Operational profitability remains under significant pressure, as evidenced by NOI margins that plummeted to a negative 78.2% in 2025Q4.
| Revenue | 2.53B | 2.54B | 2.6B | 2.7B | 2.5B | 1.36B | 852M | 2.84B | 2.74B | 2.79B | 2.73B | 2.69B | 2.51B |
| Revenue Growth % | -2.2% | -2.23% | -3.67% | 7.88% | 83.63% | 59.86% | -70.04% | 3.91% | -1.93% | 2.35% | 1.45% | 6.96% | - |
| Property Operating Expenses | 2.03B | 2.49B | 1.85B | 1.95B | 1.81B | 1.14B | 1.01B | 1.98B | 1.92B | 1.98B | 1.91B | 1.86B | 1.76B |
| Net Operating Income (NOI) | 503M | 50M | 745M | 746M | 693M | 227M | -161M | 863M | 822M | 815M | 818M | 826M | 755M |
| NOI Margin % | 19.86% | 1.97% | 28.66% | 27.65% | 27.71% | 16.67% | -18.9% | 30.34% | 30.03% | 29.2% | 30% | 30.73% | 30.04% |
| Operating Expenses | -320M | -176M | 354M | 403M | 397M | 406M | 1.04B | 437M | 415M | 419M | 385M | 383M | 315M |
| G&A Expenses | 72M | 72M | 69M | 65M | 63M | 62M | 60M | 62M | 118M | 123M | 127M | 113M | 116M |
| EBITDA | 612M | 562M | 648M | 630M | 565M | 102M | -904M | 690M | 2.83B | 2.73B | 2.71B | 873M | 688M |
| EBITDA Margin % | 24.16% | 22.12% | 24.93% | 23.35% | 22.59% | 7.49% | -106.1% | 24.26% | 103.32% | 97.67% | 99.49% | 32.48% | 27.38% |
| Depreciation & Amortization | 331M | 336M | 257M | 287M | 269M | 281M | 298M | 264M | 2.32B | 2.35B | 2.29B | 287M | 248M |
| D&A / Revenue % | 13.07% | 13.22% | 9.89% | 10.64% | 10.76% | 20.63% | 34.98% | 9.28% | 84.91% | 84.38% | 84.12% | 10.68% | 9.87% |
| Operating Income | 281M | 226M | 391M | 343M | 296M | -179M | -1.2B | 426M | 504M | 371M | 419M | 586M | 440M |
| Operating Margin % | 11.09% | 8.89% | 15.04% | 12.71% | 11.84% | -13.14% | -141.08% | 14.98% | 18.41% | 13.29% | 15.36% | 21.8% | 17.51% |
| Interest Expense | 2M | 267M | 274M | 252M | 247M | 258M | 213M | 140M | 127M | 124M | 181M | 186M | 174M |
| Interest Coverage | - | -0.01x | 1.60x | 1.57x | 1.70x | -0.74x | -5.81x | 3.51x | 4.94x | 3.30x | 2.22x | 3.24x | 2.71x |
| Non-Operating Income | 218M | 229M | -48M | -53M | -124M | 13M | 35M | -65M | -123M | -38M | 17M | -17M | -32M |
| Pretax Income | -201M | -270M | 165M | 144M | 173M | -450M | -1.45B | 351M | 500M | 285M | 221M | 417M | 298M |
| Pretax Margin % | -7.94% | -10.63% | 6.35% | 5.34% | 6.92% | -33.04% | -170.19% | 12.34% | 18.27% | 10.21% | 8.1% | 15.51% | 11.86% |
| Income Tax | 5M | 7M | -61M | 38M | 0 | 2M | -6M | 35M | 23M | -2.35B | 82M | 118M | 117M |
| Effective Tax Rate % | -2.49% | -2.59% | -36.97% | 26.39% | 0% | -0.44% | 0.41% | 9.97% | 4.6% | -823.16% | 37.1% | 28.3% | 39.26% |
| Net Income | -215M | -283M | 212M | 97M | 162M | -459M | -1.44B | 306M | 472M | 2.63B | 133M | 292M | 176M |
| Net Margin % | -8.49% | -11.14% | 8.16% | 3.6% | 6.48% | -33.7% | -169.01% | 10.76% | 17.25% | 94.05% | 4.88% | 10.86% | 7% |
| Net Income Growth % | -269.29% | -233.49% | 118.56% | -40.12% | 135.29% | 68.13% | -570.59% | -35.17% | -82.02% | 1873.68% | -54.45% | 65.91% | - |
| Funds From Operations (FFO) | 116M | 53M | 469M | 384M | 431M | -178M | -1.14B | 570M | 2.8B | 4.98B | 2.43B | 579M | 424M |
| FFO Margin % | 4.58% | 2.09% | 18.05% | 14.23% | 17.23% | -13.07% | -134.04% | 20.04% | 102.16% | 178.43% | 89% | 21.54% | 16.87% |
| FFO Growth % | 264.05% | -88.7% | 22.14% | -10.9% | 342.13% | 84.41% | -300.35% | -79.61% | -43.86% | 105.19% | 319.17% | 36.56% | - |
| FFO per Share | 0.58 | 0.27 | 2.24 | 1.79 | 1.89 | -0.75 | -4.84 | 2.68 | 13.71 | 23.27 | 12.26 | 2.92 | 2.14 |
| FFO Payout Ratio % | 128.45% | 528.3% | 109.17% | 39.58% | 1.62% | -135.39% | -21.1% | 86.67% | 16.6% | 7.75% | 7.42% | 13.99% | 82.78% |
