Park Hotels & Resorts Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did PK Beat Earnings? Q2 2025 Results
Park Hotels & Resorts delivered a sharply stronger-than-expected second quarter, with diluted Adjusted FFO per share of $0.64 far ahead of the $0.25 consensus estimate, a beat of 156.00%, even as total revenues slipped 2.0% year over year to $672.00 million, edging past the $669.02 million analyst forecast. The headline earnings outperformance came against a backdrop of real operational pressure: the company swung to a net loss of $2.00 million from net income of $67.00 million a year earlier, with a near-doubling of depreciation and amortization to $122.00 million weighing heavily on GAAP results. A 1.6% decline in Comparable RevPAR to $195.68 reflected in part the suspension of the Royal Palm South Beach Miami for a $103.00 million renovation, which alone is expected to cause roughly $17.00 million in Hotel Adjusted EBITDA disruption this year. Looking ahead, Park trimmed its full-year 2025 outlook, now projecting Adjusted FFO per diluted share of $1.82 to $2.08 and Adjusted EBITDA of $595.00 million to $645.00 million, with Comparable RevPAR expected to range from $184 to $187.
- Urban portfolio Comparable RevPAR increased 3% YoY, led by JW Marriott San Francisco Union Square (+17%) and Hilton New York Midtown (+10%)
- Waldorf Astoria Orlando RevPAR increased nearly 24% on stronger group and transient demand
- Hilton Caribe Puerto Rico RevPAR increased nearly 18% on transient demand growth
- Effective cost controls limited total expense growth to just 40 basis points
- Group revenues at Hilton Waikoloa Village increased 57% YoY
- Group revenues at Hilton New York Midtown increased over 16% YoY
“We remain laser-focused on our strategic objective of reshaping the portfolio through non-core asset dispositions, as evidenced by the successful closing on the sale of the Hyatt Centric Fisherman's Wharf for total proceeds of $80 million, representing a 64.0x multiple on 2024 EBITDA of the hotel, and with several other non-core assets in various stages of the marketing process, while reallocating and investing this capital in our iconic portfolio, like the Royal Palm hotel in Miami, which recently commenced a transformative renovation. With liquidity of approximately $1.3 billion, we remain well-positioned for long-term growth and committed to creating long-term shareholder value.”
Park Hotels & Resorts CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2025, Park expects Comparable RevPAR of $184 to $187 (a decline of 2.0% to flat versus 2024), or $185 to $189 excluding the Royal Palm (down 1.0% to up 1.0%). Net loss attributable to stockholders is expected at $(60) million to $(10) million, with diluted loss per share of $(0.30) to $(0.05). Operating income is projected at $212 million to $263 million. Adjusted EBITDA is forecast at $595 million to $645 million, and Adjusted FFO per diluted share at $1.82 to $2.08. Comparable Hotel Adjusted EBITDA margin is expected at 26.1% to 27.5%. Capital expenditures are projected at $310 million to $330 million. The outlook assumes 200 million fully diluted weighted average shares and excludes potential tariff impacts on U.S. travel patterns. The Royal Palm renovation is expected to cause approximately $17 million of Hotel Adjusted EBITDA disruption in 2025, with the property expected to reopen in May 2026.
PK YoY Financials
PK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.