Park Hotels & Resorts Inc.PK
Park Hotels & Resorts Inc. Debt Disclosure
Debt
Debt balances and associated interest rates as of December 31, 2025 were:
Principal balance as of | |||||||||||||||||||||||
| Interest Rate at December 31, 2025 | Maturity Date | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
| HHV Mortgage Loan | 4.20% | November 2026 | $ | 1,275 | $ | 1,275 | |||||||||||||||||
| Other mortgage loans | Average rate of 4.40% | 2026 to 2027(1) | 355 | 364 | |||||||||||||||||||
Revolver | SOFR + 2.25% | September 2029 | — | — | |||||||||||||||||||
| 2024 Term Loan | SOFR + 2.20% | May 2027 | 200 | 200 | |||||||||||||||||||
| 2025 Delayed Draw Term Loan | SOFR + 2.20% | January 2030 | — | — | |||||||||||||||||||
| 2028 Senior Notes | 5.88% | October 2028 | 725 | 725 | |||||||||||||||||||
| 2029 Senior Notes | 4.88% | May 2029 | 750 | 750 | |||||||||||||||||||
| 2030 Senior Notes | 7.00% | February 2030 | 550 | 550 | |||||||||||||||||||
| 6.88% | 2026 to 2030 | 1 | 1 | ||||||||||||||||||||
| 3,856 | 3,865 | ||||||||||||||||||||||
| Less: unamortized deferred financing costs and discount | (18) | (24) | |||||||||||||||||||||
| $ | 3,838 | $ | 3,841 | ||||||||||||||||||||
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(1)Assumes the exercise of all extensions that are exercisable solely at our option. The mortgage loan for Hilton Denver City Center matures in 2042 but became callable by the lender in August 2022 with six months of notice. As of December 31, 2025, we had not received notice from the lender.
Mortgage Loans
In October 2016, we entered into a $1.275 billion CMBS loan secured by the Hilton Hawaiian Village (“HHV Mortgage Loan”). The HHV Mortgage Loan bears interest at a fixed-rate and requires interest-only payments through its maturity date. The HHV Mortgage Loan may be partially or fully prepaid without penalty on or after May 1, 2026.
Our other mortgage loans all bear interest at fixed-rates. Certain of our mortgage loans require interest-only loan payments through their respective maturity dates, and the remaining mortgage loans require payments of both principal and interest on a monthly basis.
Credit Facilities
Revolver, 2024 Term Loan and 2025 Delayed Draw Term Loan
In September 2025, the Company and our Operating Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement provides for an increase in the aggregate commitments for the senior unsecured revolving credit facility (“Revolver”) from $950 million to $1 billion, a new $800 million senior unsecured delayed draw term loan facility (“2025 Delayed Draw Term Loan”), which allows for up to three draws through September 17, 2026, and the continuation of the $200 million senior unsecured term loan (“2024 Term Loan”). The Credit Agreement extended the Revolver’s maturity date to September 17, 2029, with an option to extend its maturity by one year as either (i) a one-year extension or (ii) two six-month extensions. The 2025 Delayed Draw Term Loan matures on January 2, 2030, with an option to extend its maturity by an additional one-year period. The maturity date of the 2024 Term Loan remains May 14, 2027.
The Credit Agreement includes the option to increase the Revolver and increase or add new term loans under the Credit Agreement by up to $1 billion in the aggregate, subject to obtaining additional lender commitments and the satisfaction of certain customary conditions. Borrowings under the Revolver, the 2024 Term Loan and the 2025 Delayed Draw Term Loan bear interest based upon the secured overnight financing rate (“SOFR”), plus an applicable margin based on our leverage ratio. The Credit Agreement removed the previous credit spread adjustment on the Revolver and the 2024 Term Loan of 0.10%. We are subject to fees between 0.20% and 0.25% based on unused commitments under the Revolver, as well as a 0.25% ticking fee on the undrawn portion of the 2025 Delayed Draw Term Loan. Additionally, the Revolver permits one or more standby letters of credit, up to a maximum aggregate outstanding balance of $50 million, to be issued on behalf of us. Any outstanding standby letters of credit reduce the available borrowings on the Revolver by a corresponding amount. As of December 31, 2025, our all-in interest rate for the 2024 Term Loan was 5.93%, and there were no borrowings outstanding under the Revolver or the 2025 Delayed Draw Term Loan.
The Credit Agreement generally maintained the financial covenants under our existing credit agreement, including a maximum leverage ratio, minimum fixed charge coverage ratio, maximum secured leverage ratio, maximum unsecured indebtedness to unencumbered asset value ratio and minimum unencumbered adjusted net operating income to unsecured interest coverage ratio. The Credit Agreement allows for our continued ability to conduct share repurchases, subject to compliance with the financial covenants. The Credit Agreement restricts certain activities of the Company, including our ability to grant liens on certain properties, mergers, affiliate transactions, asset sales and, in the event the Company is in default under the Credit Agreement, the payment of dividends and distributions (except certain limited exceptions including to the extent required to maintain REIT status).
During the year ended December 31, 2025, we capitalized $9 million of financing fees incurred related to the Revolver and $8 million related to the 2025 Delayed Draw Term Loan. We will begin amortizing financing fees for the 2025 Delayed Draw Term Loan when drawn upon. During the year ended December 31, 2024, we capitalized $2 million of financing fees incurred related to the 2024 Term Loan.
