extended government shutdown has affected both group and transient demand in several key markets, including Hawaii, Washington D.C. and Southern California, with an expected 180 basis point impact to Comparable RevPAR in October 2025, which is expected to be relatively flat when compared to prior year, or up 1.5% when excluding the Royal Palm.
Balance Sheet and Liquidity
As of September 30, 2025, Park’s liquidity was approximately $2.1 billion, including $1 billion of available capacity under the Revolver, an increase from $950 million, as well as the new, undrawn $800 million 2025 Delayed Draw Term Loan. Park expects to draw from the 2025 Delayed Draw Term Loan in 2026 to fully repay the $122 million secured mortgage loan encumbering the Hyatt Regency Boston hotel maturing in July 2026, and, together with a subsequent financing transaction planned in the first half of 2026, fully repay the $1.275 billion secured mortgage loan encumbering the Hilton Hawaiian Village Waikiki Beach Resort maturing in November 2026. As of September 30, 2025, Park’s Net Debt was approximately $3.7 billion, and the weighted average maturity of Park’s consolidated debt is 2.4 years.
In addition, Park expects the 1,921-room Hilton San Francisco Union Square and 1,024-room Parc 55 San Francisco – a Hilton Hotel (collectively, the “Hilton San Francisco Hotels”), which secure the $725 million non-recourse CMBS Loan (“SF Mortgage Loan”), will be sold by the court-appointed receiver by November 21, 2025, and the buyer to assume the SF Mortgage Loan at that time. The Hilton San Francisco Hotels were placed in a court-ordered receivership in October 2023, and Park no longer had an economic interest in the operations of the hotels when the receiver took control of the hotels.
Park had the following debt outstanding as of September 30, 2025:
(unaudited, dollars in millions)
Debt (1)
Collateral
Interest Rate
Maturity Date
As of
September 30, 2025
Fixed Rate Debt
Mortgage loan
Hilton Denver City Center
4.90%
March 2026 (2)
$
51
Mortgage loan
Hyatt Regency Boston
4.25%
July 2026
122
Mortgage loan
Hilton Hawaiian Village Beach Resort
4.20%
November 2026
1,275
Mortgage loan
Hilton Santa Barbara Beachfront Resort
4.17%
December 2026
154
Mortgage loan
DoubleTree Hotel Ontario Airport
5.37%
May 2027
30
2028 Senior Notes
Unsecured
5.88%
October 2028
725
2029 Senior Notes
Unsecured
4.88%
May 2029
750
2030 Senior Notes
Unsecured
7.00%
February 2030
550
Finance lease obligations
7.04%
2026 to 2028
1
Total Fixed Rate Debt
5.11% (3)
3,658
Variable Rate Debt
Revolver (4)
Unsecured
SOFR + 2.00%
September 2029
—
2024 Term Loan
Unsecured
SOFR + 1.95%
May 2027
200
2025 Delayed Draw Term Loan (4)
Unsecured
SOFR + 1.95%
January 2030
—
Total Variable Rate Debt
6.09%
200
Less: unamortized deferred financing costs and discount
(19
)
Total Debt (1)(5)
5.16% (3)
$
3,839
_____________________________________________
(1)
Excludes the SF Mortgage Loan, which is included in debt associated with hotels in receivership in Park’s condensed consolidated balance sheets.
(2)
The loan matures in August 2042 but became callable by the lender in August 2022 with six months notice. As of September 30, 2025, Park had not received notice from the lender.
(3)
Calculated on a weighted average basis.
(4)
As of October 30, 2025, Park has $1 billion of available capacity under the Revolver with no outstanding letters of credit and $800 million of its 2025 Delayed Draw Term Loan available.
(5)
Excludes $157 million of Park’s share of debt of its unconsolidated joint ventures.
Capital Investments
During the third quarter of 2025, Park spent nearly $70 million on capital improvements at its hotels and expects to spend approximately $280 million to $300 million in capital expenditures during 2025. During the third quarter of 2025, Park began the second phase of renovations at two of its flagship properties in Hawaii – the Rainbow Tower at the Hilton Hawaiian Village Waikiki Beach Resort and the Palace Tower at the Hilton Waikoloa Village – alongside the second phase of guestroom renovations at the Hilton New Orleans Riverside.
