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)

Group 1 - Pearl Gray is a proprietary investment fund and independent market research firm specializing in systematic analysis, focusing primarily on Bonds, Preferreds, and REITs, with a primary emphasis on the Financials and Real Estate sectors [1] - The mission of Pearl Gray is to discover actionable total return ideas at the intersection of rigorous academic theories, practical experience, and common sense [1] Group 2 - The content published by Pearl Gray is intended as independent analysis and does not constitute financial advice [1][3] - The firm encourages readers to consult a registered financial advisor before making investment decisions [3]

Core Insights - Park Hotels & Resorts, Inc. has sold the 316-room Hyatt Centric Fisherman's Wharf in San Francisco for $80 million, reflecting a multiple of 64.0 times the hotel's 2024 EBITDA [1] - The company aims to dispose of $300 million to $400 million of non-core hotel assets by 2025, enhancing its portfolio quality and financial flexibility [2] - Since 2017, Park Hotels has sold 46 hotels for over $3 billion, focusing on capital allocation to unlock value and improve shareholder returns [3] Financial Performance - The recent sale proceeds will be used for ongoing ROI projects and general corporate purposes [1] - Over the past three months, Park Hotels' shares have declined by 17.3%, compared to a 2.5% decline in the industry [4] Strategic Focus - The company emphasizes prudent capital management and aims to optimize the use of proceeds from asset dispositions [4] - Park Hotels is focused on development activities to enhance long-term growth [4]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Company Ratings and Analyst Insights - OUTFRONT Media Inc. has a dividend yield of 8.00%. Morgan Stanley analyst Benjamin Swinburne maintained an Equal-Weight rating and reduced the price target from $18 to $17, with an accuracy rate of 77%. TD Cowen analyst Lance Vitanza initiated coverage with a Hold rating and a price target of $16, having an accuracy rate of 75%. Recent news indicated worse-than-expected first-quarter financial results [7] - Healthcare Realty Trust Incorporated has a dividend yield of 8.08%. Wedbush analyst Richard Anderson maintained a Neutral rating and cut the price target from $18 to $16, with an accuracy rate of 62%. Wells Fargo analyst James Feldman assumed coverage with an Underweight rating and raised the price target from $16 to $17, having an accuracy rate of 61%. Recent news showed downbeat quarterly sales results [7] - Park Hotels & Resorts Inc. has a dividend yield of 9.63%. Morgan Stanley analyst Stephen Grambling maintained an Equal-Weight rating and reduced the price target from $12 to $10, with an accuracy rate of 63%. Truist Securities analyst Patrick Scholes maintained a Buy rating and cut the price target from $18 to $16, having an accuracy rate of 65%. Recent news reported better-than-expected quarterly results [7]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q __________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to Commission File Number 001-37795 _______________________ ...

Financial Data and Key Metrics Changes - The company reported Q1 RevPAR of $178, representing a modest 70 basis point decline year-over-year, primarily due to difficult comparisons from last year's nearly 8% growth [19][22] - Total hotel revenues for the quarter were $608 million, with hotel adjusted EBITDA at $151 million, resulting in a nearly 25% hotel adjusted EBITDA margin [20][21] - Adjusted EBITDA for the quarter was $144 million, and adjusted FFO per share was $0.46 [21] Business Line Data and Key Metrics Changes - The Bonnet Creek complex in Orlando saw a 32% RevPAR increase, driven by a surge in transient revenues of nearly 65% [12] - Casa Marina in Key West reported a 12% RevPAR increase, despite tough comparisons from last year [13] - RevPAR across the two Hawaii properties declined by 15% during the quarter, with the Hilton Hawaiian Village being a significant drag on overall results [14] Market Data and Key Metrics Changes - Miami, New Orleans, Puerto Rico, Washington DC, and San Francisco reported above industry average RevPAR gains [8] - Preliminary April results showed mixed performance, with RevPAR growth of 1.6%, driven by strong gains in New York, Orlando, and San Francisco [16] - International demand represents just 10% of total room nights, with government-related business accounting for only 3% [17] Company Strategy and Development Direction - The company plans to invest $310 million to $330 million in capital improvements in 2025, focusing on unlocking embedded value in its portfolio [10] - A transformative renovation of the Royal Palm South Beach is set to begin, with expected returns exceeding 15% to 20% [9] - The company aims to sell $300 million to $400 million of non-core hotels this year to further deleverage the balance sheet [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery of the Hilton Hawaiian Village, expecting mid-single-digit RevPAR growth in Q3 [31] - The near-term outlook for US lodging fundamentals remains uncertain due to ongoing global trade tensions [16] - Despite macro uncertainties, the company remains focused on factors within its control and is working closely with operators to manage expenses [17] Other Important Information - The company repurchased approximately 3.5 million shares for a total of $45 million during the quarter [11] - A $70 million impairment was recognized during the quarter related to an asset, though specific details were not disclosed [77][78] Q&A Session Summary Question: Comments on planned asset sales and current market conditions - Management acknowledged tremendous uncertainty in the market due to geopolitical factors but expressed confidence in their ability to transact even under challenging conditions [27][28] Question: Insights on Hawaii's performance and recovery - Management indicated that the ramp-up post-strike is taking longer than expected, but they remain confident in Hawaii's long-term growth potential [32][33] Question: Update on core hotel portfolio and asset sales - The company is focusing on its top 20 core assets, which account for 85-90% of the company's value, while working to sell non-core assets [38][39] Question: CapEx plans and timing for Miami renovations - Management confirmed that they have secured necessary permits and are on track to complete renovations before the World Cup next year [43] Question: Market performance expectations for 2025 - Management expects strong performance in Orlando and Key West, with positive outlooks for New York and Denver as well [50][51] Question: Group pace and transient demand trends - Management noted that group bookings remain solid, while transient demand is showing some softness, particularly in international travel [108]

