On February 17, 2026, Connecticut-based H/2 Credit Manager disclosed in a Securities and Exchange Commission filing that it sold 741,040 shares of Park Hotels & Resorts (NYSE:PK), an estimated $7.94 million transaction based on quarterly average pricing. What happened According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, H/2 Credit Manager LP sold 741,040 shares of Park Hotels & Resorts (NYSE:PK) during the fourth quarter of 2025. The estimated transaction value is $7.94 ...

Financial Performance - Total revenues for the year ended December 31, 2025, were $2,541 million, a decrease of 2.2% compared to $2,599 million in 2024[14]. - Net loss attributable to stockholders for the year ended December 31, 2025, was $283 million, compared to a net income of $212 million in 2024[16]. - Adjusted EBITDA for the year ended December 31, 2025, was $609 million, down from $652 million in 2024, reflecting a decrease of 6.6%[19]. - Hotel Adjusted EBITDA for the year ended December 31, 2025, was $644 million, compared to $683 million in 2024, indicating a decline of 5.7%[23]. - Total assets decreased to $7,700 million as of December 31, 2025, from $9,161 million in 2024, a reduction of 16.0%[13]. - Total liabilities decreased to $4,624 million as of December 31, 2025, from $5,567 million in 2024, a decline of 16.9%[13]. - The company reported a total debt of $3,838 million as of December 31, 2025, which is relatively stable compared to $3,841 million in 2024[13]. - Net debt as of December 31, 2025, was $3,721 million, an increase from $3,582 million in 2024[34]. - The net debt to full-year current adjusted EBITDA ratio increased to 6.15x in 2025 from 5.61x in 2024[34]. - Interest expense for 2025 was $209 million, indicating a significant cost of debt[77]. - The company incurred impairment and casualty losses of $319 million in 2025, impacting overall profitability[77]. Revenue and Occupancy Trends - Total revenues for the three months ended December 31, 2025, were $629 million, a 0.7% increase from $625 million in 2024[24]. - Comparable hotel revenues increased by 2.2% to $605 million for the three months ended December 31, 2025, compared to $593 million in 2024[24]. - Current RevPAR for 2025 was $189.92, a decrease from $193.35 in 2024, reflecting a decline of 2.2%[75]. - Current occupancy rate for 2025 was 73.1%, a slight decrease from 74.5% in 2024[75]. - The occupancy rate for comparable hotels in Q4 2025 was 70.2%, consistent with the previous year[53]. Future Projections - The company expects full-year 2026 RevPAR to range from $190 to $194, reflecting a change of 0.0% to 2.0% compared to 2025[38]. - Adjusted EBITDA for full-year 2026 is projected to be between $580 million and $610 million[41]. - Operating expenses for Park's hotels are expected to increase by 2% to 3% in 2026[40]. - The company anticipates approximately $9 million of incremental interest expense from refinancing $1.4 billion of mortgage debt maturing in 2026[40]. - Nareit FFO attributable to stockholders is projected to be between $313 million and $343 million for the year ending December 31, 2026[42]. - Adjusted FFO attributable to stockholders is expected to range from $348 million to $380 million, with diluted adjusted FFO per share estimated at $1.73 to $1.89[42]. Portfolio and Asset Management - The current hotel portfolio consists of 34 hotels with a total of 22,561 rooms and a combined meeting space of 2,321,000 square feet[49]. - The total equity for the current hotel portfolio is valued at $1,759 million[49]. - The company plans to continue expanding its portfolio and enhancing its market presence through strategic acquisitions and new hotel developments[49]. - The company sold 1 hotel in 2023 for gross proceeds of $118.3 million, contributing to a total of 41 hotels sold to date[68]. - The remaining non-core hotels to be sold include 10 hotels with a total room count of 4,414 and an estimated 2025 Adjusted EBITDA of $44 million[72]. Operational Metrics - Average Daily Rate (ADR) is calculated as rooms revenue divided by total room nights sold, reflecting pricing trends and customer base characteristics[110]. - Revenue per Available Room (RevPAR) combines occupancy and ADR, serving as a key performance indicator for hotel operations[111]. - Total RevPAR includes rooms, food and beverage, and other hotel revenues, providing a comprehensive view of revenue generation[112]. - The Company utilizes EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA, and Hotel Adjusted EBITDA margin as key performance measures to evaluate operating performance and make operational decisions[99]. - The Company believes that Net Debt, calculated as total debt minus cash and cash equivalents, is a useful measure of financial leverage for investors[106]. Challenges and Strategic Focus - The company is facing macroeconomic challenges, including elevated inflation and interest rates, which may impact future performance[5]. - The company plans to continue focusing on market expansion and new product development to enhance revenue streams[79]. - The company anticipates the completion of anticipated dispositions, including non-core hotels, to improve financial performance[5].

