Park Hotels & Resorts Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did PK Beat Earnings? Q3 2025 Results
Park Hotels & Resorts delivered a sharply mixed third quarter, posting Adjusted FFO of $0.35 per diluted share that cleared the $0.04 consensus estimate by 708.31%, yet the underlying business told a more complicated story. Total revenue of $610.00 million edged past the $609.71 million consensus by just 0.05% but fell 6.0% from $649.00 million a year ago, as softer leisure and government transient demand compounded tough group comparisons against strong 2024 citywide calendars. Comparable RevPAR declined 6.1% to $180.93, with Hawaii down 11.6%, New Orleans off 15.2%, and Washington D.C. sliding 16.1%, driving Adjusted EBITDA 18.2% lower to $130.00 million. On the balance sheet, Park upsized its revolving credit facility to $1.00 billion and secured an $800.00 million term loan, lifting total liquidity to roughly $2.10 billion ahead of $1.40 billion in 2026 mortgage maturities. Looking ahead, the company trimmed its full-year Adjusted EBITDA guidance to $595.00 million to $620.00 million, though a Q4 group revenue pace projected to rise more than 12% offers some encouragement heading into year-end.
- Comparable RevPAR declined 6.1% (4.9% excluding Royal Palm) driven by softer leisure and government transient demand and weaker group demand due to tough citywide calendar comparisons
- Strong performance in San Francisco (+13.5% RevPAR), Puerto Rico (+11.7%), New York (+3.9%), Orlando (+1.9%), and Key West (+0.6%) partially offset declines
- Hawaii RevPAR fell 11.6% due to lower occupancy
- Disciplined cost controls limited total Comparable hotel expense growth to just 10 basis points
- Government shutdown impacted group and transient demand in Hawaii, Washington D.C., and Southern California with estimated 180 bps RevPAR impact in October
“During the third quarter, we remained laser-focused on our strategic objective to preserve a strong and flexible balance sheet. We significantly increased our liquidity to $2.1 billion to address maturing loans. In addition, we continued to reshape our portfolio through non-core asset dispositions, with the permanent closure of the Embassy Suites Kansas City Plaza at the end of September, while continuing to invest in our core portfolio with significant renovations ongoing at our two Hawaii resorts and the Hilton New Orleans Riverside, and our transformative ROI project at the Royal Palm in Miami.”
Park Hotels & Resorts CEO, on the earnings call
Forward Guidance & Outlook
Park lowered its full-year 2025 outlook at the midpoint. The company now expects: Comparable RevPAR of $184-$185 (down 2.5% to 1.8% vs. 2024); Net loss of $(60)M to $(35)M; Net loss attributable to stockholders of $(66)M to $(41)M; Loss per share of $(0.33) to $(0.21); Operating income of $206M to $231M; Adjusted EBITDA of $595M to $620M; Comparable Hotel Adjusted EBITDA margin of 26.3% to 26.9%; and Adjusted FFO per share of $1.85 to $1.97. The outlook reflects the impact of the government shutdown through October 2025 only, and does not incorporate incremental tariff impacts, changes in travel patterns resulting from trade policy, or continued government shutdown beyond October. Q4 group revenue pace is projected to increase over 12% vs. 2024, with the Hilton Hawaiian Village expected to see nearly 57% group revenue pace growth as it laps the prior-year labor strike.
PK YoY Financials
PK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.