Park Hotels & Resorts Inc. reported a net loss of $14 million for the third quarter of 2025, compared with a net income of $57 million in the same period last year. Operating income fell to $59 million from $95 million, and the operating margin dropped to 9.7% from 14.6%. The loss per share was $0.08 versus a $0.26 gain a year earlier. Comparable RevPAR declined 6.1% to $180.93, occupancy slipped 3.5 percentage points to 74.7%, and the average daily rate fell 1.7% to $242.25. Comparable hotel adjusted EBITDA fell 15.9% to $141 million, and the adjusted EBITDA margin slipped to 24.1% from 27.4%. Adjusted FFO attributable to stockholders was $70 million, a 31.4% decline from $102 million, and the diluted adjusted FFO per share fell to $0.35 from $0.49.
In the third quarter of 2024, Park Hotels & Resorts posted a net income of $57 million, operating income of $95 million, and an operating margin of 14.6%. The company earned a GAAP EPS of $0.26. Comparable RevPAR increased 3.3% year‑over‑year, and comparable hotel adjusted EBITDA was $159 million. Adjusted FFO for the quarter was $102 million, with a diluted adjusted FFO per share of $0.49.
For the full year 2025, the company projects comparable RevPAR of $184–$187, operating income of $206–$231, and adjusted EBITDA of $595–$620, all slightly lower than the prior year’s guidance of comparable RevPAR growth 3.5–4.5% and adjusted EBITDA $595–$645. Park Hotels & Resorts reiterated its dividend policy, paying a $0.25 per share dividend in the third quarter and announcing a $0.25 per share dividend for the fourth quarter to be paid in January 2026.
Margin compression in the quarter was driven by softer leisure and government transient demand and tough comparisons from strong citywide calendars in many markets. The suspension of operations at the Royal Palm South Beach Miami for renovation also weighed on results. The company is actively reshaping its portfolio, closing the Embassy Suites Kansas City Plaza and selling non‑core assets while investing in renovations at key properties such as the Hilton Hawaiian Village Waikiki Beach Resort and Hilton Waikoloa Village. Liquidity remains strong with $2.1 billion in cash, $1 billion of revolver capacity, and an additional $800 million of undrawn delayed‑draw term loan. Capital expenditures for the quarter were $70 million, with an expected $280–$300 million for the rest of 2025.
Segment performance varied across markets: Hawaii, New Orleans, San Diego, and Washington D.C. experienced weaker performance, while San Francisco, Puerto Rico, New York, Orlando, and Key West performed better.
The content on BeyondSPX 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.