Park Hotels & Resorts Inc. (PK): BCG Matrix [Dec-2025 Updated]

As a seasoned analyst, I see Park Hotels & Resorts Inc. (PK) in late 2025 executing a textbook capital reallocation strategy using the BCG framework. The core story is simple: the reliable Cash Cows, like the Hawaii Portfolio contributing 30% of 2024 Hotel Adjusted EBITDA, are funding the transformation. This cash is being deployed to nurture Question Marks-major renovations like the $103 million Royal Palm project-while simultaneously divesting Dogs, targeting $300 million-$400 million in sales. Keep reading to see which high-performing assets are already shining as Stars, like the Waldorf Orlando with its 24% RevPAR jump, and how this aggressive pruning sets up the next phase of growth.

Background of Park Hotels & Resorts Inc. (PK)

Park Hotels & Resorts Inc. (PK) is one of the largest publicly-traded lodging Real Estate Investment Trusts (REITs) in the US, with its headquarters located in Tysons, Virginia. Park Hotels & Resorts Inc. was established in 2017, spinning off from its predecessor, Hilton Worldwide Holdings Inc., which gives it a deep foundation in the hospitality sector. The company's core mission revolves around acquiring, owning, and developing high-quality hotel assets that benefit from strong brand affiliations and prime locations across major urban and resort destinations.

The portfolio of Park Hotels & Resorts Inc. is diversified, consisting predominantly of luxury and upscale hotels. As of mid-2025, the company maintained a portfolio of 39 premium-branded hotels with approximately 25,000 rooms, operating under major flags like Hilton, Waldorf Astoria, Conrad, and Hyatt. However, a key strategic focus in late 2025 was portfolio reshaping; Park Hotels & Resorts Inc. was actively planning to divest 15 non-core hotels to concentrate on 20 high-quality assets that represent about 90% of the portfolio's total value.

Financially, the third quarter of 2025 showed some headwinds, with Comparable RevPAR (Revenue Per Available Room) at $180.93, marking a (6.1)% decrease year-over-year, though this improved to a (4.9)% decrease when excluding the Royal Palm South Beach Miami, which suspended operations for renovation. Total hotel revenues for Q3 2025 were reported at $610 million, and the company posted a net loss attributable to stockholders of $(16) million. On the balance sheet side, in September 2025, Park Hotels & Resorts Inc. took steps to bolster liquidity by amending its credit agreement, increasing the senior unsecured revolving credit facility to $1 billion and extending its maturity to September 2029.

Park Hotels & Resorts Inc. (PK) - BCG Matrix: Stars

Stars are defined by having high market share in a growing market. These are the leaders in the business but still need a lot of support for promotion and placement. If market share is kept, Stars are likely to grow into cash cows. The business units or products with the best market share and generating the most cash are considered Stars. Monopolies and first-to-market products are frequently termed Stars too. Still, because of their high growth rate, Stars consume large amounts of cash. This generally results in the same amount of money coming in that is going out. Stars can eventually become Cash Cows if they sustain their success until a time when a high-growth market slows down. A key tenet of a Boston Consulting Group (BCG) strategy for growth is to invest in Stars.

For Park Hotels & Resorts Inc. (PK), the properties categorized as Stars demonstrate exceptional top-line performance in what are currently high-growth segments of the lodging market. These assets are market leaders, but their continued dominance requires significant capital reinvestment to maintain their competitive edge and capture further growth.

Here's a look at the key performers identified as Stars based on recent performance metrics:

• JW Marriott San Francisco Union Square, with Q3 2025 RevPAR growth of nearly 14%.
• New York Hilton Midtown, showing a Q3 2025 RevPAR increase of nearly 4% and strong share gains.
• Waldorf Astoria Orlando, which saw Q2 2025 RevPAR jump nearly 24% from increased demand.
• Caribe Hilton in Puerto Rico, delivering Q3 2025 RevPAR growth of nearly 12%.

