Park Hotels & Resorts Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Comparable RevPAR was $201.02 for the quarter, an 8.4% increase year-over-year (YoY); Core RevPAR was $213.66, an 8.1% increase YoY.
• Net loss was $(15) million for the quarter, compared to a net loss of $(14) million in the prior year period; net loss attributable to stockholders was $(18) million.
• Adjusted EBITDA was $135 million, a 4.0% increase YoY.
• Diluted loss per share was $(0.10); Diluted Adjusted FFO per share was $0.39, an 11.2% increase YoY.
• Operating income was $38 million for the quarter, down 35.0% from $59 million in the prior year period; operating income margin was 6.4%, down 330 basis points.
• Total revenues were $602 million for the quarter, a 1.2% decrease from $610 million in the prior year period.
• For the nine months ended September 30, 2026, Net income was $47 million compared to a net loss of $(73) million in the prior year period.
• For the nine months ended September 30, 2026, Adjusted EBITDA was $476 million, a 4.3% increase YoY.
• Net Debt was approximately $3.7 billion as of September 30, 2026; Total Debt was $3.923 billion.
• Liquidity was approximately $1.3 billion, including $1 billion of available capacity under the senior unsecured revolving credit facility.

Guidance and Future Outlook:

• Park increased its full-year 2026 outlook to reflect strong third quarter results and demand trends.
• Full-year 2026 Comparable RevPAR outlook is raised to $205–$206, up from the previous $198–$201 range.
• Full-year 2026 Comparable RevPAR growth vs. 2025 is now projected at 5.5%–6.0%, up from 3.0%–4.5%.
• Full-year 2026 Net income outlook is raised to $70–$80 million, down from $78–$98 million.
• Full-year 2026 Adjusted EBITDA outlook is raised to $635–$645 million, up from $617–$637 million.
• Full-year 2026 Adjusted FFO per share outlook is raised to $2.00–$2.05, up from $1.90–$2.00.
• Fourth quarter Comparable RevPAR is expected to increase 5.5% to 7.5% YoY.
• Full-year 2026 operating expenses are expected to increase 4.5% to 5.0%.
• Outlook includes approximately $13 million of incremental interest expense from $1.5 billion of refinancing activity in 2026.
• Outlook assumes fully diluted weighted average shares of 201 million for the full year.

Business Segments and Product Lines:

• Group rooms revenue increased over 18% YoY; higher-rated leisure travel also supported performance.
• Hawaii hotels delivered outstanding results: RevPAR at Hilton Waikoloa Village increased 20% and at Hilton Hawaiian Village increased 5% YoY.
• Strategic capital investments drove growth: Casa Marina Key West (Curio Collection) RevPAR increased over 17% and Waldorf Astoria Orlando RevPAR increased over 16% YoY.
• The Royal Palm South Beach Miami reopened in July 2026 following a $110 million renovation; expected to add at least 200 basis points to Comparable RevPAR growth and double EBITDA upon stabilization.
• Commenced a more than $100 million renovation of the Ali'i Tower at the Hilton Hawaiian Village in August 2026.
• Completed guestroom renovations at the Rainbow Tower at the Hilton Hawaiian Village earlier in the year.
• Hilton Chicago RevPAR increased over 15% YoY; food and beverage revenue increased nearly 20%.
• Washington, D.C. hotels saw combined RevPAR increase nearly 33% driven by government-related demand.
• Boston hotels saw combined RevPAR increase nearly 13% driven by high-profile events.
• Capital expenditures for the quarter were $57 million; full-year 2026 capex is expected to be between $270 million and $280 million.

Market and Competitive Landscape:

• Booking trends for the fourth quarter remain encouraging, with preliminary October Comparable RevPAR increasing nearly 11% YoY.
• Core Group Revenue Pace for 2027 increased nearly 6% compared to 2026 levels at the end of September 2025; average Core group rates for 2027 are projected to increase nearly 4%.
• Portfolio consists of 29 premium-branded hotels and resorts with approximately 21,000 rooms.
• Three towers at the Hilton Hawaiian Village and Hilton Waikoloa Village achieved LEED Silver Certifications.
• Two hotels earned ENERGY STAR certifications; six properties achieved Green Key Global certifications.

Risks and Challenges:

• Recent storms had a nearly 280-basis point negative impact on combined RevPAR growth for Hawaii hotels.
• Hotel operating expenses increased 5% in the quarter, primarily due to higher variable costs, wage pressures, and utility pressures.
• Food and beverage revenue increased only 2% due to lower out-of-room spend from in-house groups; banquet and catering revenue remained flat.
• Lower cancellation and attrition fees were recognized during the quarter.
• Macroeconomic uncertainties include inflation, interest rate changes, potential economic recession, and geopolitical conflicts.
• Outlook does not include assumptions regarding tariff announcements, changes in travel patterns due to foreign conflicts, or government shutdowns.
• Disposition timing for three Non-Core hotels (Hilton Salt Lake City Center, DoubleTree Hotel San Diego - Mission Valley, DoubleTree Hotel Durango) cannot be determined due to ongoing litigation.

Management Commentary and Tone:

• Thomas J. Baltimore, Jr., Chairman and CEO, expressed pleasure with third quarter results, citing continued strength in group and leisure demand.
• Management stated the company is "laser-focused on further elevating the quality of our portfolio."
• Management highlighted meaningful progress in strengthening financial flexibility through debt refinancing and extending the debt maturity profile.
• Management noted the company is "well-positioned to continue executing on our strategic priorities and creating long-term shareholder value" with $1.3 billion of liquidity.

Other Key Points:

• Exited two Non-Core hotels in the third quarter (Hilton Short Hills and The Wade) for gross proceeds of approximately $31 million.
• Sold a total of six Non-Core hotels in 2026 for gross proceeds of approximately $31 million (including Q1 and Q2 sales).
• In September 2026, drew the remaining $600 million from the 2025 Delayed Draw Term Loan and $700 million from the Bonnet Creek Mortgage Loan to fully repay the $1.275 billion HHV Mortgage Loan.
• Park expects to refinance the $150 million mortgage loan encumbering the Hilton Santa Barbara Beachfront Resort in mid-November 2026.
• Declared a fourth quarter cash dividend of $0.25 per share to be paid on January 15, 2027; third quarter dividend of $0.25 per share was paid on October 15, 2026.
• The declared dividends translate to an annualized yield of approximately 6% based on recent trading levels.
• Park was recognized by Newsweek as one of America's Most Responsible Companies 2026 and one of America's Most Trustworthy Companies.
• Conference call scheduled for November 5, 2026, at 11 a.m. Eastern Time.