Park Hotels & Resorts Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 30 October 2025: press release. Guidance figures: 1 raised, 16 lowered, 2 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Quarter closed with a net loss: The company reported a net loss of $(14) million and a net loss attributable to stockholders of $(16) million, compared with net income of $57 million and $54 million a year earlier. Source
• Full-year ranges lowered across lines: Management lowered the full-year 2025 ranges for Comparable RevPAR, net loss, Adjusted EBITDA and Adjusted FFO per share, measured against the July 31 ranges. Source
• Royal Palm closure weighed on RevPAR: Comparable RevPAR excluding the Royal Palm fell 4.9% in the quarter and 2.1% for nine months; the Royal Palm suspended operations in mid-May 2025 for renovation. Source
• Comparable hotel margin down 330 bps: Comparable Hotel Adjusted EBITDA was $141 million, down 15.9%; its margin was 24.1% against 27.4%, and the nine-month margin was 26.4% against 28.6%. Source
• Fourth-quarter group pace up 12%: Comparable Group Revenue Pace for the fourth quarter is projected at over 12% against 2024, down from the 18% projected in the July release. Source
• Liquidity rose to $2.1 billion: Liquidity was about $2.1 billion, including $1 billion of Revolver capacity and the undrawn $800 million delayed draw term loan, up from $1.3 billion in June. Source

“During the third quarter, we remained laser-focused on our strategic objective to preserve a strong and flexible balance sheet.”

Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance lowered: Full-year Comparable RevPAR range lowered to $184 to $185 from $184 to $187. Source
• Guidance lowered: Full-year net loss range widened to $(60) million to $(35) million from $(53) million to $(3) million. Source
• Guidance lowered: Full-year Adjusted EBITDA range lowered to $595 million to $620 million from $595 million to $645 million. Source
• Guidance lowered: Full-year diluted Adjusted FFO per share range lowered to $1.85 to $1.97 from $1.82 to $2.08. Source
• Guidance lowered: Full-year 2025 capital expenditures lowered to $280 million to $300 million from $310 million to $330 million. Source
• New: Revolver enlarged to $1 billion and extended to September 2029; an $800 million delayed draw term loan was added, maturing January 2030. Source
• Ended: The Embassy Suites Kansas City Plaza was permanently closed in September 2025 and its ground lease terminated. Source
• New: Management does not expect to declare an incremental top-off dividend for 2025, to preserve liquidity. Source

Results and growth drivers

• Quarter closed with a net loss: The company reported a net loss of $(14) million and a net loss attributable to stockholders of $(16) million, compared with net income of $57 million and $54 million a year earlier. Source
• Adjusted EBITDA declined 18.2%: Adjusted EBITDA was $130 million against $159 million a year earlier, down 18.2%; nine-month Adjusted EBITDA was $457 million, down 11.1%. Source
• Full-year ranges lowered across lines: Management lowered the full-year 2025 ranges for Comparable RevPAR, net loss, Adjusted EBITDA and Adjusted FFO per share, measured against the July 31 ranges. Source
• Adjusted FFO per share declined: Diluted Adjusted FFO per share was $0.35 against $0.49 a year earlier; for nine months it was $1.45 against $1.67. Source
• Royal Palm closure weighed on RevPAR: Comparable RevPAR excluding the Royal Palm fell 4.9% in the quarter and 2.1% for nine months; the Royal Palm suspended operations in mid-May 2025 for renovation. Source

Segments and regions

• Hawaii, Washington D.C. and New Orleans declined: Hawaii Comparable RevPAR fell 11.6%, with occupancy down 5.6 points; Washington D.C. fell 16.1%, New Orleans 15.2% and Southern California 10.9%. Source
• San Francisco and Puerto Rico grew: Comparable RevPAR rose 13.5% in San Francisco, on ADR up 8.5% and occupancy up 3.2 points, and rose 11.7% in Puerto Rico, where occupancy rose 15.5 points. Source
• Resort hotels declined more than urban: Resort Comparable RevPAR fell 9.5%, against a 2.1% decline for urban hotels and 5.4% for suburban; airport RevPAR fell 6.6%. Source
• Management cited market headwinds: Management said Hawaii, New Orleans, San Diego and Washington D.C. were hurt by softer leisure and government transient demand and tough group comparisons, while several other markets rose. Source

“Comparable RevPAR declined by 4.9% for the third quarter compared to prior year when excluding the Royal Palm, as softer leisure and government transient demand added to an expected decrease in group demand”

Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer

Costs and margins

• Comparable hotel margin down 330 bps: Comparable Hotel Adjusted EBITDA was $141 million, down 15.9%; its margin was 24.1% against 27.4%, and the nine-month margin was 26.4% against 28.6%. Source
• Expense growth held near flat: Management said total expense growth at Comparable hotels was 10 basis points this quarter, after 40 basis points in the second quarter, with more savings expected in the fourth quarter. Source
• Operating margin fell 490 bps: Operating income margin was 9.7% against 14.6%; the nine-month margin was 6.8% against 15.6%, after a $70 million impairment and casualty loss recorded in the first half. Source
• Depreciation rose year over year: Depreciation and amortization was $78 million against $63 million; for nine months it was $269 million against $192 million. Source