Senior Notes
2025 Senior Notes
In May 2020, our Operating Company, PK Domestic Property LLC, an indirect subsidiary of the Company (“PK Domestic”) and PK Finance Co-Issuer Inc. (“PK Finance”) issued an aggregate of $650 million of senior notes due 2025 (“2025 Senior Notes”), which bore interest at a rate of 7.500% per annum. In May 2024, all of the 2025 Senior Notes were
repurchased or redeemed using the proceeds from the $550 million of senior notes due in 2030 (“2030 Senior Notes”) and the 2024 Term Loan.
2028 Senior Notes
In September 2020, our Operating Company, PK Domestic and PK Finance issued an aggregate of $725 million of senior notes due 2028 (“2028 Senior Notes”). The 2028 Senior Notes bear interest at a rate of 5.875% per annum, payable semi-annually in arrears on April 1 and October 1 of each year beginning April 1, 2021. The 2028 Senior Notes will mature on October 1, 2028. We may redeem the 2028 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
2029 Senior Notes
In May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $750 million of senior notes due 2029 (“2029 Senior Notes”). The 2029 Senior Notes bear interest at a rate of 4.875% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning November 15, 2021. The 2029 Senior Notes will mature on May 15, 2029.
We may redeem the 2029 Senior Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after May 15, 2026, we may redeem the 2029 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
2030 Senior Notes
In May 2024, our Operating Company, PK Domestic and PK Finance issued an aggregate of $550 million of 2030 Senior Notes. Net proceeds from the 2030 Senior Notes and the 2024 Term Loan were used to repurchase or redeem all of the 2025 Senior Notes, and the remainder was used for general corporate purposes. The 2030 Senior Notes bear interest at a rate of 7.000% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, beginning February 1, 2025. The 2030 Senior Notes will mature on February 1, 2030. We capitalized approximately $9 million of issuance costs during the year ended December 31, 2024.
We may redeem the 2030 Senior Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after August 1, 2028, we may redeem the 2030 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
Indentures
The 2028 Senior Notes, 2029 Senior Notes and 2030 Senior Notes (collectively, the “Senior Notes”) are guaranteed by Park Parent, PK Domestic REIT Inc., and by the subsidiaries of our Operating Company that also guarantee indebtedness under our credit facility. The guarantees are full and unconditional and joint and several. The indentures governing the Senior Notes contain customary covenants that limit the issuers’ ability and, in certain instances, the ability of the issuers’ subsidiaries, to borrow money, create liens on assets, make distributions and pay dividends on or redeem or repurchase stock, make certain types of investments, sell stock in certain subsidiaries, enter into agreements that restrict dividends or other payments from subsidiaries, enter into transactions with affiliates, issue guarantees of indebtedness, and sell assets or merge with other companies. These covenants are subject to a number of exceptions and qualifications, including the ability to declare or pay any cash dividend or make any cash distribution to us to the extent necessary for us to fund a dividend or distribution by us that we believe is necessary to maintain our status as a REIT or to avoid payment of any tax for any calendar year that could be avoided by reason of such distribution, and the ability to make certain restricted payments not to exceed $100 million, plus 95% of our cumulative Funds From Operations (as defined in the indentures), plus the aggregate net proceeds from (i) the sale of certain equity interests in, (ii) capital contributions to, and (iii) certain convertible indebtedness of the Operating Company. In addition, the indentures require our Operating Company to maintain total unencumbered assets as of each fiscal quarter of at least 150% of total unsecured indebtedness, in each case calculated on a consolidated basis.
Debt Maturities
The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of December 31, 2025 were:
| Year | (in millions) | ||||
2026 | $ | 1,601 | |||
| 2027 | 230 | ||||
| 2028 | 725 | ||||
| 2029 | 750 | ||||
| 2030 | 550 | ||||
| $ | 3,856 | ||||
Debt Associated with Hotels in Receivership
In June 2023, we ceased making debt service payments towards the $725 million non-recourse CMBS loan (“SF Mortgage Loan”) secured by the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco – a Hilton Hotel (collectively, the “Hilton San Francisco Hotels”), which was due November 2023, and we received a notice of default from the servicer. In October 2023, the trustee for the SF Mortgage Loan filed a lawsuit against the borrowers under the SF Mortgage Loan. In connection with the lawsuit, the court appointed a receiver to take control of the Hilton San Francisco Hotels, which served as security for the SF Mortgage Loan, and their operations, and thus, we had no further economic interest in the operations of the hotels. The receiver operated and had authority over the Hilton San Francisco Hotels until they were sold by the court-appointed receiver on November 21, 2025, and the SF Mortgage Loan was assumed by the buyer in connection with the sale. The stated rate on the loan was 4.11%; however, beginning June 1, 2023, the default interest rate on the loan was 7.11%. Additionally, beginning June 1, 2023, the loan accrued a monthly late payment administrative fee of 3% of the monthly amount due.
We derecognized the Hilton San Francisco Hotels from our consolidated balance sheet in October 2023, when the receiver took control of the hotels and, accordingly, recognized a gain of $221 million for the year ended December 31, 2023, which is included in gain on derecognition of assets in our consolidated statements of operations. Until the Hilton San Francisco Hotels were sold by the court-appointed receiver in November 2025 and the SF Mortgage Loan was assumed by the buyer, we recognized a gain of $58 million and $60 million, respectively, representing accrued interest expense associated with the default of the SF Mortgage Loan for the years ended December 31, 2025 and December 31, 2024, with a corresponding increase of the contract asset on our consolidated balance sheets. In November 2025, we derecognized the SF Mortgage Loan and associated accrued interest expense included in debt associated with hotels in receivership and accrued interest associated with hotels in receivership, respectively, through and including the date of the sale, and the corresponding contract asset on our consolidated balance sheets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.