Park Hotels & Resorts Inc. 10-K

Item 8. Financial Statements and Supplementary Data. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Management’s Report on Internal Control Over Financial Reporting 52 Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 53 Consolidated Balance Sheets as of December 31, 2025 and 2024 56 Consolidated Statements of Operations for the Years Ended December 31, 2025 , 2024 and 2023 57 Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 , 2024 and 2023 58 Consolidated Statements of Equity for the Years Ended December 31, 2025 , 2024 and 2023 59 Notes to Consolidated Financial Statements 60 Schedule III – Real Estate and Accumulated Deprecation 82 51 Table of Content s Management’s Report on Internal Control Over Financial Reporting Management of Park Hotels & Resorts Inc. (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. The Company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the Company’s management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets of the Company that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management has assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013). Based on this assessment, management determined that the Company maintained effective internal control over financial reporting as of December 31, 2025. Ernst & Young LLP, the independent registered public accounting firm that has audited the consolidated financial statements included in this Annual Report on Form 10-K, has issued an attestation report on the Company’s internal control over financial reporting as of December 31, 2025. The report is included herein. 52 Table of Content s Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Park Hotels & Resorts Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Park Hotels & Resorts Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, cash flows and equity for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(b) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 20, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 53 Table of Content s Assessment of Property and Equipment for Impairment Description of the Matter The Company had property and equipment, net of $ 6,955 million as of December 31, 2025 and recognized an impairment loss of approximately $ 318 million during the year ended December 31, 2025 as disclosed in Note 8 of the consolidated financial statements. As discussed in Note 2 of the consolidated financial statements, if there are indicators of impairment, property and equipment is evaluated for recoverability based on expected undiscounted future cash flows. If it is determined that the expected undiscounted future cash flows are less than the net book value of the asset group, the excess of the net book value over the estimated fair value is recorded within impairment losses. Auditing management’s assessment of property and equipment for impairment was complex and highly judgmental due to the significant estimation required in determining the amount of expected undiscounted future cash flows and capitalization rates used to assess properties for impairment. In particular, the expected future cash flows are based on significant estimates, including projections of future income and estimated growth rates. Further, a fair value measurement can be highly sensitive to changes in capitalization and discount rates, that are estimated based on future economic and market conditions. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s review process for evaluating property and equipment for impairment, including controls over management’s review of the significant assumptions described above. Our testing of the Company’s impairment assessment included, among other procedures, evaluating the significant assumptions and testing the completeness and accuracy of the underlying data used by the Company to develop the expected future cash flows for their properties. We compared the significant assumptions, including growth rates, discount rates and capitalization rates, used by management to current industry and economic trends, and changes to the Company’s strategy. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate changes in the expected future cash flows that would result from changes in the assumptions. We involved our valuation specialists to assist in evaluating certain assumptions underlying management’s fair value estimates and supplemented with further market observable information. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2016. Tysons, Virginia February 20, 2026 54 Table of Content s Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Park Hotels & Resorts Inc. Opinion on Internal Control Over Financial Reporting We have audited Park Hotels & Resorts Inc.’