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: High-Yielding Stocks in Real Estate Sector - Brandywine Realty Trust (NYSE: BDN) has a dividend yield of 15.18%. Analysts have downgraded the stock from Overweight to Sector Weight and from Neutral to Underweight, with accuracy rates of 57% and 63% respectively. The company was replaced in the S&P SmallCap 600 by Versant Media Group Inc. [3][6] - Park Hotels & Resorts Inc (NYSE: PK) has a dividend yield of 8.63%. Truist Securities maintained a Hold rating and increased the price target from $11 to $12, while UBS maintained a Neutral rating and raised the price target from $10 to $11, with accuracy rates of 67% and 74% respectively. The company is set to report financial results for Q4 on Feb. 19, 2026 [4][6] - RLJ Lodging Trust (NYSE: RLJ) has a dividend yield of 7.79%. Analysts downgraded the stock from Outperform to Neutral and cut the price target from $9 to $7.5, while maintaining a Hold rating and raising the price target from $7 to $8, with accuracy rates of 56% and 66% respectively. The company will report financial results for Q4 on Feb. 26, 2026 [5][6]

Core Insights - Park Hotels & Resorts Inc. has released its annual Corporate Responsibility (CR) Report, emphasizing its commitment to responsible risk management, environmental stewardship, and social responsibility initiatives for 2024 [1][2] Group 1: Corporate Responsibility Initiatives - The company achieved a Prime rating from ISS ESG Corporate Rating and was recognized by Newsweek in 2025 as one of America's Greatest Companies, Most Responsible Companies, Most Trustworthy Companies, and World's Most Trustworthy Companies [1][2] - Park's first hotel LEED certification was obtained from the renovation of Tapa Tower at Hilton Hawaiian Village Waikiki Beach Resort in Honolulu, HI in 2025 [1] Group 2: Environmental and Risk Management Practices - The company enhanced its environmental data practices, achieving limited assurance of its environmental data for both 2024 and its 2019 baseline [2] - Park's GRESB Real Estate Assessment score increased by six points to 87 in 2025, ranking in the top 17% of all publicly listed GRESB participant companies in the Americas [3] Group 3: Future Goals and Frameworks - The CR Report aligns with various global frameworks, including TCFD, SASB, UN Sustainable Development Goals, and Global Reporting Initiative [2] - Future initiatives include the potential for additional LEED certifications and the planned integration of Park's first solar PV panel project at Hilton Waikoloa Village in Hawaii [2]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Company Ratings and Analyst Insights - Brandywine Realty Trust (NYSE: BDN) has a dividend yield of 10.63%. Keybanc analyst Todd Thomas downgraded the stock from Overweight to Sector Weight on Dec. 4, 2025, with an accuracy rate of 56%. JP Morgan analyst Anthony Paolone downgraded it from Neutral to Underweight on Nov. 24, 2025, with an accuracy rate of 64% [6] - Park Hotels & Resorts Inc (NYSE: PK) has a dividend yield of 9.23%. Truist Securities analyst Patrick Scholes maintained a Hold rating and raised the price target from $11 to $12 on Dec. 4, 2025, with an accuracy rate of 67%. UBS analyst Robin Farley maintained a Neutral rating and raised the price target from $10 to $11 on Oct. 6, 2025, with an accuracy rate of 77% [6] - Apple Hospitality REIT Inc (NYSE: APLE) has a dividend yield of 7.81%. Baird analyst Michael Bellisario maintained an Outperform rating and cut the price target from $14 to $13 on Oct. 3, 2025, with an accuracy rate of 55%. Cantor Fitzgerald analyst Richard Anderson initiated coverage with an Overweight rating and a price target of $14 on Oct. 1, 2025, with an accuracy rate of 56% [6] Group 2: Recent News - Brandywine Realty Trust was replaced by Versant Media Group Inc. in the S&P SmallCap 600 on Jan. 6, 2026 [6] - Park Hotels announced the sale of non-core properties for approximately $198 million on Dec. 9, 2025 [6] - Apple Hospitality REIT reported positive quarterly sales on Nov. 3, 2025 [6]

Core Insights - Park Hotels & Resorts Inc. (PK) has sold or entered into agreements to sell five non-core assets for approximately $198 million, achieving an average multiple of 43X [1] - The company plans to exit three additional non-core assets by the end of the year, which include the Embassy Suites Kansas City Plaza, DoubleTree Hotel Seattle Airport, and DoubleTree Hotel Sonoma Wine Country, all of which yielded minimal EBITDA in 2025 [2] - Park Hotels aims to dispose of remaining marketable non-core assets within 12 months as part of a strategic plan to sell off non-core assets worth $300-$400 million in 2025 for portfolio optimization [3] Operating Performance - Despite a temporary government shutdown affecting air traffic in November, Park Hotels reported that it did not materially impact its comparable revenue per available room (RevPAR) results [4] - Preliminary November comparable RevPAR improved nearly 2%, driven by strong performance in Hawaii, New York, Denver, and Orlando, with increases of approximately 19%, 10%, 8%, and 6% respectively [5] - The Hawaiian Village Waikiki Beach Resort hotel saw significant RevPAR growth of 20% and 26% in October and November, contributing 300 basis points to the portfolio's comparable RevPAR growth [6] Strategic Outlook - Park Hotels is streamlining its portfolio by divesting non-core, low-performing assets while core markets continue to show solid RevPAR gains [7] - The company is strengthening its balance sheet and positioning itself for focused, long-term growth through planned asset sales [7] - Shares of Park Hotels have gained 0.4% over the past month, contrasting with a 1.3% decline in the industry [8]

