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Core Insights - The article emphasizes the importance of fundamental analysis, market trends, and strategic insights in identifying high-potential investment opportunities in the stock market [1]. Group 1 - The analysis aims to deliver actionable investment ideas to navigate the complex financial landscape [1].

Core Insights - Park Hotels & Resorts reported Q2 2025 earnings with adjusted funds from operations (FFO) per share at $0.64, significantly exceeding analyst estimates of $0.19, while revenue reached $672 million, reflecting a 2.0% year-over-year decline [1][2] - The company operates 39 hotel properties with approximately 25,000 rooms, focusing on upper-upscale and luxury segments, and aims to enhance cash flow through renovations and asset sales [3][4] - The current strategy emphasizes capital recycling, cost control, and maintaining a conservative balance sheet to support dividends and growth opportunities [4][10] Financial Performance - Adjusted FFO per share was $0.64, outperforming consensus by $0.45 but down 1.5% from the previous year [2][5] - Revenue for Q2 2025 was $672 million, slightly above estimates but down 2.0% from Q2 2024 [2][5] - Comparable RevPAR decreased by 1.6% year-over-year to $195.68, with urban hotels showing a 3% increase in RevPAR [6][10] Operational Highlights - The company completed the sale of Hyatt Centric Fisherman's Wharf for $80 million and announced the closure of Embassy Suites Kansas City Plaza [7][9] - Major renovations are ongoing, including a $103 million project at Royal Palm South Beach Miami, expected to yield a 15% to 20% return on investment post-reopening in May 2026 [8][9] - Capital expenditures for Q2 totaled nearly $45 million, with plans for up to $330 million for the full year [9] Balance Sheet and Liquidity - As of June 30, liquidity was approximately $1.3 billion, supported by a $950 million undrawn revolving credit facility [11] - Net debt stood at $3.7 billion with an average maturity of 2.7 years, highlighting a focus on managing high leverage [11] - A significant upcoming item is the $1.3 billion mortgage maturing on the Hilton Hawaiian Village in November 2026 [11] Future Outlook - Management revised full-year guidance for comparable RevPAR to $184–$187, reflecting a potential decline compared to 2024 [12] - Adjusted EBITDA is forecasted at $595–$645 million, with adjusted FFO per share projected at $1.82–$2.08 [12] - Ongoing caution is advised regarding macroeconomic factors and the impact of renovations on demand [13]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements as of June 30, 2025, show total assets decreased to $8.87 billion, with a net loss of $59 million for the six months, driven by a $70 million impairment and higher depreciation [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $8.87 billion as of June 30, 2025, primarily due to reduced property and equipment, impacting total equity Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$8,870** | **$9,161** | | Property and equipment, net | $7,176 | $7,398 | | Cash and cash equivalents | $319 | $402 | | **Total Liabilities** | **$5,482** | **$5,567** | | Debt | $3,840 | $3,841 | | Debt associated with hotels in receivership | $725 | $725 | | **Total Equity** | **$3,388** | **$3,594** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of $62 million for H1 2025, a shift from prior-year income, primarily due to a $70 million impairment and increased depreciation Statement of Operations Summary (in millions, except per share data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $1,302 | $1,325 | | Operating Income | $72 | $213 | | Net (Loss) Income Attributable to Stockholders | $(62) | $92 | | (Loss) Earnings Per Share – Diluted | $(0.31) | $0.44 | - A significant driver of the net loss was a **$70 million impairment and casualty loss** recorded in the first six months of 2025, compared to only $13 million in the prior year period[13](index=13&type=chunk) - Depreciation and amortization expense increased to **$191 million** for the first six months of 2025 from $129 million in the same period of 2024[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $194 million in H1 2025, while investing activities used less cash due to asset dispositions Cash Flow Summary (in millions) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $194 | $209 | | Net cash used in investing activities | $(45) | $(121) | | Net cash used in financing activities | $(242) | $(354) | | **Net decrease in cash** | **$(93)** | **$(266)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes include the $80 million sale of Hyatt Centric, ongoing receivership for two San Francisco hotels with a $725 million defaulted loan, a $70 million impairment, and $161 million in capital commitments - In May 2025, the company sold the Hyatt Centric Fisherman's Wharf for gross proceeds of **$80 million**, recognizing a net gain of approximately **$1 million**[29](index=29&type=chunk) - The company ceased payments on a **$725 million** non-recourse CMBS loan for two San Francisco hotels in June 2023, with hotels now in receivership and a sale agreement executed in July 2025[37](index=37&type=chunk) - A **$70 million impairment loss** was recognized in H1 2025 related to the Hyatt Centric Fisherman's Wharf prior to its sale[42](index=42&type=chunk) - As of June 30, 2025, the company had outstanding commitments of approximately **$161 million** for capital expenditures, including major renovations at Royal Palm South Beach Miami and Hilton Hawaiian Village[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses mixed operational performance, cautious optimism for 2025, the default on the $725 million SF Mortgage