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Park Hotels & Resorts Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, cash flows and equity for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(b) and our report dated February 20, 2026 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Tysons, Virginia February 20, 2026 55 Table of Content s PARK HOTELS & RESORTS INC. CONSOLIDATED BALANCE SHEETS (in millions, except share and per share data) December 31, 2025 2024 ASSETS Property and equipment, net $ 6,955 $ 7,398 Assets held for sale, net 14 — Contract asset — 820 Intangibles, net 41 41 Cash and cash equivalents 232 402 Restricted cash 32 38 Accounts receivable, net of allowance for doubtful accounts of $ 2 and $ 4 116 131 Prepaid expenses 60 69 Other assets 80 71 Operating lease right-of-use assets 170 191 TOTAL ASSETS (variable interest entities – $ 207 and $ 223 ) $ 7,700 $ 9,161 LIABILITIES AND EQUITY Liabilities Debt $ 3,838 $ 3,841 Debt associated with hotels in receivership — 725 Accrued interest associated with hotels in receivership — 95 Accounts payable and accrued expenses 198 226 Dividends payable 56 138 Due to hotel managers 134 138 Other liabilities 189 179 Operating lease liabilities 209 225 Total liabilities (variable interest entities – $ 198 and $ 201 ) 4,624 5,567 Commitments and contingencies – refer to Note 15 Stockholders’ Equity Common stock, par value $ 0.01 per share, 6,000,000,000 shares authorized, 200,938,658 shares issued and 199,901,086 shares outstanding as of December 31, 2025 and 203,407,320 shares issued and 202,553,194 shares outstanding as of December 31, 2024 2 2 Additional paid-in capital 4,031 4,063 Accumulated deficit ( 902 ) ( 420 ) Total stockholders’ equity 3,131 3,645 Noncontrolling interests ( 55 ) ( 51 ) Total equity 3,076 3,594 TOTAL LIABILITIES AND EQUITY $ 7,700 $ 9,161 Refer to the notes to the consolidated financial statements. 56 Table of Content s PARK HOTELS & RESORTS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Year Ended December 31, 2025 2024 2023 Revenues Rooms $ 1,505 $ 1,569 $ 1,653 Food and beverage 685 688 696 Ancillary hotel 259 256 264 Other 92 86 85 Total revenues 2,541 2,599 2,698 Operating expenses Rooms 411 419 449 Food and beverage 478 474 501 Other departmental and support 596 605 635 Other property 216 231 241 Management fees 118 125 126 Impairment and casualty loss 319 14 204 Depreciation and amortization 336 257 287 Corporate general and administrative 72 69 65 Other 88 82 83 Total expenses 2,634 2,276 2,591 Gain on sale of assets, net 2 8 15 Gain on derecognition of assets 58 60 221 Operating (loss) income ( 33 ) 391 343 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 4 31 11 Other gain (loss), net 16 ( 4 ) 4 (Loss) income before income taxes ( 270 ) 165 144 Income tax (expense) benefit ( 7 ) 61 ( 38 ) Net (loss) income ( 277 ) 226 106 Net income attributable to noncontrolling interests ( 6 ) ( 14 ) ( 9 ) Net (loss) income attributable to stockholders $ ( 283 ) $ 212 $ 97 (Loss) earnings per share: (Loss) earnings per share – Basic $ ( 1.43 ) $ 1.02 $ 0.44 (Loss) earnings per share – Diluted $ ( 1.43 ) $ 1.01 $ 0.44 Weighted average shares outstanding – Basic 199 207 214 Weighted average shares outstanding – Diluted 199 209 215 Refer to the notes to the consolidated financial statements. 57 Table of Content s PARK HOTELS & RESORTS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2025 2024 2023 Operating Activities: Net (loss) income $ ( 277 ) $ 226 $ 106 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 336 257 287 Gain on sales of assets, net ( 2 ) ( 8 ) ( 15 ) Gain on derecognition of assets ( 58 ) ( 60 ) ( 221 ) Impairment loss 318 12 204 Equity in earnings from investments in affiliates ( 4 ) ( 31 ) ( 11 ) Other (gain) loss, net ( 14 ) 3 ( 2 ) Share-based compensation expense 19 19 18 Amortization of deferred financing costs 9 9 9 Distributions from unconsolidated affiliates 8 8 10 Deferred income taxes 4 ( 62 ) 14 Changes in operating assets and liabilities: Accounts receivable, net 14 ( 19 ) 9 Prepaid expenses 9 ( 10 ) ( 4 ) Other assets ( 1 ) 1 18 Accounts payable and accrued expenses 37 76 82 Due to hotel managers ( 4 ) 7 ( 10 ) Other liabilities 6 4 16 Other ( 2 ) ( 3 ) ( 7 ) Net cash provided by operating activities 398 429 503 Investing Activities: Capital expenditures for property and equipment ( 296 ) ( 227 ) ( 285 ) Acquisitions, net — — ( 11 ) Proceeds from asset dispositions, net 75 31 116 Proceeds from the sale of investments in affiliates, net 12 — 3 Reduction of restricted cash from derecognition of assets — — ( 30 ) Distributions from unconsolidated affiliates — 37 — Contributions to unconsolidated affiliates — ( 7 ) ( 10 ) Net cash used in investing activities ( 209 ) ( 166 ) ( 217 ) Financing Activities: Proceeds from issuance of Senior Notes — 550 — Repurchase or redemption of Senior Notes — ( 650 ) — Borrowings from credit facilities — 200 — Repayments of credit facilities — — ( 50 ) Repayments of mortgage debt ( 9 ) ( 22 ) ( 83 ) Debt issuance costs ( 17 ) ( 11 ) ( 1 ) Dividends paid ( 280 ) ( 512 ) ( 152 ) Distributions to noncontrolling interests ( 10 ) ( 7 ) ( 7 ) Tax withholdings on share-based compensation ( 4 ) ( 5 ) ( 2 ) Repurchase of common stock ( 45 ) ( 116 ) ( 180 ) Net cash used in financing activities ( 365 ) ( 573 ) ( 475 ) Net decrease in cash and cash equivalents and restricted cash ( 176 ) ( 310 ) ( 189 ) Cash and cash equivalents and restricted cash, beginning of period 440 750 939 Cash and cash equivalents and restricted cash, end of period $ 264 $ 440 $ 750 For supplemental disclosures, refer to Note 16: “Supplemental Disclosures of Cash Flow Information” Refer to the notes to the consolidated financial statements. 