Summary of Park Hotels & Resorts Inc. Q1 2026 Earnings Call

1Key Financial Results and Metrics

RevPAR: Increased by 5.5% year-over-year, excluding the Royal Palm South Beach hotel. Core RevPAR rose 5.4%, reaching nearly $216.

Total Hotel Revenues: $591 million, up nearly 2% from the previous year.

Adjusted EBITDA: $152 million, with a margin of approximately 26%.

Earnings: EBITDA of $143 million and adjusted FFO per share of $0.45.

Liquidity: Approximately $2 billion, including $156 million in cash and $1.8 billion available under a revolving credit facility.

Dividend: A cash dividend of $0.25 per share was declared for Q2, translating to an annualized yield of approximately 9%.

2Strategic Updates and Business Highlights

Capital Allocation: Continued focus on enhancing portfolio quality through the sale of noncore assets, with $31 million in disposals year-to-date, including the Hilton Seattle Airport hotel.

Royal Palm Renovation: Progressing well, expected to complete by early June 2026, with anticipated EBITDA doubling from $14 million to $28 million upon stabilization.

Strong Performance in Key Markets: Notable RevPAR growth in Bonnet Creek (16%), Key West (9%), and Southern California (23% at Hilton Santa Barbara).

Group Demand: Portfolio group revenue increased 5% year-over-year, with strong contributions from Puerto Rico, New York, and Bonnet Creek.

3Forward Guidance and Outlook

Q2 Expectations: Anticipated RevPAR growth around the midpoint of guidance, with a projected loss of nearly $3 million from the Royal Palm as it ramps up operations.

Full-Year Guidance: RevPAR growth guidance increased to a range of 0.5% to 2.5%, adjusted EBITDA guidance raised to $587 million to $617 million, and AFFO guidance increased to $1.74 to $1.90 per share.

Market Drivers: Positive outlook supported by macroeconomic factors, including fiscal stimulus, favorable tax policies, and events like the World Cup.

4Bad News, Challenges, or Points of Concern

Geopolitical Risks: Ongoing tensions in the Middle East could impact consumer spending and business investment sentiment.

Royal Palm Impact: The hotel is expected to be a drag on Q2 results as it ramps up staffing and demand.

Market Conditions: The transaction market remains challenging, and while there is interest in noncore asset sales, the process is complex and may take longer than anticipated.

5Notable Q&A Insights

Disposition Strategy: Management is focused on selling noncore assets, with eight remaining under review. They are not holding out for the highest price but are committed to creating shareholder value.

World Cup Impact: While the Royal Palm is not currently included in guidance, management is cautiously optimistic about its opening coinciding with World Cup events in July.

Hawaii Market Recovery: Management expressed optimism about the recovery of Hawaii properties, despite current headwinds from geopolitical tensions and fuel prices.

Operational Costs: Increased operating expenses were noted, primarily due to higher occupancy rates leading to greater costs per occupied room. Overall, Park Hotels & Resorts reported a strong Q1 performance with positive momentum in key markets and strategic initiatives, despite facing some challenges and uncertainties in the broader economic environment.