Park Hotels & Resorts returns to Q1 profit as RevPAR rises 2.2%

Overview

• US lodging REIT reported Q1 comparable RevPAR up 2.2% yr/yr, net income positive

• Diluted EPS for Q1 was $0.05, adjusted FFO per share was $0.45

• Company sold two non-core hotels for $31 mln, invested $83 mln in capital improvements

Outlook

• Park Hotels & Resorts raises 2026 RevPAR outlook to $192-$196 from $190-$194

• Company now sees 2026 Adjusted EBITDA of $587 mln-$617 mln, up from $580 mln-$610 mln

• Park expects demand tailwinds from major events but notes macroeconomic and geopolitical uncertainty

Result Drivers

• RESORT HOTEL STRENGTH - Q1 results were driven by continued strength at resort hotels, with the Bonnet Creek complex in Orlando posting a 16% RevPAR increase and nearly 19% group revenue growth, benefiting from recent renovations and meeting space expansion, per CEO Thomas J. Baltimore, Jr.

• RENOVATION IMPACTS - Recent and ongoing renovations at key properties, including Hawaii and the Royal Palm, drove performance at several hotels but the Royal Palm's closure for renovation reduced overall RevPAR growth by over 390 basis points

• URBAN HOTEL MIXED PERFORMANCE - Urban hotels in San Francisco, Denver and New York contributed to results, with JW Marriott San Francisco Union Square leading urban growth, though some properties faced headwinds from event-related comparisons and higher expenses

Company press release: ID:nBwb0p99a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 13 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Park Hotels & Resorts Inc is $12.00, about 5.8% above its April 29 closing price of $11.34

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 39 three months ago

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