Core Insights - Park Hotels & Resorts reported $630 million in revenue for Q1 2025, a year-over-year decline of 1.4%, but exceeded the Zacks Consensus Estimate by 2.49% [1] - The company achieved an EPS of $0.46, up from $0.25 a year ago, representing a surprise of 12.20% over the consensus estimate of $0.41 [1] Financial Performance Metrics - Comparable RevPAR growth was -0.7%, better than the estimated -1.6% [4] - Other revenues reached $22 million, exceeding the estimate of $21.23 million, marking a 4.8% increase year-over-year [4] - Ancillary hotel revenues were $63 million, surpassing the estimate of $57.87 million, with a year-over-year change of 1.6% [4] - Food and beverage revenues stood at $182 million, slightly above the estimate of $177.61 million, with no change year-over-year [4] - Room revenues totaled $363 million, compared to the estimate of $354.98 million, reflecting a year-over-year decline of 2.9% [4] - Diluted EPS was reported at -$0.29, significantly below the estimate of $0.03 [4] Stock Performance - Shares of Park Hotels & Resorts have returned +9.6% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Financial Data and Key Metrics Changes - The company reported Q1 RevPAR of $178, reflecting a modest 70 basis point decline year-over-year, primarily due to difficult comparisons following last year's nearly 8% growth [18] - Total hotel revenues for the quarter were $608 million, with hotel adjusted EBITDA at $151 million, resulting in a nearly 25% hotel adjusted EBITDA margin [18] - Adjusted EBITDA for the quarter was $144 million, and adjusted FFO per share was $0.46 [19] Business Line Data and Key Metrics Changes - The Bonnet Creek complex in Orlando saw a 32% RevPAR increase, driven by a surge in transient revenues of nearly 65% [10] - Casa Marina in Key West delivered a 12% RevPAR increase, with occupancy up 680 basis points [11] - RevPAR across the two Hawaii properties declined by 15%, with Hilton Hawaiian Village significantly impacted by a labor strike [12] Market Data and Key Metrics Changes - Miami, New Orleans, Puerto Rico, Washington DC, and San Francisco reported above industry average RevPAR gains [5] - Preliminary April results showed mixed performance, with RevPAR growth of 1.6%, driven by strong gains in New York, Orlando, and San Francisco [15] - International demand represents just 10% of total room nights, with government-related business accounting for only 3% [16] Company Strategy and Development Direction - The company plans to invest $310 million to $330 million in capital improvements in 2025, focusing on unlocking embedded value in its portfolio [8] - A transformative renovation of the Royal Palm South Beach, Miami, is set to begin soon, with expected returns exceeding 15% to 20% [6] - The company aims to sell $300 million to $400 million of non-core hotels this year, with several assets in various stages of marketing [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ongoing geopolitical uncertainties and their impact on decision-making in the market [26] - The outlook for Hawaii remains favorable, supported by limited new supply expected through at least 2029 [14] - Despite macro uncertainties, the company remains focused on factors within its control and is working closely with operators to manage operating expenses [16] Other Important Information - The company repurchased approximately 3.5 million shares for a total of $45 million during the quarter [9] - A $70 million impairment was recognized in the quarter, related to an asset whose true value was reassessed [75] Q&A Session Summary Question: Comments on planned asset sales and current market environment - Management acknowledged tremendous uncertainty in the market due to geopolitical issues and trade wars, but expressed confidence in their ability to transact even under challenging conditions [26][27] Question: Update on Hawaii's performance and ramp-up post-strike - Management noted that the ramp-up is taking longer than expected, with sequential improvement anticipated, and expressed confidence in Hawaii's long-term growth potential [30][31] Question: Changes in core hotels and capital allocation - The company has focused on trimming its portfolio to core assets that account for 85-90% of its value, with plans to recycle capital from non-core asset sales [35][36] Question: Group pace and market performance expectations - Management indicated that group pace is slightly down for Q2 and Q3 but remains strong for Q4, with confidence in the overall bookings for the year [60][61] Question: Performance of Hilton Hawaiian Village and EBITDA expectations - Management stated that while it is challenging to predict if EBITDA will exceed last year's performance, they remain bullish on Hawaii's long-term outlook [73][74]

FIRST QUARTER 2025 SUPPLEMENTAL DATA MARCH 31, 2025 ABOUT PARK AND SAFE HARBOR DISCLOSURE About Park Hotels & Resorts Inc. Park (NYSE: PK) 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 40 premium-branded hotels and resorts with approximately 25,000 rooms primarily located in prime city center and resort locations ...