Park Hotels & Resorts Q2 2025: Contradictions in Hawaii Demand, Group Bookings, and Asset Strategy

Hawaii demand and recovery, group pace trends and bookings, disposition of noncore assets and capital deployment, group demand and recovery expectations, and group business dynamics and growth expectations, are the key contradictions discussed in Park Hotels & Resorts' latest 2025Q2 earnings call.



Revenue Performance and Strategic Investments:
- Park Hotels & Resorts reported total hotel revenues of $645 million for Q2, with a decline of 160 basis points in RevPAR year-over-year, excluding specific properties.
- The decline was attributed to a transformative renovation project at the Royal Palm South Beach and a labor strike in Hawaii.

Cost Management and Operational Efficiency:
- The company achieved total expense growth of just 40 basis points for the quarter, and 1% when excluding Royal Palm South Beach, marking the second consecutive quarter with expenses growing by approximately 1% or less.
- This was driven by effective cost controls across the portfolio and a 25% reduction in property insurance premiums.

Asset Management and Noncore Dispositions:
- Park Hotels & Resorts is actively engaged in disposing of 18 noncore hotels to enhance the quality of its portfolio.
- The company reported the sale of the Hyatt Centric Fisherman's Wharf for $80 million, achieving a multiple of 64x of 2024 EBITDA.

Capital Investments and Renovation Projects:
- Significant capital investments were made, including the comprehensive renovation of the Royal Palm South Beach Resort with an expected internal rate of return of 15% to 20%.
- The company is also currently renovating multiple towers at its Hilton Hawaiian Village and Hilton Waikoloa Village properties, reflecting its strategic focus on enhancing asset quality.