- Non-Core Asset Sales: $120M+ in non-core sales at 21x multiple, including Hyatt Centric Fisherman's Wharf and Capital Hilton joint venture exit.
- Core Portfolio Outperformance: 3.2% RevPAR growth (5.7% excluding Royal Palm), outperforming non-core by ~1,500 basis points in Q4 2025.
- 2026 Capital Investment: $230M-$260M planned, including $108M Royal Palm redevelopment and $1-2M renovation disruption impact at Hilton Hawaiian Village.
- Hawaii Recovery: 60% of lost convention center business replaced; 2% RevPAR growth and mid-single-digit EBITDA growth expected in 2026.
- Dividend Yield & Guidance: 8.5%+ annual yield at current prices; 2026 Adjusted EBITDA guidance of $580M-$610M and Adjusted FFO/share of $1.73-$1.89.
Revenue Growth and Margin Analysis
The company's revenue growth was driven by its core portfolio, which delivered a solid RevPAR increase. The core portfolio excluding Royal Palm continued to demonstrate meaningful operational strength, delivering a RevPAR increase of 6% to nearly $216. As Sean M. Dell'Orto, CFO, noted, "the properties have replaced about 60% of the lost business with in-house groups and about 20,000 room nights through crew business," indicating a strong recovery in the company's Hawaii properties.
Valuation Metrics and Dividend Yield
Park Hotels & Resorts Inc.'s valuation metrics indicate a relatively attractive dividend yield of 8.89%. The company's P/S Ratio stands at 0.89, and EV/EBITDA is 8.07. With the company's guidance for 2026 RevPAR growth ranging from flat to up 2%, and Adjusted FFO per share expected to be in the range of $1.73 to $1.89, the stock appears to be reasonably valued. Analysts estimate next year's revenue growth at 2.4%, which is in line with the company's guidance.
Outlook and Growth Prospects
The company's outlook for 2026 is positive, with a lower level of capital investment planned, ranging from $230 million to $260 million. The company expects renovation-related disruption at Hilton Hawaiian Village to be $1 million to $2 million in 2026, representing a 10 basis point impact to portfolio RevPAR. With a strong core portfolio and a focus on deleveraging and redeploying capital towards investments and share repurchases, Park Hotels & Resorts Inc. is well-positioned for growth.
Strategic Progress and Asset Disposition
The company has made significant progress in executing its strategic priorities, including the sale of non-core assets and the redevelopment of the Royal Palm. Thomas Jeremiah Baltimore, CEO, noted that the team has sold or disposed of 51 assets and is working aggressively to complete the remaining ones. With a goal to divest most non-core assets by 2026, the company is expected to reduce its debt and reinvest in its core portfolio, potentially leading to a rerating of the company and consideration for growth opportunities.