Highlights

  • Second quarter revenue was $680 million, and GAAP net income was $50 million versus a $2 million loss.
  • Adjusted FFO per diluted share, a non-GAAP measure, rose to $0.70 from $0.64; Nareit FFO per share reached $0.66.
  • A Bonnet Creek Mortgage Loan of up to $700 million is planned to help repay the $1.275 billion HHV loan.
  • Park sold or exited several non-core assets this year and describes itself as cautiously optimistic for 2026.

Park Hotels & Resorts (NYSE:PK) shares were trading near their 52-week high at USD 17.05 on October 21, 2026, up 2.90%. The lodging real estate investment trust signed a new Orlando mortgage facility in April, sold non-core hotels through July, and filed its second quarter 2026 report on August 7.

Based in Tysons, Virginia, Park is a Delaware corporation that became independent on January 3, 2017, when Hilton Worldwide completed the spin-off of its premium hotel portfolio. It qualifies as a REIT and holds interests in 30 premium-branded hotels with more than 21,000 rooms. Its strategy centers on a Core portfolio of 20 consolidated hotels plus one joint venture, which contribute over 90% of Hotel Adjusted EBITDA. Core and Non-Core consolidated hotels are its two reportable segments, and its fiscal year follows the calendar year.

Profit Swing in the Second Quarter

Revenue for the quarter ended June 30, 2026 was $680 million, versus $672 million a year earlier. Rooms revenue was flat at $401 million, while food and beverage revenue rose to $188 million from $180 million.

Operating income rose to $95 million from $65 million. Net income attributable to stockholders was $47 million, or $0.24 per diluted share, against a $5 million loss, or $0.02 per share. Depreciation fell to $66 million from $122 million, as the prior-year period carried about $56 million of accelerated depreciation from the Royal Palm renovation in Miami. The latest quarter included a $22 million impairment and casualty loss.

Non-GAAP Adjusted EBITDA was $198 million versus $183 million, and Hotel Adjusted EBITDA was $208 million versus $191 million. Park cited gains at Hilton Hawaiian Village and the Orlando resorts, while Miami and New Orleans declined. The Royal Palm reopened in July 2026. For the six months, revenue was flat at $1.30 billion, net income was $62 million against a $59 million loss, and operating cash flow was $200 million versus $194 million.

Asset Sales, Refinancing and Capital Returns

Park sold the Hilton Checkers Los Angeles in January and the Hilton Seattle Airport & Conference Center in April, for combined gross proceeds of about $31 million. In May it sold its stake in the Alexandria Old Town hotel joint venture for $29 million gross, before $25 million of attached mortgage debt, and the Hilton Short Hills sold in July for $12 million.

The balance sheet carried $3.9 billion of debt at June 30, including over $2 billion of senior notes, alongside $264 million of cash and $38 million of restricted cash. In June, Park drew $200 million on its delayed draw term loan to repay a $120 million Hyatt Regency Boston mortgage. The Bonnet Creek Mortgage Loan, signed in April, allows a single draw of $650 million to $700 million by September 30, 2026, at SOFR plus 2.25%, maturing April 30, 2029.

Park also declared a third quarter dividend of $0.25 per share, payable October 15 to holders of record on September 30, and had $275 million left on its $300 million repurchase program, which runs through February 2027.

Outlook and Risks

The 10-Q gives no numerical guidance. Management said it intends to draw on the Bonnet Creek loan and the remaining $600 million of the term loan in the third quarter to repay the HHV Mortgage Loan, which matures in November 2026, and then expects no significant maturities until the fourth quarter of 2028. It described itself as cautiously optimistic for the remainder of 2026, citing World Cup and U.S. 250th anniversary demand.

Park also flagged inflation, interest rates, trade and tax policy, geopolitical conflicts and a possible slowdown as risks. It disclosed active litigation with a ground lessor over several ground leases, and spin-off related claims, and reported $137 million of construction commitments. These are company expectations, not guarantees.