Core Insights - Park Hotels & Resorts Inc. has made significant progress in its strategic priority to reshape its portfolio by divesting underperforming Non-Core hotels, with eight Non-Core hotels expected to generate approximately $198 million in gross proceeds at an average multiple of nearly 43x [4][6] - The company anticipates accelerating its Non-Core disposition strategy over the next 12 months, aiming to own one of the highest quality hotel portfolios in the sector, with an expected Comparable RevPAR of $218 [4] - Year-to-date, the company has sold or entered into agreements for five Non-Core hotels, with closed transactions including the sale of the 316-room Hyatt Centric Fisherman's Wharf and a joint venture interest in the 559-room Capital Hilton DC [6] Operational Highlights - The estimated 2025 average RevPAR and Adjusted Hotel EBITDA margin for the eight Non-Core hotels is projected to be $124 and 7%, respectively [6] - Preliminary November Comparable RevPAR increased approximately 2%, driven by strong results in Hawaii, New York, Denver, and Orlando, with increases of approximately 19%, 10%, 8%, and 6% respectively [6] - The Hilton Hawaiian Village Waikiki Beach Resort hotel in Honolulu reported significant RevPAR increases of 20% and 26% in October and November, contributing approximately 300 basis points to the portfolio's Comparable RevPAR growth [6] Company Overview - Park Hotels & Resorts is one of the largest publicly-traded lodging REITs, with a diverse portfolio of 37 premium-branded hotels and resorts, totaling approximately 24,000 rooms located primarily in prime city center and resort locations [9]

Core Portfolio & Strategy - Park Hotels & Resorts focuses on upper-upscale and luxury full-service hotels in premier urban and resort destinations, affiliated with dominant global brands[4] - The company's core portfolio includes 20 consolidated hotels and 1 unconsolidated hotel, totaling 16,000 rooms[13] - Park plans to dispose of non-core hotels to enhance growth and quality, with estimated proceeds of $560 million to $600 million expected from non-core hotel sales[55, 61] - The strategic plan involves disposing of remaining non-core hotels over the next 12+ months to materially enhance growth and quality[46] Financial Performance & Valuation - Park Hotels & Resorts is trading at a 47% discount to the consensus estimate of NAV (Net Asset Value)[14] - The implied market value of the portfolio is $270,000 per key, while the replacement cost for the core portfolio is approximately $1 million per key[14] - The company offers an attractive dividend yield of 9%[14] - The company has over $2 billion of liquidity, including $1 billion available under the revolving credit facility and an unsecured $800 million delayed-draw term loan[15] ROI & Growth Potential - Park Hotels & Resorts has a robust ROI pipeline with $1 billion of potential opportunities, with past projects generating 20%+ average IRR (Internal Rate of Return)[15] - Since 2018, $1.4 billion of capital will have been invested in the core portfolio through 2025, or $87,000 per key[14] - The company anticipates $100 million+ Adjusted EBITDA growth potential as core markets recover and ROI projects stabilize[14]

Core Insights - Park Hotels & Resorts Inc. (PK) has completed the sale of Hilton San Francisco Hotels, which includes Hilton San Francisco Union Square with 1,921 rooms and Parc 55 San Francisco with 1,024 rooms [1][7] - This sale aligns with the company's strategic plan to divest $300-$400 million in non-core assets by 2025, allowing it to concentrate on core operations and enhance balance sheet strength for future growth [2][7] - The hotels were previously under court-ordered receivership, which secured a $725 million non-recourse CMBS Loan, resulting in Park Hotels having no economic interest in the properties [3][7] Strategic Portfolio-Rebalancing Efforts - Park Hotels has been actively reshaping its portfolio to maximize shareholder returns, having sold 46 assets for over $3 billion since 2017 [4] - The company also sold the 316-room Hyatt Centric Fisherman's Wharf in May 2025 for $80 million, further supporting its strategic rebalancing efforts [4] - PK's shares have increased by 2.1% month-to-date, outperforming the industry average of 1.3% [4]

Core Viewpoint - Park Hotels & Resorts Inc. announced the completion of the sale of two major properties in San Francisco, securing a significant non-recourse loan in the process [1] Group 1: Company Actions - The court-appointed receiver completed the sale of the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco, collectively referred to as the Hilton San Francisco Hotels [1] - The sale secured a $725 million non-recourse CMBS Loan, known as the SF Mortgage Loan [1] Group 2: Financial Implications - The transaction reflects a strategic move by the company to manage its asset portfolio and financial obligations effectively [1]