Q4 2025 Park Hotels & Resorts Inc Earnings Call

February 20, 2026

Speaker #1: Greetings, and welcome to the Park Hotels & Resorts fourth quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Operator: Greetings, and welcome to the Park Hotels & Resorts Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Ian Weissman, Senior Vice President, Corporate Strategy. Please go ahead.

Speaker #1: A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

Speaker #1: It is now my pleasure to introduce Ian Weissman, Senior Vice President, Corporate Strategy. Please go ahead.

Operator: It is now my pleasure to introduce Ian Weissman, Senior Vice President, Corporate Strategy. Please go ahead.

Speaker #2: Thank you . Operator and welcome everyone to the Park Hotels and fourth quarter and full year 2025 earnings call Before we begin , I would like to remind everyone that many of the comments made today are considered forward looking statements under federal securities laws , as described in our filings with the SEC , statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed .

Ian Weissman: Thank you, operator, and welcome everyone to the Park Hotels & Resorts Q4 and full year 2025 Earnings Call. Before we begin, I would like to remind everyone that many of the comments made today are considered forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed, and we are not obligated to publicly update or revise these forward-looking statements. Actual future performance, outcomes, and results may differ materially from those expressed in forward-looking statements. Please refer to the documents filed by Park with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in forward-looking statements.

Speaker #2: And we are not obligated to publicly update or revise these forward-looking statements. Actual future performance, outcomes, and results may differ materially from those expressed in forward-looking statements.

Speaker #2: Please refer to the documents filed by Parc with the SEC . Specifically , the most recent reports on form 10-K and 10-q , which identify important risk factors that could cause actual results to differ from those contained in forward looking statements .

Speaker #2: In addition , on today's call , we will discuss certain non-GAAP financial information such as adjusted FFO and adjusted EBITDA . You can find this information together with reconciliations to the most directly comparable GAAP financial measure in yesterday's earnings release , as well as in our 8-K filed with the SEC and the Supplemental Financial information available on our website at Park Hotels & Resorts Additionally , unless otherwise stated , all operating results will be presented on a comparable hotel basis .

Ian Weissman: In addition, on today's call, we will discuss certain non-GAAP financial information, such as Adjusted FFO and Adjusted EBITDA. You can find this information together with reconciliations to the most directly comparable GAAP financial measure in yesterday's earnings release, as well as in our 8-K filed with the SEC and the supplemental financial information available on our website at pkhotelsandresorts.com. Additionally, unless otherwise stated, all operating results will be presented on a comparable hotel basis. This morning, Tom Baltimore, our Chairman and Chief Executive Officer, will update on our strategic initiatives, review Park's fourth quarter and full year performance, and provide an outlook for 2026, while Sean Dell'Orto, our Chief Operating Officer and Chief Financial Officer, will provide additional color on fourth quarter and full year results, our plan to address our upcoming debt maturities later this year, and further details on guidance.

Speaker #2: This morning . Thomas Baltimore . Our Chairman and Chief Executive Officer , will update you on our strategic initiatives review . Park's fourth quarter and full year performance and provide an outlook for 2026 .

Speaker #2: While Sean Dell'Orto, our Chief Operating Officer and Chief Financial Officer, will provide additional color on fourth quarter and full year results, we are also planning to address our upcoming debt maturities later this year and will provide further details on guidance.

Speaker #2: Following our prepared remarks, we will open the call for questions. With that, I would like to turn the call over to Tom.

Ian Weissman: Following our prepared remarks, we will open the call for questions. With that, I would like to turn the call over to Tom.

Speaker #3: Thanks , Ian . And welcome everyone . 2025 was another very productive year for Park , one marked by meaningful progress against our strategic priorities and continued execution across the core portfolio Throughout the year , we remain laser focused on reshaping and upgrading the portfolio and reinvesting in our highest quality hotels , all with the goal of positioning the company for sustained long term success .

Tom Baltimore: Thanks, Ian, and welcome everyone. 2025 was another very productive year for Park, one marked by meaningful progress against our strategic priorities and continued execution across the core portfolio. Throughout the year, we remained laser focused on reshaping and upgrading the portfolio and reinvesting in our highest quality hotels, all with the goal of positioning the company for sustained long-term success. Our strategy has been both consistent and deliberate, concentrating our ownership in 21 core hotels with superior growth prospects, aggressively exiting non-core assets, and allocating capital toward high-impact redevelopment projects with the potential to unlock meaningful embedded value across the core portfolio, with ROI opportunities exceeding $1 billion. In 2025, we executed more than $120 million in non-core sales at a blended multiple of 21x.

Speaker #3: Our strategy has been both consistent and deliberate, concentrating our ownership in 21 core hotels with superior growth prospects, aggressively exiting non-core assets, and allocating capital toward high redevelopment projects.

Speaker #3: With the potential to unlock meaningful embedded value across the core portfolio, with ROI opportunities exceeding $1 billion in 2025. We executed more than $120 million in non-core sales at a blended multiple of 21 times.

Speaker #3: These transactions included the sale of the Hyatt Centric Fisherman's Wharf and our 25% joint venture interest in the Capitol Hilton, as well as exiting three hotels sitting on expiring ground leases that produced no earnings on a combined basis.

Tom Baltimore: These transactions included the sale of the Hyatt Centric Fisherman's Wharf and our 25% joint venture interest in the Capital Hilton, as well as exiting three hotels sitting on expiring ground leases that produced no earnings on a combined basis. As we enter 2026, we continue to make steady progress toward completing our remaining non-core asset dispositions. In January, we closed on the sale of the 193-room Hilton Checkers in downtown Los Angeles for approximately $13 million, representing over a 17x 2025 EBITDA.

Speaker #3: As we entered 2026 , we continue to make steady progress toward completing our remaining non-core asset dispositions in January , we closed on the sale of the 193 room Hilton Checkers in downtown Los Angeles for approximately 13 million , representing over a 17 times 2025 EBITDA .

Speaker #3: We have established a strong track record of successfully recycling capital , having sold or disposed of 51 hotels for over 3 billion over the past nine years , and despite a challenging transaction environment , we have sold or disposed of 13 hotels since 2023 , increasing portfolio wide nominal repar by nearly 8% and hotel adjusted EBITDA margins by over 275 basis points .

Tom Baltimore: We have established a strong track record of successfully recycling capital, having sold or disposed of 51 hotels for over $3 billion over the past 9 years, and despite a challenging transaction environment, we have sold or disposed of 13 hotels since 2023, increasing portfolio-wide nominal RevPAR by nearly 8% and hotel-adjusted EBITDA margins by over 275 basis points. While the timing of non-core dispositions may be uneven, we remain firmly committed to materially reducing our exposure to our non-core portfolio by year-end. Active work streams are currently underway across all remaining non-core properties as we continue to advance this objective.

Speaker #3: While the timing of non-core dispositions may be uneven, we remain firmly committed to materially reducing our exposure to our non-core portfolio by year-end.

Speaker #3: Active work streams are currently underway across all remaining non-core properties as we continue to advance this objective. Additionally, building on the success of our development team, we launched our six major redevelopments in seven years.

Tom Baltimore: Additionally, building on the success of our development team, we launched our sixth major redevelopment in 7 years, the $108 million transformation of the Royal Palm South Beach, while making significant progress on enhancing the overall quality of our Hawaii and New Orleans properties through extensive guest room renovations. Together, these projects reinforce our conviction that reinvesting in the core portfolio remains the highest use of capital, which will best position Park to deliver outsized earnings growth and enhanced shareholder value over time. Turning to operations, I remain encouraged by the relative outperformance of our core portfolio, which delivered a solid 3.2% increase in RevPAR during Q4, or 5.7%, excluding the Royal Palm, representing nearly 1,500 basis points of outperformance versus our non-core portfolio.

Speaker #3: The $108 million transformation of the Royal Palm South Beach . While making significant progress on enhancing the overall quality of our Hawaii and New Orleans properties through extensive guest room renovations Together , these projects reinforce our conviction that reinvesting in the core portfolio remains the highest use of capital , which will best position Park to deliver outsized earnings growth and enhanced shareholder value over time Turning to operations , I remain encouraged by the relative outperformance of our core portfolio , which delivered a solid 3.2% increase in repar during the fourth quarter , or 5.7% excluding the Royal Palm , representing nearly 1500 basis points of outperformance versus our non-core portfolio .

Speaker #3: That trend was consistent throughout much of the year, with RevPAR growth from our core portfolio outperforming the non-core hotels by an average of 480 basis points in 2025.

Tom Baltimore: That trend was consistent throughout much of the year, with RevPAR growth from our core portfolio outperforming the non-core hotels by an average of 480 basis points in 2025, further reinforcing our stated strategy. During Q4, group performance stood out, supported by convention demand in Hawaii and New York, and solid corporate group activity in Orlando. Q4 group revenue for our core portfolio increased 13% year-over-year, complemented by double-digit growth in banquet and catering revenues across several key markets, including Hawaii, Chicago, Orlando, and Denver, reflecting broad-based strength across key markets. Among our core hotels, Hilton Hawaiian Village was one of our strongest performers during Q4, generating 22% RevPAR growth, benefiting from easier year-over-year comparisons following last year's labor disruption.

Speaker #3: Further reinforcing our stated strategy, during the fourth quarter, group performance stood out, supported by convention demand in Hawaii and New York.

Speaker #3: And solid Corporate group activity in Orlando Fourth quarter group revenue for our core portfolio increased 13% year over year , complemented by double digit growth in banquet and catering revenues across several key markets , including Hawaii , Chicago , Orlando and Denver .

Speaker #3: Reflecting broad based strength across key markets . Among our core hotels . Hilton Hawaiian Village was one of our strongest performers during the fourth quarter , generating 22% repar growth , benefiting from easier year over year comparisons following last year's Labor disruption .

Speaker #3: We are increasingly encouraged by the outlook for both properties following the completion of the Rainbow Tower renovation at Hilton Hawaiian Village and the Palace Tower at Waikoloa Village.

Tom Baltimore: We are increasingly encouraged by the outlook for both properties following the completion of the Rainbow Tower renovation at Hilton Hawaiian Village and the Palace Tower at Hilton Waikoloa Village. Following the renovation, both resorts will be operating with significantly upgraded product and should be well positioned for a step-up in performance as demand trends are forecasted to improve and we lap an otherwise challenged 2025, which our resorts were meaningfully impacted by the disruption from Liberation Day and the government shutdown, the continued softness in Canadian demand, and renovation displacement. As we look ahead, we expect a multiyear recovery towards prior peak levels in Hawaii. We are beginning to see that recovery take shape, with momentum building into Q2. As Hawaii continues to normalize, we expect it to be one of the most meaningful contributors to earnings growth across the portfolio.

Speaker #3: Following the renovation, both resorts will be operating with significantly upgraded product and should be well positioned for a step up in performance as demand trends are forecasted to improve and we lap an otherwise challenged 2025, which our resorts were meaningfully impacted by.

Speaker #3: The disruption from Liberation Day and the government shutdown, the continued softness in Canadian demand, and renovation displacement. As we look ahead, we expect a multi-year recovery towards prior peak levels in Hawaii, and we are beginning to see that recovery take shape with momentum building into the second quarter.

Speaker #3: As Hawaii continues to normalize . We expect it to be one of the most meaningful contributors to earnings growth across the portfolio Additional standouts in the portfolio include Orlando , which delivered exceptional results with our Barnett Creek complex generating a record fourth quarter repar , up nearly 9% year over year , driven by a 15% increase in group revenues as the complex continues to benefit from its expanded meeting platform and renovated room product .

Tom Baltimore: Additional standouts in the portfolio include Orlando, which delivered exceptional results, with our Bonnet Creek complex generating a record fourth quarter RevPAR, up nearly 9% year-over-year, driven by a 15% increase in group revenues as the complex continues to benefit from its expanded meeting platform and renovated room product. I'm also pleased to share that the Waldorf Astoria Bonnet Creek has been named the number one hotel in Orlando by US News & World Report. The property was also ranked number eight in Florida and within the top 100 of all hotels nationally, reflecting meaningful improvements over last year's ranking. I want to acknowledge the entire Bonnet Creek team for this achievement, which further highlights the quality and benefits of unlocking embedded value within our core portfolio.

Speaker #3: I'm also pleased to share that the Waldorf Astoria Bonnet Creek has been named the number one hotel in Orlando by U.S. News & World Report. The property was also ranked number eight in Florida and within the top 100 of all hotels nationally, reflecting meaningful improvements over last year's ranking.

