Executive Summary

Q4 2024 results were impacted by late-Q3/early-Q4 strike disruption and renovation work: total revenues $625M, diluted EPS $0.32, Comparable RevPAR $179.02 (-1.4% YoY), and Comparable Hotel Adjusted EBITDA margin 24.6% (down 330 bps YoY) . Excluding strike impact, management said Q4 Comparable RevPAR would have risen >3% and margin would have been ~28.1% (nearly +20 bps YoY) .
2025 outlook guides flat to modest growth: Comparable RevPAR $187–$192 (0–3% YoY), Adjusted EBITDA $610–$670M, Comparable Hotel Adj. EBITDA margin 26.1–27.7%, and Adjusted FFO/share $1.90–$2.20; includes ~$17M EBITDA displacement and ~40 bps margin headwind from closing Royal Palm for renovation .
Portfolio strength in Orlando and Key West offset Hawaii/Seattle/Boston strike effects; liquidity remains strong at ~$1.4B, Net Debt $3.582B (ex-hotels in receivership), and Net Debt/Comparable Adj. EBITDA at 5.52x in 2024 supplement .
Capital allocation remains proactive: target $300–$400M of non-core asset sales in 2025, reinvest into high-ROI projects (Royal Palm $100M; expected 15–20% ROI and potential to double hotel EBITDA), and opportunistic buybacks alongside maintaining $0.25 quarterly dividend .

What Went Well and What Went Wrong

What Went Well

Orlando Bonnet Creek and Key West delivered outsized gains post-renovation: Q4 Waldorf Astoria Orlando group revenues +~56% driving >76% RevPAR; Casa Marina group revenues +~89% driving ~77% RevPAR increase YoY . CEO: “Each property has delivered exceptional performance… Bonnet Creek EBITDA exceeded $82M (+36% YoY)… Casa Marina EBITDA $30M” .
New York and Chicago improved on group: Hilton New York Midtown RevPAR +3.5% with group room nights +17%; Hilton Chicago RevPAR +~15% with margin improvement .
Group pace into 2025 is constructive: Comparable Group Revenue Pace +~6%, room nights +~2%, and rates +~4% as of end-December; Hawaii Waikoloa group revenue pace up nearly 70% for 2025 .

What Went Wrong

Strike and renovation headwinds: four hotels (Hawaii, Boston, Seattle) saw disruption; full-year Comparable Hotel Adjusted EBITDA impact $32M; Q4 Comparable RevPAR hit ~450 bps and margin ~350 bps .
Q4 margin compression and Hawaii softness: Comparable Hotel Adj. EBITDA margin fell to 24.6% (down 330 bps YoY); Hawaii RevPAR -26.8% YoY on occupancy -19.2 pts (strike + Rainbow Tower renovation) .
Sequential margin down through 2H: Q2 margin 29.9% → Q3 27.2% → Q4 24.6%, reflecting renovation/strike timing and seasonal mix; Q1 2025 also faces tough comps and lapping one-time benefits from grants/tax refunds last year (~$10M EBITDA tailwind) .

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Total Revenues ($M)	$686	$649	$625
Diluted EPS ($)	$0.30	$0.26	$0.32
Comparable RevPAR ($)	$194.90	$189.73	$179.02
Comparable Occupancy (%)	77.1%	78.1%	69.9%
Comparable ADR ($)	$252.90	$242.88	$255.98
Comparable Hotel Adjusted EBITDA ($M)	$199	$170	$147
Comparable Hotel Adjusted EBITDA margin (%)	29.9%	27.2%	24.6%

Selected market RevPAR (Q4 YoY):

Market	RevPAR Q4 2023 ($)	RevPAR Q4 2024 ($)	YoY
Hawaii	$265.50	$194.33	(26.8%)
Orlando	$151.18	$191.20	+26.5%
Key West	$282.40	$394.47	+39.7%
New York	$352.03	$364.48	+3.5%
Chicago	$124.42	$140.25	+12.7%
All Markets	$181.52	$179.02	(1.4%)

KPIs and quarterly trajectory:

