Park Hotels & Resorts Inc. Reports Third Quarter 2025 Results

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:

• Comparable RevPAR was $180.93, a decrease of (6.1)% compared to the same period in 2024, or a (4.9)% decrease when excluding the Royal Palm South Beach Miami, a Tribute Portfolio Resort ("Royal Palm"), which suspended operations in mid-May 2025 for a comprehensive renovation;
• Net loss and net loss attributable to stockholders were $(14) million and $(16) million, respectively;
• Adjusted EBITDA was $130 million;
• Diluted loss per share was $(0.08);
• Diluted Adjusted FFO per share was $0.35;
• In September 2025, amended and restated the Company's existing credit agreement to increase the senior unsecured revolving credit facility ("Revolver") from $950 million to $1 billion and extend its maturity to September 2029, in addition to obtaining a senior unsecured delayed draw term loan facility of up to $800 million ("2025 Delayed Draw Term Loan") maturing in January 2030, which is available for up to three draws through September 2026. Additionally, both the Revolver and 2025 Delayed Draw Term Loan have extension options for up to one year;
• In September 2025, permanently closed the Embassy Suites Kansas City Plaza and terminated its ground lease, returning the property to the ground lessor. The Embassy Suites Kansas City Plaza was projected to generate approximately $0.2 million of EBITDA during 2025; and
• Participated in the 2025 Global Real Estate Sustainability Benchmark ("GRESB") assessment for the sixth consecutive year, receiving an 87 out of 100 – Park's highest score thus far. Park ranked second among publicly listed participating hotel companies in the Americas and in the top 20% of all publicly listed participating companies in the Americas. Park's GRESB Real Estate Assessment score increased 6 points over 2024, and since 2020, has increased 15 points overall, demonstrating Park's continued support of its overall corporate responsibility program and desire to make meaningful improvements toward decarbonization. Furthermore, Park continued to achieve a GRESB Public Disclosure score of "A" in 2025.

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)

Operational Update

Results for Park's Comparable hotels in each of the Company's key markets and by hotel type are as follows:

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:

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:

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:

Park's outlook is based in part on the following assumptions:

• Adjusted FFO excludes $58 million of default interest and late payment administrative fees associated with the default of the SF Mortgage Loan that began in June 2023 and are required to be recognized in interest expense until legal titles to the Hilton San Francisco Hotels are transferred, which is currently expected by November 21, 2025 pursuant to a court-approved transaction;
• Reflects the impact of the government shutdown through October 2025 only;
• Fully diluted weighted average shares for the full-year 2025 of 200 million; and
• Park's portfolio as of October 30, 2025 and does not take into account potential future acquisitions, dispositions or any financing transactions, which could result in a material change to Park's outlook.

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.