PKNYSEHotels & MotelsUS GAAP · USD

Park Hotels & Resorts Inc.

Park Hotels & Resorts Inc. is a U.S.-based lodging REIT that owns premium-branded hotels and resorts through its operating partnership structure. Its portfolio is concentrated in major U.S. urban, convention, airport, and leisure destinations, with properties operated under well-known hotel brands.

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Revenue2,541m USD
−2.2 %y/y
Operating profit (EBIT)-33.0m USD
−108.4 %y/y
EBIT margin-1.3%
−16.3 ppy/y
Net income-283m USD
−233.5 %y/y
Free cash flow102m USD
−49.5 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-2,000-1,00001,0002,0003,000m USD2020: 852 m USD2020: EBIT -1,202 m USD20202021: 1,362 m USD2021: EBIT -179 m USD20212022: 2,501 m USD2022: EBIT 296 m USD20222023: 2,698 m USD2023: EBIT 343 m USD20232024: 2,599 m USD2024: EBIT 391 m USD20242025: 2,541 m USD2025: EBIT -33 m USD20252,541-33
RevenueOperating profit (EBIT)

Business

Share of revenue
Rooms revenue60 %

Revenue from transient, group, contract, and other room rentals across the hotel portfolio.

Food and beverage27 %

Banquet, catering, outlet dining, and audio-visual revenue tied to hotel guests and events.

Ancillary hotel revenue10 %

Parking, spa, golf, telecommunications, tenant leases, and other guest services.

Other revenue3 %

Support services and reimbursements related to timeshare-adjacent hotel operations.

Products

Reported · share of revenue
59.2%27.0%10.2%FY2025100 %
  • Occupancy59.2 %
  • Food and Beverage27.0 %
  • Ancillary Hotel10.2 %
  • Hotel Other3.6 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Park’s customers are primarily transient travelers and group customers using its hotels for business, leisure, meetings, and conventions. A meaningful portion of demand also comes from event organizers and corporate or association groups that need rooms plus banquet and meeting facilities.

Transient guests

Individual business and leisure travelers booking room nights, often through brand channels and online intermediaries.

Group and convention customers

Organizations booking blocks of rooms plus meeting, banquet, and catering services for events.

Leisure resort guests

Vacation travelers staying at resort properties in destinations such as Hawaii, Orlando, Miami Beach, and Key West.

Corporate and airport travelers

Business travelers using urban and airport hotels for access to commercial centers and travel hubs.

Strategy

Park’s strategy is to concentrate capital and management attention on its Core portfolio while using asset sales and acquisitions to improve portfolio quality. It emphasizes active asset management, reinvestment in existing hotels, and maintaining balance-sheet flexibility to support long-term value creation.

Concentrate on Core hotelsMedium term

The Core portfolio is the main source of operating earnings and contains the highest-quality assets.

Active asset managementShort term

Renovations, amenity upgrades, and space optimization can improve hotel-level returns without changing the portfolio footprint.

Portfolio pruning and capital recyclingMedium term

Selling Non-Core hotels can sharpen the portfolio mix and free capital for higher-return uses.

Selective external growthLong term

Acquisitions and portfolio transactions can expand scale and diversify the asset base when pricing is attractive.

Geography

All of Park’s rooms are located in the United States and its territories, with properties concentrated in prime U.S. markets. The portfolio spans major urban and convention markets, resort destinations, and select airport and suburban locations, which makes performance sensitive to domestic travel demand and local market conditions.

Risks

Park is exposed to cyclical hotel demand, which can weaken during inflationary periods, higher interest rates, recessions, or travel disruptions. Its asset-heavy model also depends on third-party hotel managers, capital-intensive renovations, and successful property transactions, while cybersecurity and lease-related issues can affect operations and reported results.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Macroeconomic and travel demand slowdown1Inflation and elevated interest rates2Dependence on hotel managers3Acquisition and disposition execution risk4Cybersecurity and systems disruption5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Macroeconomic and travel demand slowdownImpact: HighLikelihood: Medium

    Hotel revenues depend on occupancy, ADR, and RevPAR, which weaken when consumers or businesses travel less.

    Exposure: Transient and group demand across U.S. markets

  2. Inflation and elevated interest ratesImpact: HighLikelihood: Medium

    Higher costs and financing pressure can reduce cash flow and limit the ability to pass through pricing.

    ExposureOperating costsDebt serviceCapital allocation
  3. Dependence on hotel managersImpact: MediumLikelihood: Medium

    Park relies on third-party operators to run day-to-day hotel operations and execute brand standards.

    Exposure: Property-level performance and guest experience

  4. Acquisition and disposition execution riskImpact: MediumLikelihood: Medium

    Hotel transactions are competitive and illiquid, so timing, pricing, and integration can be unfavorable.

    Exposure: Portfolio reshaping and external growth

  5. Cybersecurity and systems disruptionImpact: MediumLikelihood: Medium

    Hotel and corporate systems handle operational data and personal information, creating breach and outage risk.

    Exposure: Corporate systems and hotel-manager networks

Accounting

Judgemental items
Impairment of hotel assets

Hotel carrying values must be recoverable, and changes in intent or market conditions can trigger write-downs.

Impact: A sold hotel triggered a roughly $70 million impairment in the reported period

Accelerated depreciation from renovations

Major property renovations can shorten useful lives or accelerate expense recognition.

Impact: Renovation activity at Royal Palm South Beach Miami increased depreciation

Gain or loss on sale and derecognition of assets

Hotel dispositions can create volatile one-time gains or losses in reported earnings.

Impact: Non-Core hotel sales and ground-lease surrender events affect comparability

FF&E reserve and capital expenditure commitments

Hotel agreements often require ongoing reserve funding for future furniture, fixtures, and equipment needs.

Impact: Affects cash flow timing and liquidity available for other uses

Non-GAAP measures such as Hotel Adjusted EBITDA and FFO

These metrics exclude depreciation, impairments, and transaction items that are material in a hotel REIT.

Impact: Can materially differ from GAAP net income and operating cash generation

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Last updated: 24/09/2026