Additionally, the $103 million comprehensive renovation at the Royal Palm remains on track and on budget, which includes 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% to 20% return on investment. Hotel operations were suspended beginning in mid-May 2025, with an expected reopening in June 2026.
Recent and upcoming renovations and return on investment projects (“ROI”) include:
(dollars in millions)
Projects & Scope of Work
Start Date
Estimated
Completion
Date
Budget
Total Incurred
as of
September 30,
2025
Royal Palm
Full property renovation, including the renovation of 393 guestrooms and the addition of 11 guestrooms to increase the room count to 404
Q2 2025
Q2 2026
$
103
$
48
Hilton Hawaiian Village Waikiki Beach Resort
Phase 2: Renovation of 404 guestrooms and the addition of 14 guestrooms through the conversion of suites to increase room count at the Rainbow Tower to 822
Q3 2025
Q1 2026
$
49
$
21
Hilton Waikoloa Village
Phase 2: Renovation of 203 guestrooms and the addition of 8 guestrooms through the conversion of suites to increase room count at the Palace Tower to 414
Q3 2025
Q1 2026
$
37
$
20
Hilton New Orleans Riverside
Phase 2: Renovation of 428 guestrooms at the 1,167-room Main Tower
Q3 2025
Q1 2026
$
31
$
19
Dividends
Park declared a third quarter 2025 cash dividend of $0.25 per share to stockholders of record as of September 30, 2025. The third quarter dividend was paid on October 15, 2025.
On October 23, 2025, Park declared a fourth quarter 2025 cash dividend of $0.25 per share to be paid on January 15, 2026 to stockholders of record as of December 31, 2025. The fourth quarter dividend, together with the cash dividends declared for the first three quarters of 2025, represent an annual yield of 9% based on Park’s closing stock price on October 28, 2025. To preserve its liquidity, Park does not expect to declare an incremental top-off dividend for 2025.
Full-Year 2025 Outlook
Park expects full-year 2025 operating results to be as follows:
(unaudited, dollars in millions, except per share amounts and RevPAR)
Full-Year 2025 Outlook
as of October 30, 2025
Full-Year 2025 Outlook
as of July 31, 2025
Change at
Midpoint
Metric
Low
High
Low
High
Comparable RevPAR
$
184
$
185
$
184
$
187
$
(1
)
Comparable RevPAR change vs. 2024
(2.5
)%
(1.8
)%
(2.0
)%
—
%
(110
) bps
Comparable RevPAR, excluding the Royal Palm
$
186
$
187
$
185
$
189
$
(1
)
Comparable RevPAR change vs. 2024, excluding the Royal Palm
(1.5
)%
(0.7
)%
(1.0
)%
1.0
%
(110
) bps
Net loss
$
(60
)
$
(35
)
$
(53
)
$
(3
)
$
(20
)
Net loss attributable to stockholders
$
(66
)
$
(41
)
$
(60
)
$
(10
)
$
(19
)
Loss per share – Diluted (1)
$
(0.33
)
$
(0.21
)
$
(0.30
)
$
(0.05
)
$
(0.10
)
Operating income
$
206
$
231
$
212
$
263
$
(19
)
Operating income margin
8.2
%
9.1
%
8.4
%
10.2
%
(70
) bps
Adjusted EBITDA
$
595
$
620
$
595
$
645
$
(13
)
Comparable Hotel Adjusted EBITDA margin (1)
26.3
%
26.9
%
26.1
%
27.5
%
(20
) bps
Comparable Hotel Adjusted EBITDA margin change vs. 2024 (1)
(130
) bps
(70
) bps
(150
) bps
(10
) bps
(20
) bps
Adjusted FFO per share – Diluted (1)
$
1.85
$
1.97
$
1.82
$
2.08
$
(0.04
)
______________________________________________
(1)
Amounts are calculated based on unrounded numbers.
Park’s outlook is based in part on the following assumptions:
Park’s full-year 2025 outlook is based on several factors, many of which are outside the Company’s control, including uncertainty surrounding macro-economic factors, such as inflation, changes in interest rates and the possibility of an economic recession or slowdown, as well as the assumptions set forth above, all of which are subject to change. Additionally, Park’s full-year 2025 outlook does not include assumptions around the incremental impact of tariff announcements (including any foreign tariffs announced in response to changes in U.S. trade policy), changes in travel patterns to or in the United States as a result of tariff or trade policy, or continued government shutdown beyond October 2025 as the net effect of such announcements or events cannot be ascertained or quantified at this time.