Speaker #3: I want to acknowledge the entire Bonnet Creek team for this achievement , which further highlights the quality and benefits of unlocking embedded value within our core portfolio New York remained another top performer , delivering its highest fourth quarter group revenue in hotel history , up over 8% year over year , while the Hilton Chicago Hotel posted a nearly 4% increase in group revenue despite a challenging citywide calendar supported by improved short term pickup strategies and in-house group .

Tom Baltimore: New York remained another top performer, delivering its highest Q4 group revenue in hotel history, up over 8% year-over-year, while the Hilton Chicago hotel posted a nearly 4% increase in group revenue, despite a challenging citywide calendar supported by improved short-term pickup strategies and in-house group. Turning to our Royal Palm renovation. We continue to make meaningful progress on this transformational project, with more than half of the guest rooms complete and key public areas such as the lobby lounge, event terrace, and pool deck taking shape. Our best-in-class design and construction team is working hard to deliver the hotel by June, and we are laser focused on achieving that goal. Overall, Miami remains one of the strongest hotel markets in the country, and I am incredibly excited about the long-term outlook for this asset.

Speaker #3: Turning to our Royal Palm renovation , we continue to make meaningful progress on this transformational project with more than half of the guestrooms complete and key public areas such as the lobby lounge , Event terrace and pool deck taking shape Our best in class design and construction team is working hard to deliver the hotel by June , and we are laser focused on achieving that goal Overall , Miami remains one of the strongest hotel markets in the country and I am incredibly excited about the long term outlook for this asset .

Speaker #3: We continue to expect to realize a 15% to 20% return on invested capital, with hotel forecasted to more than double its EBITDA from $14 million to nearly $28 million.

Tom Baltimore: We continue to expect to realize a 15 to 20% return on our invested capital, with the hotel forecasted to more than double its EBITDA from $14 million to nearly $28 million once stabilized. We look forward to hosting many of you at the property during next month's Citi conference to showcase this world-class asset and the remarkable transformation underway. Looking ahead to 2026, we see several factors that could support an improving lodging environment. From a macro perspective, the US economy remains on relatively firm footing, with modestly higher growth expectations, easing inflation, and ongoing fiscal stimulus, all of which should provide incremental support to the US consumer.

Speaker #3: Once stabilized, we look forward to hosting many of you at the property during next month's city conference to showcase this world-class asset and the remarkable transformation underway.

Speaker #3: Looking ahead to 2026 , we see several factors that could support and improving lodging environment . From a macro perspective . The US economy remains on relatively firm footing , with modestly higher growth expectations easing inflation and ongoing fiscal stimulus , all of which should provide incremental support to the US consumer .

Speaker #3: In addition , easier year over year comparisons as we lap last year's government demand disruptions together with the anticipated lift from major events such as the World Cup and the America 250 celebrations in New York , Boston and Washington , D.C.

Tom Baltimore: In addition, easier year-over-year comparisons as we lap last year's government demand disruptions, together with the anticipated lift from major events such as the World Cup and the America 250 celebrations in New York, Boston, and Washington, DC, are expected to benefit demand across several of our core markets. Furthermore, new hotel construction remains muted, keeping supply growth at historical lows and supporting healthy operating fundamentals for the next several years. While we remain optimistic about the setup for the year with easier year-over-year comparisons and major event-driven demand, our guidance remains cautious, with the potential for geopolitical or macroeconomic volatility continuing to drive uncertainty around booking decisions and impacting short-term group pickup trends and international inbound demand, particularly from Canada. Sean will provide additional detail on earnings guidance later in the call. In summary, 2025 was another year of meaningful progress for Park.

Speaker #3: are expected to benefit demand across several of our core markets. Furthermore, new hotel construction remains muted, keeping supply growth at historical lows and supporting healthy operating fundamentals for the next several years.

Speaker #3: While we main optimistic about the setup for the year with easier year over year comparisons and major event driven demand , our guidance remains cautious with the potential for geopolitical or macroeconomic volatility continuing to drive uncertainty around booking decisions and impacting short term group pickup trends and international inbound demand , particularly from Canada Sean will provide additional detail on earnings guidance later in the call In summary , 2025 was another year of meaningful progress for Park one , in which we advance our strategic priorities , continue to reshape the portfolio and strengthen the foundation for long term growth .

Tom Baltimore: one in which we advance our strategic priorities, continue to reshape the portfolio, and strengthen the foundation for long-term growth. Our disciplined approach to capital allocation by accelerating non-core dispositions, while reinvesting in our highest quality assets, continues to unlock embedded value across the core portfolio. The transformation underway at Royal Palm, the substantial renovation work at our two iconic Hawaiian resorts in New Orleans, and a broader base momentum across several of our core markets, further reinforce our conviction in the earnings power of our core portfolio. As we move into 2026, we remain laser focused on completing our transition to a streamlined portfolio of 21 high-quality hotels located in premium gateway cities and resort markets, and we are confident in the long-term growth opportunities for Park. And with that, I'll turn the call over to Sean.

Speaker #3: Our disciplined approach to capital allocation, by accelerating non-core dispositions or reinvesting in our highest quality assets, continues to unlock embedded value across the core portfolio.

Speaker #3: The transformation underway at Royal Palm , the substantial renovation work at our two iconic Hawaiian resorts and New Orleans , and the broader base momentum across several of our core markets further reinforce our conviction in the earnings power of our core portfolio As we move into 2026 , we remain laser focused on completing our transition to a streamlined portfolio of 21 high quality hotels located in premium gateway cities and resort markets .

Speaker #3: And we are confident in the long-term growth opportunities for Park. And with that, I'll turn the call over to Sean.

Tom Baltimore: And with that, I'll turn the call over to Sean.

Speaker #4: Thanks , Tom , for the fourth quarter , Repar was approximately $182 , representing a nearly 1% year over year increase or nearly 3% when excluding Royal Palm .

Sean Dell'Orto: Thanks, Tom. For Q4, RevPAR was approximately $182, representing a nearly 1% year-over-year increase, or nearly 3% when excluding Royal Palm. The core portfolio, excluding Royal Palm, continued to demonstrate meaningful operational strength, delivering a RevPAR increase of 6% to nearly $216, or nearly 1,500 basis points higher than our non-core portfolio, underscoring the resilience of our highest quality assets. Core hotel Adjusted EBITDA margin also improved materially, expanding 230 basis points to 30%. In sharp contrast to the non-core portfolio, which recorded a 280 basis points contraction to 10%.

Speaker #4: The core portfolio , excluding Royal Palm , continued to demonstrate meaningful operational strength , delivering a repar increase of 6% to nearly $216 , or nearly 1500 basis points higher than our non-core portfolio .

Speaker #4: Underscoring the resilience of our highest quality assets . Core hotel adjusted EBITDA margin also improved materially , expanding 230 basis points to 30% in sharp contrast to the non-core portfolio , which recorded a 280 basis point contraction to 10% overall core hotel adjusted EBITDA increased 13% , or nearly $18 million , over the prior year period .

Sean Dell'Orto: Overall, core hotel adjusted EBITDA increased 13%, or nearly $18 million over the prior year period, despite an over $4 million headwind from Royal Palm being closed, while the non-core portfolio declined 28%, creating an approximately $4 million drag on quarterly earnings. These results underscore the strength and durability of our core portfolio and highlight the value accretive nature of our portfolio reshaping initiative. For the full year, RevPAR came in slightly ahead of expectations, declining 2% versus 2024, while hotel adjusted EBITDA margin was 26.5%, reflecting a 130 basis point reduction from the prior year. As expected, the Royal Palm renovation remained the primary headwind, contributing a 110 basis point drag to full-year RevPAR growth and approximately 15 basis points of margin pressure.

Speaker #4: Despite an over $4 million headwind from Royal Palm being closed . While the non-core portfolio declined 28% , creating an approximately $4 million drag on quarterly earnings These results underscore the strength and durability of our core portfolio and highlight the value accretive nature of our portfolio , reshaping initiative .

Speaker #4: For the full year , Repar came in slightly ahead of expectations , declining 2% versus 2024 , while hotel adjusted EBITDA margin was 26.5% , reflecting a 130 basis point reduction from the prior year .

Speaker #4: As expected , the Royal Palm renovation remained the primary headwind , contributing a 110 basis point drag to full year repar growth and approximately 15 basis points of margin pressure from a CapEx standpoint , in 2025 .

Sean Dell'Orto: From a CapEx standpoint, in 2025, we invested nearly $300 million across the portfolio, including roughly $110 million during Q4. Earlier in the year, we completed nearly $75 million of guest room renovations that began in 2024 at our two Hawaiian properties, the Rainbow Tower at Hilton Hawaiian Village and the Palace Tower at Hilton Waikoloa Village. The second and final phase of guest room renovations for the Rainbow Tower, which commenced in Q3 of last year, is expected to be completed in a few weeks, while the final phase for the Palace Tower, which also commenced in Q3 of last year, was delivered last month, bringing the total investment to the second phase across both Hawaii properties to approximately $85 million.

Speaker #4: We invested nearly $300 million across the portfolio, including roughly $110 million during the fourth quarter. Earlier in the year, we completed nearly $75 million of guestroom renovations that began in 2024.

Speaker #4: At our two Hawaiian properties, the Rainbow Tower at Hilton Hawaiian Village and the Palace Tower at Hilton Waikoloa Village, the second and final phase of guestroom renovations for the Rainbow Tower, which commenced in Q3 of last year, is expected to be completed in a few weeks.

Speaker #4: While the final phase for the Palace Tower, which also commenced in Q3 of last year, was delivered last month, bringing the total investment for the second phase across both Hawai'i properties to approximately $85 million.

Speaker #4: In addition, we completed the second of three renovation phases totaling more than $30 million at the Hilton New Orleans Riverside last month.

Sean Dell'Orto: In addition, we completed the second of three renovation phases, totaling more than $30 million at the Hilton New Orleans Riverside last month, with the third and final phase scheduled for completion in December of this year. Looking ahead, we expect a lower level of capital investment for 2026, with $230 million to $260 million of spend planned, which includes completing the $108 million comprehensive redevelopment of the Royal Palm. In addition, we are excited to launch a full-scale renovation of the Ali'i Tower at Hilton Hawaiian Village, expected to encompass all 348 guest rooms, the tower lobby, its private pool, and the addition of 3 new keys. Total investment for the project is expected to be approximately $96 million.

Speaker #4: With the third and final phase scheduled for completion in December of this year . Looking ahead , we expect a lower level of capital investment for 2026 , with $230 million to $260 million of spend planned , which includes completing the $108 million comprehensive redevelopment of the Royal Palm .

Speaker #4: In addition , we are excited to launch a full scale renovation of the Ali'i Tower at Hilton Hawaiian Village , expected to encompass all 348 guest rooms , the tower lobby , its private pool and the addition of three new keys .

Speaker #4: Total investment for the project is expected to be approximately $96 million . To expedite the construction schedule , we plan to suspend operations in the self-contained tower beginning in the third quarter of this year , with a reopening plan for the middle of next year Overall , we expect renovation related disruption at Hilton Hawaiian Village to be 1 to $2 million in 2026 , representing a ten basis point impact to portfolio Repar .

Sean Dell'Orto: To expedite the construction schedule, we plan to suspend operations in the self-contained tower beginning in Q3 of this year, with a reopening plan for the middle of next year. Overall, we expect renovation-related disruption at Hilton Hawaiian Village to be $1 to 2 million in 2026, representing a 10 basis point impact to portfolio RevPAR. Once completed, nearly 80% of the resort's nearly 2,900 rooms will have been newly renovated, materially enhancing the long-term competitiveness of our iconic resort. Turning to the balance sheet, as of year-end 2025, our liquidity was approximately $2 billion, including $200 million of cash, $1 billion of available capacity under our revolver, and $800 million of an undrawn delayed draw term loan.

Speaker #4: Once completed , nearly 80% of the resort's nearly 2900 rooms will have been newly renovated , materially enhancing the long term competitiveness of our iconic resort Turning to the balance sheet , as of year end , 2025 , our liquidity was approximately $2 billion , including $200 million of cash , $1 billion of available capacity under our revolver , and $800 million of undrawn delayed draw term loan As we noted last quarter , continue to make meaningful progress toward strengthening our balance sheet while our long term focus remains on further reducing leverage as we execute non-core asset sales .

Sean Dell'Orto: As we noted last quarter, we continue to make meaningful progress towards strengthening our balance sheet, while our long-term focus remains on further reducing leverage. As we execute non-core asset sales, proceeds are expected to be used to pay down debt, while organic growth from our core portfolio is expected to further reduce leverage toward our targeted goal of below 5x over the next couple of years. With respect to our 2026 maturities, we intend to draw on the delayed draw term loan to fully repay the $121 million mortgage loan secured by the Hyatt Regency Boston in June, and then draw the remaining capacity in September in combination with proceeds from a planned mortgage financing for our Bonnet Creek complex,...

