Park Hotels & Resorts Inc. (PK) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy PK?
Source: SeekingAlpha
RevPAR (Revenue Per Available Room) For the fourth quarter, RevPAR was approximately $182, representing a nearly 1% year-over-year increase or nearly 3% when excluding Royal Palm. The Core portfolio, excluding Royal Palm, demonstrated a RevPAR increase of 6% to nearly $216, which was 1,500 basis points higher than the Non-Core portfolio. The increase was attributed to the operational strength of the Core portfolio.
Core Hotel Adjusted EBITDA Margin Core hotel adjusted EBITDA margin improved by 230 basis points to 30% in the fourth quarter, while the Non-Core portfolio recorded a 280 basis point contraction to 10%. The improvement in the Core portfolio was due to its operational strength and the value-accretive nature of the portfolio reshaping initiative.
Group Revenue for Core Portfolio Fourth quarter group revenue for the Core portfolio increased 13% year-over-year, supported by convention demand in Hawaii and New York and solid corporate group activity in Orlando. This was complemented by double-digit growth in banquet and catering revenues across several key markets, including Hawaii, Chicago, Orlando, and Denver.
Hilton Hawaiian Village RevPAR Growth Hilton Hawaiian Village generated 22% RevPAR growth in the fourth quarter, benefiting from easier year-over-year comparisons following last year's labor disruption. The growth was also supported by the completion of the Rainbow Tower renovation.
Orlando Bonnet Creek Complex RevPAR The Bonnet Creek complex in Orlando delivered a record fourth quarter RevPAR, up nearly 9% year-over-year, driven by a 15% increase in group revenues. The complex benefited from its expanded meeting platform and renovated room product.
New York Group Revenue New York delivered its highest fourth quarter group revenue in hotel history, up over 8% year-over-year, supported by improved short-term pickup strategies and in-house group activities.
Full Year 2025 RevPAR For the full year, RevPAR declined 2% versus 2024, while hotel-adjusted EBITDA margin was 26.5%, reflecting a 130 basis point reduction from the prior year. The decline was primarily due to the Royal Palm renovation, which contributed a 110 basis point drag to full year RevPAR growth and approximately 15 basis points of margin pressure.
Capital Expenditures (CapEx) In 2025, nearly $300 million was invested across the portfolio, including $110 million during the fourth quarter. Significant investments included $85 million for the second phase of guest room renovations at the Rainbow Tower and Palace Tower in Hawaii and over $30 million for renovations at the Hilton New Orleans Riverside.
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Analyst Views on PK
Wall Street analysts forecast PK stock price to rise
7 Analyst Rating
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 11.240
Low
10.50
Averages
11.93
High
14.00
Current: 11.240
Low
10.50
Averages
11.93
High
14.00
About PK
Park Hotels & Resorts Inc. is a lodging real estate investment trust (REIT). The Company has a diverse portfolio of hotels and resorts with significant underlying real estate value. It has interests in 36 hotels, consisting of premium-branded hotels and resorts with approximately 23,055 rooms, of which over 87% are luxury and upper upscale and are located in prime United States markets and its territories. Its high-quality portfolio includes hotels mostly in major urban and convention areas, such as New York City, Washington, D.C., Chicago, Boston, New Orleans and Denver; and premier resorts in key leisure destinations, including Hawaii, Orlando, Key West and Miami Beach; as well as hotels in select airport and suburban locations. Its brands include Hilton Hotels & Resorts, DoubleTree by Hilton, Signia by Hilton, Marriott, Hyatt Regency, Embassy Suites by Hilton, Marriott Tribute Portfolio, Curio - A Collection by Hilton, Waldorf Astoria Hotels & Resorts, JW Marriott, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Success of Price-to-Tangible-Book Value Investing
- Long-Term Return Advantage: Since 1980, Donald Smith & Co.'s investment strategy has achieved a 16.8% compound annual return by focusing on companies in the lowest decile of price-to-tangible-book ratios, significantly outperforming the overall lowest decile's 13.4% and the S&P 500's 12.1%, demonstrating the effectiveness of their long-term investment approach and market recognition potential.
