Park Hotels & Resorts Inc. Reports Q4 and Full-Year 2025 Results, Announces Key Executive Appointment

Executive Summary

Park Hotels & Resorts Inc. (“Park”, NYSE: PK) released its fourth quarter and full-year 2025 financial results, providing significant updates on operational performance, capital allocation, hotel dispositions, and strategic direction. The company also announced the appointment of Sean M. Dell’Orto as Chief Operating Officer, effective February 12, 2026.

Key Financial Highlights

• Q4 2025 Comparable RevPAR: \$182.49, up 0.8% year-over-year. Excluding the Royal Palm South Beach Miami (closed for renovation), RevPAR increased 2.8%.
• Q4 2025 Core RevPAR: \$210.15, up 3.2% year-over-year. Excluding Royal Palm, Core RevPAR increased 5.7%.
• Q4 Net Loss: \$(204) million, including a \$248 million impairment expense, mostly related to Non-Core hotels.
• Q4 Adjusted EBITDA: \$152 million.
• Q4 Diluted Adjusted FFO per Share: \$0.51.
• Full-Year Comparable RevPAR: \$185.00, down (2.0)% year-over-year; Core RevPAR \$208.85, down (1.3)%.
• Full-Year Net Loss: \$(277) million, with \$318 million impairment expense.
• Full-Year Adjusted EBITDA: \$609 million.
• Full-Year Diluted Adjusted FFO per Share: \$1.97.

Operational and Portfolio Updates

• Core Portfolio Performance:
  • Core hotels saw significant group demand improvements, with a 15% increase in group revenues in Q4.
  • Hilton Hawaiian Village Waikiki Beach Resort RevPAR up 22% (lapping previous labor strike), Bonnet Creek complex in Orlando RevPAR up nearly 9%, New York Hilton Midtown delivered its highest Q4 group revenue ever (RevPAR up 7%).
• Capital Expenditures:
  • Nearly \$300 million spent in 2025, including the Royal Palm renovation, Hawaii hotel tower upgrades, and New Orleans Riverside guestroom renovations.
  • Further \$230-260 million planned for 2026, with Royal Palm reopening ahead of World Cup and major renovation of Hilton Hawaiian Village Ali’i Tower.
• Non-Core Hotel Dispositions:
  • Exited six Non-Core hotels (including sales and surrenders) for over \$132 million gross proceeds, redeployed into core asset renovations.
  • One Non-Core hotel under contract, contributed \$0.5 million EBITDA in 2025.
  • Dispositions represent a strategic push to enhance portfolio quality and shareholder value, with strong returns from renovated assets (Bonnet Creek and Casa Marina yielding over 14% cash yield).
• Balance Sheet & Liquidity:
  • Liquidity at \$2.0 billion (including \$1 billion revolver, \$800 million delayed draw term loan).
  • Active discussions for new \$650 million mortgage loan on Bonnet Creek, expected completion Q1 2026.
  • Net Debt approximately \$3.7 billion; weighted average maturity 2.2 years.
  • Significant refinancing activity planned for 2026, including \$1.4 billion of mortgage debt.
• Dividend & Shareholder Return:
  • Declared total \$1.00 per share dividend in 2025 (annual yield about 10%).
  • Q1 2026 dividend of \$0.25 per share declared, to be paid April 15, 2026.
  • Repurchased ~3.5 million shares for \$45 million in Q1 2025.

Strategic and Price Sensitive Developments

• Royal Palm South Beach Miami: Comprehensive \$108 million renovation underway; reopening expected June 2026 ahead of World Cup. Management expects to double pre-renovation EBITDA (\$14 million) upon stabilization.
• Major Event Tailwinds: Anticipated demand from the World Cup and US 250th anniversary celebrations in 2026, expected to benefit Core markets.
• Executive Appointment: Sean M. Dell’Orto named Chief Operating Officer (also EVP, CFO & Treasurer). His expanded role is seen as strengthening operational execution and strategic alignment.
• 2026 Outlook:
  • RevPAR expected between \$190-\$194 (0-2% growth).
  • Net income \$69-\$99 million; Adjusted EBITDA \$580-\$610 million; Adjusted FFO per share \$1.73-\$1.89.
  • Includes \$9 million incremental interest expense from refinancing; expects operating expense increases of 2-3%.
  • Outlook does not include potential future acquisitions/dispositions except noted refinancing; subject to macroeconomic and geopolitical uncertainty.
• Corporate Responsibility & Recognition:
  • Park published its 2025 Corporate Responsibility Report, aligning with global standards (TCFD, SASB, UN SDGs, GRI).
  • GRESB score of 87 (highest ever), ranked second among public hotel companies in Americas, and achieved “A” Public Disclosure score.
  • Named one of America’s Most Responsible Companies (Newsweek), Most Trustworthy Companies, and Greatest Companies for 2025/2026.

Risks and Forward-Looking Statements

• The company notes ongoing risks related to elevated geopolitical tensions, domestic and foreign policy actions, inflation, interest rates, and potential government shutdowns, which could impact travel demand and financial performance.
• Several Non-Core hotel dispositions (e.g., Hilton Salt Lake City Center, DoubleTree Hotel San Diego – Mission Valley, DoubleTree Hotel Durango) are subject to ongoing litigation, potentially affecting timing and proceeds.
• Hotel operations and results could be influenced by macroeconomic factors, competitive forces, and legislative changes.

Detailed Financial and Statistical Information

• Q4 2025 Core Hotels: 20 hotels, 15,764 rooms, RevPAR \$210.15 (+3.2%), Core Hotel Adjusted EBITDA \$151 million (+13.1%), Core Hotel Adjusted EBITDA margin 29.9% (up 230 bps).
• Non-Core Hotels: 15 hotels, 6,373 rooms, RevPAR \$114.11 (-8.9%), Adjusted EBITDA \$10 million (-28%).
• Balance Sheet: Assets \$7.7 billion, Equity \$3.1 billion, Debt \$3.8 billion, Net Debt \$3.7 billion.
• Capital Investments: \$110 million spent in Q4 2025, \$75 million on Hawaii flagship property upgrades, ongoing multi-phase renovations at New Orleans Riverside.

Upcoming Events

• Q4 & Full-Year 2025 Earnings Conference Call: February 20, 2026, at 12 p.m. ET. Webcast and dial-in details provided, with replay available post-event.
• 2026 Annual Stockholders Meeting: April 24, 2026, 8:00 am ET, Tysons, VA. Record date for voting: February 27, 2026.

Conclusion: Investment Implications

The report contains several material updates that could influence Park Hotels & Resorts Inc.’s share price:

• Large impairment charges and Non-Core hotel disposition strategy signal a pivot toward higher-quality assets and improved operational performance.
• The substantial capital investment in the Royal Palm Miami and other core assets, combined with anticipated event-driven demand (World Cup, US 250th anniversary), may drive future revenue and EBITDA growth.
• The refinancing of over \$1.4 billion in debt and robust liquidity position provide financial flexibility but also introduce incremental interest expense and execution risk.
• Dividend policy and share repurchases highlight shareholder return focus.
• Corporate responsibility achievements and executive leadership changes may strengthen investor confidence and ESG appeal.

Investors should closely monitor the progress of renovations, dispositions, refinancing activities, and broader macroeconomic factors, as these will likely impact both financial results and share valuation in the coming quarters.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties. Investors should consult official filings and financial advisors before making investment decisions.

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