Company Overview - Park Hotels & Resorts Inc. has interests in 38 hotels with over 24,000 rooms, of which over 87% are luxury and upper upscale [74]. Financial Performance - The company reported a net loss of $14 million for Q3 2025, compared to a net income of $57 million in Q3 2024 [92]. - Adjusted EBITDA for Q3 2025 was $130 million, down from $159 million in Q3 2024 [92]. - Hotel Adjusted EBITDA for the nine months ended September 30, 2025, was $483 million, compared to $536 million for the same period in 2024 [92]. - Nareit FFO attributable to stockholders for Q3 2025 was $45 million, a decrease from $82 million in Q3 2024, representing a decline of 45.1% [97]. - Adjusted FFO attributable to stockholders for Q3 2025 was $70 million, down from $102 million in Q3 2024, reflecting a decrease of 31.4% [97]. - Rooms revenue for Q3 2025 was $370 million, a decrease of $33 million or 8.2% compared to $403 million in Q3 2024 [100]. - Food and beverage revenue for Q3 2025 was $150 million, down $7 million or 4.5% from $157 million in Q3 2024 [100]. - The company reported a net (loss) income attributable to stockholders of $(16) million for Q3 2025, compared to $54 million in Q3 2024 [97]. - The company’s total rooms revenue for the nine months ended September 30, 2025, was $1,134 million, down $59 million or 4.9% from $1,193 million in the same period of 2024 [102]. Operational Highlights - The company operates through two segments: consolidated hotels and unconsolidated hotels, with consolidated hotels being the only reportable segment [77]. - The New York Hilton Midtown saw a 27.7% increase in food and beverage revenue for Q3 2025 compared to Q3 2024, primarily due to increased banquet and catering revenue [106]. - The Caribe Hilton in Puerto Rico experienced a 15.5 percentage point increase in occupancy for Q3 2025 compared to Q3 2024 [107]. Expenses and Impairments - General and administrative expenses for Q3 2025 remained flat at $11 million compared to Q3 2024 [110]. - Total corporate general and administrative expenses for the nine months ended September 30, 2025, increased by 3.8% to $54 million from $52 million in the same period of 2024 [110]. - The company recognized an impairment loss of approximately $70 million related to the Hyatt Centric Fisherman's Wharf during the nine months ended September 30, 2025, compared to an impairment loss of approximately $12 million in the same period of 2024 [111]. - Depreciation expense increased due to accelerated depreciation from renovations, including approximately $56 million for the Royal Palm South Beach Miami renovation that began in May 2025 [112]. Cash Flow and Investments - Net cash provided by operating activities decreased by 16.0% to $293 million for the nine months ended September 30, 2025, compared to $349 million in the same period of 2024 [129]. - The company used $113 million in net cash for investing activities during the nine months ended September 30, 2025, primarily due to $188 million of capital expenditures [131]. - The company repurchased approximately 3.5 million shares of common stock for a total purchase price of $45 million during the nine months ended September 30, 2025 [128]. Debt and Financial Position - As of September 30, 2025, total indebtedness was approximately $3.8 billion, including over $2 billion of Senior Notes [137]. - The company ceased making debt service payments on a $725 million SF Mortgage Loan since June 2023 [137]. - As of September 30, 2025, the company had total cash and cash equivalents of $278 million and $31 million of restricted cash [123]. Market Conditions and Outlook - Economic disruptions, including elevated interest and inflation rates, may adversely affect consumer sentiment and travel demand [78]. - The company is cautiously optimistic for the remainder of 2025 based on expected improvements in group demand and benefits from renovations [78]. - The company aims to enhance asset value through single-asset and portfolio acquisitions and dispositions [75]. - Revenue per Available Room (RevPAR) is a key performance indicator, reflecting occupancy and average daily rate (ADR) trends [81]. - The company is exposed to market risk primarily from changes in interest rates, which may affect future income and cash flows [139]. - Financial arrangements may be sought to hedge against cash flow volatility associated with interest rate changes [139]. Dividends - The company declared a third quarter dividend of $0.25 per share, paid on October 15, 2025, and a fourth quarter dividend of $0.25 per share to be paid on January 15, 2026 [125]. Accounting Policies - There have been no material changes to critical accounting policies or methods since the last annual report [138].

