AFFO of $30M in 2026Q2 covered only 60% of dividends paid, with negative AFFO in four of the last ten quarters, indicating persistent distribution risk and reliance on external financing or asset sales.
Park Hotels & Resorts Inc. (PK) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Cash from Operations | 404M | 398M | 429M | 503M | 409M | -137M | -438M | 499M | 444M | 653M | 399M | 519M | 516M |
| Operating CF Growth % | 1.12% | -7.23% | -14.71% | 22.98% | 398.54% | 68.72% | -187.78% | 12.39% | -32.01% | 63.66% | -23.12% | 0.58% | - |
| Operating CF / Revenue % | 15.9% | 15.66% | 16.51% | 18.64% | 16.35% | -10.06% | -51.41% | 17.55% | 16.22% | 23.4% | 14.63% | 19.31% | 20.53% |
| Net Income | -163M | -14M | 212M | 106M | 173M | -452M | -1.44B | 316M | 477M | 2.63B | 139M | 299M | 181M |
| Depreciation & Amortization | 275M | 336M | 257M | 287M | 269M | 281M | 298M | 264M | 277M | 288M | 300M | 287M | 248M |
| Stock-Based Compensation | 20M | 19M | 19M | 18M | 17M | 19M | 20M | 16M | 16M | 14M | 0 | 0 | 0 |
| Other Non-Cash Items | 211M | -6M | -53M | -26M | -95M | 40M | 685M | -69M | -192M | 3M | 36M | 17M | -12M |
| Working Capital Changes | 47M | 59M | 56M | 104M | 47M | -24M | 33M | -33M | -114M | 95M | -37M | 61M | 12M |
| Cash from Investing | -280M | -209M | -166M | -217M | 87M | 394M | 119M | -635M | 419M | -165M | -210M | 230M | -120M |
| Acquisitions (Net) | 12M | 75M | 31M | -11M | 101M | -6M | -3M | -863M | 150M | -1M | 0 | -1.41B | -5M |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | -4M | -1M | -51M | -150M | -1M | 0 | 0 | 0 |
| Sale of Investments | 3M | 12M | 0 | 0 | 101M | 54M | 1M | 51M | 150M | 0 | 15M | 0 | 0 |
| Other Investing | -119M | 0 | 30M | 79M | 53M | 404M | 208M | 468M | 457M | 21M | 17M | 1.87B | 56M |
| Cash from Financing | -169M | -365M | -573M | -475M | -320M | -475M | 914M | 97M | -816M | -459M | 30M | -715M | -401M |
| Dividends Paid | -199M | -280M | -512M | -152M | -7M | -241M | -241M | -494M | -464M | -386M | -180M | -81M | -351M |
| Common Dividends | -149M | -280M | -512M | -152M | -7M | -241M | -241M | -494M | -464M | -386M | -180M | -81M | -351M |
| Debt Issuance (Net) | -3M | -1000K | 1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 0 | -1000K | -1000K | -1000K | 1000K |
| Share Repurchases | 0 | -45M | -116M | -180M | -227M | -5M | -66M | -7M | -348M | -3M | 0 | 0 | 0 |
| Other Financing | 45M | -31M | -23M | -10M | -10M | 235M | -50M | -27M | -4M | -18M | 974M | -4M | -58M |
| Net Change in Cash | -45M | -176M | -310M | -189M | 176M | -218M | 595M | -39M | 46M | 29M | 221M | 30M | -6M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1M | 0 | 2M | -4M | -1M |
| Cash at Beginning | 190M | 440M | 750M | 939M | 763M | 981M | 386M | 425M | 379M | 350M | 72M | 42M | 48M |
| Cash at End | 302M | 264M | 440M | 750M | 939M | 763M | 981M | 386M | 425M | 379M | 293M | 72M | 42M |
| Free Cash Flow | 228M | 102M | 202M | 218M | 241M | -191M | -524M | 259M | 256M | 468M | 172M | 293M | 345M |
| FCF Growth % | 21.28% | -49.5% | -7.34% | -9.54% | 226.18% | 63.55% | -302.32% | 1.17% | -45.3% | 172.09% | -41.3% | -15.07% | - |
| FCF / Revenue % | 8.97% | 4.01% | 7.77% | 8.08% | 9.64% | -14.02% | -61.5% | 9.11% | 9.35% | 16.77% | 6.31% | 10.9% | 13.73% |
Quick answers to the most common questions about buying PK stock.