Supplemental Disclosures
In conjunction with this release, Park has furnished a financial supplement with additional disclosures on its website. Visit www.pkhotelsandresorts.com for more information. Park has no obligation to update any of the information provided to conform to actual results or changes in Park’s portfolio, capital structure or future expectations.
Conference Call
Park will host a conference call for investors and other interested parties to discuss third quarter 2025 results on October 31, 2025 beginning at 11 a.m. Eastern Time. Participants may listen to the live webcast by logging onto the Investors section of the website at www.pkhotelsandresorts.com. Alternatively, participants may listen to the live call by dialing (877) 451-6152 in the United States or (201) 389-0879 internationally and requesting Park Hotels & Resorts’ Third Quarter 2025 Earnings Conference Call. Participants are encouraged to dial into the call or link to the webcast at least ten minutes prior to the scheduled start time.
A replay of the webcast will be available within 24 hours after the live event on the Investors section of Park’s website.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements related to the effects of Park’s decision to cease payments on its $725 million SF Mortgage Loan secured by the Hilton San Francisco Hotels and Park’s expectation that the hotels will be sold by the court-appointed receiver by November 21, 2025, with the buyer assuming the SF Mortgage Loan at that time, as well as Park’s current expectations regarding the performance of its business, financial results, liquidity and capital resources, including the use of proceeds from Park’s new 2025 Delayed Draw Term Loan and the anticipated repayment of certain of Park’s indebtedness, the completion of capital allocation priorities, the expected repurchase of Park’s stock, the impact from macroeconomic factors (including elevated inflation and interest rates, potential economic slowdown or a recession and geopolitical conflicts or trends, including trade policy, travel barriers or changes in travel preferences for U.S. destinations, including as a result of the government shutdown), the effects of competition and the effects of future legislation, executive action or regulations, tariffs, the expected completion of anticipated dispositions, the declaration, payment and any change in amounts of future dividends and other non-historical statements. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as the words “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “hopes” or the negative version of these words or other comparable words. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Park’s control and which could materially affect its results of operations, financial condition, cash flows, performance or future achievements or events.
All such forward-looking statements are based on current expectations of management and therefore involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements and Park urges investors to carefully review the disclosures Park makes concerning risk and uncertainties in Item 1A: “Risk Factors” in Park’s Annual Report on Form 10-K for the year ended December 31, 2024, as such factors may be updated from time to time in Park’s filings with the Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. Except as required by law, Park undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
Park presents certain non-GAAP financial measures in this press release, including Nareit FFO attributable to stockholders, Adjusted FFO attributable to stockholders, FFO per share, Adjusted FFO per share, EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA, Hotel Adjusted EBITDA margin and Net Debt. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of its operating performance. Please see the schedules included in this press release including the “Definitions” section for additional information and reconciliations of such non-GAAP financial measures.
About Park
Park is one of the largest publicly-traded lodging real estate investment trusts (“REIT”) with a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. Park’s portfolio currently consists of 38 premium-branded hotels and resorts with over 24,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information.
PARK HOTELS & RESORTS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share data)
September 30, 2025
December 31, 2024
(unaudited)
ASSETS
Property and equipment, net
$
7,174
$
7,398
Contract asset
868
820
Intangibles, net
41
41
Cash and cash equivalents
278
402
Restricted cash
31
38
Accounts receivable, net of allowance for doubtful accounts of $3 and $4
124
131
Prepaid expenses
55
69
Other assets
78
71
Operating lease right-of-use assets
181
191
TOTAL ASSETS (variable interest entities – $209 and $223)
$
8,830
$
9,161
LIABILITIES AND EQUITY
Liabilities
Debt
$
3,839
$
3,841
Debt associated with hotels in receivership
725
725
Accrued interest associated with hotels in receivership
143
95
Accounts payable and accrued expenses
237
226
Dividends payable
56
138
Due to hotel managers
107
138
Other liabilities
182
179
Operating lease liabilities
215
225
Total liabilities (variable interest entities – $196 and $201)
5,504
5,567
Stockholders’ Equity
Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 200,945,761 shares issued and 199,911,257 shares outstanding as of September 30, 2025 and 203 407,320 shares issued and 202,553,194 shares outstanding as of December 31, 2024
2
2
Additional paid-in capital
4,027
4,063
Accumulated deficit
(647
)
(420
)
Total stockholders’ equity
3,382
3,645
Noncontrolling interests
(56
)
(51
)
Total equity
3,326
3,594
TOTAL LIABILITIES AND EQUITY
$
8,830
$
9,161
PARK HOTELS & RESORTS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Revenues
Rooms
$
370
$
403
$
1,134
$
1,193
Food and beverage
150
157
512
521
Ancillary hotel
67
68
198
196
Other
23
21
68
64
Total revenues
610
649
1,912
1,974
Operating expenses
Rooms
106
107
311
314
Food and beverage
112
112
357
356
Other departmental and support
148
154
451
454
Other property
56
65
163
174
Management fees
27
30
88
93
Impairment and casualty loss
—
—
70
13
Depreciation and amortization
78
63
269
192
Corporate general and administrative
17
17
54
52
Other
23
21
67
62
Total expenses
567
569
1,830
1,710
Gain on sale of assets, net
—
—
1
—
Gain on derecognition of assets
16
15
48
44
Operating income
59
95
131
308
Interest income
3
6
8
16
Interest expense
(53
)
(54
)
(158
)
(161
)
Interest expense associated with hotels in receivership
(16
)
(15
)
(48
)
(44
)
Equity in earnings from investments in affiliates
—
28
2
29
Other (loss) gain, net
(1
)
(1
)
—
(4
)
(Loss) income before income taxes
(8
)
59
(65
)
144
Income tax (expense) benefit
(6
)
(2
)
(8
)
9
Net (loss) income
(14
)
57
(73
)
153
Net income attributable to noncontrolling interests
(2
)
(3
)
(5
)
(7
)
Net (loss) income attributable to stockholders
$
(16
)
$
54
$
(78
)
$
146
(Loss) earnings per share:
(Loss) earnings per share – Basic
$
(0.08
)
$
0.26
$
(0.40
)
$
0.70
(Loss) earnings per share – Diluted
$
(0.08
)
$
0.26
$
(0.40
)
$
0.69
Weighted average shares outstanding – Basic
199
206
199
208
Weighted average shares outstanding – Diluted
199
208
199
210
PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
EBITDA AND ADJUSTED EBITDA
(unaudited, in millions)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Net (loss) income
$
(14
)
$
57
$
(73
)
$
153
Depreciation and amortization expense
78
63
269
192
Interest income
(3
)
(6
)
(8
)
(16
)
Interest expense
53
54
158
161
Interest expense associated with hotels in receivership (1)
16
15
48
44
Income tax expense (benefit)
6
2
8
(9
)
Interest income and expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates
2
4
6
9
EBITDA
138
189
408
534
Gain on sales of assets, net (2)
—
(19
)
(1
)
(19
)
Gain on derecognition of assets (1)
(16
)
(15
)
(48
)
(44
)
Share-based compensation expense
5
5
14
14
Impairment and casualty loss
—
—
70
13
Other items
3
(1
)
14
16
Adjusted EBITDA
$
130
$
159
$
457
$
514
______________________________________________
(1)
For the three and nine months ended September 30, 2025 and 2024, represents accrued interest expense associated with the default of the SF Mortgage Loan, which was offset by a gain on derecognition for the corresponding increase of the contract asset on the condensed consolidated balance sheets. Park expects the court-appointed receiver to sell the Hilton San Francisco Hotels by November 21, 2025 and the SF Mortgage Loan to be assumed by the buyer at that time.
(2)
For the three and nine months ended September 30, 2024, includes a gain of $19 million on the sale of the Hilton La Jolla Torrey Pines included in equity in earnings from investments in affiliates.
PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
COMPARABLE HOTEL ADJUSTED EBITDA AND
COMPARABLE HOTEL ADJUSTED EBITDA MARGIN
(unaudited, dollars in millions)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Adjusted EBITDA
$
130
$
159
$
457
$
514
Less: Adjusted EBITDA from investments in affiliates
(3
)
(3
)
(16
)
(19
)
Add: All other (1)
14
12
42
41
Hotel Adjusted EBITDA
141
168
483
536
Less: Adjusted EBITDA from hotels disposed of
—
(1
)
—
(3
)
Comparable Hotel Adjusted EBITDA
$
141
$
167
$
483
$
533
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Total Revenues
$
610
$
649
$
1,912
$
1,974
Less: Other revenue
(23
)
(21
)
(68
)
(64
)
Less: Revenues from hotels disposed of
(2
)
(17
)
(16
)
(48
)
Comparable Hotel Revenues
$
585
$
611
$
1,828
$
1,862
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
Change (2)
2025
2024
Change (2)
Total Revenues
$
610
$
649
(6.1
)%
$
1,912
$
1,974
(3.1
)%
Operating income
$
59
$
95
(37.5
)%
$
131
$
308
(57.4
)%
Operating income margin (2)
9.7
%
14.6
%
(490
) bps
6.8
%
15.6
%
(880
) bps
Comparable Hotel Revenues
$
585
$
611
(4.3
)%
$
1,828
$
1,862
(1.8
)%
Comparable Hotel Adjusted EBITDA
$
141
$
167
(15.9
)%
$
483
$
533
(9.4
)%
Comparable Hotel Adjusted EBITDA margin (2)
24.1
%
27.4
%
(330
) bps
26.4
%
28.6
%
(220
) bps
______________________________________________
(1)
Includes other revenues and other expenses, non-income taxes on TRS leases included in other property expenses and corporate general and administrative expenses in the condensed consolidated statements of operations.
(2)
Percentages are calculated based on unrounded numbers.
PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
NAREIT FFO AND ADJUSTED FFO
(unaudited, in millions, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Net (loss) income attributable to stockholders
$
(16
)
$
54
$
(78
)
$
146
Depreciation and amortization expense
78
63
269
192
Depreciation and amortization expense attributable to noncontrolling interests
(1
)
(1
)
(3
)
(3
)
Gain on sales of assets, net
—
—
(1
)
—
Gain on derecognition of assets (1)
(16
)
(15
)
(48
)
(44
)
Impairment loss
—
—
70
12
Equity investment adjustments:
Equity in earnings from investments in affiliates
—
(28
)
(2
)
(29
)
Pro rata FFO of investments in affiliates
—
9
5
14
Nareit FFO attributable to stockholders
45
82
212
288
Casualty loss
—
—
—
1
Share-based compensation expense
5
5
14
14
Interest expense associated with hotels in receivership (1)
16
15
48
44
Other items
4
—
17
3
Adjusted FFO attributable to stockholders
$
70
$
102
$
291
$
350
Nareit FFO per share – Diluted (2)
$
0.22
$
0.40
$
1.06
$
1.37
Adjusted FFO per share – Diluted (2)
$
0.35
$
0.49
$
1.45
$
1.67
Weighted average shares outstanding – Diluted
200
208
200
210
______________________________________________
(1)
For the three and nine months ended September 30, 2025 and 2024, represents accrued interest expense associated with the default of the SF Mortgage Loan, which was offset by a gain on derecognition for the corresponding increase of the contract asset on the condensed consolidated balance sheets. Park expects the court-appointed receiver to sell the Hilton San Francisco Hotels by November 21, 2025 and the SF Mortgage Loan to be assumed by the buyer at that time.
(2)
Per share amounts are calculated based on unrounded numbers.
PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
NET DEBT
(unaudited, in millions)
September 30, 2025
Debt
$
3,839
Add: unamortized deferred financing costs and discount
19
Debt, excluding unamortized deferred financing cost, premiums and discounts
3,858
Add: Park’s share of unconsolidated affiliates debt, excluding unamortized deferred financing costs
157
Less: cash and cash equivalents
(278
)
Less: restricted cash
(31
)
Net Debt
$
3,706
PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
OUTLOOK – EBITDA, ADJUSTED EBITDA, COMPARABLE HOTEL ADJUSTED EBITDA
AND COMPARABLE HOTEL ADJUSTED EBITDA MARGIN
(unaudited, in millions)
Year Ending
December 31, 2025
Low Case
High Case
Net loss
$
(60
)
$
(35
)
Depreciation and amortization expense
334
334
Interest income
(9
)
(9
)
Interest expense
209
209
Interest expense associated with hotels in receivership
58
58
Income tax expense
11
11
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates
8
8
EBITDA
551
576
Gain on sale of assets, net
(1
)
(1
)
Gain on derecognition of assets
(58
)
(58
)
Share-based compensation expense
19
19
Impairment loss
70
70
Other items
14
14
Adjusted EBITDA
595
620
Less: Adjusted EBITDA from investments in affiliates
(18
)
(20
)
Add: All other
57
57
Comparable Hotel Adjusted EBITDA
$
634
$
657
Year Ending
December 31, 2025
Low Case
High Case
Total Revenues
$
2,521
$
2,549
Less: Other revenue
(93
)
(93
)
Hotel Revenues
2,428
2,456
Less: Revenues from hotels disposed of
(15
)
(15
)
Comparable Hotel Revenues
$
2,413
$
2,441
Year Ending
December 31, 2025
Low Case
High Case
Total Revenues
$
2,521
$
2,549
Operating income
$
206
$
231
Operating income margin (1)
8.2
%
9.1
%
Comparable Hotel Revenues
$
2,413
$
2,441
Comparable Hotel Adjusted EBITDA
$
634
$
657
Comparable Hotel Adjusted EBITDA margin (1)
26.3
%
26.9
%
______________________________________________
(1)
Percentages are calculated based on unrounded numbers.
PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
OUTLOOK – NAREIT FFO ATTRIBUTABLE TO STOCKHOLDERS AND
ADJUSTED FFO ATTRIBUTABLE TO STOCKHOLDERS
(unaudited, in millions except per share data)
Year Ending
December 31, 2025
Low Case
High Case
Net loss attributable to stockholders
$
(66
)
$
(41
)
Depreciation and amortization expense
334
334
Depreciation and amortization expense attributable to noncontrolling interests
(4
)
(4
)
Gain on sale of assets, net
(1
)
(1
)
Gain on derecognition of assets
(58
)
(58
)
Impairment loss
70
70
Equity investment adjustments:
Equity in earnings from investments in affiliates
(3
)
(4
)
Pro rata FFO of equity investments
7
7
Nareit FFO attributable to stockholders
279
303
Share-based compensation expense
19
19
Interest expense associated with hotels in receivership
58
58
Other items
14
13
Adjusted FFO attributable to stockholders
$
370
$
393
Adjusted FFO per share – Diluted (1)
$
1.85
$
1.97
Weighted average diluted shares outstanding
200
200
______________________________________________
(1)
Per share amounts are calculated based on unrounded numbers.
PARK HOTELS & RESORTS INC.
DEFINITIONS
Comparable
The Company presents certain data for its consolidated hotels on a Comparable basis as supplemental information for investors: Comparable Hotel Revenues, Comparable RevPAR, Comparable Occupancy, Comparable ADR, Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin. The Company presents Comparable hotel results to help the Company and its investors evaluate the ongoing operating performance of its hotels. The Company’s Comparable metrics include results from hotels that were active and operating in Park’s portfolio since January 1st of the previous year and property acquisitions as though such acquisitions occurred on the earliest period presented. Additionally, Comparable metrics exclude results from property dispositions that have occurred through October 30, 2025 and the Hilton San Francisco Hotels, which were placed into receivership at the end of October 2023 and are expected to be sold by the court-appointed receiver by November 21, 2025.
EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin
Earnings before interest expense, taxes and depreciation and amortization (“EBITDA”), presented herein, reflects net income (loss) excluding depreciation and amortization, interest income, interest expense, income taxes and also interest income and expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates.
Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude the following items that are not reflective of Park’s ongoing operating performance or incurred in the normal course of business, and thus, excluded from management’s analysis in making day-to-day operating decisions and evaluations of Park’s operating performance against other companies within its industry:
Hotel Adjusted EBITDA measures hotel-level results before debt service, depreciation and corporate expenses of the Company’s consolidated hotels, which excludes hotels owned by unconsolidated affiliates, and is a key measure of the Company’s profitability. The Company presents Hotel Adjusted EBITDA to help the Company and its investors evaluate the ongoing operating performance of the Company’s consolidated hotels.
Hotel Adjusted EBITDA margin is calculated as Hotel Adjusted EBITDA divided by total hotel revenue.
EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are not recognized terms under United States (“U.S.”) GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company’s definitions of EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin may not be comparable to similarly titled measures of other companies.
The Company believes that EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin provide useful information to investors about the Company and its financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are among the measures used by the Company’s management team to make day-to-day operating decisions and evaluate its operating performance between periods and between REITs by removing the effect of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results; and (ii) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in the industry.
EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss) or other methods of analyzing the Company’s operating performance and results as reported under U.S. GAAP. Because of these limitations, EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA should not be considered as discretionary cash available to the Company to reinvest in the growth of its business or as measures of cash that will be available to the Company to meet its obligations. Further, the Company does not use or present EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin as measures of liquidity or cash flows.
Nareit FFO attributable to stockholders, Adjusted FFO attributable to stockholders, Nareit FFO per share – diluted and Adjusted FFO per share – diluted
Nareit FFO attributable to stockholders and Nareit FFO per diluted share (defined as set forth below) are presented herein as non-GAAP measures of the Company’s performance. The Company calculates funds from (used in) operations (“FFO”) attributable to stockholders for a given operating period in accordance with standards established by the National Association of Real Estate Investment Trusts (“Nareit”), as net income (loss) attributable to stockholders (calculated in accordance with U.S. GAAP), excluding depreciation and amortization, gains or losses on sales of assets, impairment, and the cumulative effect of changes in accounting principles, plus adjustments for unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect the Company’s pro rata share of the FFO of those entities on the same basis. As noted by Nareit in its December 2018 “Nareit Funds from Operations White Paper – 2018 Restatement,” since real estate values historically have risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For these reasons, Nareit adopted the FFO metric in order to promote an industry-wide measure of REIT operating performance. The Company believes Nareit FFO provides useful information to investors regarding its operating performance and can facilitate comparisons of operating performance between periods and between REITs. The Company’s presentation may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current Nareit definition, or that interpret the current Nareit definition differently. The Company calculates Nareit FFO per diluted share as Nareit FFO divided by the number of fully diluted shares outstanding during a given operating period.
The Company also presents Adjusted FFO attributable to stockholders and Adjusted FFO per diluted share when evaluating its performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding the Company’s ongoing operating performance. Management historically has made the adjustments detailed below in evaluating its performance and in its annual budget process. Management believes that the presentation of Adjusted FFO provides useful supplemental information that is beneficial to an investor’s complete understanding of operating performance. The Company adjusts Nareit FFO attributable to stockholders for the following items, which may occur in any period, and refers to this measure as Adjusted FFO attributable to stockholders:
Net Debt
Net Debt, presented herein, is a non-GAAP financial measure that the Company uses to evaluate its financial leverage. Net Debt is calculated as (i) debt excluding unamortized deferred financing costs; and (ii) the Company’s share of investments in affiliate debt, excluding unamortized deferred financing costs; reduced by (a) cash and cash equivalents; and (b) restricted cash and cash equivalents. Net Debt also excludes Debt associated with hotels in receivership.
The Company believes Net Debt provides useful information about its indebtedness to investors as it is frequently used by securities analysts, investors and other interested parties to compare the indebtedness of companies. Net Debt should not be considered as a substitute to debt presented in accordance with U.S. GAAP. Net Debt may not be comparable to a similarly titled measure of other companies.
Occupancy
Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels. Occupancy measures the utilization of the Company’s hotels’ available capacity. Management uses Occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable Average Daily Rate (“ADR”) levels as demand for rooms increases or decreases.
Average Daily Rate
ADR (or rate) represents rooms revenue divided by total number of room nights sold in a given period. ADR measures average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the hotel industry, and management uses ADR to assess pricing levels that the Company is able to generate by type of customer, as changes in rates have a more pronounced effect on overall revenues and incremental profitability than changes in Occupancy, as described above.
Revenue per Available Room
Revenue per Available Room (“RevPAR”) represents rooms revenue divided by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of the Company’s performance as it provides a metric correlated to two primary and key factors of operations at a hotel or group of hotels: Occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods.
Total RevPAR
Total RevPAR represents rooms, food and beverage and other hotel revenues divided by the total number of room nights available to guests for a given period. Management considers Total RevPAR to be a meaningful indicator of the Company’s performance as approximately one-third of revenues are earned from food and beverage and other hotel revenues. Total RevPAR is also a useful indicator in measuring performance over comparable periods.
Group Revenue Pace
Group Revenue Pace represents bookings for future business and is calculated as group room nights multiplied by the contracted room rate expressed as a percentage of a prior period relative to a prior point in time.