Loan, and strong liquidity with a new $300 million stock repurchase program - The company's portfolio consists of **39 premium-branded hotels** with approximately **25,000 rooms**, primarily in luxury and upper upscale segments in prime U.S. markets[66](index=66&type=chunk) - Management expresses cautious optimism for 2025, expecting improvements in demand and benefits from transformative renovations, despite macroeconomic uncertainties like inflation and high interest rates[71](index=71&type=chunk) - As of June 30, 2025, the company had **$319 million in cash** and cash equivalents and **$950 million** available under its revolving credit facility, providing sufficient liquidity[113](index=113&type=chunk)[114](index=114&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Q2 2025 total revenues decreased by $14 million, with varied market performance, including growth in Orlando and declines in Hawaii and Miami due to renovations and closures Rooms Revenue Breakdown (in millions) | Revenue Type | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Group rooms revenue | $121 | $128 | $(7) | | Transient rooms revenue | $250 | $255 | $(5) | | **Total Rooms Revenue** | **$401** | **$416** | **$(15)** | - Strong performance was noted in Orlando, New Orleans, New York, and Key West, driven by renovations and demand increases[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - Performance was negatively impacted by decreases in Hawaii due to renovation disruption and in Miami due to the full-scale renovation and operational suspension of the Royal Palm South Beach Miami[101](index=101&type=chunk) - Depreciation expense increased significantly due to **$56 million** in accelerated depreciation for the renovation at the Royal Palm South Beach Miami[105](index=105&type=chunk) [Non-GAAP Financial Measures](index=25&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA decreased to $327 million and Adjusted FFO to $221 million for H1 2025, reflecting a challenging operating environment Reconciliation of Net (Loss) Income to Hotel Adjusted EBITDA (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net (loss) income | $(59) | $96 | | EBITDA | $270 | $345 | | Adjusted EBITDA | $327 | $355 | | **Hotel Adjusted EBITDA** | **$342** | **$368** | Reconciliation to Nareit FFO and Adjusted FFO (in millions, except per share) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net (loss) income attributable to stockholders | $(62) | $92 | | Nareit FFO attributable to stockholders | $167 | $206 | | **Adjusted FFO attributable to stockholders** | **$221** | **$248** | | Nareit FFO per share – Diluted | $0.83 | $0.98 | | **Adjusted FFO per share – Diluted** | **$1.10** | **$1.18** | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $319 million cash and $950 million revolver availability, utilizing cash for dividends and share repurchases under a new $300 million program - Total liquidity includes **$319 million in cash** and **$950 million** available under the revolving credit facility[114](index=114&type=chunk) - In February 2025, a new **$300 million stock repurchase program** was authorized, with **3.5 million shares** repurchased for **$45 million** during the first six months of 2025[118](index=118&type=chunk)[119](index=119&type=chunk) - Cash from operations decreased by **$15 million** year-over-year to **$194 million** for the six months ended June 30, 2025, mainly due to lower occupancy at certain hotels[121](index=121&type=chunk) - The company declared a quarterly dividend of **$0.25 per share** for Q2 and Q3 2025[115](index=115&type=chunk)[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure stems from interest rate changes, which may be mitigated through hedging arrangements - The primary market risk exposure is from changes in interest rates[129](index=129&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2025, disclosure controls and procedures were effective[130](index=130&type=chunk) - No material changes to internal control over financial reporting occurred in the second quarter of 2025[131](index=131&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation, but management expects no material adverse effect on financial position or liquidity - The company is involved in ordinary course litigation but does not expect it to have a material adverse effect[133](index=133&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been reported since the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors were reported since the last Annual Report[134](index=134&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 3.7 million shares under a new $300 million program authorized in February 2025, with $275 million remaining available Purchases of Equity Securities (Jan-Mar 2025) | Period | Total Shares Purchased | Avg. Price Paid | Remaining Authorization (in millions) | | :--- | :--- | :--- | :--- | | Jan 2025 | 1,430,264 | $14.00 | $14 | | Feb 2025 | 178,986 | $12.73 | $300 | | Mar 2025 | 2,085,011 | $11.97 | $275 | - A new **$300 million stock repurchase program** was authorized on February 14, 2025, expiring in February 2027[142](index=142&type=chunk) [Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company defaulted on its SF Mortgage Loan in June 2023, with $132 million in arrearage, leading to receivership and an expected sale of the securing hotels by October 2025 - The company ceased payments on the SF Mortgage Loan in June 2023, leading to a notice of default[138](index=138&type=chunk) - As of August 1, 2025, total arrearage on the loan was **$132 million**[138](index=138&type=chunk) - The hotels are in receivership and a purchase and sale agreement has been executed with an expected closing by October 29, 2025[138](index=138&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements, corporate governance documents, and officer certifications

