Park Hotels & Resorts Inc.PK
Park Hotels & Resorts Inc. Segments Disclosure
Business Segment Information
As a result of a shift in our business strategy during the quarter ended December 31, 2025, we now operate our business through three operating segments, our consolidated Core hotels, consolidated Non-Core hotels and unconsolidated hotels. Only our consolidated Core hotels and consolidated Non-Core hotels are reportable segments. Our CODM, who is our chief executive officer, evaluates our consolidated Core and Non-Core hotels primarily based on hotel adjusted earnings (loss) before interest income and expense, taxes and depreciation and amortization (“EBITDA”) when deciding how to allocate resources, in making other day-to-day operating decisions and evaluating our operating performance against other companies within our industry.
Hotel Adjusted EBITDA, presented herein, is calculated as EBITDA from hotel operations and does not include the following items that are not reflective of our ongoing operating performance or incurred in the normal course of business, and thus excluded from the CODM’s analysis:
•Gains or losses on sales of assets for both consolidated and unconsolidated investments;
•Costs associated with hotel acquisitions or dispositions expensed during the period;
•Severance expense;
•Share-based compensation expense;
•Impairment losses and casualty gains or losses; and
•Other items that we believe are not representative of our current or future operating performance.
The following tables present our reportable segment expenses, Hotel Adjusted EBITDA reconciled to net (loss) income and reportable segment revenues reconciled to our consolidated amounts. Prior period amounts have been recast to reflect the change in our reportable segments:
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| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | Core Hotels | Non-Core Hotels | Total | Core Hotels | Non-Core Hotels | Total | Core Hotels | Non-Core Hotels | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rooms | $ | 1,505 | $ | 1,201 | $ | 304 | $ | 1,569 | $ | 1,219 | $ | 350 | $ | 1,653 | $ | 1,177 | $ | 476 | |||||||||||||||||||||||||||||||||||
| Food and beverage | 685 | 578 | 107 | 688 | 569 | 119 | 696 | 545 | 151 | ||||||||||||||||||||||||||||||||||||||||||||
| Ancillary hotel | 259 | 227 | 32 | 256 | 221 | 35 | 264 | 220 | 44 | ||||||||||||||||||||||||||||||||||||||||||||
| Total segment revenues | 2,449 | 2,006 | 443 | 2,513 | 2,009 | 504 | 2,613 | 1,942 | 671 | ||||||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rooms expense | 411 | 318 | 93 | 419 | 318 | 101 | 449 | 302 | 147 | ||||||||||||||||||||||||||||||||||||||||||||
| Food and beverage expense | 478 | 398 | 80 | 474 | 386 | 88 | 501 | 379 | 122 | ||||||||||||||||||||||||||||||||||||||||||||
| Other departmental and support expense | 596 | 452 | 144 | 605 | 449 | 156 | 635 | 430 | 205 | ||||||||||||||||||||||||||||||||||||||||||||
| Management fees | 118 | 100 | 18 | 122 | 101 | 21 | 125 | 97 | 28 | ||||||||||||||||||||||||||||||||||||||||||||
Other property segment expenses(1) | 202 | 152 | 50 | 210 | 152 | 58 | 217 | 142 | 75 | ||||||||||||||||||||||||||||||||||||||||||||
| Total segment expenses | 1,805 | 1,420 | 385 | 1,830 | 1,406 | 424 | 1,927 | 1,350 | 577 | ||||||||||||||||||||||||||||||||||||||||||||
| Hotel Adjusted EBITDA | 644 | $ | 586 | $ | 58 | 683 | $ | 603 | $ | 80 | 686 | $ | 592 | $ | 94 | ||||||||||||||||||||||||||||||||||||||
| Other revenues | 92 | 86 | 85 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | (336) | (257) | (287) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate general and administrative expense | (72) | (69) | (65) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Impairment and casualty loss | (319) | (14) | (204) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating expenses | (88) | (82) | (83) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sales of assets, net | 2 | 8 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on derecognition of assets | 58 | 60 | 221 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | 10 | 21 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (209) | (214) | (207) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense associated with hotels in receivership | (58) | (60) | (45) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings from investments in affiliates(2) | 4 | 31 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax (expense) benefit | (7) | 61 | (38) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other gain (loss), net | 16 | (4) | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other items | (14) | (24) | (25) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net (loss) income | $ | (277) | $ | 226 | $ | 106 | |||||||||||||||||||||||||||||||||||||||||||||||
(1)Other property segment expenses primarily include real and personal property taxes, other local taxes, ground rent, equipment rent and property insurance incurred in the normal course of business.
(2)For the year ended December 31, 2024, includes a gain of $19 million on the sale of the Hilton La Jolla Torrey Pines.
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | Core Hotels | Non-Core Hotels | Total | Core Hotels | Non-Core Hotels | Total | Core Hotels | Non-Core Hotels | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 2,541 | $ | 2,599 | $ | 2,698 | |||||||||||||||||||||||||||||||||||||||||||||||
| Less: Other revenues | (92) | (86) | (85) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total segment revenues | $ | 2,449 | $ | 2,006 | $ | 443 | $ | 2,513 | $ | 2,009 | $ | 504 | $ | 2,613 | $ | 1,942 | $ | 671 | |||||||||||||||||||||||||||||||||||
The following table presents total assets for our consolidated Core and Non-Core hotels, reconciled to total assets:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Consolidated Core hotels | $ | 7,194 | $ | 7,324 | |||||||
| Consolidated Non-Core hotels | 461 | 1,801 | |||||||||
| All other | 45 | 36 | |||||||||
| Total assets | $ | 7,700 | $ | 9,161 | |||||||
The following table presents total capital expenditures for property and equipment for our consolidated Core and Non-Core hotels, reconciled to total capital expenditures for property and equipment:
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Consolidated Core hotels | $ | 281 | $ | 208 | $ | 267 | |||||||||||
| Consolidated Non-Core hotels | 15 | 19 | 18 | ||||||||||||||
Total capital expenditures for property and equipment | $ | 296 | $ | 227 | $ | 285 | |||||||||||
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.