| EPS (Diluted) | -1.08 | -1.42 | 1.01 | 0.44 | 0.71 | -1.94 | -6.12 | 1.44 | 2.31 | 12.21 | 0.67 | 1.47 | 0.89 |
| EPS Growth % | -283.9% | -240.59% | 129.55% | -38.03% | 136.6% | 68.3% | -525% | -37.66% | -81.08% | 1722.39% | -54.42% | 65.17% | - |
| EPS (Basic) | - | -1.42 | 1.02 | 0.44 | 0.71 | -1.94 | -6.12 | 1.44 | 2.33 | 12.38 | 0.67 | 1.47 | 0.89 |
| Diluted Shares Outstanding | 200M | 199M | 209M | 215M | 228M | 236M | 236M | 213M | 204M | 214M | 198M | 198M | 198M |
High Operating Leverage Exposure
As reported in recent financial filings, Park Hotels & Resorts has experienced a consistent contraction in top-line performance, with revenue growth declining by 1.3% in 2026Q1, reflecting the ongoing challenges of maintaining occupancy across its large-scale, group-oriented urban and resort asset portfolio.
The persistent negative revenue growth suggests that the company's strategy of pruning non-core assets has yet to yield a meaningful organic growth offset. Investors should monitor whether the reliance on group bookings can effectively replace the lost revenue from divested properties in a high-cost operating environment.
Based on the company's quarterly data, FFO per share has exhibited extreme volatility, swinging from a high of $1.34 in 2023Q4 to a negative $0.69 in 2025Q4, which highlights the inherent instability of cash flows in a high-fixed-cost lodging model.
The dramatic fluctuations in FFO suggest that the company's earnings quality is highly sensitive to minor shifts in RevPAR and property-level expenses. This instability warrants further investigation into whether the current dividend payout remains sustainable given the recurring need for significant capital reinvestment.
According to the provided income statement data, NOI margins have shown significant degradation, reaching a negative 78.2% in 2025Q4, which indicates that the company's high fixed-cost structure is failing to absorb the impact of declining occupancy and rising labor costs.
The extreme margin compression appears to be a direct consequence of the company's exposure to unionized labor markets and high-maintenance resort assets. Such results suggest that the operating leverage, which typically benefits the company during upcycles, is currently acting as a significant drag on profitability.
As indicated by the divergence between FFO and AFFO, with AFFO reaching negative $326 million in 2025Q4, the company's reliance on heavy capital expenditures to maintain its luxury brand standards may be masking the true economic cost of its operations.
The significant gap between FFO and AFFO suggests that maintenance capex is a substantial, recurring burden that is not fully captured by standard earnings metrics. Investors should be cautious, as this capital intensity may limit the company's ability to deleverage or return capital to shareholders in the near term.
Quick answers to the most common questions about buying PK stock.
For fiscal year 2025, Park Hotels & Resorts Inc. (PK) reported total revenue of $2.54B. This represents a 1.1% increase compared to $2.51B in 2014.
Park Hotels & Resorts Inc. (PK) reported a net loss of $283.0M for the fiscal year ending 2025.
Park Hotels & Resorts Inc. (PK) reported an operating income of $226.0M, resulting in an operating profit margin of 8.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Park Hotels & Resorts Inc. (PK) generated $50.0M in gross profit for the year, representing a gross profit margin of 2.0%. This demonstrates the company's core pricing power and production efficiency.