Park Hotels & Resorts Inc.PK

Park Hotels & Resorts Inc. Fair Value Disclosure

10-KFiled Feb 20, 20263 min read
Fair Value Measurements
We did not elect the fair value measurement option for our financial assets or liabilities. The fair values of our other financial instruments not included in the table below are estimated to be equal to their carrying amounts.
The fair value of our debt and the hierarchy level we used to estimate fair values are shown below:
December 31, 2025December 31, 2024
Hierarchy
Level
Carrying
Amount
Fair Value
Carrying
Amount
Fair Value
(in millions)
Liabilities:
HHV Mortgage Loan3$1,275 $1,248 $1,275 $1,212 
Other mortgage loans3355 351 364 349 
2024 Term Loan3200 200 200 199 
2028 Senior Notes1725 725 725 712 
2029 Senior Notes1750 732 750 706 
2030 Senior Notes1550 564 550 559 
During the year ended December 31, 2025, we recognized impairment losses of approximately $318 million primarily related to nine of our Non-Core hotels, due to sales and the strategic decision to accelerate the disposition of our Non-Core hotels. During the year ended December 31, 2024, we recognized impairment losses of $12 million related to two of our hotels subject to ground leases and our inability to recover the carrying value of the assets over the remaining lease term. During the year ended December 31, 2023, we recognized an impairment loss of $202 million related to one of our hotels and in October 2023, that hotel, along with the other hotel securing our SF Mortgage Loan, were placed into receivership. Subsequently, this hotel, along with the other hotel securing our SF Mortgage Loan were sold in November 2025. Refer to Note 7: “Debt” for additional information.
The estimated fair value of the assets that were measured on a nonrecurring basis, categorized by the level of inputs used in the valuation of the assets, are shown below:
December 31,
2025(1)
2024(2)
Property and equipment:
Level 2$26 $— 
Level 3260 2 
Total$286 $2 
____________________________________________________________________________________
(1)We determined fair value of certain assets based upon either a contracted sales price (Level 2) or, for assets held for sale, based upon contracted price less costs to sell (Level 2) as of December 31, 2025. Where the aforementioned inputs were not available, we estimated fair value using a discounted cash flow analysis, with an estimated stabilized growth rate of 3.0%, discounted cash flow term of 10 years, or the term of the respective ground leases, terminal capitalization rates between 7.3% and 7.8% and discount rates between 10.0% and 15.0% (Level 3). The discount and terminal capitalization rates used for the fair values of these assets reflect the risk profile of the markets where the properties are located.
(2)We estimated fair value of the assets using a discounted cash flow analysis, with an estimated stabilized growth rate range of 2.0% to 3.0%, a discounted cash flow term of 10 years, and a discount rate ranging from 17.0% to 20.0% (Level 3). The discount rate used for the fair values of the assets reflected the risk profile of the markets where the properties are located.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 20, 2025
2023Feb 28, 2024
2022Feb 23, 2023
2021Feb 18, 2022
2020Feb 26, 2021
2019Feb 27, 2020
2018Feb 28, 2019
2017Mar 1, 2018

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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