KPI	Q2 2024	Q3 2024	Q4 2024
Comparable RevPAR ($)	$194.90	$189.73	$179.02
Occupancy (%)	77.1%	78.1%	69.9%
ADR ($)	$252.90	$242.88	$255.98
Comparable Hotel Adjusted EBITDA margin (%)	29.9%	27.2%	24.6%

Notes:

Ex-strike: Q4 Comparable RevPAR would have been $187.14 (up ~4.5 pts) and margin ~28.1% .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Comparable RevPAR ($)	FY 2025	N/A	$187–$192	New
Comparable RevPAR YoY	FY 2025	N/A	0.0–3.0%	New
Comparable RevPAR ex-Royal Palm ($)	FY 2025	N/A	$188–$194	New
EPS – Diluted ($)	FY 2025	N/A	$0.39–$0.69	New
Operating Income ($M)	FY 2025	N/A	$338–$398	New
Operating Margin (%)	FY 2025	N/A	13.0–14.9%	New
Adjusted EBITDA ($M)	FY 2025	N/A	$610–$670	New
Comparable Hotel Adj. EBITDA margin (%)	FY 2025	N/A	26.1–27.7%	New
Adjusted FFO/share – Diluted ($)	FY 2025	N/A	$1.90–$2.20	New
Royal Palm disruption	FY 2025	N/A	~$17M EBITDA; ~40 bps margin headwind	New
Quarterly Dividend ($/sh)	Q1 2025	$0.25 run-rate	$0.25 declared (paid Apr 15)	Maintained

Assumptions (partial): Excludes $35M default interest/fees on SF CMBS from Adjusted FFO; ~202M WADSO; outlook includes Royal Palm impact .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Group demand/pacing	Q2: Group pace ~+10% YTD; Orlando group strength post-renovations . Q3: Group pace +~9% for 2024; +~5% into 2025 .	2025 group revenue pace +~6%, room nights +~2%, rates +~4% .	Stable to improving
Orlando (Bonnet Creek)	Q2: RevPAR Signia +9%, Waldorf +11%; strong group . Q3: Strong; hurricanes minimal impact .	Q4: Waldorf transient +85% and group +~55%; ancillary rev +40% .	Accelerating
Key West (Casa Marina)	Q2: RevPAR +~215% YoY due to renovation ramp . Q3: Mixed optically; still strong ramp .	Q4: RevPAR +~77% YoY; Dec ADR premium ~$120 vs comp set; RevPAR index 126 .	Improving
Hawaii (HHV/Big Island)	Q2/Q3: Softness; renovations started; strike risk not yet realized .	Q4: 45-day strike + Rainbow Tower renovation; Q4 portfolio RevPAR headwind ~540 bps; recovery expected 2H25; Japan inbound improving .	Near-term headwind; medium-term recovery
Asset recycling	Q2: Refinance + notes; asset sale (La Jolla) . Q3: Closed Oakland; continued sales .	2025 target $300–$400M non-core sales; uses: ROI projects, debt paydown, buybacks .	More aggressive
Royal Palm (Miami) repositioning	N/A (announced late year)	$100M project; suspend ops mid-May 2025–May 2026; expected 15–20% ROI; potential to double EBITDA post-stabilization .	New growth driver
Balance sheet/refi	Q2/Q3: Extended maturities; issued 2030 notes; liquidity >$1.4B .	Considering 2026 CMBS refi options; flexibility across markets; proactive approach .	Proactive; optionality intact

Management Commentary

“Our portfolio exceeded our expectations for both top line and bottom line performance… further enhanced by the strategic capital investments we've made.”
“Bonnet Creek… EBITDA exceeded $82 million, nearly $22 million (+36%) above last year… Casa Marina… EBITDA $30 million, up over 31% since 2019.”
“We are excited to announce plans to reposition our Royal Palm Resort in South Beach… expected to generate an IRR of 15% to 20% while potentially doubling the EBITDA of the hotel once stabilized.”
“We intend to be more aggressive with our disposition efforts, targeting between $300 million to $400 million of noncore asset sales… invest in core portfolio, pay down debt, and opportunistically buy back shares.”
“Q4 RevPAR was $179… excluding strike activity… increased 3.1% YoY… Q4 hotel adjusted EBITDA margin was 24.6% or 28.1% ex-strike.”