Financial Data and Key Metrics Changes - Q2 RevPAR was reported at $196, representing a 160 basis point decline year over year. Excluding the Hilton Hawaiian Village and Royal Palm South Beach, RevPAR growth would have exceeded 2% [21][22] - Total hotel revenues for the quarter were $645 million, with hotel adjusted EBITDA at $191 million, resulting in an adjusted EBITDA margin of 29.6% [21] - Adjusted EBITDA for the quarter was $183 million, and adjusted FFO per share was $0.64, both exceeding expectations [21][22] Business Line Data and Key Metrics Changes - The Bonnet Creek complex in Orlando delivered record-setting revenue for Q2, with RevPAR increasing nearly 12% year over year [12] - The Waldorf Astoria Orlando reported a 24% increase in RevPAR year over year, driven by strong demand in both group and transient segments [12] - Key West's Casa Marina Resort saw a nearly 4% year over year increase in RevPAR, with food and beverage revenue reaching a new Q2 record [15] Market Data and Key Metrics Changes - In Puerto Rico, RevPAR increased nearly 18% year over year, with Caribe Hilton outperforming its competitive set [15] - Urban markets such as New York, San Francisco, Denver, and Boston experienced solid RevPAR growth, with New York's Hilton Midtown Hotel achieving nearly a 10% increase [16] - Hawaii faced challenges with a combined RevPAR decline of approximately 12% due to weaker inbound travel, but sequential improvement is expected [17] Company Strategy and Development Direction - The company aims to dispose of 18 non-core hotels to enhance overall portfolio quality and long-term growth [9] - A comprehensive renovation project at the Royal Palm South Beach is expected to generate returns of 15% to 20% on a $103 million investment [10] - The company is focused on reshaping its portfolio through reinvestments in core assets and executing non-core asset dispositions [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, expecting a significant improvement in Q4 driven by group revenue pace increasing by 18% [20] - The outlook for the back half of the year remains mixed due to ongoing uncertainties around tariffs, inflation, and geopolitical issues [19] - Management anticipates RevPAR growth to reaccelerate to 3% to 5% in Q4, supported by easier year-over-year comparisons [20] Other Important Information - The company has invested over $1.4 billion in its core 20 consolidated hotels since 2018, upgrading nearly 8,000 guest rooms [12] - The company is actively working to address its 2026 debt maturities, including a $1.275 billion CMBS loan on the Hilton Hawaiian Village [22] - A cash dividend of $0.25 per share was declared for Q3, translating to an annualized yield of approximately 9% [22] Q&A Session Summary Question: Guidance on revenue and expense dynamics - Management explained that the decline in revenues was offset by expense controls, with a $10 million benefit to GOP from cost-saving measures [28][30] Question: Group booking strength into 2026 - Management indicated that group booking strength is expected to remain relatively flat in 2026, with key markets like Bonnet Creek and San Diego showing strong growth [37][38] Question: Refinancing options for upcoming debt maturities - Management discussed ongoing efforts to secure capital commitments to address upcoming debt maturities, with a focus on minimizing costs [43][44] Question: Feedback on marketed assets and transaction timelines - Management acknowledged a challenging transaction environment but expressed confidence in meeting their asset sale targets of $300 million to $400 million [50][51] Question: Hawaii market dynamics and recovery - Management provided insights on the Hawaii market, noting a gradual recovery post-strike and expectations for strong performance in Q4 [59][88]

Financial Data and Key Metrics Changes - Q2 RevPAR was reported at $196, reflecting a 160 basis point decline year over year, but excluding the Hilton Hawaiian Village and Royal Palm South Beach, year over year RevPAR growth would have exceeded 2% [20] - Total hotel revenues for the quarter were $645 million, with hotel adjusted EBITDA at $191 million, resulting in a hotel adjusted EBITDA margin of 29.6% [20] - Adjusted EBITDA for the quarter was $183 million, and adjusted FFO per share was $0.64, both exceeding expectations [20][22] Business Line Data and Key Metrics Changes - The Bonnet Creek complex in Orlando reported record-setting revenue for Q2, with RevPAR increasing nearly 12% year over year [11] - The Waldorf Astoria Orlando experienced a 24% increase in RevPAR year over year, driven by strong demand in both group and transient segments [11] - Key West's Casa Marina Resort reported a nearly 4% year over year increase in RevPAR, with transient occupancy increasing by over 20% [12] Market Data and Key Metrics Changes - In Puerto Rico, strong leisure and business transient demand led to a nearly 18% increase in RevPAR for the quarter [13] - Urban markets such as New York, San Francisco, Denver, and Boston showed solid RevPAR growth, with New York's Hilton Midtown Hotel achieving nearly a 10% increase [14] - Hawaii's combined RevPAR declined by approximately 12% during the quarter, impacted by weaker inbound travel from abroad [15] Company Strategy and Development Direction - The company aims to dispose of its remaining 18 non-core hotels to enhance overall quality and long-term growth profile [7] - A comprehensive renovation project at the Royal Palm South Beach Resort is expected to generate returns of 15% to 20% on a $103 million investment [9] - The company is focused on reshaping its portfolio