Summary of Park Hotels & Resorts Q3 2025 Earnings Call

1Key Financial Results and Metrics

RevPAR: $181, a 6% decline year-over-year, or down 5% excluding the Royal Palm South Beach, which was closed for renovations.

Total Hotel Revenues: $585 million.

Adjusted EBITDA: $130 million, with a hotel adjusted EBITDA margin of 24.1%.

Adjusted FFO per Share: $0.35.

Liquidity: Total liquidity increased to $2.1 billion following an upsized corporate credit facility.

Dividend: A fourth-quarter cash dividend of $0.25 per share was declared, with no top-off dividend expected for 2025.

2Strategic Updates and Business Highlights

Focus on portfolio refinement to enhance quality and growth potential, with over $325 million deployed in high ROI reinvestments, targeting returns of approximately 20%.

Major renovations include the Royal Palm in Miami, set to reopen ahead of the 2026 World Cup, and ongoing projects in Hawaii and New Orleans.

Continued divestment strategy with plans to exit 15 non-core hotels, enhancing portfolio metrics and focusing on high-quality assets.

Successful execution of operational excellence initiatives, maintaining expense growth at 1% or less for three consecutive quarters.

3Forward Guidance and Outlook

Q4 RevPAR Growth: Expected to range from -1% to +2%, or +1% to +4% excluding the Royal Palm.

Full Year RevPAR Growth: Revised guidance now anticipates a decline of approximately 2% at the midpoint.

Adjusted EBITDA Forecast: Lowered by $12.5 million to a range of $595 million to $620 million.

2026 Outlook: Optimistic about recovery driven by lower interest rates, favorable regulatory conditions, and major events like the World Cup and Super Bowl.

4Bad News, Challenges, or Points of Concern

Group Demand Decline: A significant drop in group demand impacted Q3 results, with ongoing softness expected in leisure and government demand.

Government Shutdown: The extended government shutdown has negatively affected room revenue expectations, with an estimated $2.5 million impact in October.

Operational Disruptions: Renovations in Hawaii caused incremental disruptions, affecting overall performance.

Market-Specific Weakness: Certain markets, such as Chicago, experienced deteriorating trends due to external factors like the National Guard deployment.

5Notable Q&A Insights

Expense Management: The company is actively managing costs through aggressive asset management and operational adjustments, resulting in flat expense growth despite declining revenues.

Dividend Strategy: The decision to not pay a top-off dividend was strategic, aimed at preserving capital for reinvestment and debt reduction.

Group Bookings for 2026: Group pace is currently flat, with expectations for improvement driven by strong upcoming events and a favorable economic backdrop.

Market Dynamics: There is a mixed buyer pool for non-core asset sales, with some hesitation due to current market volatility and uncertainty. This summary encapsulates the essential points from the earnings call, providing a balanced view of Park Hotels & Resorts' current performance, strategic direction, and challenges ahead.