Park Hotels & Resorts Inc (NYSE:PK) reported financial results for the fourth quarter and full year of 2025, delivering a significant beat on earnings per share while revenue came in slightly below Wall Street expectations. The market's initial reaction was muted, with the stock trading down modestly in after-hours activity.
Earnings and Revenue Performance Versus Estimates
The hotel real estate investment trust (REIT) reported diluted Adjusted Funds From Operations (FFO) per share of $0.51 for the fourth quarter, a key profitability metric for REITs. This result substantially exceeded the analyst consensus estimate of $0.10 per share. For the full year 2025, Adjusted FFO per share was $1.97.
On the top line, the company reported total revenue of $629 million for Q4 2025. This figure fell short of the analyst estimate of approximately $642 million. The full-year revenue was $2.43 billion.
- Q4 2025 Key Metrics vs. Estimates:
- Adjusted FFO per share: Reported $0.51 vs. Estimate $0.10
- Revenue: Reported $629M vs. Estimate $642M
The disparity between the strong bottom-line beat and the revenue miss is largely explained by significant one-time impairment charges and the strategic execution of the company's portfolio transformation. A net loss of $204 million for the quarter included a $248 million impairment expense primarily related to the company's ongoing initiative to dispose of its "Non-Core" hotels.
Market Reaction and Strategic Execution
Following the earnings release, shares of Park Hotels traded slightly lower. This reaction suggests investors are balancing the strong operational performance of the core portfolio against the financial impact of the restructuring and a cautious outlook for 2026.
The earnings highlight a company in the midst of a deliberate strategic shift. Management is actively selling off Non-Core properties and reinvesting the proceeds into extensive renovations and upgrades at its flagship "Core" hotels in key markets like Hawaii, Orlando, and New Orleans.
Core Portfolio Shows Strength Amidst Transition
Beneath the headline impairment charges, the operational performance of Park's Core hotel portfolio was robust. Excluding the impact of the Royal Palm South Beach Miami, which was closed for a major renovation in May 2025, Core RevPAR (Revenue Per Available Room) increased 5.7% year-over-year in the fourth quarter. This was driven by strong group demand.
- Notable Q4 performers in the Core portfolio included:
- Hilton Hawaiian Village Waikiki Beach Resort: RevPAR increased 22%, lapping a labor strike from the prior year.
- Bonnet Creek complex in Orlando: Combined RevPAR increased nearly 9%.
- New York Hilton Midtown: Achieved its highest fourth-quarter group revenue in history.
The company also announced the appointment of Sean M. Dell’Orto, the current CFO, to the additional role of Chief Operating Officer, effective February 12, 2026, to oversee day-to-day execution of its strategy.
2026 Outlook and Analyst Estimates
Looking ahead, Park provided a full-year 2026 outlook that calls for Adjusted EBITDA between $590 million and $640 million and Adjusted FFO per share in a range of $1.85 to $2.05. The midpoint of the FFO per share guidance ($1.95) is slightly below the current analyst sales estimate of $2.62 billion for the year. The company's outlook incorporates several headwinds, including approximately $9 million in incremental interest expense from expected debt refinancing and the impact of ongoing renovations.
Management described its outlook as "cautiously optimistic," citing a resilient U.S. economy and positive demand catalysts like the 2026 World Cup, but balanced against geopolitical risks and economic uncertainty.
For a detailed look at historical earnings, future estimates, and analyst projections for Park Hotels & Resorts, visit the earnings and estimates page for PK.
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