through reinvestments in core assets and executing non-core asset dispositions [19] Management's Comments on Operating Environment and Future Outlook - Management expects continued low expense growth driven by cost savings and a reduction in property insurance premiums, resulting in an incremental $5 million in savings through year-end [6] - The outlook for the second half of the year remains mixed due to ongoing uncertainties around tariffs, inflation, and geopolitical issues, with Q3 RevPAR expected to decline by approximately 4% to 5% [17] - A significant improvement is anticipated in Q4, with group revenue pace increasing by 18% and RevPAR growth expected to reaccelerate to 3% to 5% [18] Other Important Information - The company has invested over $1.4 billion in its core 20 consolidated hotels since 2018, upgrading nearly 8,000 guest rooms [11] - The company is actively working to address its 2026 debt maturities, including a $1.275 billion CMBS loan on the Hilton Hawaiian Village [21] - A cash dividend of $0.25 per share was declared for the third quarter, translating to an annualized yield of approximately 9% [21] Q&A Session Summary Question: Guidance bridge and revenue decline - Management explained that the revenue decline is offset by expense reductions, with a focus on aggressive asset management and cost savings [26][30] Question: Group booking strength into 2026 - Management indicated that group bookings for 2026 are relatively flat, with strong performance expected in key markets like Bonnet Creek and San Diego [34][36] Question: Refinancing options - Management is exploring refinancing options to secure commitments that would provide liquidity and address upcoming debt maturities [41][42] Question: Feedback on marketed assets - Management acknowledged a challenging transaction environment but expressed confidence in meeting their asset sale targets of $300 million to $400 million [48] Question: Hawaii market dynamics - Management provided insights on the demand dynamics in Hawaii, noting a gradual recovery and positive long-term outlook despite current challenges [56][58] Question: Non-core hotel disposals timeline - Management expects significant progress in disposing of non-core hotels by the end of next year, aiming to clean up the portfolio [70][72] Question: Labor expense growth outlook - Management anticipates labor expense growth to remain consistent, with expectations of around 4% to 4.5% growth [98]

Financial Performance - For the three months ended June 30, 2025, total revenues were $672 million, compared to $686 million in 2024[14] - Net loss attributable to stockholders for the three months ended June 30, 2025 was $5 million, compared to net income of $64 million in 2024[14] - Adjusted EBITDA for the three months ended June 30, 2025 was $183 million, compared to $193 million in 2024[18] - For the six months ended June 30, 2025, total revenues were $1302 million, compared to $1325 million in 2024[14] - Net loss attributable to stockholders for the six months ended June 30, 2025 was $62 million, compared to net income of $92 million in 2024[14] - Adjusted EBITDA for the six months ended June 30, 2025 was $327 million, compared to $355 million in 2024[18] Portfolio Metrics - As of July 31, 2025, Park's portfolio consisted of 39 hotels with approximately 24,666 rooms[3] - The total comparable portfolio includes 36 hotels with 22,395 rooms[46] - Comparable Hotel Adjusted EBITDA was $191 million for the three months ended June 30, 2025, a decrease of 32% compared to $197 million in 2024[20] - Comparable Hotel Revenues were $645 million for the three months ended June 30, 2025, a decrease of 07% compared to $650 million in 2024[20] Outlook - The company expects full-year 2025 Comparable RevPAR change vs 2024 to be between -20% and 00%[32] - The company expects full-year 2025 Adjusted FFO per share – Diluted to be between $182 and $208[32]

Core Viewpoint - Park Hotels & Resorts reported a slight decline in revenue for the quarter ended June 2025, but showed significant improvement in earnings per share compared to the previous year [1]. Financial Performance - Revenue for the quarter was $672 million, down 2% year-over-year, and slightly below the Zacks Consensus Estimate of $673.07 million, resulting in a surprise of -0.16% [1]. - Earnings per share (EPS) was reported at $0.64, a significant increase from $0.30 in the same quarter last year, leading to an EPS surprise of +12.28% against the consensus estimate of $0.57 [1]. Key Metrics - Comparable RevPAR growth was reported at -1.6%, contrasting with the three-analyst average estimate of 1% [4]. - Total number of rooms was 22,395, slightly below the average estimate of 22,553 based on two analysts [4]. - Occupancy rate stood at 76.5%, compared to the average estimate of 77% [4]. - Revenue from rooms was $401 million, slightly below the five-analyst average estimate of $402.19 million, reflecting a year-over-year decline of -3.6% [4]. - Ancillary hotel revenues reached $68 million, exceeding the four-analyst average estimate of $64.04 million, with a year-over-year increase of +3% [4]. - Food and beverage revenues were $180 million, below the average estimate of $184.61 million, showing a year-over-year change of -1.1% [4]. - Other revenues totaled $23 million, slightly above the estimated $22.31 million, representing a +4.6% change year-over-year [4]. - Diluted earnings per share were reported at -$0.02, significantly lower than the five-analyst average estimate of $0.21 [4]. Stock Performance - Shares of Park Hotels & Resorts returned +0.1% over the past month, underperforming compared to the Zacks S&P 500 composite's +2.7% change [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3].