Demand and group bookings

• Fourth-quarter group pace up 12%: Comparable Group Revenue Pace for the fourth quarter is projected at over 12% against 2024, down from the 18% projected in the July release. Source
• Third-quarter group demand softer: Management said Park experienced softer group demand across its portfolio in the third quarter, with leisure and government transient demand also softer. Source
• Hawaiian Village group pace up 57%: Fourth-quarter Group Revenue Pace at the Hilton Hawaiian Village Waikiki Beach Resort is projected to rise nearly 57%, as the company laps last year's labor strike. Source
• October demand hit by shutdown: Management said the extended government shutdown affects group and transient demand in Hawaii, Washington D.C. and Southern California, with a 180 basis point hit to October RevPAR. Source

“Looking ahead, we expect a meaningful improvement in group demand as Comparable Group Revenue Pace for the fourth quarter is projected to increase over 12%, compared to the same period in 2024,”

Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer

Liquidity and debt

• Liquidity rose to $2.1 billion: Liquidity was about $2.1 billion, including $1 billion of Revolver capacity and the undrawn $800 million delayed draw term loan, up from $1.3 billion in June. Source
• Revolver enlarged and extended: In September 2025 the company amended its credit agreement: the Revolver rose to $1 billion, its maturity extended to September 2029, and an $800 million delayed draw term loan maturing January 2030 was added. Source
• Net debt about $3.7 billion: Net Debt was $3,706 million at September 30; the weighted average maturity of consolidated debt was 2.4 years, against 2.7 years at June 30. Source
• Hyatt Regency Boston loan repayment planned: Management expects to draw the delayed draw term loan in 2026 to repay in full the $122 million Hyatt Regency Boston mortgage, which matures in July 2026. Source

Capital spending and dividends

• Third-quarter capital spending: The company spent nearly $70 million on capital improvements at its hotels in the third quarter, against nearly $45 million in the second quarter. Source
• Fourth-quarter dividend declared: A $0.25 fourth-quarter dividend was declared on October 23; together with the first three quarters' dividends it gives an annual yield of 9% on the October 28 closing price. Source
• No top-off dividend for 2025: To preserve liquidity, the company does not expect to declare an incremental top-off dividend for 2025. Source
• Shares outstanding fell this year: Shares outstanding were 199,911,257 at September 30, 2025, against 202,553,194 at December 31, 2024. Source

Renovations, closures and recognition

• Royal Palm renovation $48 million spent: The $103 million Royal Palm renovation had $48 million incurred by September 30; it covers all 393 guestrooms, adds 11, and runs from Q2 2025 to Q2 2026. Source
• Hawaii phase two renovations began: Phase two started in the third quarter at the Rainbow Tower and Palace Tower in Hawaii, alongside phase two guestroom renovations at the Hilton New Orleans Riverside. Source
• Embassy Suites Kansas City closed: The Embassy Suites Kansas City Plaza was permanently closed in September and its ground lease terminated; it was projected to generate about $0.2 million of EBITDA in 2025. Source
• GRESB score rose six points: Park scored 87 out of 100 on the 2025 GRESB assessment, its highest score to date, and the score is up six points from 2024. Source

Coming up, as management said on 30 October 2025

• Hilton San Francisco hotels sale: The court-appointed receiver is expected to sell the two Hilton San Francisco hotels by November 21, 2025, with the buyer assuming the $725 million SF Mortgage Loan. Source
• Hilton Hawaiian Village refinancing planned: Management plans a subsequent financing in the first half of 2026, alongside the delayed draw loan, to repay the $1.275 billion mortgage maturing in November 2026. Source
• Royal Palm reopening expected June 2026: Reopening is now expected in June 2026, against May 2026 in the July release. Source
• Hawaii and New Orleans phase two completions: Phase two completion at the Hilton New Orleans Riverside Main Tower is estimated for the first quarter of 2026; the Hawaii towers follow the same timing. Source
• Fourth-quarter dividend payment date: The $0.25 fourth-quarter dividend is payable January 15, 2026, to holders of record on December 31, 2025. Source

Figures management reported

Risks management discussed

• Demand: Management said the extended government shutdown has affected group and transient demand in Hawaii, Washington D.C. and Southern California. Source
• Demand: Management cited tough group comparisons against strong citywide calendars in many markets last year as a headwind to the quarter. Source
• External: The full-year 2025 ranges do not include the incremental effect of tariff announcements or changes in travel patterns from trade policy. Source
• External: The full-year ranges depend on macro-economic factors, including inflation, interest rates and the possibility of a recession or slowdown. Source
• Financial: Adjusted FFO excludes default interest and late fees on the SF Mortgage Loan, which are required to be recognized until legal title to the hotels transfers. Source
• Financial: The Hilton Denver City Center mortgage became callable by the lender in August 2022 on six months notice; no notice had been received by September 30. Source
• Operational: Operations at the Royal Palm were suspended in mid-May 2025 for a comprehensive renovation, reducing the hotel's contribution during the period. Source

Earlier plans management reported on

• On track: Management said the $103 million Royal Palm renovation remains on track and on budget. Source
• Not stated: Management said it expects additional cost savings to flow through in the fourth quarter. Source
• Not stated: Management expects the Hilton Hawaiian Village to improve considerably as the company laps the fourth-quarter labor strike of last year. Source
• Not stated: The receivership end date was October 29, 2025 in the July release; the sale is now expected by November 21, 2025. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.