- Philosophical Foundation: Founder Donald G. Smith was influenced by Benjamin Graham during his time at UCLA Law School, establishing an investment framework centered on buying companies with the lowest price-to-tangible-book value, emphasizing fundamental analysis and patient holding to avoid short-term market fluctuations.
- Asset Allocation Strategy: Currently managing over $5 billion in assets, Donald Smith & Co. employs a concentrated investment strategy with individual positions capped at 5% and industry exposure generally limited to around 20%, ensuring stable portfolio performance amid market volatility.
- Current Investment Targets: Recent 13F filings reveal significant positions in asset-heavy companies like West Fraser Timber, Brazilian steel producer Gerdau, and Harley-Davidson, all trading at substantial discounts, reflecting their deep conviction in cyclical asset investing and expectations for market recovery.
See More
Dividend Stocks Favored Amid Market Turbulence
- Attraction of Dividend Stocks: During turbulent and uncertain market conditions, many investors are turning to dividend-yielding stocks, which typically have high free cash flows and reward shareholders with substantial dividends, highlighting their defensive characteristics in unstable markets.
- Real Estate Sector Performance: Analyst ratings for three high-yielding real estate stocks indicate a growing interest in these equities, particularly as economic uncertainty increases, leading investors to prefer stable income sources.
- Analyst Ratings: Brandywine Realty Trust (NYSE: BDN), Park Hotels & Resorts Inc (NYSE: PK), and SL Green Realty Corp (NYSE: SLG) are currently recommended high-yield stocks by analysts, reflecting market confidence in these companies.
- Investor Strategy Adjustment: As market volatility intensifies, investors may reassess their portfolios to increase allocations to dividend stocks in search of stable cash flows and risk hedging, further driving demand for these equities.
See More
Park Hotels & Resorts Q4 2025 Earnings Call Highlights
- Strategic Progress: CEO Thomas Baltimore highlighted significant advancements in 2025, particularly in reshaping and upgrading the portfolio, with high-impact redevelopment projects expected to yield over $1 billion in ROI.
- Non-Core Asset Dispositions: The company has sold or disposed of 51 hotels for over $3 billion in the past nine years, and despite a challenging transaction environment, has disposed of 13 hotels since 2023, driving nearly 8% growth in portfolio-wide nominal RevPAR.
- Strong Core Hotel Performance: In Q4, RevPAR for core hotels increased by 3.2% year-over-year, or 5.7% excluding the Royal Palm, while the adjusted EBITDA margin for core hotels expanded to 30%, demonstrating continued returns from investments in high-quality assets.
- Cautious 2026 Outlook: The CFO projected flat to 2% growth in RevPAR for 2026, with adjusted EBITDA forecasted between $580 million and $610 million, reflecting the company's cautious stance amid macroeconomic uncertainties.
See More
Park Hotels & Resorts Declares $0.25 Quarterly Dividend
- Quarterly Dividend Declaration: Park Hotels & Resorts has declared a quarterly dividend of $0.25 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy, which is likely to attract more investor interest.
- Earnings Beat Expectations: The company reported a funds from operations (FFO) of $0.51, exceeding expectations by $0.05, suggesting improved operational efficiency and potentially boosting market confidence in its future growth prospects.
- Revenue Growth: Park Hotels achieved revenue of $629 million, surpassing market expectations by $6.7 million, reflecting strong performance in the hotel sector and a recovery in market demand, further solidifying its market position.
- Asset Disposition: The company sold five non-core hotels for $198 million, a strategic move that helps optimize its asset portfolio, freeing up capital for more promising investment opportunities and enhancing overall financial flexibility.