Core Insights - Park Hotels & Resorts (PK) is one of the largest Real Estate Investment Trusts (REITs) in the US, focusing on high-quality hotels and resorts in prime urban and resort locations [1] Company Overview - The company has experienced a decline in stock value recently [1] - Park Hotels & Resorts operates a diverse portfolio of properties, which includes both urban and resort destinations [1] Analyst Background - The analyst has over 10 years of experience in researching various companies across multiple sectors, including commodities and technology [1] - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, covering hundreds of companies [1]

Financial Data and Key Metrics Changes - For the third quarter, RevPAR was $181, representing a 6% decline over the prior year, or down 5% excluding the Royal Palm South Beach, which suspended operations for renovation [18] - Total hotel revenues were $585 million, and hotel-adjusted EBITDA came in at $141 million, translating into a hotel-adjusted EBITDA margin of 24.1% [18] - Adjusted EBITDA was $130 million, and adjusted FFO per share was $0.35 [19] Business Line Data and Key Metrics Changes - RevPAR declined 6%, with a notable drop in group demand impacting overall performance [11] - The Bonnet Creek complex in Orlando delivered nearly 3% RevPAR growth, achieving its highest third-quarter RevPAR and GOP in history [11] - Key West's Casa Marina's RevPAR index reached 110, up nearly 800 basis points year-over-year, driven by strong group demand [12] Market Data and Key Metrics Changes - In New York, RevPAR rose nearly 4%, with significant share gains across all segments [12] - San Francisco's JW Marriott Union Square delivered RevPAR growth of nearly 14%, supported by strong group and transient demand [12] - The Caribe Hilton in Puerto Rico saw Q3 RevPAR increase nearly 12%, driven by leisure demand from a local residency event [13] Company Strategy and Development Direction - The company is focused on transforming into an owner of high-quality, iconic hotels with compelling growth profiles, emphasizing capital recycling and operational excellence [5] - A strategy to divest 15 non-core hotels and concentrate ownership across 20 high-quality assets is in place, which accounts for 90% of the portfolio's value [9] - The company has invested approximately $1.4 billion in core hotels since 2018, upgrading nearly 8,000 guest rooms [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic investments made, anticipating stronger performance during the re-acceleration of the lodging cycle in 2026 [16] - The company expects a rebound in group demand and leisure transient strength, projecting mid-single-digit RevPAR growth for Q4 [12][16] - Management noted that macroeconomic uncertainties persist, particularly affecting lower-end consumers, but sees a foundation forming for future growth [17] Other Important Information - The company declared a fourth-quarter cash dividend of $0.25 per share, translating to an annualized yield of approximately 9% [20] - The company does not expect to declare a top-off dividend for 2025, preserving over $50 million for strategic initiatives [21] - Full-year RevPAR growth is now expected to be down around 2%, reflecting weaker-than-expected third-quarter results and continued softness in leisure demand [21] Q&A Session Summary Question: Expense performance in light of lower 4Q RevPAR outlook - Management discussed aggressive asset management and cost reduction strategies, including staffing adjustments and procurement initiatives to offset lower revenue expectations [23][24] Question: Dividend strategy and cash retention - Management clarified that the decision to maintain a $0.25 dividend was to reflect a disciplined capital allocation strategy, emphasizing the importance of reinvesting in strategic initiatives [27][30] Question: Group demand outlook for 2026 - Management indicated that group pace for 2026 is expected to be flat, with strong performance anticipated in specific markets like Bonnet Creek and Boston [31][32] Question: Impact of government shutdown on demand - Management noted that the government shutdown has impacted both group and transient demand, but expressed optimism for a quick recovery once resolved [46][48] Question: Capital allocation and potential share buybacks - Management stated that while share buybacks are a consideration, the priority remains on paying down debt and reinvesting in the portfolio [55]