Core Insights - Park Hotels & Resorts reported quarterly funds from operations (FFO) of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, but slightly down from $0.65 per share a year ago, indicating a FFO surprise of +12.28% [1] - The company posted revenues of $672 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.16% and down from $686 million year-over-year [2] - Park Hotels & Resorts shares have declined approximately 23.2% year-to-date, contrasting with the S&P 500's gain of 8.2% [3] Company Performance - Over the last four quarters, Park Hotels & Resorts has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] - The current consensus FFO estimate for the upcoming quarter is $0.46 on revenues of $639.21 million, and for the current fiscal year, it is $1.94 on revenues of $2.58 billion [7] Industry Context - The REIT and Equity Trust - Other industry, to which Park Hotels & Resorts belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which can impact investor sentiment and stock performance [5]

[Financial Statements](index=3&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Park Hotels & Resorts reported total assets of $8.87 billion, a decrease from $9.16 billion at year-end 2024, with total liabilities also decreasing to $5.48 billion from $5.57 billion, and stockholders' equity declining from $3.65 billion to $3.44 billion Balance Sheet Summary (in millions) | Balance Sheet Items | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Property and equipment, net | $7,176 | $7,398 | | Total Assets | $8,870 | $9,161 | | Total Liabilities | $5,482 | $5,567 | | Total Stockholders' Equity | $3,444 | $3,645 | - The company holds **$725 million** in debt associated with hotels in receivership, with accrued interest increasing from **$95 million** to **$127 million** since year-end 2024[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, total revenues were $672 million, a 2.0% decrease year-over-year, leading to a net loss attributable to stockholders of $5 million, compared to a $64 million net income in Q2 2024, while for the six months ended June 30, 2025, the company recorded a net loss of $62 million, a significant shift from the $92 million net income in the same period of 2024, primarily impacted by a $70 million impairment loss Q2 and H1 2025 vs 2024 Performance (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $672 | $686 | $1,302 | $1,325 | | Operating Income | $65 | $121 | $72 | $213 | | Net (loss) income attributable to stockholders | $(5) | $64 | $(62) | $92 | | (Loss) earnings per share – Diluted | $(0.02) | $0.30 | $(0.31) | $0.44 | - A significant impairment loss of **$70 million** was recognized in the first six months of 2025, compared to **$13 million** in the prior year period, heavily impacting operating income and net results[14](index=14&type=chunk) [Supplementary Financial Information](index=4&type=section&id=Supplementary%20Financial%20Information) [EBITDA and Adjusted EBITDA](index=4&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 was $183 million, down from $193 million in Q2 2024, and for the first six months of 2025, Adjusted EBITDA was $327 million, compared to $355 million in the prior year period, reflecting lower net income and adjustments for items like impairment losses Adjusted EBITDA Reconciliation Summary (in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net (loss) income | $(2) | $67 | $(59) | $96 | | EBITDA | $190 | $185 | $270 | $345 | | Adjusted EBITDA | $183 | $193 | $327 | $355 | [Comparable Hotel Adjusted EBITDA and Margin](index=5&type=section&id=Comparable%20Hotel%20Adjusted%20EBITDA%20and%20Margin) Comparable Hotel Adjusted EBITDA decreased by 3.2% to $191 million in Q2 2025, with the margin contracting by 80 basis points to 29.6%, while year-to-date, Comparable Hotel Adjusted EBITDA fell 6.5% to $342 million, and the margin decreased by 170 basis points to 27.4%, indicating pressure on profitability for the comparable hotel portfolio Comparable Hotel Performance vs. Prior Year | Metric | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Comparable Hotel Revenues | $645M | $650M | (0.7)% | $1,248M | $1,256M | (0.7)% | | Comparable Hotel Adjusted EBITDA | $191M | $197M | (3.2)% | $342M | $366M | (6.5)% | | Comparable Hotel Adjusted EBITDA Margin | 29.6% | 30.4% | (80) bps | 27.4% | 29.1% | (170) bps | [NAREIT FFO and Adjusted FFO](index=5&type=section&id=NAREIT%20FFO%20and%20Adjusted%20FFO) Adjusted