See More
H/2 Credit Manager Sells Park Hotels Shares in $7.94 Million Transaction
- Share Sale Details: On February 17, 2026, H/2 Credit Manager LP disclosed in an SEC filing that it sold 741,040 shares of Park Hotels & Resorts during Q4 2025, with an estimated transaction value of $7.94 million, indicating a potential loss of confidence in the company.
- Decline in Position Value: The sale resulted in a $10.17 million decline in H/2 Credit Manager's quarter-end position value in Park Hotels, reflecting not only the impact of the sale but also changes in share price, highlighting market concerns regarding the company's performance.
- Company Financial Overview: As of February 17, 2026, Park Hotels' shares were priced at $11.47, down 4.3% year-over-year, with a net income of -$12 million, indicating financial strain despite an adjusted EBITDA of $609 million, suggesting underlying operational challenges.
- Investor Focus: Park Hotels is actively shedding lower-quality properties and redeploying capital into high-return renovations, with the Royal Palm overhaul expected to yield a 15% to 20% ROI, demonstrating the company's commitment to optimizing its asset portfolio and improving financial health.
See More
Park Hotels Q4 Results Beat Expectations, 2026 Outlook Positive
- Strong Financial Performance: Park Hotels & Resorts reported Q4 FFO of $0.51, beating expectations by $0.05, indicating robust market performance that boosts investor confidence.
- Stable Revenue Growth: The company achieved Q4 revenue of $629 million, a 0.6% year-over-year increase, exceeding market expectations by $6.7 million, demonstrating its ability to maintain steady revenue streams in a competitive hotel industry.
- Positive 2026 Outlook: Park anticipates 2026 RevPAR to range from $190 to $194, reflecting a stable to 2% growth compared to 2025, indicating a positive outlook on future market demand.
- Increased Net Income Projections: Expected net income for 2026 is projected between $69 million and $99 million, with net income attributable to stockholders ranging from $62 million to $92 million, showcasing sustained profitability and reinforcing its market position.
See More
Success of Price-to-Tangible-Book Value Investing
- Long-Term Return Advantage: Since 1980, Donald Smith & Co.'s investment strategy has achieved a 16.8% compound annual return by focusing on companies in the lowest decile of price-to-tangible-book ratios, significantly outperforming the overall lowest decile's 13.4% and the S&P 500's 12.1%, demonstrating the effectiveness of their long-term investment approach and market recognition potential.
- Philosophical Foundation: Founder Donald G. Smith was influenced by Benjamin Graham during his time at UCLA Law School, establishing an investment framework centered on buying companies with the lowest price-to-tangible-book value, emphasizing fundamental analysis and patient holding to avoid short-term market fluctuations.
- Asset Allocation Strategy: Currently managing over $5 billion in assets, Donald Smith & Co. employs a concentrated investment strategy with individual positions capped at 5% and industry exposure generally limited to around 20%, ensuring stable portfolio performance amid market volatility.
- Current Investment Targets: Recent 13F filings reveal significant positions in asset-heavy companies like West Fraser Timber, Brazilian steel producer Gerdau, and Harley-Davidson, all trading at substantial discounts, reflecting their deep conviction in cyclical asset investing and expectations for market recovery.
See More
Dividend Stocks Favored Amid Market Turbulence
- Attraction of Dividend Stocks: During turbulent and uncertain market conditions, many investors are turning to dividend-yielding stocks, which typically have high free cash flows and reward shareholders with substantial dividends, highlighting their defensive characteristics in unstable markets.
- Real Estate Sector Performance: Analyst ratings for three high-yielding real estate stocks indicate a growing interest in these equities, particularly as economic uncertainty increases, leading investors to prefer stable income sources.
- Analyst Ratings: Brandywine Realty Trust (NYSE: BDN), Park Hotels & Resorts Inc (NYSE: PK), and SL Green Realty Corp (NYSE: SLG) are currently recommended high-yield stocks by analysts, reflecting market confidence in these companies.
- Investor Strategy Adjustment: As market volatility intensifies, investors may reassess their portfolios to increase allocations to dividend stocks in search of stable cash flows and risk hedging, further driving demand for these equities.