Financial Performance - Net loss attributable to stockholders for the three months ended September 30, 2025 was $16 million, compared to a net income of $54 million for the same period in 2024[14] - Net loss attributable to stockholders for the nine months ended September 30, 2025 was $78 million, compared to a net income of $146 million for the same period in 2024[14] - Adjusted EBITDA for the three months ended September 30, 2025 was $130 million, compared to $159 million for the same period in 2024[18] - Adjusted EBITDA for the nine months ended September 30, 2025 was $457 million, compared to $514 million for the same period in 2024[18] - Comparable Hotel Adjusted EBITDA for the three months ended September 30, 2025 was $141 million, a decrease of 159% compared to $167 million in 2024[20] - Comparable Hotel Adjusted EBITDA for the nine months ended September 30, 2025 was $483 million, a decrease of 94% compared to $533 million in 2024[20] - Comparable Hotel Revenues for the three months ended September 30, 2025 were $585 million, a decrease of 43% compared to $611 million in 2024[20] - Comparable Hotel Revenues for the nine months ended September 30, 2025 were $1828 million, a decrease of 18% compared to $1862 million in 2024[20] Capital Structure - As of September 30, 2025, total debt was $3839 million[13] - Net Debt as of September 30, 2025, was $3706 million[26] - The company has $1 billion of available capacity under the Revolver and $800 million of its 2025 Delayed Draw Term Loan available as of October 30, 2025[88] Outlook - The company expects a full-year 2025 net loss attributable to stockholders between $66 million and $41 million[31] - The company expects full-year 2025 Adjusted EBITDA between $595 million and $620 million[31]

Core Insights - Park Hotels & Resorts reported $610 million in revenue for Q3 2025, a 6% decline year-over-year, with an EPS of $0.35 compared to $0.26 a year ago, indicating a mixed performance against expectations [1] - The revenue exceeded the Zacks Consensus Estimate by 0.18%, while the EPS fell short by 10.26% compared to the consensus estimate [1] Financial Performance Metrics - Comparable RevPAR growth was -6.1%, worse than the estimated -4.5% by analysts [4] - Total number of rooms stood at 22,129, slightly above the average estimate of 22,104 [4] - Room revenues were reported at $370 million, below the average estimate of $372.92 million, reflecting an 8.2% year-over-year decline [4] - Ancillary hotel revenues reached $67 million, slightly above the estimated $65.77 million, with a year-over-year decline of 1.5% [4] - Food and beverage revenues were $150 million, slightly exceeding the average estimate of $149.39 million, representing a 4.5% decline year-over-year [4] - Other revenues were reported at $23 million, surpassing the estimated $21.47 million, with a year-over-year increase of 9.5% [4] - Diluted EPS was reported at -$0.08, worse than the average estimate of -$0.01 [4] Stock Performance - Shares of Park Hotels & Resorts have returned -0.5% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Park Hotels & Resorts reported quarterly funds from operations (FFO) of $0.35 per share, missing the Zacks Consensus Estimate of $0.39 per share, and down from $0.49 per share a year ago, indicating a FFO surprise of -10.26% [1] - The company posted revenues of $610 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.18%, but down from $649 million year-over-year [2] - Park Hotels & Resorts shares have declined approximately 22% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Financial Performance - Over the last four quarters, the company has exceeded consensus FFO estimates two times and topped consensus revenue estimates three times [2] - The current consensus FFO estimate for the upcoming quarter is $0.45 on revenues of $630.79 million, and for the current fiscal year, it is $1.95 on revenues of $2.54 billion [7] Market Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [3] - The estimate revisions trend for Park Hotels & Resorts was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The REIT and Equity Trust - Other industry is currently in the top 34% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Total revenues for Q3 2025 were $610 million, a decrease of 6% compared to $649 million in Q3 2024[12] - Net loss attributable to stockholders for Q3 2025 was $16 million, compared to a net income of $54 million in Q3 2024, representing a significant decline[14] - Adjusted EBITDA for Q3 2025 was $130 million, down from $159 million in Q3 2024, reflecting a decrease of approximately 18%[19] - Operating income for Q3 2025 was $59 million, a decrease of 38% from $95 million in Q3 2024[14] - The company declared dividends payable of $56 million in Q3 2025, down from $138 million in Q4 2024[11] - Comparable Hotel Adjusted EBITDA for Q3 2025 decreased by 15.9% to $141 million from $167 million in Q3 2024[50] - Comparable Hotel Revenue for Q3 2025 decreased by 4.3% to $585 million from $611 million in Q3 