Speaker #4: Proceeds are expected to be used to pay down debt, while organic growth from our core portfolio is expected to further reduce leverage toward our targeted goal of below five times over the next couple of years. With respect to our 2026 maturities, we intend to draw on the delayed draw term loan to fully repay the $121 million mortgage loan secured by the Hyatt Regency Boston in June, and then draw the remaining capacity in September.

Speaker #4: In combination with proceeds from a planned mortgage financing for our Bonnet Creek complex, in order to fully repay the $1.275 billion CMBS financing on Hilton Hawaiian Village, which matures in early November.

Sean Dell'Orto: to fully repay the $1.275 billion CMBS financing on Hilton Hawaiian Village, which matures in early November. We are currently in active discussions to originate a $650 million floating rate delayed draw mortgage for our Bonnet Creek complex, including both the Signia and Waldorf Astoria properties, and expect closing to occur later this quarter. We expect a blended spread over SOFR between the Bonnet Creek mortgage loan and the term loan to be approximately 220 to 225 basis points. Turning to guidance, as Tom noted, we are establishing a full year 2026 RevPAR growth range of flat to up 2%, with expense growth expected to be low single digits for the full year.

Speaker #4: We are currently in active discussions to originate a $650 million floating rate delayed draw mortgage for our Bonnet Creek complex, including both the Signia and Waldorf Astoria properties, and expect closing to occur later this quarter. We expect the blended spread over SOFR between the Bonnet Creek mortgage loan and the term loan to be approximately 220 to 225 basis points.

Speaker #4: Turning to guidance , as Tom noted , we are establishing a full year 2026 red bar growth range of flat to up 2% , with expense growth expected to be low single digits for the full year .

Speaker #4: With respect to earnings, adjusted EBITDA is forecast to be $580 million to $610 million, and adjusted FFO per share is expected to be in the range of $1.73 to $1.89.

Sean Dell'Orto: With respect to earnings, adjusted EBITDA is forecast to be $580 million to $610 million, and adjusted FFO per share is expected to be in the range of $1.73 to $1.89. We expect Q1 to be the most challenging quarter of the year due to difficult year-over-year comparisons. New Orleans, due to lapping the Super Bowl last year, and Miami together represent an expected 450 basis point drag on RevPAR during the quarter, translating to an approximate $12 million headwind to earnings relative to last year.

Speaker #4: We expect Q1 to be the most challenging quarter of the year due to difficult year over year comparisons . New Orleans due to the lapping the Super Bowl last year and Miami together represent an expected 450 basis point drag on red bar during the quarter , translating to an approximate $12 million headwind to earnings relative to last year .

Speaker #4: Partially offsetting this pressure , we expect double digit repar growth at Bonnet Creek , Puerto Rico and San Francisco , supported by strong group pace for each along with the Super Bowl in the Bay area , as well as low single digit growth at both of our Hawaii hotels , driven by improving leisure , transient demand following their extensive room renovations , there are also a few key assumptions embedded in our guidance that are worth highlighting First , with respect to the Royal Palm reopening and its impact on 2026 results , as Tom mentioned earlier , we are working diligently toward a targeted grand opening in early June However , given the challenges associated with securing advanced bookings without absolute certainty to opening ahead of the World Cup matches beginning in mid-June , our guidance does not assume any material benefit from World Cup related demand at the hotel Overall , we expect Royal Palm to generate approximately 3 to $4 million of hotel adjusted EBITDA this year , compared to the nearly $28 million expected at stabilization in approximately $5 million reported in 2025 .

Sean Dell'Orto: Partially offsetting this pressure, we expect double-digit RevPAR growth at Bonnet Creek, Puerto Rico, and San Francisco, supported by strong group pace for each, along with the Super Bowl in the Bay Area, as well as low single-digit growth at both of our Hawaii hotels, driven by improving leisure transient demand following their extensive room renovations. There are also a few key assumptions embedded in our guidance that are worth highlighting. First, with respect to the Royal Palm reopening and its impact on 2026 results. As Tom mentioned earlier, we are working diligently toward a targeted grand opening in early June. However, given the challenges associated with securing advanced bookings without absolute certainty to opening ahead of the World Cup matches beginning in mid-June, our guidance does not assume any material benefit from World Cup-related demand at the hotel.

Sean Dell'Orto: Overall, we expect Royal Palm to generate approximately $3 to 4 million of hotel-adjusted EBITDA this year, compared to the nearly $28 million expected at stabilization and approximately $5 million reported in 2025, when the hotel was opened during high season prior to its closure in May. Second, with respect to asset sales, our guidance excludes any impact from potential non-core dispositions in 2026, outside of what we have already closed. While we remain fully committed to selling the majority of our non-core hotels during the year, the timing of the transactions remains uncertain, making the earnings impact difficult to estimate. For context, the remaining 13 non-core hotels generated approximately $60 million of hotel-adjusted EBITDA in 2025, or just 9% of total hotel-adjusted EBITDA.

Speaker #4: When the hotel was opened . During high season prior to its closure in May . Second , with respect to asset sales , our guidance , our guidance excludes any impact from potential noncore dispositions in 2026 outside of what we have already closed .

Speaker #4: While we remain fully committed to selling the majority of our non-core hotels during the year, the timing of the transactions remains uncertain, making the earnings impact difficult to estimate.

Speaker #4: For context, the remaining 13 non-core hotels generated approximately $60 million of hotel adjusted EBITDA in 2025, or just 9% of total hotel adjusted EBITDA. Finally, our adjusted FFO guidance reflects the successful refinancing of approximately $1.4 billion of debt during the back half of the year at a blended interest rate of approximately 5.5% on an annualized basis.

Sean Dell'Orto: Finally, our Adjusted FFO guidance reflects the successful refinancing of approximately $1.4 billion of debt during the back half of the year, at a blended interest rate of approximately 5.5%. On an annualized basis, this refinancing is expected to increase interest expense by roughly $20 million, of which $9 million is included in our guidance, given the anticipated timing of the refinancing. Finally, in 2025, we returned a total of $245 million of capital between $200 million of dividends and $45 million of share repurchases. Over the past 3 years, we have returned $1.3 billion of capital, including stock repurchases of over 12% of total outstanding shares.

Speaker #4: This refinancing is expected to increase interest expense by roughly $20 million , of which $9 million is included in our guidance . Given the anticipated timing of refinancing finally , in 2025 , we returned a total of $245 million of capital , between $200 million of dividends and $45 million of share repurchases And over the past three years , we have returned $1.3 billion of capital , including stock repurchases of over 12% of total outstanding shares .

Speaker #4: With respect to this year's first quarter dividend, on February 13th, we declared a cash dividend of $0.25 per share, to be paid on April 15th to stockholders of record as of March 31st.

Sean Dell'Orto: With respect to this year's Q1 dividend, on 13 February, we declared a cash dividend of $0.25 per share to be paid on 15 April to stockholders of record as of 31 March. At current trading levels, this quarterly fixed dividend translates to an annual yield of over 8.5%. This concludes the prepared remarks. We will now open the line for Q&A. To address each of your questions, we will ask that you limit yourself to one question and one follow-up. Operator, may we have the first question, please?

Speaker #4: At current trading levels, this quarterly fixed dividend translates to an annual yield of over 8.5%. This concludes our prepared remarks. We will now open the line for Q&A.

Speaker #4: To address each of your questions, we will ask that you limit yourself to one question and one follow-up, Operator. May we have the first question, please?

Speaker #1: Ladies and gentlemen, if you would like to ask a question, please press star one (*) on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two (*) if you would like to remove your question from the queue.

Operator: Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Smedes Rose with Citi. Please proceed.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. And our first question comes from the line.

Speaker #1: From the line of Smedes Rose with Citi. Please proceed. Hi, good morning or good afternoon.

Smedes Rose: Hi, good morning, or good afternoon, rather.

Speaker #5: Rather, I wanted to ask you just a little bit more about how you think our earnings could roll out over the course of the year.

Sean Dell'Orto: Good morning.

Smedes Rose: Hi. I wanted to ask you just a little bit more about how you think earnings could roll out over the course of the year at your Hawaii properties. You know, I know you obviously, the Q4 was pretty easy comp. But just in terms of, are you looking at Group Pace, given I think the convention center is closed in Honolulu, it's just kind of, you know, what are you seeing kind of on the trajectory? I guess, and I mean, I guess the real question is: What do you think those properties can contribute this year in terms of EBITDA?

Speaker #5: Your Hawaii properties . I know you obviously the fourth quarter was was pretty easy comp . But just in terms of how you looking at group pace given I think the convention center is closed and Honolulu , it's just kind of what what are you seeing kind of on the trajectory I guess .

Speaker #5: I mean, I guess the real question is, what do you think those properties can contribute this year in terms of EBITDA?

Speaker #4: Yes . So this is Sean . You know , certainly had a good comp in Q4 for Hawaii . You know , we with the convention center closed , that's about 50,000 room nights .

Sean Dell'Orto: Yes, Smedes, so this is Sean. You know, yeah, certainly had a good comp in Q4 for Hawaii. You know, we with the convention center closed, that's about 50,000 room nights typically that, you know, the property gets from citywide convention-related business. It's probably done a good job, though, of replacing that as best possible, with about 60% of that lost or at least ultimately converted into in-house group, as well as about 20,000 room nights booked through a crew business, contract business. So they've done a good job to kind of replace that for this year. You know, in the end, I think Hawaii, both Hawaiian Village and Waikiki combined, it should be kind of on the higher end of our guide of RevPAR growth.

Speaker #4: Typically that the property gets from citywide convention related business . It's probably done a good job though of replacing that as best possible with about 60% of that lost , or at least ultimately converted into in-house group , as well as about 20,000 room nights booked through accrue business contract business .

Speaker #4: So they've done a good job to kind of replace that for this year . You know , in the end , I think Hawaii , both Hawaiian Village and Waikoloa combined should be kind of on the on the higher end of our of our guide of red bar growth The 2% range , you know , again with with the convention center being out and kind of some early disruption from the ending of phase two in Hawaiian Village , I think you'll see some rate , some rate growth , but not tremendous .

Sean Dell'Orto: the 2% range. You know, again, with, with the convention center being out, and kind of some early disruption from the ending of phase two, at Hawaiian Village, I think you'll see, you know, some rate, some rate growth, but not tremendous. Again, just given the mix change there. I think you'll see certainly some decent growth, overall, for the, at the-- on the EBITDA level, kind of in the mid-single digits or so, growth combined for the properties. Waikoloa certainly has an easier comp, certainly, had challenges last year, and we certainly expect to see that materialize into a, a better, you know, probably low double-digit growth on the EBITDA level for, for Waikoloa overall.

Speaker #4: Again , just given the mix change , there , I think you'll see certainly some decent growth overall for the EBITDA level kind of in the mid single digits or so growth combined for the properties , Waikoloa certainly has an easier comp , certainly had the challenges last year , and we certainly expect to see that materialize into a better probably low double digit growth on the EBITDA level for for Waikoloa overall .

Speaker #4: So blended together again , kind of a top line , top of the end of the range , 2% growth plus or minus on a rev par translating into kind of mid single digit growth for the for the combined for the properties

Sean Dell'Orto: So blended together, again, kind of a top line, top of the end of the range, 2% growth ± on the RevPAR, translating into kind of mid-single-digit growth for the, for the combined for the properties.

Speaker #3: It's

Tom Baltimore: It's me, it's Tom Baltimore. Agree with everything that Sean just outlined. If I could just add a comment about Japanese visitation. Obviously, relatively flat last year, but we are seeing some green shoots and certainly believe that we'll be in kind of mid-single-digit growth in terms of visitation, you know, perhaps somewhere in the 750,000 visitors to Hawaii, which is certainly a continued progress. Obviously, we'd like for that to accelerate as much as possible, but we are seeing green shoots there. And as we sort of look out and get the data on various forecasts, it looks like that continues at 5% to 6% into 2027 as well. So we see both of those as certainly encouraging tailwinds as well.

Speaker #6: Thomas Baltimore: I agree with everything that Sean just outlined. If I could just add a comment about Japanese visitation—obviously, it was relatively flat last year—but we are seeing some green shoots and certainly believe that we’ll be in kind of mid-single digit growth in terms of visitation.

Speaker #6: You know , perhaps somewhere in the 750,000 visitors to Hawaii , which is certainly a continued progress . Obviously , we'd like for that to accelerate as much as possible , but we are seeing green shoots there .

Speaker #6: And as we sort of look out and get the data on various forecasts, it looks like that continues at 5 to 6% into 2027 as well.

