Park Hotels & Resorts(PK) - 2025 Q3 - Quarterly Results

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]