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Mar 31, 2025
Park Hotels Q1 2025 Earnings Report
Park Hotels reported a net loss in Q1 2025 amid flat revenues and rising expenses.
Key Takeaways
Park Hotels delivered nearly flat revenues year-over-year, but operating income and margins dropped significantly due to impairment charges and increased costs. Despite this, management highlighted resilience in RevPAR and continued capital deployment in strategic renovations and shareholder returns.
Reported net loss of $57 million compared to $28 million income in Q1 2024
Operating income plunged to $7 million from $92 million year-over-year
Flat comparable RevPAR at $177.67, with minor ADR growth but lower occupancy
Invested $80 million in capex and returned $95 million to shareholders in Q1
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Park revised its full-year 2025 guidance downward at the midpoint, citing macroeconomic uncertainties and planned hotel renovations, especially at the Royal Palm South Beach Miami.
Positive Outlook
- Maintains strong liquidity of $1.2 billion
- Expects $100 million renovation at Royal Palm to yield 15-20% ROI
- Increased group revenue pacing and average rates for 2025
- Continued return of capital via dividends and share repurchases
- Sustained capital improvements to key resort properties
Challenges Ahead
- Reduced midpoint for full-year operating income and EPS guidance
- Expected EBITDA disruption of $17 million from Royal Palm closure
- Comparable RevPAR growth forecast lowered
- Operating margin outlook reduced by 350 basis points
Historical Earnings Impact
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Avg. Return Before/After Earnings
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