Speaker #6: So we see both of those as certainly encouraging tailwinds as well.

Speaker #5: Great . And then Tom , could you maybe just comment portfolio wise just kind of like the what you're seeing on the pace of group revenues for this year

Smedes Rose: Great. And then, Tom, could you maybe just comment, portfolio-wide, just kind of like what you're seeing on the pace of group revenues for this year?

Tom Baltimore: For Hawaii and-

Speaker #6: For for Hawaii and

Tom Baltimore: For Hawaii and-

Smedes Rose: No, just for your portfolio-wide,

Speaker #5: No, just for your portfolio wide.

Smedes Rose: No, just for your portfolio-wide,

Tom Baltimore: Portfolio-wide, if you exclude, obviously, Miami and Hilton Hawaiian Village, and obviously tough comp in New Orleans, up about 3% for the year in 2026. Then if you look out to 2027, just our core portfolio alone, we're about 4, 4.5%. So very encouraging from that standpoint.

Speaker #6: Yeah, portfolio-wide, if you exclude obviously Miami and Hilton Hawaiian Village, and obviously tough comp in New Orleans, up about 3% for the year in '26.

Speaker #6: And then if you look out to 2027, just our core portfolio alone, we're about 4%, 4.5%. So, very encouraging from that standpoint.

Speaker #5: Okay. Thank you. Appreciate it.

Smedes Rose: Okay, thank you. Appreciate it.

Speaker #1: The next question comes from the line of Dwayne Pfenninger with Evercore ISI. Please proceed.

Operator: The next question comes from the line of Duane Pfennigwerth with Evercore ISI. Please proceed.

Speaker #7: Hey , thanks . Good morning and sorry for if I'm making you repeat anything , but just on the sequential for Hilton Hawaiian Village , I think we're going from , like a plus 20 to a low single .

Duane Pfennigwerth: Hey, thanks.

Operator: Hey, Duane.

Duane Pfennigwerth: Good morning. Sorry for if I'm making you repeat anything. But just on the sequential for Hilton Hawaiian Village, I think we're going from, like, a +20 to a low single. So can you just speak to what would be driving that, specifically for the March quarter?

Speaker #7: So, can you just speak to what would be driving that specifically for the March quarter?

Speaker #4: Or for . I'm sorry for , for for the Q1 Dwayne .

Sean Dell'Orto: I'm sorry, for the Q1, Duane?

Speaker #7: Yeah. Aren't we pacing at a, you know, very high rate in Q2 to a low single digit rate? So just, why the change sequentially?

Duane Pfennigwerth: Yeah. Aren't we pacing at a, you know, very high rate in Q4 to a low single-digit rate? So just why, why the change sequentially?

Speaker #4: You have group pace down in Hawaiian Village. Again, speaking to while they have replaced business here and there from the convention center.

Sean Dell'Orto: You have a group pace down in Hawaiian Village. Again, speaking to while they have replaced business here and there from the convention center, but pace down 37% in Hawaiian Village for Q1. Certainly, a big driver there for kind of how, even though it's, it certainly is lapping Q1's performance, it's roughly kind of in that flattish range for the quarter.

Speaker #4: But pace is down 37% in Hawaiian Village for Q1. Certainly a big driver there for kind of how, even though it certainly is lapping Q1 performance, it's roughly kind of in that flattish range for the quarter.

Speaker #7: Okay . That's helpful . And then just on on Miami , can you talk about any refinement to your estimate on on when that will be up and running ?

Duane Pfennigwerth: Okay, that's helpful. And then just on, on Miami, can you talk about any refinement to your estimate on, on when that will be up and running? And how do you think about, capturing some of the World Cup, Cup demand, just given you may, you may reopen, you know, kind of close to that timeframe? In other words, it's probably hard to commit to that now, but maybe, you know, as you gain confidence in, in the, in the reopening, just, just how you think about that from a positioning and, and revenue management perspective.

Speaker #7: And how do you think about capturing some of the world Cup demand just given you ? May you may reopen , you know , kind of close to that time frame .

Speaker #7: In other words , it's probably hard to commit to that now . But maybe as you gain confidence in in in the reopening , just just how you think about that from a positioning and revenue management perspective .

Speaker #6: Yeah , a couple of things , Dwayne . I've been down in Miami quite a bit and toward the property and I obviously I say this with humility , but also with great confidence .

Tom Baltimore: Yeah. A couple things to win. I've been down to Miami quite a bit and toured the property, and I obviously say this with humility, but also with great confidence. I think we've demonstrated a track record really second to none in our sector in terms of being able to handle these types of very complex projects. If you think about Bonnet Creek and the success and the complexity of that, this really mirrors that. Carl Mayfield, who heads our design and construction team, is personally on site at least two or three days a week. We've got somewhere between 275 to 325 construction workers working six days a week, one to two shifts, and they're very confident.

Speaker #6: I think we've demonstrated a track record really second to none in our sector, in terms of being able to handle these types of very complex projects.

Speaker #6: If you think about Bonnet Creek and the success and the complexity of that , this really mirrors that . Carl Mayfield , who heads our design and construction team , is personally on site at least 2 or 3 days a week .

Speaker #6: We've got somewhere between 275 to 325 construction workers working six days a week, one to two shifts, and they're very confident.

Tom Baltimore: We're doing everything humanly possible to get done in that June timeframe. I'm... We'll be down there this weekend and touring again Monday morning. So as Sean said in his prepared remarks, as you think about us opening in early June, plus or minus, and then obviously the World Cup, you know, the ability to be able to sell and commit, that makes it a little more challenging. Just given the amount of demand expected and how well I think we all believe Miami will do with the World Cup, we think obviously getting open, we'll be able to capture and certainly be able to capture at very attractive rates. So very, very bullish, very excited about the project. And as Sean also noted, I mean, we're not-...

Speaker #6: We're doing everything humanly possible to get done. And in that June time frame, I will be down there this weekend and touring again Monday, Monday morning.

Speaker #6: So it is , Sean said in his prepared remarks . As you think about us opening in early June , plus or minus , and then obviously the World Cup , you know , the ability to be able to sell and and commit , that makes it a little more challenging .

Speaker #6: Just given the amount of demand expected and how well, I think we all believe Miami will do with the World Cup, we think obviously getting open will be able to capture, and certainly be able to capture it at very attractive rates.

Speaker #6: So very , very bullish , very excited about the project . And as Sean also noted , I mean , we're not we're not being overly ambitious in terms of the impact that that this hotel will have on the overall performance for the year .

Tom Baltimore: We're not being overly ambitious in terms of the impact that this hotel will have on the overall performance for the year. So if anything, we've been conservative, that's intentional, and we're certainly hoping that we can exceed that. But again, remain enthusiastically excited about this transformation. We can't wait to host many of you next weekend, as you can see for yourself, the progress and the real-time work that's underway there. And we're, you know, 100 days ± from completion and doing everything we can to make that happen.

Speaker #6: So if anything , we've been conservative . That's intentional , and we're certainly hoping that that we can exceed that . But again , remain enthusiastically excited about this transformation .

Speaker #6: We can't wait to host many of you next weekend . As you can see , for yourself , the progress in the real time work that's underway there .

Speaker #6: And we're 100 days, plus or minus, from completion and doing everything we can to make that happen.

Speaker #7: Okay . Thank you

Ari Klein: Okay, thank you.

Duane Pfennigwerth: Okay, thank you.

Operator: The next question comes from the line of Rich Hightower with Barclays. Please proceed.

Speaker #1: The next question comes from the line of Rich Hightower with Barclays. Please proceed. Hey, good afternoon, guys.

Rich Hightower: Hey, good afternoon, guys.

Richard Hightower: Hey, good afternoon, guys.

Speaker #6: Good afternoon . Rich .

Tom Baltimore: Afternoon, Rich.

Speaker #8: Good to be on the good to be on the park call again . So , Sean , I know that you you kind of laid out a little bit of the color on the first quarter , specifically with respect to the cadence of growth in 26 .

Rich Hightower: Good to be on the Park call again. So Sean, I know that you, you kind of laid out, a little bit of the color on the first quarter, specifically with respect to the cadence of growth in, in 2026. And then obviously, there was some color on Hawaii specifically. But if you, if you guys wouldn't mind, maybe just help us understand, how that works kind of, you know, broadly for the portfolio, over the course of all the different quarters of the year within the context of that flat to 2 RevPAR guide?

Richard Hightower: Good to be on the Park call again. So Sean, I know that you, you kind of laid out, a little bit of the color on the first quarter, specifically with respect to the cadence of growth in, in 2026. And then obviously, there was some color on Hawaii specifically. But if you, if you guys wouldn't mind, maybe just help us understand, how that works kind of, you know, broadly for the portfolio, over the course of all the different quarters of the year within the context of that flat to 2 RevPAR guide?

Speaker #8: And then, obviously, there was some color on Hawaii specifically. But if you guys wouldn't mind, maybe just help us understand how that works.

Speaker #8: Kind of broadly for the portfolio, the course of all the different quarters of the, within the context of that flat to two ref PA guide.

Speaker #4: Sure . Rich , and welcome back . Great to hear your voice on the call here . The . Yeah . Just respect to kind of the quarterly cadence as you think about Q1 is is certainly one where we think it's the weaker quarter of the year where it's probably performing a little bit better than expected , but certainly came into the year with a kind of a belief that it would be down slightly , maybe ultimately gets to flat .

Sean Dell'Orto: Sure, Rich, and welcome back. Great to hear your voice on the call here. Yeah, just with respect to the kind of quarterly cadence as you think about, you know, Q1 is certainly one where we think it's the weaker quarter of the year, where it's probably performing a little bit better than expected, but certainly came into the year with a kind of a belief that it'd be down slightly. Maybe ultimately gets to flat, we'll see, but it's certainly in the bottom end of the range as we think about Q1. Q2 and Q3 certainly should pick up. You're lapping some of this disruption from last year's, you know, policy initiatives, whether it's tariff related, DOGE, obviously, the Canadians, and their kind of decline in travel into the States.

Speaker #4: We'll see . But it's certainly in the bottom end of the range as we think about Q1 , Q2 and Q3 certainly should pick up your lapping some of this disruption from last year's , you know , policy initiatives , whether it's tariff related .

Speaker #4: Doge , obviously , the Canadians and they're and they're kind of decline in travel into the states , you know , you start to see the impacts of that in Q2 and Q3 .

Sean Dell'Orto: You know, you start to see those impacts of that in Q2 and Q3. So while lapping that on top of a World Cup that we believe, you know, our exposure with in New York and Boston, particularly, it could probably drive about 30, 35 basis points for the year. So certainly some positive impact we're thinking of in kind of Q2 into Q3 as well. So those should ultimately drive towards, you know, the higher end of the range, I should say, for the year. And then Q4 is one where we got pace, Group Pace down 8%. So as Tom mentioned, you know, if you exclude a couple of properties, you know, we're certainly up, but I'd say overall portfolio is down slightly. The big driver for that is Q4.

Speaker #4: And so while lapping that on top of a World Cup that we believe , you know , our exposure with in New York and Boston particularly , you could probably drive about 30 , 35 basis points for the for the year .

Speaker #4: So certainly some positive impact . We're thinking of in kind of Q2 into Q3 as well . So those should ultimately drive towards , you know , the higher end of year of the range , I should say , for the year .

Speaker #4: And then and then Q4 is one where we got pace , group pace down 8% . So as Tom mentioned , if you exclude a couple of properties , you know , we're certainly up .

Speaker #4: But I'd say overall portfolio is down slightly . The big driver for that is Q4 . And so while there's work to be done and there's certainly some potential upside in terms of pickup in the year for the year pickup , I think that's kind of where our conservative comes in as well .

Sean Dell'Orto: While there's work to be done, and there's certainly some potential upside, in terms of pickup, in the year, for the year pickup, I think that's kind of where our conservative comes in as well. We certainly think we've got about $20 million or so million dollars of revenue more to pick up than last year. And so when we've seen kind of the last couple of years how things have gone, so we certainly want to take a little bit of a more cautious tone to that, looking at the pace being down about 8% for group in Q4. So that ends up, you know, making Q4 a little bit more closer, we think, to the bottom of the range for sure.

Speaker #4: We certainly think we've got about 20 million or so million dollars of revenue up than last year . And so when we've seen kind of the last couple of years , how things have gone , so we're certainly want to take a little bit more cautious tone to that .

Speaker #4: Looking at the pace, being down about 8% for group in Q4. So that ends up making Q4 a little bit more closer.

Speaker #4: We think, to the bottom of the range for sure.

Rich Hightower: That's great color. Thank you. And I guess my follow-up is on the expense side of it. So you've got, you've got a 2% to 3% kind of total OpEx guidance for the year. You know, I think we heard earlier in the week that, you know, labor, you know, could run around 4% to 5%. And so just how do you feel about, you know, the potential flex on that guidance range? And also, I think within the context of a union renegotiation in New York later this year. Thanks.

Speaker #8: That's great color . Thank you . And I guess my follow up is on the expense side of it . So you've got you've got a 2 to 3% kind of total opex guidance for the year .

Richard Hightower: That's great color. Thank you. And I guess my follow-up is on the expense side of it. So you've got, you've got a 2% to 3% kind of total OpEx guidance for the year. You know, I think we heard earlier in the week that, you know, labor, you know, could run around 4% to 5%. And so just how do you feel about, you know, the potential flex on that guidance range? And also, I think within the context of a union renegotiation in New York later this year. Thanks.

Speaker #8: I think we heard earlier in the week that labor , you know , could could run around 4 to 5 . And so just how do you feel about , you know , the potential flex on that guidance range .

Speaker #8: And also, I think within the context of a union renegotiation in New York later this year, thanks.

Speaker #4: Yeah , you're right . You're we're expecting low single digit kind of growth . And certainly with the CBA's both that have been renewed or ultimately upcoming , we certainly see something in the mid single digit type of growth as you as you talked about with labor .

Sean Dell'Orto: Yeah, you're right. We're expecting about low single-digit kind of growth. And certainly, with the CBAs, both that have been renewed or ultimately upcoming, we certainly see something in the mid-single-digits type growth as you talked about, with labor. But all studying that, you've got, again, if you're kind of looking at top line and revenue-based type of fees and everything else, you're gonna see lower end of the range there. We talked about doing deep dives at our properties last year. A lot of that came through multiple, you know, kind of the back half of the year, and so we certainly get the benefit of the full year impact of that this year.

Speaker #4: But I'll setting that you've got again , if you're kind of looking at top line and revenue based type of fees and everything else , you're going to see lower end of the range .

Speaker #4: There . We talked about doing deep dives at our properties last year . A lot of that came through multiple , you know , kind of the back half of the year .

Speaker #4: And so we certainly get the benefit of the full year impact of that this year. That's a nice little offset, we think, as well to the labor growth, as well as—I think fixed costs will continue to be one where we see certainly below-inflationary type growth in insurance.

Sean Dell'Orto: So that's a nice little offset, we think, as well, to the labor growth, as well as, I think, fixed costs will continue to be one where we see certainly below inflationary type growth. Insurance, you know, another good year, and, you know, no big claims, certainly from us. But, you know, I think across the board there, with events from hurricanes and the like, absent the fires in LA in the beginning of the year, but ultimately not to a point where I think the underwriters will need to kind of look to grow their premiums. I think we'll certainly be a favorable market.

Speaker #4: Another good year . You know , big claims certainly from us . But you know I think across the board there with events from hurricanes and the like absent the the fires in LA in the beginning of the year .

Speaker #4: But ultimately not to a point where I think underwriters will need to kind of look to grow their premiums. I think it will certainly be a favorable market.

Speaker #4: So we certainly expect to see continued improvement there as well , along with , you know , with taxes we think would ultimately , while it can be choppy at times , ultimately being checked for the year .

Sean Dell'Orto: So we certainly expect to see continued improvement there as well, along with, you know, with taxes, we think would ultimately, while it can be choppy at times, you know, ultimately being checked for the year. So those are, I think, some of the offsets to the labor that gets us down to what we're talking about.

Speaker #4: So those, I think, are some of the offsets to the labor that get us down to where we're talking about.

Rich Hightower: That's great. And congrats on the big promotion, by the way.

Richard Hightower: That's great. And congrats on the big promotion, by the way.

Speaker #8: That's great. And congrats on the big promotion, by the way.

Speaker #4: Thank you. Appreciate that.

Sean Dell'Orto: Thank you. Appreciate that.

Speaker #8: Got it

Tom Baltimore: You got it.

Speaker #1: The next question comes from the line of Ari Klein with BMO Capital Markets. Please proceed.

Operator: The next question comes from the line of Ari Klein with BMO Capital Markets. Please proceed.

Speaker #9: Thanks and good afternoon . Just on the non-core assets . Hey , just on the non-core asset sales , how what's the level of interest ?

Ari Klein: Thanks, and good afternoon. Yeah,

Sean Dell'Orto: Hello.

Ari Klein: On the non-core asset sales, what's the level of interest I guess you're seeing in those assets, and how quickly do you think you can move there? And then, obviously, the focus is on selling those non-core hotels, but is there or could there be some consideration to selling any of the core hotels if an opportunity arose? Thanks.

Speaker #9: I guess you’re seeing value in those assets, and how quickly do you think you can move there? And then, obviously, the focus is on selling those non-core hotels.

Speaker #9: But is there, or could there be, some consideration to selling any of the core hotels if an opportunity arose? Thanks.

Speaker #6: Hi , Ari , a lot , a lot to unpack there . Let me try to frame it a little bit for you .

Tom Baltimore: ... Hi. Ari, a lot, a lot to unpack there. Let me try to frame it a little bit for you. We have been laser focused, as we said, I think a couple of times in the prepared remarks and, you know, continuing to really reshape the portfolio. I think it's important to remind listeners, you know, the core hotels account for 90% of the, the EBITDA in the company and 90% of the value. If you take sort of RevPAR, the core RevPAR is around $215, $200 and, and $18. That's about 69% plus or minus higher than the non-core.

Tom Baltimore: Hi. Ari, a lot, a lot to unpack there. Let me try to frame it a little bit for you. We have been laser focused, as we said, I think a couple of times in the prepared remarks and, you know, continuing to really reshape the portfolio. I think it's important to remind listeners, you know, the core hotels account for 90% of the, the EBITDA in the company and 90% of the value. If you take sort of RevPAR, the core RevPAR is around $215, $200 and, and $18. That's about 69% plus or minus higher than the non-core.

Speaker #6: We have been laser focused . As we said . I think a couple of times in the prepared remarks and , you know , continuing to really reshape the portfolio , I think it's important to remind listeners , you know , the core hotels account for 90% of the the EBITDA and the company and 90% of the value .

Speaker #6: If you take sort of rev par , the core rev par is around 215 , $218 . That's about 69% plus or minus a higher than the non-core .

Speaker #6: The core hotels generate about 40,000 in EBITDA per key and 30% EBITDA margins , whereas non-core repar of approximately $129 plus or minus and and about 14% margins and and about $10,000 in EBITDA per per key .

Tom Baltimore: The core hotels generate about 40,000 in EBITDA per key, and 30% EBITDA margins, whereas non-core, a RevPAR of approximately $129 plus or minus, and about 14% margins and about $10,000 in EBITDA per key. So, I mean, a really stark contrast, hence the reason that we're so aggressively working, and we have been working. I think it's also important to note, you know, we've sold or disposed of 51 assets, and I think people sometimes forget that includes 14 international joint ventures in Dublin, in Brazil, two in Germany, the Netherlands, South Africa, many complex assets here in the US. So the team is skilled, the team is experienced. We've done it in the worst of times. We were selling during the pandemic. We've been selling post-pandemic.

Speaker #6: So I mean , I really stark contrast hence the reason that we're so aggressively working and we have been working , I think it's also important to to note , you know , we've sold or disposed of 51 assets .

Speaker #6: And I think people sometimes forget that includes 14 international joint ventures . And in Dublin , in Brazil , two in Germany , the Netherlands , South Africa , many complex assets here in the US .

Speaker #6: So the team is skilled, the team is experienced. We've done it in the worst of times. We were selling during the pandemic.

Speaker #6: We've been selling post pandemic . There are buyers , I think everybody knows that we're a net seller and so in some situations , some of the assets have short term ground leases or joint ventures or low tax bases .

Tom Baltimore: There are buyers. I think everybody knows that we're a net seller, and so in some situations, some of the assets have short-term ground leases or joint ventures or low tax bases. So, you know, every single one has a story, but we've got aggressive work streams underway. Our investments team and our legal team and are working incredibly hard, and we're confident that we're gonna, we're gonna get it solved. We've made significant progress before. We can handle this, and the goal is to get as many of them, if not all of them, done this year. We do have a few that are involved in a dispute, obviously, so those will probably lag.

Speaker #6: So , you know , every single one has a story . But we've got aggressive work streams underway . Our investments team and our legal team and our working incredibly hard .

Speaker #6: And we're confident that we're going to we're going to get it solved . We've made significant progress before we can handle this . And the goal is to get as many of them , if not all of them , done this year .

Speaker #6: We do have a few that are involved in in , in , in a dispute . Obviously . So those will probably lag .

Speaker #6: But the other ten hotels we are aggressively working every day, late into the evenings, and multiple discussions are underway. And we look forward to keeping investors informed.

Tom Baltimore: But the other 10 hotels, we are aggressively working every day late into the evenings, and multiple discussions are underway, and we look forward to keeping investors informed, and we look forward, most importantly, to closing them, using those proceeds to pay down debt and really reinvest back into the core portfolio, where we're confident we can generate outsized returns. We believe, obviously, that we can generate higher yields from development projects than we can from acquisition projects at this time.

Speaker #6: And we look forward, most importantly, to closing them—using those proceeds to pay down debt and really reinvest back into the core portfolio, where we're confident we can generate outsized returns.

Speaker #6: We believe, obviously, that we can generate higher yields from development projects than we can from acquisition projects. At this time,

Ari Klein: Thanks for that color. Then maybe just a follow-up on Miami and the Royal Palm. How quickly or how much in front of the actual opening can you actually start to take bookings, especially in front of a massive event like the World Cup? And then just the pathway towards getting to those stabilized EBITDA levels. How long do you think it takes to get there? Is it 27, 28, or beyond, I suppose?

Speaker #9: Thanks . Thanks for that color . And then maybe just a follow up on on Miami and the Royal Palm . How quickly or how much in front of the actual opening can you actually start .

Speaker #9: Can you start to take bookings, especially in front of a massive event like the World Cup, and then just the pathway towards getting to those stabilized EBITDA levels?

Speaker #9: How long do you think it takes to to get there ? Is it 27 , 28 or beyond ? I suppose ?

Speaker #6: Yeah . Well , we're I guess first we're confident , obviously in being able to take what was $14 million in EBITDA from tired and certainly an asset that needed really a transformational renovation to to 28 million on a stabilized basis .

Tom Baltimore: Yeah, well, we're, I guess first, we're confident, obviously, in being able to take what was $14 million in EBITDA from a tired and certainly a asset that needed really a transformational renovation to $28 million on a stabilized basis. We certainly would think a couple of years is not unreasonable, just given the extraordinary amount of development and activity occurring, and I don't need to tell anyone on this phone, not only from a business standpoint, but the number of people relocating to the region as well. And proximate to us is probably $4 billion of development activity, not all of that hotels, but other asset classes as well. So we remain very, very bullish on Miami as we look out.

Speaker #6: We certainly would think a couple of years is not unreasonable, just given the extraordinary amount of development and activity occurring.

Speaker #6: And I don't need to tell anyone on this phone, not only from a business standpoint, but the number of people relocating to the region as well.

Speaker #6: And proximate to us is probably $4 billion of development activity. Not all of that is hotels, but other asset classes as well.

Speaker #6: So we remain very , very bullish on on Miami as we as we look out . Regarding your question , obviously , as to how quickly we can get open , you know , we're in frequent contact .

Tom Baltimore: Regarding your question, obviously, as to how quickly we can get opened, you know, we're in frequent contact, obviously, with both planning, both, the approval process from the regulators. And as soon as we're ready and as soon as we get the signal, we will be up and running. We've kept, obviously, our general manager, who's on site every day. We've kept, obviously, the key leadership team of the operating group, so we'll be able to pivot and move very quickly. And again, as Sean noted in his prepared remarks, you know, north of 50% of the guest rooms are already complete. So we are making great progress and are working around the clock and gonna do everything we can to make that date.

Speaker #6: Obviously , with both planning , both the approval process from the regulators . And as soon as we're ready and as soon as we get the signal , we will be up in up and up and running .

Speaker #6: We've kept, obviously, our general manager, who's on site every day. We've kept, obviously, the key leadership team of the operating group.

Speaker #6: So we'll be able to pivot and move very quickly as in , again , as Sean noted in his prepared remarks , you know , north of 50% of the guestrooms are already complete .

Speaker #6: So, we are making great progress and are working around the clock, and we are going to do everything we can to make that date.

Speaker #9: Thank you

Ari Klein: Thank you.

Speaker #1: The next question comes from the line of David Katz with Jefferies. Please proceed.