See More
Park Hotels & Resorts Q4 2025 Earnings Call Highlights
- Strategic Progress: CEO Thomas Baltimore highlighted significant advancements in 2025, particularly in reshaping and upgrading the portfolio, with high-impact redevelopment projects expected to yield over $1 billion in ROI.
- Non-Core Asset Dispositions: The company has sold or disposed of 51 hotels for over $3 billion in the past nine years, and despite a challenging transaction environment, has disposed of 13 hotels since 2023, driving nearly 8% growth in portfolio-wide nominal RevPAR.
- Strong Core Hotel Performance: In Q4, RevPAR for core hotels increased by 3.2% year-over-year, or 5.7% excluding the Royal Palm, while the adjusted EBITDA margin for core hotels expanded to 30%, demonstrating continued returns from investments in high-quality assets.
- Cautious 2026 Outlook: The CFO projected flat to 2% growth in RevPAR for 2026, with adjusted EBITDA forecasted between $580 million and $610 million, reflecting the company's cautious stance amid macroeconomic uncertainties.
See More
Park Hotels & Resorts Declares $0.25 Quarterly Dividend
- Quarterly Dividend Declaration: Park Hotels & Resorts has declared a quarterly dividend of $0.25 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy, which is likely to attract more investor interest.
- Earnings Beat Expectations: The company reported a funds from operations (FFO) of $0.51, exceeding expectations by $0.05, suggesting improved operational efficiency and potentially boosting market confidence in its future growth prospects.
- Revenue Growth: Park Hotels achieved revenue of $629 million, surpassing market expectations by $6.7 million, reflecting strong performance in the hotel sector and a recovery in market demand, further solidifying its market position.
- Asset Disposition: The company sold five non-core hotels for $198 million, a strategic move that helps optimize its asset portfolio, freeing up capital for more promising investment opportunities and enhancing overall financial flexibility.
See More
H/2 Credit Manager Sells Park Hotels Shares in $7.94 Million Transaction
- Share Sale Details: On February 17, 2026, H/2 Credit Manager LP disclosed in an SEC filing that it sold 741,040 shares of Park Hotels & Resorts during Q4 2025, with an estimated transaction value of $7.94 million, indicating a potential loss of confidence in the company.
- Decline in Position Value: The sale resulted in a $10.17 million decline in H/2 Credit Manager's quarter-end position value in Park Hotels, reflecting not only the impact of the sale but also changes in share price, highlighting market concerns regarding the company's performance.
- Company Financial Overview: As of February 17, 2026, Park Hotels' shares were priced at $11.47, down 4.3% year-over-year, with a net income of -$12 million, indicating financial strain despite an adjusted EBITDA of $609 million, suggesting underlying operational challenges.
- Investor Focus: Park Hotels is actively shedding lower-quality properties and redeploying capital into high-return renovations, with the Royal Palm overhaul expected to yield a 15% to 20% ROI, demonstrating the company's commitment to optimizing its asset portfolio and improving financial health.
See More
Park Hotels Q4 Results Beat Expectations, 2026 Outlook Positive
- Strong Financial Performance: Park Hotels & Resorts reported Q4 FFO of $0.51, beating expectations by $0.05, indicating robust market performance that boosts investor confidence.
- Stable Revenue Growth: The company achieved Q4 revenue of $629 million, a 0.6% year-over-year increase, exceeding market expectations by $6.7 million, demonstrating its ability to maintain steady revenue streams in a competitive hotel industry.
- Positive 2026 Outlook: Park anticipates 2026 RevPAR to range from $190 to $194, reflecting a stable to 2% growth compared to 2025, indicating a positive outlook on future market demand.
- Increased Net Income Projections: Expected net income for 2026 is projected between $69 million and $99 million, with net income attributable to stockholders ranging from $62 million to $92 million, showcasing sustained profitability and reinforcing its market position.
See More
