Park Hotels & Resorts Inc
NYSE:PK
Park Hotels & Resorts Inc
Amidst the dynamic landscape of the hospitality industry, Park Hotels & Resorts Inc. stands out as a testament to strategic evolution and adaptability. Emerging as a public entity in 2017, following Hilton Worldwide Holdings Inc.'s decision to spin off its real estate assets, Park Hotels & Resorts was born with an inheritance of upscale and luxury hotels. These properties are largely concentrated in prime markets across the United States, catering predominantly to business and leisure travelers alike. With a portfolio that includes prestigious brands like Hilton, Embassy Suites, and DoubleTree, Park Hotels & Resorts leverages brand loyalty and geographic diversity to capture a significant share of the hospitality market. The business model hinges on maximizing the value of its real estate assets through strategic renovations, rebranding efforts, and effective revenue management.
At the heart of Park Hotels & Resorts’ operation lies a dual approach to generating revenue. Primarily, the company earns through hotel operations, where revenue streams are diversified across room bookings, food and beverage sales, and ancillary services such as event hosting and parking. This multi-pronged approach ensures a consistent flow of income, while capitalizing on high-occupancy events and tourism trends. In parallel, Park Hotels & Resorts actively engages in asset management strategies, constantly optimizing its portfolio by acquiring properties that offer high growth potential and divesting those that fall outside its strategic goals. With a nimble and robust strategy that reflects the evolving demands of the hospitality industry, Park Hotels & Resorts continues to affirm its position as a prominent player in the realm of hotel real estate investment trusts (REITs).
Amidst the dynamic landscape of the hospitality industry, Park Hotels & Resorts Inc. stands out as a testament to strategic evolution and adaptability. Emerging as a public entity in 2017, following Hilton Worldwide Holdings Inc.'s decision to spin off its real estate assets, Park Hotels & Resorts was born with an inheritance of upscale and luxury hotels. These properties are largely concentrated in prime markets across the United States, catering predominantly to business and leisure travelers alike. With a portfolio that includes prestigious brands like Hilton, Embassy Suites, and DoubleTree, Park Hotels & Resorts leverages brand loyalty and geographic diversity to capture a significant share of the hospitality market. The business model hinges on maximizing the value of its real estate assets through strategic renovations, rebranding efforts, and effective revenue management.
At the heart of Park Hotels & Resorts’ operation lies a dual approach to generating revenue. Primarily, the company earns through hotel operations, where revenue streams are diversified across room bookings, food and beverage sales, and ancillary services such as event hosting and parking. This multi-pronged approach ensures a consistent flow of income, while capitalizing on high-occupancy events and tourism trends. In parallel, Park Hotels & Resorts actively engages in asset management strategies, constantly optimizing its portfolio by acquiring properties that offer high growth potential and divesting those that fall outside its strategic goals. With a nimble and robust strategy that reflects the evolving demands of the hospitality industry, Park Hotels & Resorts continues to affirm its position as a prominent player in the realm of hotel real estate investment trusts (REITs).
Strategic Progress: Park Hotels & Resorts continued to aggressively exit Non-Core assets, selling over $120 million in 2025 and maintaining a focus on upgrading its 21 Core hotels.
Core Portfolio Strength: Core hotels significantly outperformed Non-Core hotels in both RevPAR and EBITDA margin, with Core RevPAR up 6% and margins up 230 bps in Q4.
Renovation & Redevelopment: Major redevelopment projects—including Royal Palm and renovations in Hawaii and New Orleans—are underway, with Royal Palm reopening targeted for June.
Conservative 2026 Guidance: Management guided 2026 RevPAR growth of flat to up 2%, adjusted EBITDA of $580–610 million, and adjusted FFO per share of $1.73–1.89, reflecting caution around macro and geopolitical uncertainty.
Capital Returns & Balance Sheet: $245 million was returned to shareholders in 2025 via dividends and share repurchases; liquidity at year-end was about $2 billion, and deleveraging remains a key priority.
Non-Core Asset Sales: Management is aiming to complete the sale of remaining Non-Core hotels by year-end 2026, with proceeds earmarked for debt reduction.
Event-Driven Demand: Major events like the World Cup and America 250 are expected to provide modest RevPAR uplift, primarily at New York and Boston assets.
Labor & Expense Management: Labor costs are expected to rise mid-single digits, but overall expense growth is guided to low single digits, aided by prior cost initiatives.