Park Hotels & Resorts Inc. (PK) generated $398.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Park Hotels & Resorts Inc. (PK) generated $102.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Park Hotels & Resorts Inc. (PK) spent $296.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Park Hotels & Resorts Inc. (PK) returned $280.0M to shareholders via cash dividends and spent $45.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
AFFO negative quarters
Metrics are mathematically derived from official filings.
AFFO Coverage Remains Precarious
According to the latest quarterly data, Park Hotels' AFFO of $30M in 2026Q2 covered only 60% of dividends paid, with negative AFFO in four of the last ten quarters, signaling persistent distribution risk.
The dividend payout ratio based on AFFO has been erratic, spiking to 10.92x in 2025Q1 and undefined in 2025Q4 when AFFO was deeply negative. Even in the most recent quarter, the 0.44x payout ratio understates the fragility, as AFFO has been insufficient to cover dividends in several periods. This pattern suggests that the dividend may be funded by external sources or cash reserves, which is not sustainable over the long term.
Capex Swings Distort Cash Flow
Reported capital expenditures swung from -$83M in 2026Q1 to +$83M in 2026Q2, reflecting significant acquisition and disposition activity, which complicates the assessment of maintenance capex and true FFO conversion.
The volatility in CapEx, including negative values indicating asset sales, masks the recurring maintenance capital required to keep hotels competitive. The wide gap between FFO and AFFO, with AFFO often negative, implies that recurring capex (tenant improvements, leasing commissions, and building maintenance) is substantial. Investors should monitor whether the company is adequately reserving for these costs, as underinvestment could boost near-term AFFO at the expense of long-term asset quality.
Depreciation Obscures Cash Earnings
GAAP net income swung from -$205M in 2025Q4 to $47M in 2026Q2, while FFO remained positive in most quarters, highlighting how depreciation and impairments distort reported profitability for this hotel REIT.
The FFO-to-net-income ratio has been highly volatile, ranging from -21.6 to 5.36, indicating that non-cash charges like depreciation and impairments are significant. In 2025Q4, a net loss of $205M contrasted with positive operating cash flow of $105M, underscoring that GAAP earnings are not a reliable indicator of cash generation. This distortion reinforces the need to focus on FFO and AFFO as the primary cash flow metrics.
Working Capital Shows Stability
Operating cash flow has remained positive in every quarter, ranging from $59M to $141M, suggesting stable rent collections and working capital management, despite net income volatility.
The consistency of OCF, even when net income was negative, indicates that the company's hotel operations are generating cash at the property level. However, the gap between OCF and FFO in some quarters, such as 2026Q1 where OCF was $59M versus FFO of $75M, may reflect changes in working capital, including receivables and payables. This suggests that while collections are stable, there may be timing differences that investors should monitor.
Dividend Funding Raises Questions
With dividends paid exceeding AFFO in several quarters, including $50M paid against -$8M AFFO in 2026Q1, Park Hotels appears to rely on external financing or asset sales to sustain its distribution.
The dividend coverage by AFFO has been inconsistent, with a payout ratio of 0.44x in 2026Q2 but 10.92x in 2025Q1 and undefined in 2025Q4. This pattern suggests that the dividend is not fully covered by recurring cash earnings, potentially requiring the use of balance sheet cash or proceeds from dispositions. Investors should assess the sustainability of this approach, especially if capital markets become less accessible.
What the Cash Flow Hides
The cash flow statement may understate true maintenance capex, as evidenced by the frequent negative AFFO, and does not fully capture off-balance-sheet obligations from joint ventures, which could strain future liquidity.
The large discrepancies between FFO and AFFO, with AFFO negative in four of the last ten quarters, suggest that reported FFO may overstate cash available for distribution. Additionally, the company's involvement in joint ventures, common in the hotel sector, may involve off-balance-sheet cash commitments that are not visible in the consolidated cash flow statement. These factors warrant further investigation into the quality of reported cash flows and the true distributable cash.