FFO attributable to stockholders was $129 million, or $0.64 per diluted share, in Q2 2025, slightly down from $137 million, or $0.65 per share, in Q2 2024, and for the first half of 2025, Adjusted FFO was $221 million ($1.10 per share), a decrease from $248 million ($1.18 per share) in the prior year period FFO Performance (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Nareit FFO attributable to stockholders | $101 | $122 | $167 | $206 | | Adjusted FFO attributable to stockholders | $129 | $137 | $221 | $248 | | Nareit FFO per share – Diluted | $0.51 | $0.58 | $0.83 | $0.98 | | Adjusted FFO per share – Diluted | $0.64 | $0.65 | $1.10 | $1.18 | [Net Debt and Net Debt to Comparable Adjusted EBITDA Ratio](index=6&type=section&id=Net%20Debt%20and%20Net%20Debt%20to%20Comparable%20Adjusted%20EBITDA%20Ratio) As of June 30, 2025, Net Debt increased to $3.67 billion from $3.58 billion at the end of 2024, with the Net Debt to TTM Comparable Adjusted EBITDA ratio rising to 5.88x from 5.53x, indicating increased leverage Net Debt and Leverage Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt | $3,671M | $3,582M | | TTM Comparable Adjusted EBITDA | $624M | $648M | | Net Debt to TTM Comparable Adjusted EBITDA ratio | 5.88x | 5.53x | [Outlook and Assumptions](index=7&type=section&id=Outlook%20and%20Assumptions) [Full-Year 2025 Outlook](index=8&type=section&id=Full-Year%202025%20Outlook) Park has revised its full-year 2025 outlook, lowering expectations for RevPAR and net income, but slightly raising the range for Adjusted EBITDA and Adjusted FFO per share, with the midpoint for Comparable RevPAR change now -1.0%, down from +0.5% previously, and the outlook for net loss attributable to stockholders widening to between -$60 million and -$10 million, while the Adjusted FFO per share guidance midpoint has increased slightly to $1.95 Full-Year 2025 Outlook Change (Midpoint) | Metric | New Outlook (July 31, 2025) | Prior Outlook (June 2, 2025) | Change at Midpoint | | :--- | :--- | :--- | :--- | | Comparable RevPAR change vs. 2024 | -1.0% | 0.5% | (150) bps | | Net (loss) income attributable to stockholders | ($35M) | $12M | ($47M) | | Adjusted EBITDA | $620M | $618M | $2M | | Adjusted FFO per share – Diluted | $1.95 | $1.94 | $0.01 | - Key assumptions for the outlook include a fully diluted weighted average share count of **200 million** and no inclusion of potential future acquisitions, dispositions, or financing transactions[37](index=37&type=chunk) - The outlook excludes **$54 million** of default interest and fees related to the SF Mortgage Loan, which is expected to be resolved by October 29, 2025[37](index=37&type=chunk) [Reconciliation of Outlook Metrics](index=8&type=section&id=Reconciliation%20of%20Outlook%20Metrics) The full-year 2025 outlook projects a net loss between $53 million and $3 million, which after adjustments for depreciation, interest, taxes, and other items, reconciles to an Adjusted EBITDA range of $595 million to $645 million and a Comparable Hotel Adjusted EBITDA of $634 million to $685 million, while net loss attributable to stockholders of -$60 million to -$10 million reconciles to an Adjusted FFO of $363 million to $415 million FY 2025 Outlook Reconciliation (Low to High Case, in millions) | Metric | Low Case | High Case | | :--- | :--- | :--- | | Net (loss) income | $(53) | $(3) | | Adjusted EBITDA | $595 | $645 | | Comparable Hotel Adjusted EBITDA | $634 | $685 | | Net (loss) income attributable to stockholders | $(60) | $(10) | | Adjusted FFO attributable to stockholders | $363 | $415 | [Portfolio and Operating Metrics](index=10&type=section&id=Portfolio%20and%20Operating%20Metrics) [Hotel Portfolio as of July 31, 2025](index=10&type=section&id=Hotel%20Portfolio%20as%20of%20July%2031%2C%202025) As of July 31, 2025, Park's portfolio consists of 39 premium-branded hotels with approximately 25,000 rooms, divided into a 36-hotel comparable portfolio and a 3-hotel unconsolidated joint venture portfolio, with notable events including the conversion of two W Chicago hotels in early 2025 and the planned permanent closure of the Embassy Suites Kansas City Plaza in Q3 2025 - The total portfolio comprises **39 hotels** and **24,666 rooms**, with the majority (**36 hotels**, **22,395 rooms**) in the comparable portfolio[4](index=4&type=chunk)[47](index=47&type=chunk) - In July 2025, the company decided