Park Hotels Returns to Profit as Strong Travel Demand Boosts Revenue
Tysons, Saturday, 8 August 2026.
Park Hotels & Resorts rebounded sharply in the second quarter of 2026, generating $50 million in net income and raising its full-year forecast following an 11% RevPAR surge in June.
Financial Recovery and Earnings Growth
Park Hotels & Resorts Inc. (NYSE: PK) reported a significant return to profitability for the second quarter ended June 30, 2026, posting net income attributable to stockholders of $47 million compared to a net loss of $5 million in the same period of 2025 [1][3]. The company recorded total revenues of $680 million for the quarter, representing a year-over-year increase from $672 million in 2025 [2][3]. Diluted earnings per share (EPS) from continuing operations reached $0.24, a marked improvement over the loss of $0.02 per share reported in the second quarter of 2025 [1][3]. For the first six months of 2026, net income attributable to stockholders totaled $58 million, recovering from a net loss of $62 million during the corresponding period in the previous year [1]. Adjusted Funds From Operations (FFO) per share for the quarter stood at $0.70, reflecting a 9.0% increase from $0.64 in 2025 [2].
Operational Metrics and Demand Drivers
Operational performance showed robust growth, with Comparable Revenue per Available Room (RevPAR) increasing 5.8% year-over-year to $216.87 for the second quarter [2]. Core RevPAR, which excludes non-core assets, grew 6.0% to $233.49, and excluding the Royal Palm South Beach Miami which was under renovation, Core RevPAR increased by 7.1% [2]. Monthly RevPAR growth accelerated throughout the quarter, starting at 4% in April, rising to 5% in May, and surging over 11% in June 2026 [4]. This performance was driven by a 9.5% year-over-year increase in group rooms revenue and a greater than 13% increase in leisure transient revenue [4]. Specific properties contributed significantly, with the Hilton Hawaiian Village Waikiki Beach Resort seeing a 12% RevPAR increase and the Bonnet Creek resort complex achieving a 13% RevPAR gain [2].
Strategic Asset Management and Renovations
The company continued its non-core asset disposition initiative, exiting four hotels since March 31, 2026, generating $65 million in gross proceeds [2]. As of June 30, 2026, nine hotels remained in the non-core portfolio, with the company aiming to divest all remaining non-core assets to focus on its core portfolio [3]. Capital investments totaled $64 million in the second quarter, including significant expenditures on the Royal Palm South Beach Miami, which reopened in July 2026 following a renovation project exceeding $100 million [2][3]. The company also utilized $200 million from its 2025 Delayed Draw Term Loan in June 2026 to fully repay the $120 million mortgage encumbering the Hyatt Regency Boston, which was scheduled to mature on July 1, 2026 [2][3]. Total liquidity as of June 30, 2026, was approximately $2.6 billion, including availability under the Revolver and term loans [2].
Updated Outlook and Future Guidance
Following the strong second-quarter results, Park Hotels & Resorts raised its full-year 2026 guidance, citing broad-based demand and portfolio strength [4]. The midpoint forecast for 2026 RevPAR increased by $6 to a range of $198–$201, and Adjusted EBITDA guidance was raised by $25 million to between $617 million and $637 million [2][4]. Management projects Q3 2026 RevPAR growth to land near the upper end of the revised full-year range, supported by July 2026 Comparable RevPAR which is projected to increase 8.5% year-over-year [2][4]. The company declared a dividend of $0.25 per share for the third quarter of 2026, payable on October 15, 2026, to stockholders of record as of September 30, 2026 [3]. Despite the optimism, management noted potential economic headwinds including inflation, interest rates, and geopolitical conflicts could impact the remainder of the year [3].