Park Hotels & Resorts Inc. (PK) reported its fourth‑quarter and full‑year 2025 results on February 19, 2026. Comparable RevPAR for the quarter was $182.49, up 0.8% year‑over‑year and 2.8% when the Royal Palm South Beach Miami property is excluded, underscoring the strength of the company’s core portfolio of 20 high‑quality assets.
The company’s adjusted funds from operations (FFO) per share reached $0.51, beating the consensus estimate of $0.48–$0.46. Revenue for the quarter was $629 million, also ahead of the consensus range of $620.4–$621.8 million. While a minority of reports noted a miss, the majority of sources confirm the earnings beat.
Segment performance highlights that non‑core dispositions and renovation disruptions contributed to a 6.5% decline in total segment revenue and a 16.1% drop in hotel adjusted EBITDA to $141 million. The company noted that the hotel adjusted EBITDA figure of $141 million is the figure reported for the quarter, though a separate source cited $152 million; the company’s official statement confirms the $141 million number.
Management emphasized the resilience of the core portfolio. CEO Thomas J. Baltimore, Jr. said the core RevPAR increased nearly 6% year‑over‑year, excluding the Royal Palm Miami resort, driven by a 15% rise in group revenues. RevPAR at the Hilton Hawaiian Village Waikiki Beach Resort rose 22% and the Bonnet Creek complex in Orlando saw a 9% increase, while New York Hilton Midtown delivered its highest fourth‑quarter group revenue in history. Baltimore also highlighted the company’s capital‑allocation strategy, which is expected to generate a 15%–20% return on investment from renovations such as the Royal Palm South Beach Miami project.
For the full year 2026, Park Hotels guided for adjusted FFO per share of $1.73 to $1.89, slightly below the consensus of $1.90. The company remains “cautiously optimistic,” citing a resilient U.S. economy and demand catalysts like the 2026 World Cup, while acknowledging geopolitical risks and economic uncertainty. Headwinds include ongoing renovations, non‑core asset dispositions, and impairment charges, whereas tailwinds are the strong performance of the core portfolio and the expected ROI from capital investments.
Investor reaction to the earnings was muted, reflecting a cautious stance amid the mixed earnings beat/miss narrative and the slightly conservative guidance for 2026.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.