Park Hotels & Resorts (NYSE:PK) executives highlighted continued portfolio reshaping, redevelopment activity, and a cautious 2026 outlook during the company’s fourth-quarter and full-year 2025 earnings call. Management emphasized that performance strength remained concentrated in the company’s “core” hotels, while results from remaining non-core assets lagged and continued to be targeted for disposition.
Portfolio reshaping and non-core dispositions
Chairman and CEO Tom Baltimore said 2025 was “another very productive year,” with Park focused on concentrating ownership in 21 core hotels and “aggressively exiting non-core assets.” During 2025, Park executed more than $120 million in non-core sales at a blended multiple of 21x, including the sale of the Hyatt Centric Fisherman’s Wharf and its 25% joint venture interest in the Capital Hilton. The company also exited three hotels on expiring ground leases that produced no earnings on a combined basis.
Baltimore said Park has sold or disposed of 51 hotels for over $3 billion over the past nine years, and noted that since 2023 the company has sold or disposed of 13 hotels, which management said increased portfolio-wide nominal RevPAR by nearly 8% and improved hotel-adjusted EBITDA margins by more than 275 basis points. While acknowledging that disposition timing can be “uneven,” Baltimore reiterated the goal of materially reducing exposure to the non-core portfolio by year-end, with “active work streams” underway across remaining assets.
During Q&A, management said buyer interest remains available across different investor types and characterized capital markets as having “plenty of equity” and “plenty of debt capital and private credit.” Baltimore added that some markets are more challenging than others and said a few properties involved in disputes could lag, but the company’s stated objective is to sell “as many of them, if not all of them, done this year.”
Q4 operating trends: core portfolio outperformance
For the fourth quarter, COO and CFO Sean Dell’Orto said comparable RevPAR was approximately $182, up nearly 1% year over year, or nearly 3% excluding the Royal Palm (which was closed for redevelopment). Excluding Royal Palm, the core portfolio delivered a RevPAR increase of about 6% to nearly $216, which management said was roughly 1,500 basis points better than the non-core portfolio.
Dell’Orto said core hotel adjusted EBITDA margin expanded 230 basis points to 30%, while the non-core portfolio’s margin contracted 280 basis points to 10%. He added that core hotel adjusted EBITDA increased 13%, or nearly $18 million versus the prior-year quarter, despite an over $4 million headwind from the Royal Palm closure. Non-core adjusted EBITDA declined 28%, creating an approximately $4 million drag on quarterly earnings.
Management credited Q4 strength to group demand, including convention-related business in Hawaii and New York and corporate group activity in Orlando. Baltimore said Q4 group revenue for the core portfolio increased 13% year over year, with double-digit growth in banquet and catering revenues across markets including Hawaii, Chicago, Orlando, and Denver.
- Hawaii: Baltimore said Hilton Hawaiian Village delivered 22% RevPAR growth in Q4, benefiting from easier comparisons following last year’s labor disruption. Management said it expects a “multiyear recovery” in Hawaii and indicated momentum building into Q2, with Hawaii expected to be a meaningful contributor to earnings growth as it normalizes.
- Orlando: Park’s Bonnet Creek complex generated a record Q4 RevPAR, up nearly 9% year over year, driven by a 15% increase in group revenues. Baltimore also noted that Waldorf Astoria Bonnet Creek was named the No. 1 hotel in Orlando by U.S. News & World Report.
- New York and Chicago: Baltimore said New York produced its highest Q4 group revenue in hotel history, up over 8% year over year, while the Hilton Chicago posted nearly 4% group revenue growth despite a “challenging citywide calendar.”
Full-year 2025 results and capital spending
For full-year 2025, Dell’Orto said RevPAR came in slightly ahead of expectations but declined 2% versus 2024. Hotel adjusted EBITDA margin was 26.5%, down 130 basis points year over year. Management said the Royal Palm renovation was the primary headwind, contributing a 110 basis point drag to full-year RevPAR growth and about 15 basis points of margin pressure.
Park invested nearly $300 million of CapEx in 2025, including roughly $110 million in Q4. Dell’Orto highlighted renovations at the company’s two Hawaii properties and at Hilton New Orleans Riverside, where the second of three renovation phases totaling more than $30 million was completed, with the final phase scheduled for completion in December 2026.