You can see the specific growth figures for these leading assets below. Remember, high RevPAR (Revenue Per Available Room) growth in a growing market signals a Star position, but it also means Park Hotels & Resorts Inc. (PK) must keep spending to keep winning.

The Waldorf Astoria Orlando figure, a nearly 24% RevPAR jump in Q2 2025, is particularly noteworthy. That level of demand acceleration suggests this asset is capturing significant market share in a booming leisure or group travel segment. To be fair, such high growth often means the property is running near capacity or has successfully implemented significant rate increases, both signs of a strong brand presence.

The New York Hilton Midtown, while showing a more modest Q3 2025 RevPAR increase of nearly 4%, is noted for its strong share gains. This suggests that even in a mature or slower-growing segment, this asset is taking business away from competitors, solidifying its high market share status, which is the other half of the Star definition.

Here are the key characteristics reinforcing their Star categorization:

• High market share leadership in their respective submarkets.
• Significant recent RevPAR growth rates, indicating a high-growth market.
• Require substantial ongoing capital expenditure for maintenance and upgrades.
• Potential to transition into Cash Cows as market growth moderates.

Finance: draft 13-week cash view by Friday.

Park Hotels & Resorts Inc. (PK) - BCG Matrix: Cash Cows

Cash Cows for Park Hotels & Resorts Inc. are those stable, large-scale urban and resort properties that command a high market share within mature segments, generating significant cash flow that supports the rest of the portfolio. These assets require minimal growth investment to maintain their strong position.

The portfolio concentration highlights this characteristic, where a few key markets drive the majority of the profitability. For instance, the Hawaii Portfolio, which includes the Hilton Hawaiian Village, was a major contributor, accounting for approximately 30% of 2024 Hotel Adjusted EBITDA. This concentration in a destination market underscores its established, high-share status, even while presenting a business risk due to reliance on discretionary travel.

The stability of the core portfolio is paramount to Park Hotels & Resorts Inc.'s financial footing. The company is focusing on enhancing this core, which represents roughly 90% of the company's total portfolio value. This core underpins the full-year 2025 Adjusted EBITDA forecast, which Park Hotels projects to be in the range of $595 million to $645 million. To give you a recent snapshot, the Adjusted EBITDA for the third quarter ended September 30, 2025, was $130 million.

The commitment to shareholder returns, a hallmark of a Cash Cow strategy, is evident in the consistent dividend policy. Park Hotels & Resorts Inc. declared a Q3 2025 cash dividend of $0.25 per share, payable on January 15, 2026, to stockholders of record as of December 31, 2025. This was consistent with the prior quarters, as the second quarter 2025 dividend was also $0.25 per share.

You can see the key financial metrics that define these cash-generating units:

The strategy for these assets is to maintain productivity while milking the gains passively, though Park Hotels & Resorts Inc. is actively investing in infrastructure to improve efficiency, such as renovations at its Hawaiian resorts planned for 2025 and 2026. The portfolio generally consists of Park Hotels & Resorts Inc.'s 39 premium-branded hotels with approximately 25,000 rooms.

The operational focus supports the Cash Cow status through efficiency, as seen in recent performance:

• Q2 2025 Hotel Adjusted EBITDA was $191 million.
• Q2 2025 Hotel Adjusted EBITDA margin was 29.6%.
• The company expects to benefit from completed renovations in 2026, potentially adding approximately $30 million in incremental EBITDA.

Park Hotels & Resorts Inc. (PK) - BCG Matrix: Dogs

Dogs are the business units or products you have where market share is low and the market growth rate is also low. Honestly, these are the assets that tie up capital without offering much return, making them prime candidates for divestiture, which is exactly what Park Hotels & Resorts Inc. (PK) is doing to refine its portfolio.

