Park Hotels & Resorts Inc.PK

Park Hotels & Resorts Inc. Leases Disclosure

10-KFiled Feb 20, 20262 min read
Leases
We lease hotel properties, land and equipment under operating and financing leases. We are subject to ground leases on nine of our consolidated properties as well as a lease for our corporate office. Our leases expire at various dates through 2083, with varying renewal options, and the majority expire before the end of 2034.
Our operating leases may require minimum rent payments, variable rent payments based on a percentage of revenue or income or rent payments equal to the greater of a minimum rent or variable rent. In addition, we may be required to pay some, or all, of the capital costs for property and equipment in the hotel during the term of the lease.
The future minimum rent payments under our current leases, due in each of the next five years and thereafter as of December 31, 2025, were:
 
Operating
Leases
Year(in millions)
2026$23 
202723 
202823 
202922 
203022 
Thereafter282 
Total minimum rent payments395 
Less: imputed interest186 
Total operating lease liabilities$209 
As of December 31, 2025 and 2024, the weighted average remaining operating lease term was 24.8 years and 24.6 years, respectively, and the weighted average discount rate used to determine the operating lease liabilities was 5.8% and 5.7% as of December 31, 2025 and 2024, respectively.
The components of rent expense, which are primarily included in other property expenses in our consolidated statements of operations, as well as supplemental cash flow and non-cash information for all operating leases were:
Year Ended December 31,
202520242023
(in millions)
Operating lease expense$25 $23 $23 
Variable lease expense16 16 16 
Operating cash flows for operating leases27 24 24 
Operating lease right-of-use asset reassessments(1)
(1)16 — 
____________________________________________________________________________________
(1)For the year ended December 31, 2025, amount represents a decrease to our right-of-use assets and lease liability due to changes in lease terms and payments as well as discount rate upon lease remeasurements. For the year ended December 31, 2024, amount represents an increase to our right-of-use assets and lease liability due to changes in lease term as well as discount rate upon lease remeasurements.

Historical Timeline

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

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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