Aug 6, 2026, 4:22 PM ETReal Estate

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

PKPARK HOTELS & RESORTS INC

Source

Financial Performance

Net income for the three months ended June 30, 2026, was $50 million, compared to a net loss of $2 million in the same period in 2025; net income attributable to stockholders was $47 million versus a loss of $5 million.
Diluted earnings per share (EPS) was $0.24 for the quarter, compared to a loss of $0.02 in 2025.
Adjusted EBITDA was $198 million for the quarter, an 8.6% increase year-over-year; for the six months ended June 30, 2026, Adjusted EBITDA was $341 million, a 4.4% increase.
Diluted Adjusted FFO per share was $0.70 for the quarter, up 9.0% from $0.64 in 2025; for the six-month period, it was $1.15, up 4.5%.
Operating income was $95 million for the quarter, a 47.0% increase from $65 million in 2025; operating income margin improved to 14.0% from 9.6%.
Comparable Hotel Adjusted EBITDA was $204 million for the quarter, an 8.8% increase from $187 million in 2025.
Core Hotel Adjusted EBITDA was $182 million for the quarter, a 9.3% increase from $166 million in 2025.
Total revenues were $680 million for the quarter, a 1.2% increase from $672 million in 2025; for the six months, revenues were $1,302 million, flat year-over-year.
Net Debt was approximately $3.7 billion as of June 30, 2026.
Liquidity was approximately $2.6 billion as of June 30, 2026, including $1 billion available under the Revolver, $600 million available under the 2025 Delayed Draw Term Loan, and $700 million available under the Bonnet Creek Mortgage Loan.

Guidance and Future Outlook

Park increased its full-year 2026 outlook to reflect second-quarter outperformance and a strong start to the third quarter.
Revised Full-Year 2026 Outlook (vs. prior):
- RevPAR: $198–$201 (prior: $192–$196).
- RevPAR change vs. 2025: 3.0%–4.5% (prior: 0.5%–2.5%).
- Net income: $78–$98 million (prior: $66–$96 million).
- Net income attributable to stockholders: $69–$89 million (prior: $58–$88 million).
- Diluted EPS: $0.35–$0.45 (prior: $0.29–$0.44).
- Adjusted EBITDA: $617–$637 million (prior: $587–$617 million).
- Diluted Adjusted FFO per share: $1.90–$2.00 (prior: $1.74–$1.90).
The outlook assumes operating expenses will increase 3% to 4% and includes approximately $13 million of incremental interest expense from $1.4 billion of refinancing activity.
The outlook excludes $3.5 million of projected Hotel Adjusted EBITDA from three additional Non-Core hotels disposed since April 2026.
Management projects July Comparable RevPAR to increase 8.5% year-over-year and third quarter Comparable Group Revenue Pace to be over 15% compared to the same time last year.
Core Group Revenue Pace and room night bookings for 2027 increased over 6% and approximately 3%, respectively, compared to 2026 levels at the end of June 2025, with average Core group rates for 2027 projected to increase approximately 4%.

Business Segments and Product Lines

Comparable RevPAR was $216.87 for the quarter, a 5.8% increase year-over-year; excluding the Royal Palm, it increased 6.8%.
Core RevPAR was $233.49 for the quarter, a 6.0% increase year-over-year; excluding the Royal Palm, it increased 7.1%.
Group rooms revenue increased 9.5% year-over-year.
Hilton Hawaiian Village Waikiki Beach Resort RevPAR increased 12% year-over-year; group revenue increased over 13% and transient revenue increased approximately 10%.
Signia by Hilton Orlando Bonnet Creek RevPAR increased 11.5% year-over-year; group revenue increased approximately 20%.
Waldorf Astoria Orlando RevPAR increased 14.8% year-over-year; transient revenue increased 40%.
Casa Marina Key West, Curio Collection RevPAR increased 14.1% year-over-year; group revenue increased 44% and transient revenue increased 10%.
Hilton Chicago RevPAR increased 14.0% year-over-year; transient demand increased nearly 25%.
Hilton Santa Barbara Beachfront Resort RevPAR increased 27.6% year-over-year; group revenue increased 36% and transient revenue increased 20%.
The Royal Palm South Beach Miami suspended operations in mid-May 2025 for renovation and reopened in July 2026; its absence impacted Core RevPAR by 110 basis points for the quarter.
Capital expenditures were $64 million in the second quarter; full-year 2026 CapEx is expected to be between $230 million and $260 million.
Park expects to begin approximately $100 million in renovations at the Ali'i Tower at Hilton Hawaiian Village Waikiki Beach Resort during the third quarter.

Market and Competitive Landscape

Broad-based demand drove Core RevPAR growth, with strong group demand and higher-rated leisure travel contributing to performance.
The Hilton Hawaiian Village Waikiki Beach Resort continues to gain market share, benefiting from guestroom renovations at the Rainbow and Tapa Towers.
The Bonnet Creek resort complex and Casa Marina Key West benefited from transformative ROI projects, with RevPAR increases of 13% and 14%, respectively.
The Royal Palm renovation is expected to generate a 15% to 20% return on investment.
The 2026 World Cup is expected to have a modest positive impact of 30 basis points on full-year results.

Risks and Challenges

The outlook is subject to uncertainty surrounding macroeconomic factors, including inflation, changes in interest rates, and the possibility of an economic recession or slowdown.
The outlook does not include assumptions regarding the incremental impact of tariff announcements, changes in travel patterns due to foreign conflicts, disapproval of U.S. policy, or government/agency shutdowns.
Timing for the disposition of the Hilton Salt Lake City Center, DoubleTree Hotel San Diego - Mission Valley, and DoubleTree Hotel Durango cannot be determined due to ongoing litigation.
The Royal Palm renovation impacted comparable results for the quarter.

Management Commentary and Tone

Thomas J. Baltimore, Jr., Chairman and CEO, stated he is "incredibly pleased" with the results, noting that Core RevPAR growth excluding Royal Palm exceeded expectations.
Management expressed encouragement regarding July results and the strong start to the third quarter.
Management emphasized a focus on strategic priorities, including advancing the disposition of Non-Core assets and investing in the long-term growth of the Core portfolio.
Management stated they are "well positioned" with $2.6 billion of liquidity to repay $1.3 billion of maturing debt during the third quarter.

Other Key Points

Park exited four Non-Core hotels since the first quarter of 2026 for gross proceeds of approximately $65 million; these hotels contributed approximately $9 million of Hotel Adjusted EBITDA during 2025.
Specific Non-Core dispositions in Q2 2026 included:
- Hilton Seattle Airport & Conference Center (sold April 2026) for $18 million.
- Embassy Suites by Hilton Alexandria Old Town (sold May 2026) for $29 million (reduced by $25 million for mortgage debt share).
- Embassy Suites by Hilton Austin Downtown South Congress (reverted to lessor July 2026) with an early termination fee of approximately $6 million.
- Hilton Short Hills (sold July 2026) for $12 million.
In April 2026, Park entered into a new $700 million delayed draw loan facility (Bonnet Creek Mortgage Loan) to address upcoming debt maturities.
In June 2026, Park drew $200 million from the 2025 Delayed Draw Term Loan to repay the $120 million mortgage loan on the Hyatt Regency Boston.
Park declared a second quarter cash dividend of $0.25 per share (paid July 15, 2026) and a third quarter cash dividend of $0.25 per share (to be paid October 15, 2026).
The declared dividends translate to an annualized yield of approximately 6.5% based on recent trading levels.
Park intends to further draw on the 2025 Delayed Draw Term Loan and Bonnet Creek Mortgage Loan to prepay the $1.275 billion secured mortgage loan on the Hilton Hawaiian Village Waikiki Beach Resort during the third quarter.
Park intends to refinance the $151 million secured mortgage loan on the Hilton Santa Barbara Beachfront Resort during the fourth quarter.
As of June 30, 2026, the weighted average maturity of Park's consolidated debt is 1.8 years.