Park Hotels & Resorts Inc. Reports Second Quarter 2026 Results

TYSONS, Va.--(BUSINESS WIRE)--$PK--Park Hotels & Resorts Inc. (“Park” or the “Company”) (NYSE: PK) today announced results for the second quarter ended June 30, 2026 and provided an operational update and an update on its Non-Core hotel disposition initiative.

Second Quarter Highlights Include:

• Comparable RevPAR was $216.87, an increase of 5.8% compared to the same period in 2025, or a 6.8% increase when excluding the Royal Palm South Beach Miami, a Tribute Portfolio Resort (“Royal Palm”), which suspended operations in mid-May 2025 for a comprehensive renovation and reopened in July 2026;
• Core RevPAR was $233.49, an increase of 6.0% compared to the same period in 2025, or a 7.1% increase when excluding the Royal Palm;
• Net income and net income attributable to stockholders were $50 million and $47 million, respectively;
• Adjusted EBITDA was $198 million, an increase of 8.6% compared to the same period in 2025;
• Diluted earnings per share was $0.24; and
• Diluted Adjusted FFO per share was $0.70.

Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, “I am incredibly pleased with our second quarter results, with broad-based demand driving Core RevPAR growth (excluding Royal Palm) of over 7% year-over-year, exceeding our expectations. Strong group demand yielding a 9.5% increase in group rooms revenue year-over-year and higher-rated leisure travel across our portfolio drove performance during the quarter. RevPAR at the Hilton Hawaiian Village Waikiki Beach Resort increased 12% year-over-year, and the hotel continues to gain market share, benefiting from guestroom renovations at the Rainbow and Tapa Towers. We continued to see the benefits of our transformative ROI projects at the Bonnet Creek resort complex and the Casa Marina Key West, Curio Collection, where RevPAR increased 13% and 14%, respectively, and group demand increased 11% and 44%, respectively, year-over-year. Other Core hotels across several markets further contributed to our results, including the Hilton Chicago where RevPAR increased 14% year-over-year. As we begin the third quarter, I am encouraged by our July results, with July Comparable RevPAR projected to increase 8.5% year-over-year and third quarter Comparable Group Revenue Pace currently over 15% compared to the same time last year.”

Additional Highlights Include:

• Reopened the Royal Palm in July 2026, following the completion of its more than $100 million transformative renovation;
• Exited four Non-Core hotels since the first quarter of 2026 for gross proceeds of approximately $65 million. Altogether, these hotels contributed approximately $9 million of Hotel Adjusted EBITDA during 2025. The total gross proceeds for these dispositions represents 13.7x 2025 EBITDA, including $59 million in anticipated capital expenditures;
• In April 2026, entered into a new $700 million delayed draw loan facility (“Bonnet Creek Mortgage Loan”), which is expected to be utilized in September 2026 to address upcoming debt maturities, while also extending Park’s overall maturity profile;
• In June 2026, drew $200 million from Park’s $800 million senior unsecured delayed draw term loan facility (“2025 Delayed Draw Term Loan”) to, in part, fully repay the $120 million mortgage loan encumbering the Hyatt Regency Boston; and
• In July 2026, paid its second quarter cash dividend of $0.25 per share to stockholders of record as of June 30, 2026 and declared its third quarter cash dividend of $0.25 per share to stockholders of record as of September 30, 2026, to be paid on October 15, 2026.

Non-Core Hotel Dispositions:

• In April 2026, sold the 396-room Hilton Seattle Airport & Conference Center, which was subject to a short-term ground lease and had anticipated capital expenditures of over $25 million, for gross proceeds of $18 million;
• In May 2026, sold Park’s ownership interest in the unconsolidated joint venture that owns and operates the 288-room Embassy Suites by Hilton Alexandria Old Town, which had anticipated capital expenditures of over $4 million, for gross proceeds of $29 million, which was reduced by $25 million for Park’s share of the mortgage debt of the joint venture;
• In June 2026, the short-term ground lease for the 262-room Embassy Suites by Hilton Austin Downtown South Congress was terminated pursuant to an agreement, and the property reverted to the ground lessor. Park received an early termination fee of approximately $6 million and sold all personal property and business assets of the hotel to the ground lessor. The hotel had anticipated capital expenditures of approximately $3 million; and
• In July 2026, sold the 314-room Hilton Short Hills for gross proceeds of $12 million, which had anticipated capital expenditures of approximately $27 million.