You can see this strategy playing out with specific property actions taken in 2025 to shed these low-performing or non-core assets. Here's a quick look at the concrete examples of these Dogs being managed out of the portfolio:

The sale of the Hyatt Centric Fisherman's Wharf for $80 million was a key step toward the stated strategic objective of disposing between $300 million and $400 million of non-core hotel assets in 2025. This follows a long-term trend; since 2017, Park Hotels & Resorts Inc. has sold or disposed of 46 hotels for proceeds exceeding $3 billion. The move to exit the Embassy Suites near Kansas City's Country Club Plaza, which ceased operations when its ground lease expired at the end of September, also fits this narrative, as the hotel generated an insignificant EBITDA for Park in 2025.

Beyond outright sales or closures, some assets in specific markets are showing performance that places them in this low-return category due to market headwinds, even if they aren't being sold immediately. These are the properties where low market share or growth is manifesting as negative financial impact:

• Comparable RevPAR for the entire portfolio declined by (6.1)% in Q3 2025 compared to Q3 2024.
• Comparable RevPAR declined by 4.9% in Q3 2025 when excluding the Royal Palm South Beach Miami.
• Hotels in Washington D.C. and San Diego were negatively impacted by softer leisure and government transient demand in Q3 2025.
• The extended government shutdown placed more pronounced pressure on demand in D.C. and San Diego heading into Q4 2025.

Park Hotels & Resorts Inc. (PK) - BCG Matrix: Question Marks

You're analyzing Park Hotels & Resorts Inc.'s portfolio, and the Question Marks quadrant represents assets in high-growth markets where the company is making significant, cash-consuming investments to capture greater market share. These are properties where the outcome of the current capital deployment is uncertain but holds the potential to become future Stars. They are currently consuming cash due to operational suspension or heavy investment, but the expected returns are high enough to warrant the risk.

The primary focus for Park Hotels & Resorts Inc. in this category involves major, transformative renovations designed to reposition key assets. These capital-intensive projects are the very definition of a Question Mark: high outlay now for an uncertain, but potentially high, future return. The overall commitment to this strategy for 2025 is substantial.

The expected total capital expenditures for Park Hotels & Resorts Inc. for the full year 2025 are in the range of $310 million to $330 million. This aggressive spending is heavily weighted toward these future-growth projects. For context, Park spent roughly $45 million on capital improvements in the second quarter of 2025 alone.

The following table details the major renovation projects currently classified as Question Marks, showing the scope of the investment and the expected timeline for completion, which is critical for assessing when these assets might transition out of this quadrant.

The Royal Palm South Beach Miami is a prime example of a high-stakes Question Mark. The $103 million investment is aimed at repositioning the property to a higher quality, upper upscale offering. Management expects this transformational project to generate a $\text{15}$ to $\text{20}$% return on investment, and upon stabilization, it is projected to more than double the hotel's EBITDA from $14 million to nearly $28 million. However, the immediate financial impact is a drag; operations were suspended in mid-May 2025, resulting in an anticipated $17 million of disruption to hotel adjusted EBITDA for 2025.

The strategy for these Question Marks is clear: invest heavily to gain market share and command higher rates, or risk them becoming Dogs. The Hilton Hawaiian Village Waikiki Beach Resort's second phase of renovation is a direct response to the need to regain market share, especially after labor disruptions impacted performance. The investment here is designed to secure future performance in a high-growth leisure market.

You can see the immediate cash consumption and the planned future upside by looking at the remaining commitments as of September 30, 2025, for these specific projects:

• Royal Palm South Beach Miami commitment: $25 million (of the total $103 million)
• Hilton Hawaiian Village Waikiki Beach Resort commitment: $21 million (for Phase 2)
• Hilton New Orleans Riverside commitment: $9 million (for Phase 2)
• Hilton Waikoloa Village commitment: $15 million (for Phase 2)

The Hilton New Orleans Riverside is also undergoing its second phase of guestroom renovations, budgeted at $31 million, with completion targeted for the fourth quarter of 2025. This is necessary to reposition the asset in a competitive urban market. The company is betting that completing these projects-which represent a significant portion of the $310 million to $330 million 2025 CapEx-will successfully move these properties into the Star category by 2026, especially with tailwinds like the FIFA 2026 World Cup in Miami.