to permanently close the Embassy Suites Kansas City Plaza and terminate its ground lease, with the closure expected in Q3 2025[48](index=48&type=chunk) - Two Chicago hotels were converted and rebranded in early 2025: W Chicago – Lakeshore became The Wade, and W Chicago – City Center became The Midland Hotel[45](index=45&type=chunk)[46](index=46&type=chunk) [Comparable Hotels by Market: Q2 2025 vs Q2 2024](index=11&type=section&id=Comparable%20Hotels%20by%20Market%3A%20Q2%202025%20vs%20Q2%202024) In Q2 2025, the comparable hotel portfolio experienced a 1.6% decline in RevPAR to $195.68, driven by a 0.9 percentage point drop in occupancy, while ADR remained nearly flat, and Total RevPAR also decreased by 0.8%, with performance varying significantly by market, as Puerto Rico and Orlando showed strong growth, while Miami (due to renovation) and Hawaii saw significant declines, and overall Comparable Hotel Adjusted EBITDA fell 3.2% to $191 million Q2 2025 All Markets Performance vs. Q2 2024 | Metric | 2Q25 | 2Q24 | Change | | :--- | :--- | :--- | :--- | | Comparable ADR | $255.76 | $256.88 | (0.4)% | | Comparable Occupancy | 76.5% | 77.4% | (0.9) ppts | | Comparable RevPAR | $195.68 | $198.93 | (1.6)% | | Comparable Total RevPAR | $316.50 | $319.11 | (0.8)% | | Comparable Hotel Adjusted EBITDA | $191M | $197M | (3.2)% | - Operations at the Royal Palm in Miami were suspended in mid-May 2025 for a comprehensive renovation, causing a **56.9%** drop in RevPAR for that market[51](index=51&type=chunk)[53](index=53&type=chunk) [Comparable Hotels by Market: YTD Q2 2025 vs YTD Q2 2024](index=12&type=section&id=Comparable%20Hotels%20by%20Market%3A%20YTD%20Q2%202025%20vs%20YTD%20Q2%202024) For the first half of 2025, the comparable portfolio's RevPAR decreased by 1.2% to $187.01, with occupancy falling 1.6 percentage points, partially offset by a 1.0% rise in ADR, and Total RevPAR was nearly flat with a 0.2% decline, while year-to-date Comparable Hotel Adjusted EBITDA decreased by 6.5% to $342 million, with margins contracting by 170 basis points YTD Q2 2025 All Markets Performance vs. YTD Q2 2024 | Metric | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | | Comparable ADR | $256.75 | $254.33 | 1.0% | | Comparable Occupancy | 72.8% | 74.4% | (1.6) ppts | | Comparable RevPAR | $187.01 | $189.36 | (1.2)% | | Comparable Total RevPAR | $307.77 | $308.36 | (0.2)% | | Comparable Hotel Adjusted EBITDA | $342M | $366M | (6.5)% | - YTD 2024 results benefited from one-time items, including a **$4 million** state unemployment tax refund for Hawaii hotels and a **$5 million** grant for Boston hotels, making year-over-year comparisons less direct for those markets[59](index=59&type=chunk) [Core Hotels Performance](index=13&type=section&id=Core%20Hotels%20Performance) The 20 designated 'Core Hotels' slightly underperformed the total comparable portfolio in Q2 2025, with RevPAR down 1.3% and Hotel Adjusted EBITDA down 2.4%, however, year-to-date, Core Hotels showed more resilience with RevPAR down only 0.9% and Total RevPAR up 0.1%, compared to steeper declines for the 'All Other Hotels' segment, and the Core Hotels maintain significantly higher EBITDA margins (31.6% in Q2) compared to other hotels (20.8%) Q2 2025 Performance: Core vs. All Other Hotels | Metric | Core Hotels (20) | All Other Hotels (16) | Total Comparable (36) | | :--- | :--- | :--- | :--- | | RevPAR Change | (1.3)% | (2.9)% | (1.6)% | | Hotel Adj. EBITDA Change | (2.4)% | (8.2)% | (3.2)% | | Hotel Adj. EBITDA Margin | 31.6% | 20.8% | 29.6% | YTD Q2 2025 Performance: Core vs. All Other Hotels | Metric | Core Hotels (20) | All Other Hotels (16) | Total Comparable (36) | | :--- | :--- | :--- | :--- | | RevPAR Change | (0.9)% | (2.6)% | (1.2)% | | Hotel Adj. EBITDA Change | (4.8)% | (20.2)% | (6.5)% | | Hotel Adj. EBITDA Margin | 30.2% | 14.6% | 27.4% | [Properties Acquired and Sold](index=16&type=section&id=Properties%20Acquired%20and%20Sold) [Acquisition and Sales History](index=16&type=section&id=Acquisition%20and%20Sales%20History) Since 2018, Park has sold 39 hotels for total gross proceeds of nearly $2.3 billion, as part of its capital recycling strategy, with the most significant acquisition period being in 2019, when 18 hotels were acquired for $2.5 billion, and in 2025, the company sold one hotel Total Sales (2018-2025) | Period | Number of Hotels Sold | Gross Proceeds (in millions) | | :--- | :--- | :--- | | 