Mr. Baltimore added, “We continued to execute against our strategic priorities during the quarter by advancing the disposition of our remaining Non-Core assets while investing in the long-term growth of our Core portfolio. Since the end of the first quarter, we have exited an additional four Non-Core hotels and invested $64 million in capital improvements, including completing the comprehensive renovation and repositioning of the Royal Palm in Miami, which reopened in July 2026 as planned. Looking ahead, we are excited to begin the approximately $100 million full-scale renovation of the Ali’i Tower at Hilton Hawaiian Village Waikiki Beach Resort during the third quarter, further enhancing one of the premier destinations in Hawaii. Additionally, we remain laser-focused on our strategic objective to maintain a flexible balance sheet. With the successful completion of the Bonnet Creek Mortgage Loan during the quarter, together with the previously announced 2025 Delayed Draw Term Loan, we are well positioned with $2.6 billion of liquidity to repay $1.3 billion of maturing debt during the third quarter, significantly extending our debt maturity profile.”

Selected Statistical and Financial Information

(unaudited, amounts in millions, except RevPAR, ADR, Total RevPAR and per share data)

______________________________________________

Operational Update on Core Hotels

Results for Park’s Core hotels and Core hotels by type are as follows:

______________________________________________

For the three months ended June 30, 2026, Park’s resort hotels continued to drive the performance of its portfolio. The Hilton Hawaiian Village Waikiki Beach Resort benefited from the completion of the final phase of guestroom renovations at the Rainbow Tower, helping to drive an over 13% increase in group revenue and an approximately 10% increase in transient revenue, resulting in an increase in RevPAR of 12% for the three months ended June 30, 2026 compared to the same period in 2025. Additionally, the Hilton Hawaiian Village Waikiki Beach Resort benefited from an increase in food and beverage revenue of 29%, or approximately $6 million, compared to the same period in 2025. The Waldorf Astoria Orlando and Signia by Hilton Orlando Bonnet Creek continued to benefit from the comprehensive renovation and expansion projects completed in early 2024, with combined RevPAR at the Bonnet Creek complex increasing 13%, resulting from an increase in transient revenue of 40% at the Waldorf Astoria Orlando and an increase in group revenue of approximately 20% at the Signia by Hilton Orlando Bonnet Creek, while combined food and beverage revenue increased 10%, or over $3 million for the three months ended June 30, 2026 compared to the same period in 2025, altogether helping the complex to exceed $107 million in EBITDA for the trailing twelve-month period. The Casa Marina Key West, Curio Collection, benefited from a 44% increase in group revenue and a 10% increase in transient revenue, resulting in an increase in RevPAR of over 14% and an increase in food and beverage revenue of 36% for the three months ended June 30, 2026 compared to the same period in 2025. Group and transient revenues at the Hilton Santa Barbara Beachfront Resort increased 36% and 20%, respectively, driving an increase in RevPAR of nearly 28% and an increase in food and beverage revenue of 20% for the three months ended June 30, 2026 compared to the same period in 2025.

Additionally, Park’s hotels in Washington D.C. benefited from strong group demand, with group revenue increasing over 56%, resulting in an increase in combined RevPAR of 17%, while transient demand increased nearly 25% at the Hilton Chicago, where RevPAR increased 14% for three months ended June 30, 2026 compared to the same period in 2025.

These increases were offset by the Royal Palm, which suspended operations in mid-May 2025 for a comprehensive renovation and reopened in July 2026, impacting Core RevPAR by 110 basis points for the three months ended June 30, 2026 compared to the same period in 2025.

At the end of June 2026, Core Group Revenue Pace and room night bookings for 2027 increased over 6% and approximately 3%, respectively, as compared to what bookings were for 2026 at the end of June 2025, with average Core group rates for 2027 projected to increase approximately 4% for the same time period.

Non-Core Disposition Initiative

The status of Park’s Non-Core dispositions since January 1, 2026 is as follows:

______________________________________________

Balance Sheet and Liquidity

As of June 30, 2026, Park’s liquidity was approximately $2.6 billion, including $1 billion of available capacity under the senior unsecured revolving credit facility (“Revolver”), $600 million available under the 2025 Delayed Draw Term Loan and the undrawn $700 million Bonnet Creek Mortgage Loan, which will be secured by the 1,009-room Signia by Hilton Orlando Bonnet Creek and the 502-room Waldorf Astoria Orlando and associated golf course when drawn upon.