Operator: The next question comes from the line of David Katz with Jefferies. Please proceed.

Speaker #10: Morning or afternoon . Thanks for taking my question Look , if if we're , you know , laying out a 20 , 26 where , you know , make the leap that you're likely to be successful getting divested of your non-core hotels , you know , my expectation of those is that , you know , their earnings level are such where they would be meaningfully delevering vents for park .

David Katz: Morning, or afternoon.

Tom Baltimore: Morning.

David Katz: Thanks for taking my question. Look, if we're, you know, laying out a 2026 where, you know, I, I'll make the leap that you're likely to be successful getting divested of your non-core hotels, you know, my expectation of those is that, you know, their earnings level are such where they would be meaningfully de-levering events for Park. You know, do you think, and we don't want to get ahead of ourselves, but do you think, you know, 2027 could be a year of potentially playing offense?... and maybe getting ready to buy something?

Speaker #10: You know , do you think and we don't want to get ahead of ourselves . But do you think , you know , 2027 could be a year of potentially playing offense and maybe getting ready to buy something

Tom Baltimore: Nothing, David, would make me and this team more excited than to be able to make that pivot from playing defense to offense. And I think you really hit the nail on the head. We've been working our tails off, and as you know, you've been along the journey with us, and you've watched the effort, and I think there are a few doubters out there, but I think you can remind people through the pen of just the hard work and the heavy lifting and the complexity of work that we've done in reshaping, not only the 51 hotels that we've sold, but also keep in mind, we were self-operating 5 hotels, and we also had 3 laundry facilities that have subsequently been closed. So the team is tested, it's experienced.

Speaker #6: Nothing, David, would make me in this team more excited than to be able to make that pivot from playing defense to offense.

Speaker #6: And I think you really hit the nail on the head . We've been working our tails off , and as you know , you've you've been along the journey with us .

Speaker #6: And you've watched the effort . And I think there are a few doubters out there . But I think you can remind people through the pen of just the hard work and the heavy lifting and the complexity of work that we've done in reshaping , not only the 51 hotels that we've sold , but also keep in mind we were self operating five hotels , and we also had three laundry facilities that have subsequently been closed .

Speaker #6: So the team has tested its experienced . We share that belief and that the sooner we can substantially reduce the non-core so that it's no longer a not only an overhang but an even a discussion point gives us the opportunity , I think , for consideration for a rerating of the company , hopefully our multiple and allows us to go on offense .

Tom Baltimore: We share that belief, and that the sooner we can substantially reduce the non-core so that it's no longer a not only an overhang, but even a discussion point, gives us the opportunity, I think, for consideration for rerating of the company, hopefully, our multiple, and allows us to go on offense. There are a lot of interesting opportunities that I think are out there today, and I think there'll be more in the future. I think getting down to low twenties in terms of our core portfolio gives us a lot of optionality. The other thing to keep in mind, as you think about some of our core assets in Bonnet Creek and the two iconic resorts in Hawaii and all the capital that we're putting, and you think about also what we're doing in Miami, we own all of that Fee Simple.

Speaker #6: There are a lot of interesting opportunities that I think are out there today, and I think there will be more in the future.

Speaker #6: And I think getting down to low 20s in terms of our core portfolio gives us a lot of optionality . The other thing to keep in mind is you think about some of our core assets and Bonnet Creek and the and the two iconic resorts in Hawaii and all the capital that we're putting .

Speaker #6: I think about also what we're doing in Miami. We own all of that fee simple, which is very rare. And all of that, we think, is also going to be advantageous for Park and gives us a lot of optionality as we can think about where it makes sense to continue to grow and, in some cases, to monetize, if that makes sense.

Tom Baltimore: Very rare, and all of that we think is also going to be advantageous for Park and gives us a lot of optionality as we can think about where it makes sense to continue to grow and in some cases, to monetize, if that makes sense.

David Katz: It does. And look, I know it's hard. It sounds like a couple of the assets are in some form of dispute. It's tough to tell. But, you know, is it reasonable to expect that, you know, most of the assets that are non-core are going to get done, you know, within 2026?

Speaker #10: In does . And look , I know it's hard . It sounds like a couple of the assets are in some form of dispute , which is tough to tell .

Speaker #10: But you know , it is it reasonable to expect that , you know , most of the assets that are non-core are going to get done ?

Speaker #10: You know, within 2026?

Tom Baltimore: Yes. Yes, that is the goal, that is the mission. We know it's at stake, and we're working on as hard as we can. Obviously, there are things that happen beyond our control, David, but I think you've-

Speaker #6: Yes , yes , that is the goal . That is the mission . We know it's at stake and we're working as hard as we can .

Speaker #6: Obviously , there are things that happen beyond our control , David , but I think you you've seen the effort , you've you and others have witnessed the amount of work that we've done in this , in this respect and it has not been easy .

David Katz: Yeah.

Tom Baltimore: You've seen the effort. You and others have witnessed the amount of work that we've done in this respect, and it has not been easy, but we're up to the task.

Speaker #6: But we're up to the task.

Speaker #10: Got it . Thank you

David Katz: Got it. Thank you.

Operator: The next question comes from the line of Chris Woronka with Deutsche Bank. Please proceed.

Speaker #1: The next question comes from the line of Chris Wawrinka with Deutsche Bank. Please proceed.

Speaker #11: Hey good afternoon guys . Thanks for taking the questions So maybe just to kind of double click back to the the asset sales , I guess .

Chris Woronka: Hey, good afternoon, guys. Thanks for taking the question. So maybe just to kind of double-click back to the asset sales. I guess, Tom, is there a way? I think we're really talking about 10 hotels if we exclude the three leases. Is there a way you could maybe bucket the type of buyer, buyers that you're maybe working with, or characterize them in any way? Because I think, you know, we see headlines in the market every day about, you know, isolated struggles on the private side, and I think investors are kind of wondering whether any of that potentially, you know, is a roadblock to moving any of those assets.

Speaker #11: Tom , is there a way I think we're really talking about 1010 hotels if we exclude the three leases , is there a way you could maybe bucket the the the type of buyer buyers that you're you're maybe working with or characterize them in any way ?

Speaker #11: Because I think we we see headlines in the market every day about , you know , isolated struggles on the on the private side .

Speaker #11: And I think investors are kind of wondering whether any of that, potentially, you know, is a roadblock to moving any of those assets.

Speaker #6: Yeah , Chris , it's a great it's a great question . I would say one thing globally , there's there's plenty of equity capital .

Tom Baltimore: Yeah, Chris, it's a great, it's a great question. I would say one thing globally, there's plenty of equity capital. That's the first comment. The second, there's plenty of debt capital and private credit. So there's no issue there. There are also interested buyers, whether they be small family offices, whether they be owner-operators, whether they're deep value entrepreneurs. And look, some of the buyers tend to be have a little sharper elbows in this kind of situation because they realize in some cases, these are deeper turns and some reposition opportunities, but there's more than an adequate buyer pool out there. Some markets are a little tougher. I'd say, obviously, Chicago and LA are a little tougher than San Francisco right now for all the obvious reasons.

Speaker #6: That's the first comment . The second there's plenty of debt capital . And private credit . So there's no issue there . There are also interested buyers , whether they be small family offices , whether they be owner operators , whether they're deep value entrepreneurs and look , some of the buyers tend to be have a little sharper elbows in this kind of situation because they realize in some cases these are deeper turns and some reposition opportunities .

Speaker #6: But there's a there's more than an adequate buyer pool out there . Some markets are a little tougher . I'd say obviously is Chicago and LA are a little tougher than than a San Francisco right now .

Speaker #6: For all the obvious reasons. But there are buyers. Not our first rodeo. It's up to us to figure it out and solve it.

Tom Baltimore: But there are buyers, not our first rodeo. It's up to us to figure it out and solve it. You don't want to hear excuses, our investors don't want to hear excuses, and we know what's required to do. And at the same time, we've got to make sure that we're getting fair value and that we're executing as quickly and as efficiently as we can. But there are work streams underway on all of them. There are some that have, whether they be short-term ground leases or so low tax bases. I mean, all it's a little bit of all of that, but that's no different than what we experienced candidly within the 51 assets that we've sold, particularly some of those more complicated international assets that we sold a few years ago.

Speaker #6: You don't want to hear excuses . Our investors don't want to hear excuses and and we know what's required to do . And at the same time , we've got to make sure that we're getting fair value and that we're executing as quickly and as efficiently as we can .

Speaker #6: But there are work streams underway on all of them. There are some that have, whether they be short-term ground leases or low tax bases.

Speaker #6: I mean , all it's it's a little bit of of all of that . But that's no different than what we experience candidly within the 51 assets that we've sold , particularly some of those more complicated international assets that that we sold a few years ago

Chris Woronka: Oh, okay. Fair, fair enough. Thanks, Tom. Then, as a follow-up, obviously, you have the New York labor contract coming up. I think, Tom, you might have mentioned in the past that once you get through that and you kind of understand what the new math looks like, you might, you know, consider a longer-term plan there, that could include a lot of different things, maybe conversation with Hilton. So is there anything you could add to that at this point, as we move closer to the union reset?

Speaker #11: Okay . Fair fair enough . Thanks , Tom . Then as a follow up , obviously , you have the New York Labor contract coming up .

Speaker #11: I think , Tom , you might have mentioned in the past that once you get through that and you kind of understand what the the new math looks like , you might , you know , consider a longer term plan .

Speaker #11: There that could include a lot of different things , maybe conversation with Hilton . So is there anything you would you could add to that at this point , as we move closer to the to the union reset ?

Speaker #6: Yeah , obviously I'm going to be careful here , Chris . As you can imagine , I'd make a couple observations . We've got an excellent operating team on site .

Tom Baltimore: ... Yeah, obviously, I'm gonna be careful here, Chris, as you can imagine. I'd make a couple observations. We've got an excellent operating team on site. You saw the results that we delivered last year. New York was incredibly strong. Record Q4, up, you know, 5 to 7% for the year. We're encouraged as we sort of look out here in 2026. I don't think it's in anybody's best interests across the city for, you know, protracted negotiations or any kind of strike or that type of activity. We're one seat at the table. There are a lot of other owners also involved in this.

Tom Baltimore: Yeah, obviously, I'm gonna be careful here, Chris, as you can imagine. I'd make a couple observations. We've got an excellent operating team on site. You saw the results that we delivered last year. New York was incredibly strong. Record Q4, up, you know, 5 to 7% for the year. We're encouraged as we sort of look out here in 2026. I don't think it's in anybody's best interests across the city for, you know, protracted negotiations or any kind of strike or that type of activity. We're one seat at the table. There are a lot of other owners also involved in this.

Speaker #6: You saw the results that we delivered last year . New York was incredibly strong record fourth quarter up . You know , 5 to 7% for the year .

Speaker #6: We're encouraged as we sort of look out here in '26. I don't think it's in anybody's best interest across the city for, you know, protracted negotiations or any kind of strike or that type of activity.

Speaker #6: We're we're one seat at the table . There are a lot of other owners also involved in this . You've also got obviously the World Cup , and we're going to be on the world stage .

Tom Baltimore: You've also got, obviously, the World Cup, and we're gonna be on the world stage, and I think—you know, I think as we think about tailwinds for us being the largest hotel in the city, and there's probably a little bit of upside opportunity there and from a demand standpoint. So, we're encouraged. We think it will get done. We have assumptions in our guidance as to what we think that impact will be, and obviously, we're not gonna negotiate publicly, but we think we've got it covered from that standpoint. And as we think about the hotel, we're doing some modernization work on the infrastructure. We'll then huddle with Hilton.

Speaker #6: And I think, you know, I think as we think about tailwinds for us being the largest hotel in the city, there’s probably a little bit of upside opportunity there.

Speaker #6: And from a demand standpoint . So so we're encouraged . We think it will get done . We have assumptions in our guidance as to what we think that that impact will be .

Speaker #6: And obviously we're not going to negotiate publicly , but we think we've got it covered from that standpoint . And and as we think about the hotel , there's we're doing some modernization work on and on the infrastructure .

Speaker #6: We'll then huddle with , with , with Hilton . We'll look internally as to what we think makes the most sense . But no doubt when you think about you've only got really two big boxes in New York that can handle large groups .

Tom Baltimore: We'll look internally as to what we think makes the most sense, but no doubt, when you think about, you've only got really two big boxes in New York that can handle large groups. We think that gives us a unique positioning and a unique opportunity for us over the intermediate and long term. And again, we had an outstanding year in 2025, and we're very, very encouraged as we look out in 2026 at for the New York Midtown.