58 Table of Content s PARK HOTELS & RESORTS INC. CONSOLIDATED STATEMENTS OF EQUITY (in millions) Common Stock Additional Paid-in Capital Retained Earnings (Accumulated Deficit) Non- controlling Interests Total Shares Amount Balance as of December 31, 2022 224 $ 2 $ 4,321 $ 16 $ ( 48 ) $ 4,291 Share-based compensation, net 1 — 15 1 — 16 Net income — — — 97 9 106 Dividends and dividend equivalents (1) — — — ( 458 ) — ( 458 ) Repurchase of common stock ( 15 ) — ( 180 ) — — ( 180 ) Distributions to noncontrolling interests — — — — ( 7 ) ( 7 ) Balance as of December 31, 2023 210 2 4,156 ( 344 ) ( 46 ) 3,768 Share-based compensation, net 1 — 11 3 — 14 Net income — — — 212 14 226 Dividends and dividend equivalents (1) — — — ( 291 ) — ( 291 ) Repurchase of common stock ( 8 ) — ( 116 ) — — ( 116 ) Distributions to noncontrolling interests — — — — ( 7 ) ( 7 ) Reallocation of noncontrolling interests — — 12 — ( 12 ) — Balance as of December 31, 2024 203 2 4,063 ( 420 ) ( 51 ) 3,594 Share-based compensation, net 1 — 13 2 — 15 Net (loss) income — — — ( 283 ) 6 ( 277 ) Dividends and dividend equivalents (1) — — — ( 201 ) — ( 201 ) Repurchase of common stock ( 4 ) — ( 45 ) — — ( 45 ) Distributions to noncontrolling interests — — — — ( 10 ) ( 10 ) Balance as of December 31, 2025 200 $ 2 $ 4,031 $ ( 902 ) $ ( 55 ) $ 3,076 ____________________________________________________________________________________ (1) Dividends declared per common share were $ 1.00 , $ 1.40 , and $ 2.15 , which included a special cash dividend of $ 0.77 per common share, for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to the notes to the consolidated financial statements. 59 Table of Content s PARK HOTELS & RESORTS INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1: Organization Park Hotels & Resorts Inc. (“we,” “us,” “our” or the “Company” and, exclusive of any subsidiaries, “Park Parent”) is a Delaware corporation that owns a portfolio of premium-branded hotels and resorts primarily located in prime city center and resort locations. On January 3, 2017, Hilton Worldwide Holdings Inc. (“Hilton” or “Parent”) completed the spin-off of a portfolio of premium hotels and resorts that established Park Hotels & Resorts Inc. as an independent, publicly traded company. We are a real estate investment trust (“REIT”) for United States (“U.S.”) federal income tax purposes. We have been organized and operated, and we expect to continue to be organized and operate, in a manner to qualify as a REIT. From the date of our spin-off from Hilton, Park Intermediate Holdings LLC (our “Operating Company”), directly or indirectly, has held all our assets and has conducted all of our operations. We are structured as a traditional umbrella partnership REIT (“UPREIT”). Park Parent is the managing member of our Operating Company, and PK Domestic REIT Inc., a direct subsidiary of Park Parent, is a member of our Operating Company. We may, in the future, issue interests in (or from) our Operating Company in connection with acquiring hotels, financings, issuance of equity compensation or other purposes. Note 2: Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation Principles of Consolidation The consolidated financial statements include the accounts of the Company, our wholly owned subsidiaries and entities in which we have a controlling financial interest, including variable interest entities (“VIEs”) where we are the primary beneficiary. The consolidated financial statements reflect our financial position, results of operations and cash flows, in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). All significant intercompany transactions and balances within these consolidated financial statements have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Summary of Significant Accounting Policies Property and Equipment Property and equipment are recorded at cost, and interest applicable to major construction or development projects is capitalized. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements ( 8 to 40 years); furniture and equipment ( 3 to 8 years); and computer equipment and acquired software ( 3 years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of potential impairment. We perform an analysis to determine the recoverability of the asset’s carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset. If it is determined that the expected undiscounted future cash flows are less than the net book value of the asset, the excess of the net book value over the estimated fair value is recorded in our 60 Table of Content s consolidated statements of operations within impairment losses. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset using discount and capitalization rates deemed reasonable for the type of asset, as well as prevailing market conditions, appraisals, recent similar transactions in the market and, if appropriate and available, current estimated net sales proceeds from pending offers. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred, which is generally upon acquisition, construction or development and/or through the normal operation of the asset. Assets Held for Sale We classify a property as held for sale when we commit to a plan to sell the asset, the sale of the asset is probable within one year, and it is unlikely that action to complete the sale will change or that the sale will be withdrawn. When we determine that classification of an asset as held for sale is appropriate, we cease recording depreciation for the asset and value the property at the lower of depreciated cost or fair value, less costs to dispose. Further, the related assets and liabilities of the held for sale property will be classified as assets and liabilities held for sale in our consolidated balance sheets. Any gains on sales of properties are recognized at the time of sale or deferred and recognized in net (loss) income in subsequent periods as any relevant conditions requiring deferral are satisfied. Investments in Affiliates The consolidated financial statements include entities in which we have a controlling financial interest, including VIEs where we are the primary beneficiary. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other interests. If the entity is considered to be a VIE, we determine whether we are the primary beneficiary, and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. References in these financial statements to net (loss) income attributable to stockholders do not include non-controlling interests, which represent the outside ownership interests of our consolidated, non-wholly owned entities and are reported separately. We hold investments in affiliates that primarily own or lease hotels. Investments in affiliates over which we exercise significant influence, but lack a controlling financial interest, are accounted for using the equity method. We account for investments using the equity method when we have the ability to exercise significant influence over the entity, typically through a more than minimal investment. Our proportionate share of earnings (losses) from our equity method investments is presented as equity in earnings from investments in affiliates in our consolidated statements of operations. Distributions from investments in affiliates are presented as an operating activity in our consolidated statements of cash flows when such distributions are a return on investment. Distributions from investments in affiliates are recorded as an investing activity in our consolidated statements of cash flows when such distributions are a return of investment. We assess the recoverability of our equity method investments if there are indicators of potential impairment. If an identified event or change in circumstances requires an evaluation to determine if an investment may have an other-than-temporary impairment, we assess the fair value of the investment based on accepted valuation methodologies, which include discounted cash flows, estimates of sales proceeds and external appraisals. If an investment’s fair value is below its carrying value and the decline is considered to be other-than-temporary, we will recognize an impairment loss in equity in earnings from investments in affiliates in our consolidated statements of operations. Non-controlling Interests We present the portion of any equity that we do not own in entities that we have a controlling financial interest (and thus consolidate) as non-controlling interests and classify those interests as a component of total equity, separate from total stockholders’ equity, on our consolidated balance sheets. For consolidated joint ventures with pro rata distribution allocations, net income or loss is allocated between the joint venture partners based on their respective stated ownership 61 Table of Content s percentages. In addition, we include net income (loss) attributable to the noncontrolling interest in net (loss) income in our consolidated statements of operations. Intangible Assets Intangible assets with finite useful lives primarily include an air rights contract. The air rights contract value is based on the present value of the difference between the contractual rental amounts and the market rental rates for similar contracts, measured over a period equal to the remaining non-cancellable term of the contract. Intangible assets are amortized using the straight-line method over the remaining term of the contract. We review all finite lived intangible assets for impairment when circumstances indicate that their carrying amounts may not be recoverable. If the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of the carrying value over the fair value in our consolidated statements of operations. Asset Acquisitions We consider an asset acquisition to occur when substantially all the fair value of an acquisition is concentrated in a single identifiable asset or a group of similar identifiable assets. In an acquisition of assets, we are not required to expense our acquisition-related costs, and goodwill is not assigned. We will account for the properties purchased as asset acquisitions by allocating the total cash consideration, including transaction costs, to the individual assets acquired and liabilities assumed, respectively, on a relative fair value basis. Business Combinations We consider a business combination to occur when we take control of a business by acquiring its net assets or equity interests. We record the assets acquired, liabilities assumed and non-controlling interests at fair value as of the acquisition date, including any contingent consideration. We evaluate factors, including market data for similar assets, expected future cash flows discounted at risk-adjusted rates and replacement cost for the assets to determine an appropriate fair value of the assets. