Park Hotels & Resorts Reports Decline in Q2 2025 Financial Performance

Park Hotels & Resorts Inc. reported a decline in financial performance for the second quarter of 2025, with total revenues of $672 million, down from $686 million in the same period last year. The company experienced a net loss attributable to stockholders of $5 million, or $(0.02) per share, compared to a net income of $64 million, or $0.31 per share, in the prior year. For the first half of 2025, revenues totaled $1.302 billion, a decrease from $1.325 billion in the first half of 2024, while the net loss attributable to stockholders reached $62 million, compared to a profit of $92 million in the same period last year.

The company’s operating expenses increased to $624 million for the second quarter, up from $580 million in the previous year, primarily due to higher depreciation and amortization costs, which rose significantly due to accelerated depreciation related to renovations at the Royal Palm South Beach Miami. Additionally, Park Hotels recognized a $70 million impairment loss related to the Hyatt Centric Fisherman’s Wharf, which was sold in May 2025. The company also reported a gain of $16 million and $32 million for the three and six months ended June 30, 2025, respectively, from the derecognition of assets associated with the default of the SF Mortgage Loan.

In terms of operational metrics, Park Hotels managed a portfolio of 39 hotels with approximately 25,000 rooms, focusing on premium-branded properties in key urban and resort locations. The company noted a decrease in room revenue, which fell to $401 million for the second quarter, down from $416 million in the prior year. The decline was attributed to reduced occupancy rates at several properties, particularly in Hawaii and Miami, where renovations impacted operations. Conversely, hotels in Orlando and New Orleans saw increased demand, contributing positively to revenue.

Looking ahead, Park Hotels expressed cautious optimism for the remainder of 2025, anticipating improvements in demand trends and continued benefits from ongoing renovations. The company has a strong liquidity position, with $319 million in cash and cash equivalents and $950 million available under its revolving credit facility. However, it acknowledged potential challenges from macroeconomic factors such as inflation and interest rates, which could impact consumer sentiment and travel demand. The company plans to continue focusing on active asset management and strategic growth initiatives to enhance shareholder value.