Park Hotels & Resorts Inc.

Park Hotels & Resorts Inc. is a lodging real estate investment trust that owns large hotels and resorts. It earns room, food and beverage and other hotel revenue; many properties operate under Hilton brands. The shares trade on the New York Stock Exchange under PK, and its fiscal year ends December 31.

After the October 2026 sale of The Wade, Park owned interests in 29 hotels: 20 consolidated Core properties, one Core joint venture and eight Non-Core properties targeted for disposal. Management is concentrating investment on the properties it intends to retain.

Third-quarter performance

Comparable hotel figures remove properties already disposed of, whereas reported revenue includes the effect of the changing portfolio. Comparable room revenue per available room rose 8.4%. Comparable hotel-level adjusted EBITDA rose to $146 million from $135 million, while company-wide adjusted EBITDA also includes corporate costs.

Adjusted EBITDA excludes interest, taxes, depreciation, amortization and certain other items. Adjusted funds from operations, or FFO, removes real estate depreciation and other adjustments from earnings. It differs from operating cash flow and does not deduct the cash spent on hotel renovations. The latest quarter benefited from higher occupancy and rates, while lower spending by groups outside their rooms, wage and utility pressures limited the gain in hotel profit.

How the full-year outlook changed

In August, Park expected 2026 comparable revenue per available room growth of 3% to 4.5%, adjusted EBITDA of $617 million to $637 million and adjusted FFO of $1.90 to $2.00 a share. The September investor presentation repeated those targets.

The November update raised the respective ranges to 5.5% to 6%, $635 million to $645 million and $2.00 to $2.05. Reported net-income guidance moved down to $70 million to $80 million from $78 million to $98 million. The comparable hotel set also changes as disposals close.

The annual depreciation and amortization assumption increased to $266 million from $255 million. Expected impairment and casualty losses rose to $35 million from $27 million, with new severance and higher other adjustments. These items explain why the operating upgrade and reported-profit forecast move in different directions. Annual interest expense is forecast at $222 million, versus $223 million in August.

Renovations and portfolio changes

The Royal Palm South Beach Miami reopened in July after a renovation costing more than $110 million. Park expects the reopening to contribute at least two percentage points to 2027 comparable revenue per available room growth. The more than $100 million Ali'i Tower renovation at Hilton Hawaiian Village began in August; completion is expected in the first quarter of 2027. The project led to $12 million of accelerated depreciation in Q3 as assets' remaining useful lives were shortened.

Park's 2026 capital-spending budget increased to $270 million to $280 million from August's $230 million to $260 million. In the first nine months, operating cash flow was $315 million versus $293 million a year earlier. Cash capital spending was $204 million versus $188 million, leaving $111 million versus $105 million after that investment. Cash dividends used $150 million.

Hilton Short Hills sold in July for $12 million gross, followed by The Wade in October for about $19 million gross. Park's six portfolio exits during 2026 also include a joint-venture interest and a ground-lease surrender. Disposal timing for three remaining Safehold ground leases is unresolved because of litigation.

Cash, debt and dividends

At September 30, cash and cash equivalents were $295 million, with a separate $40 million of restricted cash. Available revolving borrowing capacity was $1 billion. Debt had a $3.923 billion carrying value, compared with $3.955 billion of principal including a finance lease; Park's share of joint-venture debt was a further $105 million.

September draws of $600 million from a delayed-draw term loan and $700 million from the Bonnet Creek mortgage facility funded repayment of the $1.275 billion Hilton Hawaiian Village mortgage. Those facilities and the planned refinancing were already described in August.

A $150 million Santa Barbara mortgage refinancing is expected in mid-November. The September maturity schedule still shows $150 million in 2026 and $280 million in 2027. Some later maturities depend on extension conditions, and a Denver loan is callable on notice.

Park declared a fourth-quarter dividend of $0.25 a share, payable January 15, 2027, to shareholders of record December 31, 2026. The next results will show how much of the stronger room-revenue outlook reaches hotel earnings and how renovation spending develops.