- Company name
- Park Hotels & Resorts
- Sector
- Hotel REIT
- About
- Park Hotels & Resorts is a real estate investment trust (REIT) based in Tysons, Virginia. It owns large upper-upscale hotels and resorts in the United States, and most of them carry Hilton brands. Park divides its hotels into Core hotels, which it plans to keep, and Non-Core hotels, which it plans to sell. In Q3 2026, its 20 Core hotels had 15,789 rooms. The largest are the Hilton Hawaiian Village Waikiki Beach Resort (2,886 rooms), the New York Hilton Midtown, the Hilton New Orleans Riverside, the Hilton Chicago and the Bonnet Creek resort complex in Orlando. Third-party operators manage the hotels for Park.
- Thesis
- The market prices Park for its debt, its capital needs and slow demand in some city markets. Park had about $1.4 billion of debt that matured in 2026, including the $1.275 billion mortgage on the Hilton Hawaiian Village. It repaid that mortgage on September 30, 2026 with new loans that cost more, and it expects about $13 million of additional interest expense in 2026 from its refinancing. Park is also spending on large renovations, such as the Royal Palm in Miami and the Ali'i Tower in Waikiki. In September 2026, its Chief Investment Officer left, and the board gave retention share awards to the other executives. For the gap to close, Park must reach its raised 2026 outlook of Adjusted EBITDA of $635 million to $645 million and Adjusted FFO of $2.00 to $2.05 per share (November 4, 2026). Group demand in Hawaii, Orlando and Key West must stay strong, and the Royal Palm, which reopened in July 2026, must earn the 15% to 20% return that Park expects. Park must also sell its remaining Non-Core hotels and reduce its debt. The Q4 2026 report with the 2027 outlook, expected in February 2027, is the next test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a weaker economy, which would lower hotel demand and make the debt harder to refinance.
- Risks
- Park has about $3.9 billion of debt, and more of it now has variable rates after the 2026 refinancing. Higher interest rates or weaker results make the debt more costly and harder to refinance.
Hotel demand falls quickly in a weak economy. The Hilton Hawaiian Village alone earned $42 million of the $132 million of Core Hotel Adjusted EBITDA in Q3 2026, so a drop in Hawaii travel has a large effect.
Large renovations, such as the $100 million work on the Ali'i Tower that started in Q3 2026, take rooms out of service and can cost more than planned.
The Chief Investment Officer left in September 2026, and the board gave retention awards to keep the other executives. More departures can slow the sale of Non-Core hotels.
- Balance sheet
- Cash: $295M
Debt: $3.9B
Net debt: $3.6B
Interest cover: 1.2×
Undrawn credit line: $1.0B, to September 2029
Debt due within 12 months: $429M
Park funds itself with unsecured notes, bank term loans and a few hotel mortgages. At September 30, 2026, debt was $3.92 billion at a weighted average interest rate of 5.87%, up from 5.21% at June 30, 2026, and cash was $295 million, plus $40 million of restricted cash. Net debt, with Park's $105 million share of joint venture debt, was $3.73 billion at September 30, 2026. Park repaid the $1.275 billion Hilton Hawaiian Village mortgage on September 30, 2026 with the $700 million Bonnet Creek mortgage, due in 2029 (2031 with extensions), and $600 million of its delayed draw term loan, due in 2030 (2031 with extensions). Debt due within 12 months was $429 million at September 30, 2026: the $150 million Santa Barbara mortgage, due in December 2026, which Park expects to refinance in mid-November 2026, the Denver and Ontario mortgages, and a $200 million term loan due in May 2027. Variable-rate debt was $1.70 billion of the total. Its unsecured notes are $725 million due in 2028, $750 million due in 2029 and $550 million due in 2030. Liquidity was about $1.3 billion, including $1 billion of undrawn revolver capacity. Interest cover is operating income divided by interest expense for the first nine months of 2026. Park paid a dividend of $0.25 per share each quarter in 2026 and declared the same for Q4 2026.
As of Sep 30, 2026.
- Checkpoints
- Nov 4, 2026: Q3 2026 earnings: outlook and group demand. Passed. Watch: RevPAR growth and Adjusted EBITDA on track for the $617 million to $637 million outlook pass; a cut to the outlook fails. Outcome: Comparable RevPAR rose 8.4% in Q3 2026 and Park raised its 2026 outlook to Adjusted EBITDA of $635 million to $645 million and Adjusted FFO of $2.00 to $2.05 per share.
Feb 4, 2027 (estimate): Q4 2026 results and the 2027 outlook. Pending. Watch: A 2027 outlook with higher Adjusted FFO per share and more Non-Core sales passes; an outlook for lower Adjusted FFO fails.
- Recent events
- Nov 4, 2026: Park reported Q3 2026 results. Comparable RevPAR was $201.02, up 8.4%, and group rooms revenue rose more than 18%. The net loss was $15 million, and Adjusted EBITDA was $135 million, up 4.0%. Adjusted FFO was $0.39 per share, up 11.2%. Park raised its 2026 outlook to RevPAR growth of 5.5% to 6.0%, Adjusted EBITDA of $635 million to $645 million and Adjusted FFO of $2.00 to $2.05 per share. Preliminary October 2026 Comparable RevPAR rose almost 11%.
Oct 29, 2026: Park declared a Q4 2026 dividend of $0.25 per share, payable on January 15, 2027. In October 2026, it also sold The Wade, a Non-Core hotel with 520 rooms, for about $19 million.
Sep 30, 2026: Park repaid in full the $1.275 billion mortgage on the Hilton Hawaiian Village Waikiki Beach Resort, which was due on November 1, 2026. It used the $700 million Bonnet Creek mortgage loan and a $600 million draw on its unsecured delayed draw term loan.
Sep 11, 2026: Park said that Thomas Morey, Executive Vice President and Chief Investment Officer, left the company on September 8, 2026.
Sep 3, 2026: The board gave one-time retention restricted stock awards to executive officers, including 331,564 shares to CEO Thomas Baltimore. The awards vest after four years. Park said that they address leadership transition and recruiting risks.
Aug 6, 2026: Park reported Q2 2026 results. Comparable RevPAR was $216.87, up 5.8%, net income was $50 million and Adjusted EBITDA was $198 million, up 8.6%. Adjusted FFO was $0.70 per share. Park raised its 2026 outlook to RevPAR growth of 3.0% to 4.5%, Adjusted EBITDA of $617 million to $637 million and Adjusted FFO of $1.90 to $2.00 per share.
Jul 31, 2026: Park declared a Q3 2026 dividend of $0.25 per share, paid on October 15, 2026. In July 2026, it also reopened the Royal Palm South Beach Miami after a renovation of more than $100 million and sold the Hilton Short Hills for $12 million.