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What were the key takeaways from Park Hotels & Resorts’s earnings call?

- **Strategic Growth**: 2026 group bookings up 12% YoY, excluding Hawaii; $325M invested in 15-20% IRR projects
- **Financial Resilience**: Q3 EBITDA down 12% YoY but 0.5% expense growth; $2.1B liquidity post-debt restructuring
- **Hawaii Recovery**: 2026 EBITDA rebound expected post-renovations; 2025 impact: $2.5M Q4 revenue loss
- **Risk Management**: Government shutdown could reduce Q4 RevPAR by 180bps; 2026 outlook hinges on Japan demand recovery

**【CEO Summary Section】**
- **Strategic Portfolio Refinement**: Sold 47 non-core assets since spin, focusing on 20 high-quality hotels (90% of portfolio value). 2026 group pace up 12% YoY, excluding Hawaii. 
- **Capital Allocation**: $325M invested in high ROI projects (15-20% IRR), e.g., Royal Palm renovation ($103M) targeting $28M EBITDA. 2026 outlook: mid-single-digit RevPAR growth with 2026 World Cup, Super Bowl, and 250th anniversary events.
- **Hawaii Challenges**: 2025 RevPAR down 18% in Q1, 13% in Q2, 9% in Q3; expects Q4 down ~20% due to strike and Japan demand lag. 2026 recovery driven by Waikoloa Phase 2 and Rainbow Tower completion.
- **Government Shutdown Impact**: $2.5M Q4 revenue loss, 180bps RevPAR drag. Lower end of guidance assumes shutdown continues; upper end assumes resolution.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: 
  - Total revenue: $585M (-6% YoY)
  - Adjusted EBITDA: $130M (-12% YoY)
  - Adjusted FFO: $0.35/share
  - Expense growth: 0.5% YoY (vs. +2.7% in Q1)
- **Updated Guidance**: 
  - Full year RevPAR: -2.5% to -1.75% (vs. prior -1.5% to -0.5%)
  - Adjusted EBITDA: $595M-$620M (-$12.5M YoY)
  - Adjusted FFO: $1.85-$1.97/share
- **Balance Sheet**: 
  - $2.1B liquidity post-amended credit facility
  - 2026 debt repayments secured
  - No special dividend; $0.25Q4 dividend maintains 9% yield

**【Q&A Highlights】**
- **Expense Management**: 3Q cost control (0.5% YoY growth) driven by: 
  - Staffing adjustments
  - Procurement savings
  - Insurance premium reductions
  - Tax appeals
- **Dividend Policy**: 9% yield prioritized over buybacks; $50M retained for debt reduction/reinvestments
- **Hawaii Recovery**: 2026 EBITDA expected to rebound post-renovations; 2025 EBITDA: ~$150M (vs. $177M pre-strike)
- **Asset Sales Progress**: 2 assets under LOI, 3+ in active marketing; 2025 sales target: $300M-$400M

Park Hotels & Resorts Inc. (PK) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PK

PK fundamentals

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