2024[50] - The overall Comparable Hotel Adjusted EBITDA Margin for all markets decreased by 330 basis points to 24.1% in Q3 2025 from 27.4% in Q3 2024[50] - The occupancy rate for Total Comparable Hotels was 74.7% in Q3 2025, down from 78.2% in Q3 2024, a decline of 3.5 percentage points[60] - Comparable RevPAR for the three months ended September 30, 2025, was $180.93, with a TTM value of $184.65[77] Debt and Liquidity - The company reported a total debt of $3.839 billion as of September 30, 2025, slightly down from $3.841 billion at the end of 2024[11] - Cash and cash equivalents decreased to $278 million from $402 million at the end of 2024, indicating a liquidity contraction[11] - Net Debt as of September 30, 2025, was $3,706 million, an increase from $3,582 million at the end of 2024[29] - The Net Debt to TTM Comparable Adjusted EBITDA ratio increased to 6.23x as of September 30, 2025, compared to 5.54x at the end of 2024[29] - Total Debt as of September 30, 2025, is $3,839 million with a weighted average interest rate of 5.16%[88] - Fixed Rate Debt totals $3,658 million with a weighted average interest rate of 5.11%[88] - Variable Rate Debt amounts to $200 million with an interest rate of 6.09%[88] - The company expects to draw from the $800 million 2025 Delayed Draw Term Loan in 2026 to repay the $122 million mortgage loan for Hyatt Regency Boston[92] - The amended credit agreement allows for an increase in the Revolver and new term loans by up to $1 billion, subject to lender commitments[91] - The company has $1 billion of available capacity under the Revolver with no outstanding letters of credit[89] Future Outlook - The company anticipates continued challenges from macroeconomic factors, including elevated inflation and interest rates, which may impact future performance[3] - Full-year 2025 outlook for Adjusted EBITDA is projected between $595 million and $620 million[33] - Comparable RevPAR for full-year 2025 is expected to range from $184 to $185, reflecting a decline of 2.5% to 1.8% compared to 2024[33] - The company anticipates a net loss attributable to stockholders for full-year 2025 to be between $(66) million and $(41) million[33] - Total revenues for the year ending December 31, 2025, are projected to be between $2,521 million and $2,549 million, with comparable hotel revenues estimated at $2,413 million to $2,441 million[38] - Adjusted FFO attributable to stockholders is expected to range from $370 million to $393 million, with adjusted FFO per share projected at $1.85 to $1.97[39] - Comparable hotel adjusted EBITDA is forecasted to be between $634 million and $657 million, resulting in a comparable hotel adjusted EBITDA margin of 26.3% to 26.9%[38] - The operating income for the same period is anticipated to be between $206 million and $231 million, with an operating income margin of 8.2% to 9.1%[38] Hotel Operations and Performance - The total comparable portfolio consists of 35 hotels with a total of 22,129 rooms and a combined meeting space of 2,161,000 square feet[46] - In Q3 2025, the comparable ADR for Hawaii hotels decreased by 5.6% to $295.48, while comparable occupancy was 81.4%[47] - The comparable RevPAR for New York hotels increased by 3.9% to $287.95, with an occupancy rate of 89.9%[47] - The total debt related to the comparable portfolio is reported at $1,632 million[46] - The company has undergone recent conversions of hotels, including the W Chicago – Lakeshore to The Wade and the W Chicago – City Center to The Midland Hotel[46] - The company is focusing on market expansion and enhancing its portfolio through strategic conversions and renovations[46] - Hawaii's Comparable Hotel Adjusted EBITDA for YTD Q3 2025 decreased by 23.2% to $135 million from $176 million in YTD Q3 2024[56] - Orlando's Comparable Hotel Revenue for YTD Q3 2025 increased by 9.3% to $260 million from $238 million in YTD Q3 2024[56] - New York's Comparable RevPAR for YTD Q3 2025 increased by 5.1% to $261.66 from $248.86 in YTD Q3 2024[52] - Miami's Comparable Hotel Adjusted EBITDA for YTD Q3 2025 decreased by 40.7% to $18 million from $31 million in YTD Q3 2024[56] - The overall Comparable Total RevPAR for all markets decreased by 1.6% to $302.56 in YTD Q3 2025 from $307.35 in YTD Q3 2024[56] - Total Core Hotels revenue decreased by 0.8% to $263.85 million in Q3 2025 compared to $266.09 million in Q3 2024[60] - Hotel Adjusted EBITDA for Core Hotels fell by 13.7% to $125 million in Q3 2025 from $145 million in Q3 2024[62] - The hotel adjusted EBITDA margin for Total Comparable Hotels decreased by 330 basis points to 24.1% in Q3 2025 from 27.4% in Q3 2024[62] - Operations at the Royal Palm were suspended for a comprehensive renovation in mid-May 2025[51] - The Royal Palm South Beach Miami suspended operations for a comprehensive renovation in mid-May 2025[66] - The company sold the Hyatt Centric Fisherman's Wharf in San Francisco for gross proceeds of $80 million in May 2025[72] Market and Analyst Insights - Analyst coverage includes major firms such as Bank of America Merrill Lynch and Morgan Stanley, providing insights into market trends and investment strategies[117] - The conference call featured discussions on user data and performance metrics, highlighting significant growth in key segments[119]

Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence, as these companies typically have high free cash flows and offer substantial dividends [1] Group 1: Park Hotels & Resorts Inc (NYSE:PK) - The stock has a dividend yield of 9.17% [7] - UBS analyst Robin Farley maintained a Neutral rating and raised the price target from $10 to $11 on October 6, 2025, with an accuracy rate of 80% [7] - Cantor Fitzgerald analyst Richard Anderson initiated coverage with a Neutral rating and a price target of $12 on October 1, 2025, with an accuracy rate of 63% [7] - The company is set to release its third-quarter financial results after market close on October 30 [7] Group 2: Americold Realty Trust Inc (NYSE:COLD) - The stock has a dividend yield of 6.85% [7] - RBC Capital analyst Michael Carroll maintained an Outperform rating but cut the price target from $19 to $17 on September 30, 2025, with an accuracy rate of 61% [7] - Truist Securities analyst Ki Bin Kim maintained a Buy rating and lowered the price target from $20 to $17 on September 25, 2025, with an accuracy rate of 66% [7] - The company will announce its third-quarter financial results before the market opens on November 6 [7] Group 3: Outfront Media Inc (NYSE:OUT) - The stock has a dividend yield of 6.63% [7] - Morgan Stanley analyst Benjamin Swinburne maintained an Equal-Weight rating and raised the price target from $17 to $19 on August 4, 2025, with an accuracy rate of 75% [7] - Citigroup analyst Jason Bazinet maintained a Buy rating and increased the price target from $17 to $19 on May 29, 2025, with an accuracy rate of 77% [7] - The company reported disappointing quarterly results on August 5 [7]

Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence, favoring companies with high free cash flows that offer substantial dividends [1] Group 1: Park Hotels & Resorts Inc (NYSE:PK) - The stock has a dividend yield of 9.17% [7] - UBS analyst Robin Farley maintained a Neutral rating and raised the price target from $10 to $11 on October 6, 2025, with an accuracy rate of 80% [7] - Cantor Fitzgerald analyst Richard Anderson initiated coverage with a Neutral rating and a price target of $12 on October 1, 2025, with an accuracy rate of 63% [7] - The company is set to release its third-quarter financial results after market close on October 30 [7] Group 2: Americold Realty Trust Inc (NYSE:COLD) - The stock has a dividend yield of 6.85% [7] - RBC Capital analyst Michael Carroll maintained an Outperform rating but cut the price target from $19 to $17 on September 30, 2025, with an accuracy rate of 61% [7] - Truist Securities analyst Ki Bin Kim maintained a Buy rating and lowered the price target from $20 to $17 on September 25, 2025, with an accuracy rate of 66% [7] - The company will announce its third-quarter financial results before market open on November 6 [7] Group 3: Outfront Media Inc (NYSE:OUT) - The stock has a dividend yield of 6.63% [7] - Morgan Stanley analyst Benjamin Swinburne maintained an Equal-Weight rating and raised the price target from $17 to $19 on August 4, 2025, with an accuracy rate of 75% [7] - Citigroup analyst Jason Bazinet maintained a Buy rating and increased the price target from $17 to $19 on May 29, 2025, with an accuracy rate of 77% [7] - The company reported disappointing quarterly results on August 5 [7]

Core Insights - Park Hotels & Resorts Inc. (NYSE:PK) is recognized as one of the 12 Best REIT Dividend Stocks to buy currently [1] - The company primarily invests in hotel assets, featuring well-known brands such as Hilton, Marriott, and Hyatt, and focuses on enhancing property value through redevelopment and strategic acquisitions [2] Company Strategy - Park Hotels & Resorts is reallocating capital from non-core assets to high-return projects, including significant renovations at flagship hotels, while maintaining a conservative balance sheet to manage costs effectively [3] - The company emphasizes cost management and aims to strengthen its portfolio through targeted investments in core assets [3] Dividend Performance - As of October 1, Park Hotels & Resorts has a dividend yield of 9.07%, with a quarterly dividend of $0.25, making it appealing for income and value investors [4]