Redevelopment pipeline: Royal Palm and next Hawaii phase
Baltimore said Park launched its sixth major redevelopment in seven years: the $108 million transformation of Royal Palm South Beach. He said more than half of the guest rooms are complete, with public areas including the lobby lounge, event terrace, and pool deck “taking shape,” and the company is working toward delivering the hotel by June.
Management reiterated expectations for a 15%–20% return on invested capital at Royal Palm and forecast the hotel to more than double EBITDA from $14 million to nearly $28 million once stabilized. However, in 2026 guidance, Park does not assume any material benefit from World Cup-related demand at Royal Palm due to uncertainty around reopening timing and booking commitments. Dell’Orto said the company expects Royal Palm to generate approximately $3–$4 million of hotel adjusted EBITDA in 2026, compared with approximately $5 million in 2025 when it was open during high season prior to closing in May.
For 2026, Park expects lower capital spending of $230 million–$260 million, including completion of Royal Palm. The company also plans to begin a full renovation of the Ali’i Tower at Hilton Hawaiian Village, with an expected investment of approximately $96 million. To expedite construction, Park plans to suspend operations in the tower beginning in Q3 2026, with a planned reopening in the middle of 2027. Management estimated renovation-related disruption at Hilton Hawaiian Village of $1 million–$2 million in 2026, representing about a 10 basis point impact to portfolio RevPAR.
Balance sheet actions and 2026 guidance
As of year-end 2025, Dell’Orto said Park had approximately $2 billion of liquidity, including $200 million of cash, $1 billion of revolver availability, and $800 million of undrawn delayed draw term loan capacity. The company reiterated a longer-term goal of reducing leverage to below 5x over the next couple of years through non-core sales, debt paydown, and organic growth from the core portfolio.
Regarding 2026 maturities, Park intends to draw on the delayed draw term loan to repay the $121 million Hyatt Regency Boston mortgage in June and then draw remaining capacity in September, combined with proceeds from a planned Bonnet Creek mortgage, to repay the $1.275 billion CMBS financing on Hilton Hawaiian Village that matures in early November. Dell’Orto said Park is in discussions for a $650 million floating-rate delayed draw mortgage on the Bonnet Creek complex and expects closing later in the quarter, with a blended spread over SOFR of approximately 220–225 basis points between the Bonnet Creek mortgage and the term loan.
For 2026, Park guided to RevPAR growth of flat to +2%, with expense growth expected to be low single digits. Adjusted EBITDA is forecast at $580 million–$610 million, and adjusted FFO per share is expected at $1.73–$1.89.
Management said Q1 is expected to be the most challenging quarter due to difficult comparisons, including lapping the Super Bowl in New Orleans and disruption in Miami. Dell’Orto said New Orleans and Miami together represent an expected 450 basis point drag on Q1 RevPAR and an approximate $12 million earnings headwind. The company pointed to expected double-digit RevPAR growth at Bonnet Creek, Puerto Rico, and San Francisco, along with low single-digit growth at its Hawaii hotels.
Park’s guidance excludes any impact from potential non-core dispositions beyond those already closed. Dell’Orto said the remaining 13 non-core hotels generated approximately $60 million of hotel adjusted EBITDA in 2025, or about 9% of total hotel adjusted EBITDA. The company’s adjusted FFO guidance assumes refinancing of about $1.4 billion of debt in the back half of 2026 at a blended interest rate of approximately 5.5%, which management said would increase annualized interest expense by roughly $20 million (with $9 million included in guidance based on timing).
Park also highlighted shareholder returns, stating it returned $245 million in 2025, including $200 million of dividends and $45 million of share repurchases. The company declared a $0.25 per share cash dividend for Q1 2026, payable April 15 to stockholders of record March 31.
About Park Hotels & Resorts (NYSE:PK)
Park Hotels & Resorts Inc is a publicly traded real estate investment trust (REIT) specializing in luxury and upper-upscale hospitality properties. The company’s primary business activity involves owning and leasing premier hotels and resorts across major urban and resort destinations. Through long-term management and franchise agreements with leading hotel operators, Park generates revenue from room nights, food and beverage offerings, meetings and events, and ancillary services.
Since its spin-off from Hilton Worldwide in January 2017, Park Hotels & Resorts has assembled a diversified portfolio of more than 60 properties.