2018-2025 | 39 | $2,291.9 | - In May 2025, Park sold the Hyatt Centric Fisherman's Wharf in San Francisco for gross proceeds of **$80.0 million**[74](index=74&type=chunk) - In addition to the **39 hotels** sold, five properties were returned to landlords upon ground lease expiration/termination, and two San Francisco hotels were placed into receivership[76](index=76&type=chunk) [Comparable Supplementary Financial Information](index=17&type=section&id=Comparable%20Supplementary%20Financial%20Information) [Historical Comparable TTM Hotel Metrics](index=17&type=section&id=Historical%20Comparable%20TTM%20Hotel%20Metrics) For the trailing twelve months (TTM) ended June 30, 2025, Comparable Hotel Adjusted EBITDA was $657 million on $2.46 billion of revenues, resulting in a margin of 26.8%, which compares to the full-year 2024 results of $681 million in Comparable Hotel Adjusted EBITDA on $2.46 billion of revenues, with a margin of 27.6%, indicating a slight margin compression over the most recent period TTM vs. Full-Year Comparable Performance | Metric | TTM Ended June 30, 2025 | Full-Year 2024 | | :--- | :--- | :--- | | Comparable RevPAR | $186.28 | $187.45 | | Comparable Hotel Revenues | $2,456M | $2,464M | | Comparable Hotel Adjusted EBITDA | $657M | $681M | | Comparable Hotel Adjusted EBITDA margin | 26.8% | 27.6% | - The TTM Comparable Adjusted EBITDA as of June 30, 2025, is **$624 million**, which is used for the company's leverage ratio calculation[82](index=82&type=chunk) [Capital Structure](index=19&type=section&id=Capital%20Structure) [Fixed and Variable Rate Debt](index=20&type=section&id=Fixed%20and%20Variable%20Rate%20Debt) As of June 30, 2025, Park's total debt was approximately $3.84 billion, with a weighted average interest rate of 5.18%, with the majority of the debt, $3.66 billion, being fixed-rate with a weighted average rate of 5.11%, and the company having $200 million in variable-rate debt and $950 million of available capacity under its revolver Debt Summary as of June 30, 2025 (in millions) | Debt Type | Amount | Weighted Avg. Interest Rate | | :--- | :--- | :--- | | Total Fixed Rate Debt | $3,661 | 5.11% | | Total Variable Rate Debt | $200 | 6.37% | | **Total Debt** | **$3,840** | **5.18%** | - The reported debt excludes the **$725 million** SF Mortgage Loan associated with the two Hilton San Francisco hotels in receivership[92](index=92&type=chunk) - As of July 31, 2025, Park had **$950 million** of available capacity under its Revolver[93](index=93&type=chunk) [Definitions](index=21&type=section&id=Definitions) [Key Non-GAAP Financial Measures and Operating Metrics](index=21&type=section&id=Key%20Non-GAAP%20Financial%20Measures%20and%20Operating%20Metrics) The report defines several key non-GAAP measures and operating metrics used for performance evaluation, including EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA, Nareit FFO, Adjusted FFO, and Net Debt, which are used to assess ongoing operating performance by excluding certain items, while key operating metrics such as Occupancy, ADR, RevPAR, and Total RevPAR are standard industry measures used to gauge hotel utilization, pricing, and overall performance - **Comparable Hotels:** Includes hotels active since Jan 1st of the previous year and excludes disposed properties and the two San Francisco hotels in receivership[97](index=97&type=chunk) - **Adjusted EBITDA:** Calculated by adjusting EBITDA to exclude items not reflective of ongoing operations, such as gains/losses on sales, impairment, and share-based compensation[99](index=99&type=chunk)[102](index=102&type=chunk) - **Adjusted FFO:** Calculated by adjusting Nareit FFO for items like acquisition costs, severance, and other non-representative items to provide a clearer view of ongoing performance[107](index=107&type=chunk)[112](index=112&type=chunk) [Analyst Coverage](index=23&type=section&id=Analyst%20Coverage) [List of Analysts](index=24&type=section&id=List%20of%20Analysts) The report provides a list of 16 investment banks and their respective analysts that provide research coverage for Park Hotels & Resorts, with contact information, including phone numbers and email addresses, included for each analyst - The company is covered by analysts from major firms including Bank of America, BMO Capital Markets, Citi Research, Deutsche Bank, JP Morgan, Morgan Stanley, and Wells Fargo[118](index=118&type=chunk)