Park Hotels & Resorts (PK) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered flat RevPAR at $177.67, with occupancy at 69.2% and ADR up 2.3% to $256.62, outperforming in Orlando and Key West but lagging in Hawaii due to labor strike recovery and renovations.

• Net loss attributable to stockholders was $57 million, compared to net income of $28 million in Q1 2024, with Hotel Adjusted EBITDA at $151 million and margin at 24.9%.

• Portfolio consists of 40 premium-branded hotels (~25,000 rooms), 87% luxury/upper upscale, in prime U.S. city and resort markets.

• Returned $95 million to shareholders via dividends and buybacks; $80 million spent on capital improvements in Q1.

• Management remains cautiously optimistic for 2025, expecting improved demand and city-wide events despite macroeconomic uncertainty.

Financial highlights

• Q1 2025 total revenues were $630 million, down from $639 million in Q1 2024; operating income dropped to $7 million from $92 million.

• Adjusted EBITDA for Q1 2025 was $144 million, down from $162 million in Q1 2024; Adjusted FFO per share was $0.46.

• Comparable Hotel Adjusted EBITDA margin decreased 280 bps to 24.9%.

• Paid Q1 dividend of $0.25 per share (annualized yield ~10%).

• Recognized $70 million impairment loss on one hotel in Q1 2025.

Outlook and guidance

• Full-year 2025 Comparable RevPAR expected between $185 and $191, representing -1.0% to +2.0% change vs. 2024.

• Adjusted EBITDA guidance for 2025 is $590–$650 million; Adjusted FFO per share projected at $1.79–$2.09.

• Guidance includes $17 million EBITDA disruption from Royal Palm South Beach Miami renovation.

• Q4 group revenue pace up 18%, expected to support low to mid-single-digit RevPAR gains.

• Outlook excludes $35 million in default interest and late fees related to the SF Mortgage Loan, expected to resolve by July 2025.