Q&A Highlights

Dispositions and capital deployment: Target $300–$400M of non-core sales in 2025; prioritize ROI projects with higher yields, debt reduction, and buybacks given discount to NAV .
Refinancing 2026 maturities: ~$1.4B CMBS maturing 2H26 (HHV + Hyatt Regency Boston). Multiple debt market options; may address part in 2025; HHV performance supports flexibility .
Hawaii trajectory: Expect soft Q1; recovery through year with 2H benefit from lapping strike; Waikoloa group pace up ~70%. Japanese inbound improving but still below 2019 .
Royal Palm positioning: Upper-upscale lifestyle niche “tucked under” ultra-luxury peers; full closure the “right business decision” to unlock rate/EBITDA .
Guidance range drivers: Lower-end reflects slow Q1; upside tied to Hawaii recovery and group/BT strength; expense growth ~3–4% with wage inflation partially offset by insurance/utilities .

Estimates Context

We attempted to retrieve Wall Street consensus estimates (EPS, revenue, EBITDA, FFO/share) from S&P Global but data were unavailable at the time due to S&P Global daily request limit being exceeded. As a result, we cannot provide “vs. consensus” comparisons for Q4 2024 in this recap [Read attempt error from GetEstimates]. Where management framed “ex-strike” comparisons, we used company disclosures with citations .

Key Takeaways for Investors

Underlying Q4 demand was better than reported metrics suggest; ex-strike Q4 RevPAR and margin would have expanded, highlighting strength in Orlando/Key West and improving urban mix .
2025 is a tale of two halves: modest first half (tough comps, Royal Palm closure) and stronger second half as Hawaii laps strike and group momentum carries; guidance embeds ~$17M EBITDA displacement .
Capital allocation remains a catalyst: $300–$400M asset sale plan with redeployment into 15–20% ROI projects (Royal Palm) and debt reduction; potential buybacks at discount to NAV .
Balance sheet/liquidity are adequate to fund capex and manage maturities: ~$1.4B liquidity; Net Debt $3.582B; 2024 Net Debt/Comparable Adj. EBITDA 5.52x; multiple refi avenues ahead of 2H26 maturities .
Operational focus: brand/operator transitions at six hotels and W-to-Tribute rebrand in Chicago intended to improve efficiency and optionality for potential monetizations .
Dividend maintained at $0.25 for Q1 2025; management continues to target returning capital while funding high-ROI projects .
Stock narrative sensitivity: updates on asset sales, Hawaii recovery cadence, and Royal Palm execution are likely to drive estimate revisions and sentiment in 1H–2H 2025 .

Additional Detail

Group pace snapshot (as of end-December 2024):

Metric	Value
2025 Comparable Group Revenue Pace	~+6% YoY
2025 Group room nights booked	~+2% YoY
2025 Average Comparable group rates	~+4% YoY

Balance sheet highlights:

Liquidity ~$1.4B (incl. $950M revolver capacity) .
Net Debt $3.582B (ex-hotels in receivership) .
Debt composition and maturities summarized; 2028/2029/2030 unsecured notes outstanding and CMBS on Hilton Hawaiian Village; weighted average maturity 3.2 years (ex-SF) .

Strike/renovation impact table (company disclosure):

Period	Unadjusted RevPAR ($)	Adjusted RevPAR ($)	Impact	Unadjusted CH Adj. EBITDA Margin (%)	Adjusted (%)	Impact (bps)
Q4 2024	179.02	187.14	(4.5%)	24.6	28.1	(350)
FY 2024	186.78	189.09	(1.3%)	27.5	28.5	(100)

Operational color by market (Q4 2024 vs Q4 2023) already included above; see All Markets for aggregate .

All citations: company 8-K press release and supplement [20:], standalone press release [4:], and Q4 2024 earnings call transcript [17:*].

Park Hotels & Resorts Inc. (PK)·Q4 2024 Earnings Summary