Speaker #6: We think that gives us a unique positioning and unique opportunity for us over the intermediate and long term, and again, we had an outstanding year in 2025.

Speaker #6: And we're very, very encouraged as we look out into 2026 for the New York Midtown.

Speaker #11: Okay . Very good . Appreciate all that color . Thanks . Thanks , Tom

Chris Woronka: Okay. Very good. Appreciate all that color. Thanks. Thanks, Tom.

Operator: The next question comes from the line of Dan Pollitzer with J.P. Morgan. Please proceed.

Operator: The next question comes from the line of Daniel Politzer with J.P. Morgan. Please proceed.

Speaker #1: The next question comes from the line of Dan Pulitzer with J.P. Morgan. Please proceed.

Speaker #12: Hey good afternoon , everyone , and thanks for taking my questions . First , I just wanted to touch on the Rav4 range .

Daniel Politzer [Executive Director, Equity Research: Hey, good afternoon, everyone, and thanks for taking my questions.

Daniel Politzer: Hey, good afternoon, everyone, and thanks for taking my questions.

Operator: Hey.

Daniel Politzer [Executive Director, Equity Research: First, I just wanted to touch on the RevPAR range. It came in a little bit lower than we were expecting. It sounds like there's a fair degree of, you know, conservatism in there. You're baking in the possibility of macro and political uncertainty. But perhaps you could, you know, maybe bookend or paint a picture where, you know, where are the areas of conservatism in the guide, specifically as it relates to some of the properties or markets where you're most excited about?

Daniel Politzer: First, I just wanted to touch on the RevPAR range. It came in a little bit lower than we were expecting. It sounds like there's a fair degree of, you know, conservatism in there. You're baking in the possibility of macro and political uncertainty. But perhaps you could, you know, maybe bookend or paint a picture where, you know, where are the areas of conservatism in the guide, specifically as it relates to some of the properties or markets where you're most excited about?

Speaker #12: It came in a little bit lower than we were expecting It sounds like there's a fair degree of conservatism in there . You're baking in the possibility of macro and political uncertainty , but perhaps you could , you know , maybe bookend or paint a picture where , you know , where are the areas of conservatism in the guide , specifically as it relates to some of the properties or markets where you're most excited about .

Speaker #13: The

Speaker #4: Certainly . Look , I think , again , I'll start with just from a macro standpoint , in terms of I talked about the quarter quarterly cadence with Rich earlier and just kind of what that means , you know , when you think about Q4 and it being down 8% , that's , you know , that's kind of where , you know , good point of conservative would be you think about where we see some of that , you know , some of that softness , whatever you want to call it in Q4 , it is , you know , back to Hawaiian Village .

Sean Dell'Orto: Certainly. I look, I think, again, I'll start with just from a macro standpoint in terms of, I talked about the quarter, quarterly cadence with Rich earlier and just kind of what that means. You know, when you think about Q4, and it being down 8%, you know, that's, you know, that's kind of where, you know, a good point of conservative would be. You think about where we see some of that, you know, some of that, softness, whatever you wanna call it, in Q4. It is, you know, back to Hawaiian Village. It's down about 50% on pace in Q4. Midtown, while it's got a good setup for, for the year overall, you know, down 6% for the year in pace, its weakest quarter is Q4.

Speaker #4: It's it's down about 50% on pace in Q4 , Midtown , while it's got a good set up for for the year overall , you know , down 6% for the year in pace .

Speaker #4: It's its weakest quarter is Q4 . So I think , again , going into that , I think that's where we kind of feel there .

Sean Dell'Orto: So I think, again, going into that, I think that's where we kind of feel there are obviously bigger impact hotels. We continue to find a way to just make sure that we, you know, use caution against some of the, some of the, you know, the near term in the year for the pickup trends, as we get through the rest of the year. But, yes, there's certainly a case to be made that things could be, you know, better, but ultimately, I think as we think through what we've seen in the past, I think, you know, so those are some of the... You know, that's the time period, and those are some of the markets we're a little bit more hesitant on right now.

Speaker #4: Obviously bigger impact hotels . We continue to find a way to just make sure that we , you know , use caution against some of the some of the , you know , the near term in the year for the pick in the year for the year , pick up trends as we get through the rest of the year .

Speaker #4: But yeah , there's certainly a case to be made that things could be better . But ultimately , I think as we think through what we've seen in the past , I think those are some of the , you know , that's the time period .

Speaker #4: And those are some of the markets we're a little bit more hesitant on right now.

Speaker #6: I would also add , just to just sort of step back , you can you can paint . I think a a rosier picture .

Tom Baltimore: I would also add, just to, just so to step back, you can, you can paint a, I think, a rosier picture. You know, the tailwinds for 2026 are, are encouraging. Obviously, we all expect a more accommodative Fed and, and perhaps, lower interest rates. I mean, we're lapping DOGE, Liberation Day, government shutdown. You've got the major events, obviously, World Cup. You've got America's 250 celebrations, deregulation, fiscal stimulus; that's all encouraging. We've got the massive AI investment cycle and what we all hope and expect will be, you know, productivity gains at some point. You know, easing inflation didn't show quite that way today in the PCE report, but, you know, the other side of that, you've also got some risk out there.

Speaker #6: You know , the tailwinds for 2026 are , are encouraging . Obviously we all expect a more accommodative fed and and perhaps lower interest rates .

Speaker #6: I mean we're lapping Doge Liberation Day government shutdown . You've got the major events obviously World Cup . You've got America's 250 celebrations deregulation , fiscal stimulus .

Speaker #6: That's all encouraging. We've got the massive AI investment cycle, and what we all hope and expect will be productivity gains at some point.

Speaker #6: You know , easing inflation didn't show quite that way today in the PCE report . But you know , the other side of that , you've also got some risk out there .

Speaker #6: You've got geopolitical and obviously we look at what's happening in in the Middle East and in Iran , in the US right now , inflationary pressures are are still still there international travel really hasn't rebounded yet .

Tom Baltimore: You've got geopolitical, and obviously, we look at what's happening in the Middle East and in Iran, in the US right now, and inflationary pressures are still there. International travel really hasn't rebounded yet. We're seeing some green shoots, but we're certainly still down pre-pandemic, and, you know, the consumer is cautious, and we've got a K-shaped economy right now. So look, we think it was prudent to be conservative and cautious for all the reasons that Sean outlined, particularly as he went quarter by quarter. And obviously, as I give you sort of macro, as you think about the tailwinds, but there are some headwinds out there.

Speaker #6: We're seeing some green shoots, but we're certainly still down pre-pandemic. And, you know, the consumer is cautious. And we've got a K-shaped economy right now.

Speaker #6: So look we are we think it was prudent to be conservative and cautious for , you know , all the reasons that Sean outlined , particularly as he went quarter by quarter .

Speaker #6: And obviously, as I give you sort of macro as you think about the tailwinds, but there are some headwinds out there.

Speaker #6: And if you think about what's happened in the last few years in the sector, first quarter came out to be pretty good.

Tom Baltimore: If you think about what's happened in the last few years in the sector, Q1 came out to be pretty good, and then, you know, for many of us, if not all of us, we saw somewhat of a downward trend. So we think right now it makes sense to just be a little more measured, a little more cautious coming out of the box. But we are crystal clear as to the business priorities for Park. What we're focused on, selling non-core, investing in our core portfolio, paying down debt, looking for all of the operational efficiencies we can, and really outperforming. We'd rather have a lower bar and outperform, and we're aligned as a management team there, and really focused on continuing to deliver for shareholders.

Speaker #6: And then , you know , for many of us , if not all of us , we saw somewhat of a downward trend .

Speaker #6: So we think right now it makes sense to just be a little more measured, a little more cautious coming out of the box.

Speaker #6: But we are crystal clear as to the business priorities for Park , what we're focused on selling non-core , investing in our core portfolio , paying down debt , looking for all of the operational efficiencies we can and really outperforming .

Speaker #6: We'd rather have a lower bar and outperform, and we're aligned as a management team there, and really focus on continuing to deliver for shareholders.

Speaker #12: Got it . Thank you . That's helpful . And then just for my follow up , Tom , Sean , whoever wants to take it , it's more on capital allocation and leverage .

Robin Farley: Got it. Thank you. That's helpful. Then just for my follow-up, Tom, Sean, whoever wants to take it, it's more on capital allocation and leverage. Sean, you mentioned the target of five times in the next couple of years. How do you think about that? Given that's kind of where you're setting this expectation, like, how do you think about near term, the allocation of capital between, you know, some of the project and investment opportunities, share repurchases, given the price and valuation of stock, or even the dividend, which obviously, you know, I don't know how secure you view that or how kind of tied you are to that level, but just kind of broad strokes, how you think about those buckets?

Daniel Politzer: Got it. Thank you. That's helpful. Then just for my follow-up, Tom, Sean, whoever wants to take it, it's more on capital allocation and leverage. Sean, you mentioned the target of five times in the next couple of years. How do you think about that? Given that's kind of where you're setting this expectation, like, how do you think about near term, the allocation of capital between, you know, some of the project and investment opportunities, share repurchases, given the price and valuation of stock, or even the dividend, which obviously, you know, I don't know how secure you view that or how kind of tied you are to that level, but just kind of broad strokes, how you think about those buckets?

Speaker #12: Sean , you mentioned the target of five terms in the next couple of years . How do you think about that ? You know , the given that's kind of where you're setting this this expectation .

Speaker #12: Like how do you think about near-term the allocation of capital between , you know , some of the projects and investment opportunities ? Share repurchases , given the price and valuation of stock or , or even the dividend , which obviously , you know , you know , I don't know how secure you view that or how kind of tied you are to that that level .

Speaker #12: But just kind of broad strokes, how you think about those buckets.

Speaker #4: Well , I think I think as we certainly as we sell the non-core , we've been focused on redeploying that capital towards deleveraging .

Sean Dell'Orto: Well, I think, I think as we sell, certainly, as we sell the non-core, we've been focused on redeploying that capital towards deleveraging. So I think that's probably the main focus and certainly helps bring us to that target. You know, with that, but, you know, obviously, the investments we've made already, and then we continue to make with things like Royal Palm, some other projects we have lined up, we think, you know, again, those drive nice returns for us. And over the next couple of years, as those ramp up, along with, you know, longer, you know, kind of a recovery here in Hawaii, back to kind of where we were achieving EBITDA levels in 2023. You know, those are the things that we think organically get the growth to help kind of bring us towards that 5 times target.

Speaker #4: So I think that's probably the main focus and certainly helps bring us to that target . You know , with that . But obviously the investments we've made already and then we continue to make with things like Royal Palm , some other projects we have lined up , we think , you know , again , those drive nice returns for us .

Speaker #4: And over the next couple of years, as those ramp up, along with a longer kind of a recovery here in Hawaii, back to kind of where we were achieving EBITDA levels in 2023.

Speaker #4: Those are the things that we think organically get the growth to help kind of bring us towards that five-times target.

Speaker #12: Got it. Thanks so much.

Robin Farley: Got it. Thanks so much.

Daniel Politzer: Got it. Thanks so much.

Operator: The next question comes from the line of Cooper Clark with Wells Fargo. Please proceed.

Speaker #1: The next question comes from the line of Cooper Clark with Wells Fargo. Please proceed.

Speaker #14: Great . Thanks for taking the question . Hello . Thank you very much . Curious if you could speak to the Rev Par uplift from the World Cup in America ?

Cooper Clark: Great. Thanks for taking the question.

Tom Baltimore: Hey, Cooper.

Cooper Clark: Hello, thank you very much. Curious if you could speak to the RevPAR uplift from the World Cup in America 250 celebration that's currently embedded in guide, and if on the World Cup, that uplift is mainly just coming from the Hilton Midtown asset?

Speaker #14: The 250 celebration that's currently embedded in the guide—and if on the World Cup, that uplift is mainly just coming from the Hilton Midtown asset.

Speaker #4: Yeah , I think for the full year for the portfolio , the impact we estimate somewhere in that 30 to 35 basis points , it probably about 20 of that or so would come from New York .

Sean Dell'Orto: Yeah, I think for the full year, for the portfolio, the impact, we estimate somewhere in that 30 to 35 basis points. Probably about 20 of that or so would come from New York, another kind of call it 10 from Boston and 5 from kind of other markets that, you know, aren't as big for us, but ultimately obviously have games going on or matches going on there.

Speaker #4: Another kind of call it ten from Boston and five from other markets that, you know, aren't as big for us. But ultimately, obviously have games going on, or matches going on there.

Speaker #14: Great . Thanks . And then appreciate some of the earlier color on individual projects and puts and takes . But curious if you could talk about the total rev par disruption in EBITDA disruption from renovations this year , how that compares to 25 , and then maybe how we should be thinking about potential tailwinds from renovation in 27 .

