Park Hotels & Resorts Inc.

What they do

Park owns premium-branded hotels and resorts in the U.S. and its territories, with over 21,000 rooms across 30 hotels as of the latest 10-Q, down from 34 hotels (approximately 23,000 rooms) at the February 2026 10-K date. It operates through three segments: consolidated Core hotels, consolidated Non-Core hotels and unconsolidated hotels, with third-party managers running the properties and Park acting as asset manager. Over 96% of Core rooms are luxury or upper upscale, located in urban and convention markets such as New York City, Washington, D.C., Chicago, Boston, New Orleans and Denver, and resorts in Hawaii, Orlando, Key West and Miami Beach.

Revenue drivers

• Consolidated Core hotels — 20 consolidated hotels contributing over 90% of Hotel Adjusted EBITDA, including large group and convention assets such as the Bonnet Creek complex, Hilton Hawaiian Village Waikiki Beach Resort and Hilton Chicago.
• Group and convention demand — Group rooms revenue rose 9.5% year-over-year in Q2 2026, with seven Core hotels holding 125,000 square feet or more of meeting space; third quarter group revenue pace was over 15% ahead of the prior year.
• Leisure and resort properties — Hawaii, Orlando, Key West and Miami Beach resorts benefit from renovation-driven rate growth, with Hilton Hawaiian Village RevPAR up 12% and Casa Marina Key West RevPAR up 14% year-over-year in Q2 2026.
• Consolidated Non-Core hotels — Nine remaining Non-Core hotels being sold down; four were exited since Q1 2026 for gross proceeds of about $65 million, and those hotels contributed roughly $9 million of 2025 Hotel Adjusted EBITDA.

Recent performance

Second quarter 2026 revenue was $680 million, up from $622 million in Q1 2026 and $629 million in Q4 2025. Q2 2026 net income was $50 million, with net income attributable to stockholders of $47 million and diluted EPS of $0.24. Comparable RevPAR was $216.87, up 5.8% year-over-year, and Core RevPAR was $233.49, up 6.0%, or 7.1% excluding the Royal Palm South Beach Miami. Adjusted EBITDA was $198 million, up 8.6%, and diluted Adjusted FFO per share was $0.70. Full-year 2025 results were weaker, with revenue of $2.54 billion, a net loss of $283 million and diluted EPS of -$1.43.

Strategy

Management aims to be a pure-play lodging REIT delivering risk-adjusted returns through active asset management and a Core-focused portfolio, while divesting the nine remaining Non-Core hotels. Proceeds are intended to reduce leverage, reinvest in Core assets and return value to stockholders. Ongoing and recent ROI projects include over $100 million at Royal Palm South Beach Miami, which reopened in July 2026, and roughly $250 million of guestroom renovations at Rainbow Tower, Hilton Waikoloa Village and Hilton New Orleans Riverside. The company has arranged a $700 million Bonnet Creek Mortgage Loan expected to be drawn in September 2026 and an $800 million senior unsecured delayed draw term loan, $200 million of which was drawn in June 2026. It declared a third quarter 2026 dividend of $0.25 per share, payable October 15, 2026.

Risks

• Macroeconomic and demand sensitivity — The 10-K states that inflation, elevated interest rates, a potential recession or geopolitical and trade-policy shifts could reduce travel demand and hotel revenues or earnings.
• Cost inflation without pricing power — The 10-K warns that labor and other costs may rise with inflation and there is no assurance Park can pass cost increases through to travelers.
• Non-Core disposition execution — Park still holds nine Non-Core hotels it intends to sell, and recent exits have included a ground-lease termination and sale at prices below prior carrying assumptions.
• Leverage and debt maturities — At June 30, 2026 total liabilities were $4.67 billion against total assets of $7.70 billion, with long-term debt of $3.93 billion and upcoming maturities addressed partly through new delayed draw facilities.

Outlook

Management said July 2026 Comparable RevPAR was projected to increase 8.5% year-over-year and that third quarter Comparable Group Revenue Pace was over 15% compared with the same time last year. The company expects to draw its $700 million Bonnet Creek Mortgage Loan in September 2026 to address upcoming debt maturities while extending its maturity profile. It continues to pursue disposition of the remaining nine Non-Core hotels and to fund Core renovation projects, including the final Hawaii renovation phase expected for completion in March 2026 at a combined cost of approximately $85 million.