Park Hotels & Resorts Inc. Reports Second Quarter 2025 Results

Park Hotels & Resorts Inc. ("Park" or the "Company") (NYSE:PK) today announced results for the second quarter ended June 30, 2025 and provided an operational update.

Second Quarter Highlights Include:

• Comparable RevPAR was $195.68, a decrease of (1.6)% compared to the same period in 2024, or only a (0.6)% 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 $(2) million and $(5) million, respectively;
• Adjusted EBITDA was $183 million;
• Diluted loss per share was $(0.02);
• Diluted Adjusted FFO per share was $0.64;
• Sold the 316-room Hyatt Centric Fisherman's Wharf located in San Francisco, California for $80 million, or $253,000 per key. The sale price represents 64.0x 2024 EBITDA of the hotel. Proceeds from the sale will be used for ongoing return on investment projects in Park's portfolio and for other general corporate purposes;
• In July 2025, made the decision to permanently close the Embassy Suites Kansas City Plaza, which Park anticipates will occur during the third quarter of 2025. In connection with that decision, Park entered into an agreement with the ground lessor of the hotel to terminate the ground lease at the end of September 2025. The Embassy Suites Kansas City Plaza is projected to generate an insignificant amount of EBITDA during 2025; and
• Park's Hawaii's hotels did not sustain any damage following the tsunami warnings issued throughout the Pacific Ocean that were triggered by the 8.8 magnitude earthquake off the Russian coast that occurred on July 29, 2025.

Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, "We remain laser-focused on our strategic objective of reshaping the portfolio through non-core asset dispositions, as evidenced by the successful closing on the sale of the Hyatt Centric Fisherman's Wharf for total proceeds of $80 million, representing a 64.0x multiple on 2024 EBITDA of the hotel, and with several other non-core assets in various stages of the marketing process, while reallocating and investing this capital in our iconic portfolio, like the Royal Palm hotel in Miami, which recently commenced a transformative renovation. With liquidity of approximately $1.3 billion, we remain well-positioned for long-term growth and committed to creating long-term shareholder value.

I was encouraged by our second quarter results, with Comparable RevPAR declining by less than 1% excluding the Royal Palm in Miami. Results were driven by ongoing improvements in business travel in key urban markets, including San Francisco, New York, Denver and Boston, with our urban portfolio generating a 3% increase in Comparable RevPAR compared to prior year, including a 17% increase in Comparable RevPAR at the JW Marriott San Francisco Union Square and a 10% increase in Comparable RevPAR at the Hilton New York Midtown. Additionally, strength from certain of our resort hotels, including the Waldorf Astoria Orlando where RevPAR increased nearly 24% compared to the prior year from increases in both group and transient demand and the Hilton Caribe in Puerto Rico where RevPAR increased nearly 18% compared to prior year from an increase in transient demand, offset softness at the Hilton Hawaiian Village Waikiki Beach Resort as it continues to stabilize and re-gain market share following labor strikes in late 2024. I am also incredibly proud of the efforts by our team to maintain effective cost controls across the portfolio resulting in total expense growth of just 40 basis points this quarter, and continued savings expected over the back half of the year."

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 continued to see improvements in group demand at its urban hotels and certain resort hotels, and compared to the second quarter of 2024, group revenues at the Hilton Waikoloa Village increased 57%, while group revenues at the Waldorf Astoria Orlando, which was ranked 4^th Best Resort in Florida by Travel + Leisure in its 2025 World's Best Awards, increased nearly 29% following its recent transformative renovation, increasing RevPAR by nearly 24% compared to the second quarter of 2024. Group revenues at the Hilton New York Midtown increased over 16% compared to the second quarter of 2024, increasing RevPAR by nearly 10% due to an increase in corporate demand.

At the end of June 2025, Comparable Group Revenue Pace for 2025 remained consistent to what 2024 group bookings were at the end of June 2024. While Comparable Group Revenue Pace for the third quarter of 2025 is projected to decrease (14)%, Park is expecting an increase to 18% for the fourth quarter of 2025, compared to what group bookings were for the same time periods in 2024 at the end of June 2024. Additionally, 2025 average Comparable group rates are projected to exceed 2024 average Comparable group rates by 5% for the same time period, with Comparable group rates for the third and fourth quarter of 2024 projected to exceed the average for the same time periods in 2024 by 2% and 6%, respectively.

Balance Sheet and Liquidity

As of June 30, 2025, Park's liquidity was approximately $1.3 billion, including $950 million of available capacity under the Company's revolving credit facility ("Revolver"). In addition, as of June 30, 2025, Park's Net Debt was approximately $3.7 billion, and the weighted average maturity of Park's consolidated debt is 2.7 years.

Park had the following debt outstanding as of June 30, 2025:

Capital Investments

During the second quarter of 2025, Park spent nearly $45 million on capital improvements at its hotels and expects to incur approximately $310 million to $330 million in capital expenditures during 2025. During the second quarter of 2025, Park began the $103 million comprehensive renovation at the Royal Palm, 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 May 2026, resulting in an anticipated $17 million of disruption to Hotel Adjusted EBITDA for 2025.

During the first quarter of 2025, Park successfully completed nearly $75 million in guestroom renovations and room conversions that began in 2024 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. Park is scheduled to begin the second phase of renovations at both Hawaii properties in August 2025, alongside the second phase of guestroom renovations at the Hilton New Orleans Riverside which began in July 2025.

Recent and upcoming renovations and return on investment projects ("ROI") include:

Dividends

Park declared a second quarter 2025 cash dividend of $0.25 per share to stockholders of record as of June 30, 2025. The second quarter dividend was paid on July 15, 2025.

On July 25, 2025, Park declared a third quarter 2025 cash dividend of $0.25 per share to be paid on October 15, 2025 to stockholders of record as of September 30, 2025. The declared dividends translate to an annualized yield of approximately 9% based on Park's closing stock price on July 29, 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:

• Except where noted, includes the impact of renovations at the Royal Palm of approximately $17 million of Hotel Adjusted EBITDA and 40 bps of Comparable Hotel Adjusted EBITDA margin;
• Adjusted FFO excludes $54 million of default interest and late payment administrative fees associated with default of the SF Mortgage Loan through October 29, 2025 (when the receivership is currently expected to end upon the sale of the hotels pursuant to a purchase and sale agreement that has been executed), which began in June 2023 and is required to be recognized in interest expense until legal titles to the Hilton San Francisco Hotels are transferred;
• Fully diluted weighted average shares for the full-year 2025 of 200 million; and
• Park's portfolio as of July 31, 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), or changes in travel patterns to the United States as a result of tariff or trade policy, as the net effect of such announcements 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 second quarter 2025 results on August 1, 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' Second 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 the lender's exercise of its remedies, including placing such hotels into receivership, as well as Park's current expectations regarding the performance of its business, financial results, liquidity and capital resources, including 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 travel barriers or changes in travel preferences for U.S. destinations), 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 39 premium-branded hotels and resorts with approximately 25,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information.