In June 2026, Park drew $200 million from the 2025 Delayed Draw Term Loan to fully repay the $120 million mortgage loan encumbering the Hyatt Regency Boston, which was scheduled to mature on July 1, 2026, with the remaining proceeds used for general corporate purposes. Park intends to further draw upon the 2025 Delayed Draw Term Loan as well as the Bonnet Creek Mortgage Loan to fully prepay, without penalty, the $1.275 billion secured mortgage loan encumbering the Hilton Hawaiian Village Waikiki Beach Resort during the third quarter. Park also intends to refinance the $151 million secured mortgage loan encumbering the Hilton Santa Barbara Beachfront Resort during the fourth quarter. As of June 30, 2026, Park’s Net Debt was approximately $3.7 billion, and the weighted average maturity of Park’s consolidated debt is 1.8 years.

Park had the following debt outstanding as of June 30, 2026:

_____________________________________________

Capital Investments

During the second quarter of 2026, Park spent $64 million on capital improvements at its hotels and expects to spend between $230 million to $260 million in capital expenditures during 2026.

Park reopened the Royal Palm in July 2026, following the completion of its more than $100 million comprehensive renovation, which began in mid-May 2025. All 393 guestrooms at the oceanfront hotel were renovated, along with the addition of 11 new guestrooms. The renovation also expanded available meeting space, including the addition of a new event terrace, and enhanced all public spaces, including a redesigned lobby, four new food and beverage concepts and an upgraded pool. Park expects the comprehensive renovation will generate a 15% to 20% return on investment.

Additionally, Park expects to begin approximately $100 million of renovations at the 348-room Ali’i Tower at the Hilton Hawaiian Village Waikiki Beach Resort, along with the addition of three new guestrooms at the premium oceanfront tower, during the third quarter of 2026, continuing its upgrades of the iconic hotel, and expects to complete the third and final phase of the main tower at the Hilton New Orleans Riverside during the fourth quarter of 2026.

Dividends

Park declared a second quarter 2026 cash dividend of $0.25 per share to stockholders of record as of June 30, 2026. The second quarter dividend was paid on July 15, 2026.

On July 31, 2026, Park declared a third quarter 2026 cash dividend of $0.25 per share to be paid on October 15, 2026 to stockholders of record as of September 30, 2026. The declared dividends translate to an annualized yield of approximately 6.5% based on Park’s recent trading levels.

Full-Year 2026 Outlook

Park is increasing its full-year 2026 outlook to reflect second-quarter outperformance and a strong start to the third quarter as demand trends continue to exceed expectations across its portfolio. Park expects a modest positive impact from the 2026 World Cup of 30 basis points, in line with its prior guidance, offsetting the negative impact of 30 basis points from the renovations of the Royal Palm.

Park’s updated guidance also reflects an assumed increase in expenses due to a stronger demand environment and higher occupancy expectations across the portfolio, driving increases in variable costs such as labor and utilities, partially offset by reductions in fixed costs, with $11 million of benefits achieved from property tax appeals in the second quarter and a 20% reduction in property insurance premiums achieved during Park’s June 1st program renewal.

Park expects full-year 2026 operating results to be as follows:

______________________________________________

Park’s outlook is based in part on the following assumptions:

• Operating expenses for Park’s hotels are expected to increase 3% to 4%;
• Excludes $3.5 million of projected Hotel Adjusted EBITDA for the second half of 2026 from the three additional Non-Core hotels disposed since April 2026;
• Includes approximately $13 million of incremental interest expense from $1.4 billion of refinancing activity in 2026, most of which is expected during the fourth quarter;
• Fully diluted weighted average shares for the full-year 2026 of 200 million; and
• Park’s current portfolio as of August 6, 2026 and does not take into account potential future acquisitions, dispositions or any financing transactions, except as noted above, which could result in a material change to Park’s outlook.

Park’s full-year 2026 outlook is based on several factors, many of which are outside the Company’s control, including uncertainty surrounding macroeconomic factors, such as inflation, changes in interest rates and the possibility of an economic recession or slowdown, as well as the assumptions set forth above, all of which are subject to change. Additionally, Park’s full-year 2026 outlook does not include assumptions around the incremental impact of tariff announcements (including any foreign tariffs announced in response to changes in U.

Investor Contact
Ian Weissman
+ 1 571 302 5591
www.pkhotelsandresorts.com