Park Hotels & Resorts Reports $57 Million Net Loss in Q1 2025

Park Hotels & Resorts Inc. reported a net loss of $57 million for the first quarter of 2025, a significant decline compared to a net income of $28 million in the same period of 2024. Total revenues for the quarter were $630 million, a decrease from $639 million year-over-year. The decline in revenue was primarily driven by a drop in rooms revenue, which fell to $363 million from $374 million, alongside an increase in impairment losses, which rose to $70 million from $5 million in the prior year. The company’s operating income also decreased sharply to $7 million from $92 million, reflecting the impact of these factors on profitability.

In terms of financial position, Park Hotels reported total assets of $8.9 billion as of March 31, 2025, down from $9.2 billion at the end of 2024. The company’s total liabilities decreased slightly to $5.5 billion from $5.6 billion, while stockholders' equity fell to $3.4 billion from $3.6 billion. The decline in equity was attributed to the net loss and a reduction in accumulated deficit, which increased to $525 million from $420 million. The company had 199,892,323 shares of common stock outstanding as of April 30, 2025.

Operationally, Park Hotels continues to manage a portfolio of 40 hotels, with approximately 25,000 rooms, primarily located in major urban and resort markets. The company has been focusing on enhancing its asset management strategies and has committed approximately $121 million for capital expenditures, including significant renovations at key properties. However, the company faced challenges in certain markets, particularly in Hawaii and New York, where occupancy and average daily rates (ADR) declined due to reduced demand.

Looking ahead, Park Hotels expressed cautious optimism for 2025, anticipating improvements in demand trends and increases in city-wide events. However, the company acknowledged the potential adverse effects of macroeconomic factors such as inflation and interest rates on consumer sentiment and travel demand. The company has also implemented a new stock repurchase program, allowing for the repurchase of up to $300 million of its common stock over the next two years, which reflects its commitment to returning value to shareholders despite the current financial challenges.