Cooper Clark: Great, thanks. And then appreciate some of the earlier color on individual projects and puts and takes, but curious if you could talk about the total RevPAR disruption and EBITDA disruption from renovations this year, how that compares to 25, and then maybe how we should be thinking about potential tailwinds from renovation in 27 as you look out.

Speaker #14: As you look out

Speaker #4: Yeah , certainly . I mean , obviously Royal Palms , the big one , it's certainly a big benefit , you know , certainly helps the portfolio in the back half of the year after it opens up .

Sean Dell'Orto: Yes, certainly. I mean, obviously, Royal Palm's the big one. It's certainly a big benefit, you know, certainly helps the portfolio in the back half of the year after it opens up. But in the first part of the year, you're talking about 300 basis points of RevPAR impact within the quarters. Altogether, though, if you kind of remove Miami, just has about a 30 basis point impact to the full year guide. So it's a little bit of first half, second half there. Other projects aren't really net disruptive to the portfolio, maybe to the tune of 20, 30 basis points of impact. Certainly going forward, clearly, Miami will continue to have an outsized impact to the portfolio.

Speaker #4: But in the first part of the year , you're talking about 300 basis points of rev PA impact within the quarters . Altogether though , if you kind of remove your Miami just has about 30 basis point , basis point impact to the full year , full year guide .

Speaker #4: So, it's a little bit of first half, second half there. Other projects aren't really net disruptive to the portfolio—maybe to the tune of 20 to 30 basis points of impact.

Speaker #4: Certainly, going forward, clearly Miami will continue to have an outsized impact to the portfolio. We certainly expect to see that in kind of a 100-plus basis point positive impact to the portfolio going forward as it ramps back up.

Sean Dell'Orto: We certainly expect it to see that in kind of a 100+% , you know, basis point positive impact to the portfolio going forward as it ramps back up. I think certainly we expect to see some, you know, certainly expect to see some nice recovery in the Hawaiian assets from the investments we made in New Orleans, which already is getting good, you know, good reception from meeting planners, winning business based on the product we have there. We certainly expect that to kind of be a nice tailwind for us over the next year or two.

Speaker #4: And I think certainly we expect to see some , you know , certainly expect to see some nice recovery in the Hawaiian assets from the investments made in New Orleans , which already is is getting good .

Speaker #4: You know, good reception from meeting planners, winning business based on the product we have there. And we certainly expect that to kind of be a nice tailwind for us over the next year or two.

Speaker #14: Great . Thank you

Cooper Clark: Great. Thank you.

Operator: The next question comes from the line of Robin Farley with UBS. Please proceed.

Speaker #1: The next question comes from the line of Robin Farley with UBS. Please proceed.

Speaker #15: Great . Thanks . I wanted to get a little more color around the new project in Hawaii . The renovation you mentioned 1 to 2 million of disruption in 26 .

Robin Farley: Great. Thanks. I just wanted to get a little more color around the new project in Hawaii, the renovation. You mentioned $1 to 2 million of disruption in 2026, and I think that starts mid-year. So is it, I guess, if we think about what that tower specifically generates in EBITDA, would that mean sort of $3 to 4 million? And where do you think that goes after the renovation? And then just to tack on to that, if I remember, at Hilton Hawaiian Village, there's an underdeveloped parcel there, right? I know there were stores or something on it that I think you've talked about as being like a site for potential future development.

Speaker #15: I think that starts mid-year . So is it I guess if we think about what that tower specifically generates in EBITDA , would that mean sort of 3 to 4 million ?

Speaker #15: And where do you think that goes after the renovation ? And then just to tack on to that , if I remember at Hilton Hawaiian Village , there's a I guess , underdeveloped parcel there , right ?

Speaker #15: I don't know if there were stores or something on it that I think you've talked about as being a site for potential future development.

Speaker #15: I know you're really focused on delivering right now , but does the does the additional renovation here in Hawaii ? Is that a sign that you're thinking about , you know , kind of more investment going forward in Hawaii ?

Robin Farley: I know you're really focused on delivering right now, but does the additional renovation here in Hawaii, is that a sign that you're thinking about, you know, kind of more, investment going forward in Hawaii? Thanks.

Speaker #15: Thanks .

Speaker #6: Yeah . Robin , a lot to unpack there . Listen , I think the the big message is , is we are absolutely committed to Hawaii , particularly Hilton Hawaiian Village .

Tom Baltimore: Yeah, Robyn, lots to unpack there. Listen, I think the big message is we are absolutely committed to Hawaii, particularly Hilton Hawaiian Village. 23 acres, fee simple, iconic. We've obviously renovated the Tapa Tower, 1,100 keys. We've just finished Rainbow Tower, north of 800 keys, plus or minus. Ali'i Tower, as Sean mentioned, 351 keys. We think we can add another 3 keys there. It's self-contained, so it's sort of the higher end product on the campus at the village there. And so we really think that this is the window to renovate that. Obviously, there's a gym, a self-contained restaurant.

Speaker #6: 23 acres fee simple iconic . We've obviously renovated the Tapa Tower , 1100 keys . We've just finished Rainbow Tower north of 800 keys , plus or minus a tower is Sean mentioned , 351 keys .

Speaker #6: We think we can add another three keys there. It's self-contained, so it's sort of the higher-end product on the campus at the Village.

Speaker #6: There. And so we really think that this is the window to renovate that. Obviously, there's a gym, a self-contained restaurant.

Tom Baltimore: So what we really believe that, the window that we've identified, that, the disruption will be minor, $2 million that we mentioned, and that this is the window to get it done. So excited about it, thrilled about it. It's really separate from the A and B tower. The A and B tower was more opportunistic, and we wanted to grab that last site. We are still finishing up the final entitlements. We have no intention of proceeding with that project at any time soon until, obviously, demand has fully recovered. We think that's a long-term, and I emphasize, long-term play at a future date. We have no intention of proceeding with that at this point. But Ali'i Tower, we think, is prudent.

Speaker #6: So we really believe that the window that we've identified—that the disruption will be minor, the couple million dollars that we mentioned—and that this is the window to get it done.

Speaker #6: So excited about it , thrilled about it . It's really separate from the Amb tower . The Amb tower is more opportunistic . We wanted to grab that last site .

Speaker #6: We were still finishing up the final entitlements. We have no intention of proceeding with that project at any time soon until, obviously, demand has fully recovered.

Speaker #6: We think that's a long term and I emphasize long term play at a future date . We have no intention of proceeding with that at this point , but tower , we think , is prudent .

Tom Baltimore: We think that's gonna continue to really give not only tailwind, but significant lift and a way to distinguish the property even further from its competitive set. So we're excited about getting that done. And as Sean noted in his prepared remarks, you know, north of 80% of the rooms at, at what's already a 2,900, room, campus and village would be completed and fully renovated, which we think really helps us as we look to 2027 and beyond. So hopefully that gives you a good framework.

Speaker #6: We think that's going to continue to really give not only tailwind, but significant lift in a way to distinguish the property even further from its competitive set.

Speaker #6: So we're excited about getting that done . And as Sean noted in his prepared remarks , you know , north of 80% of the rooms at at what's already a 2900 room campus and village would be completed and fully renovated , which we think really helps us as we look to 27 and beyond .

Speaker #6: So, hopefully that gives you a good framework.

Robin Farley: That very helpful. Thank you. Just one quick follow-up on the Ali'i Tower. If I remember, it has its own entrance and sort of, like, pool area, maybe even. Is there a thought that or potential for you to have for that to be a different brand or, or like a different price point after the renovation, that it could be like a hotel within a hotel or, you know, anything along those lines?

Speaker #15: Very helpful . Thank you . Just just one quick follow up on the tower . If I remember it has its own entrance and sort of like pool area , maybe even is there a thought that or potential for you to have for that to be a different brand or a different price point after the renovation , that it could be like a hotel within a hotel or anything along those lines ?

Speaker #6: Yeah , it's certainly something that we've looked at from time to time , no doubt it will have an elevated price point whether or not it's a hotel within a hotel is something that , you know , the asset management team here at Park and the operators and our operating partners at Hilton will look at we've studied that from time to time .

Tom Baltimore: Yeah, it's certainly something that we've looked at from time to time. No doubt it will have an elevated price point. Whether or not it's a hotel within a hotel is something that, you know, the asset management team here at Park and the operators and our operating partners at Hilton will look at. We've studied that from time to time. It clearly is the most elevated product, and we're obviously gonna take it to the next level and are really, really excited about the work that's gonna commence there and get done, obviously, as we said, in certainly by the middle of 2027.

Speaker #6: It clearly is the most elevated product . And and we're obviously going to take it to the next level . And a really , really excited about the work that's going to commence there and and get done .

Speaker #6: Obviously, as we said, certainly by the middle of 2027.

Speaker #15: Great . Thank you

Robin Farley: Great. Thank you.

Operator: The next question comes from the line of Jay Cornwright with Tanners Fitzgerald. Please proceed.

Operator: The next question comes from the line of Jay Cornwright with Cantor Fitzgerald. Please proceed.

Speaker #1: The next question comes from the line of Jay Kornreich with Tanner Fitzgerald. Please proceed.

Speaker #16: Hey , thanks so much . Obviously , a lot of ground already covered here , but just curious on the out of room fab has been quite strong as of late , so just wondering what you're seeing from customers and groups there on that front and how much revenue growth there could be from the added room ?

Jay Kornreich: Hey, thanks so much. Obviously, a lot of ground already covered here.

Operator: Yeah.

Jay Kornreich: But just curious on, you know, the out-of-room F&B spend has been quite strong as of late, so just wondering what you're seeing from customers and groups there on that front and how much revenue growth there could be from the out-of-room spend this year?

Speaker #16: Spend this year

Sean Dell'Orto: Yeah, sure. I mean, it-- you're right, it has, it has been very strong. I'd say, on total, it's probably about 40, 50 basis points above kind of where our RevPAR is, translating to total RevPAR. And we think it's the same this year as we think about the guide as well. Big drivers, you know, in-house group, as well as even SMuRF, will, I think, help to drive banquet and catering even, you know, to a decent amount this year. Outlet spend, in the resorts, has been strong, headlined by our, our Dorado restaurant, for example, in Casa Marina, which we opened up last year and drove outlet spend up 40% in that property. We expect that to actually spend...

Speaker #4: Yeah , sure . I mean , you're right , it has it has been very strong . I'd say on total it's probably about 4050 basis points above kind of where our rev par is translating to total red bar .

Speaker #4: And we same . This year as we think about the guide as well . Big drivers , you know , in-house group as well as even Smurf will I think help to drive banquet and catering .

Speaker #4: Even , you know , to a decent amount this year . Outlet spend is in the resorts has been strong headlined by our restaurant .

Speaker #4: For example , in Casa Marina , which we opened up last year and drove outlet spend up 40% in that property . We expect that to actually it's now fully opened , obviously , for the the high season year .

Sean Dell'Orto: It's now full, you know, open obviously for the high season this year, so we expect to see continued growth in those areas. You know, other things I think are just more, a little bit more, in line, you know, kind of single digit, low single digit type growth, whether it's parking and other fees generated in that respect. But for the most part, Banquet and Catering, the groups continue to spend. We don't see much pressure from that as well. And again, in the resorts, certainly the higher end properties, you certainly see the benefits of the higher income guests who are spending in the outlets.

Speaker #4: So we expect to see continued growth in those areas . You know , other things I think are just more a little more in line , you know , kind of single digit low single digit type growth , whether it's parking and other other fees generated .

Speaker #4: In that respect . But for the most part , but banquet and catering , the groups continue to spend . We don't see much pressure from that as well as well as again , in the resorts .

Speaker #4: Certainly, the higher-end properties, you certainly see the benefits of the higher-income guests who are spending in the outlets.

Speaker #16: Okay, great. I appreciate the color. I'll leave it there.

Jay Kornreich: Okay, great. I appreciate the color. I'll leave it there.

Speaker #1: Thank you . This concludes the question and answer session . I'd like to turn the call back over to Thomas Baltimore for closing remarks .

Operator: Thank you. This concludes the question and answer session. I'd like to turn the call back over to Tom Baltimore for closing remarks.

Tom Baltimore: Well, I appreciate all of you taking time today. Look forward to seeing many of you at the Citi conference in another week or so. I also just wanna take a moment to congratulate my partner, Sean Dell'Orto, on his promotion. Well-deserved. Sean has been a just an extraordinary CFO.

Speaker #6: I appreciate all of you taking time today. I look forward to seeing many of you at the City conference in another week or so.

Q4 2025 Park Hotels & Resorts Inc Earnings Call

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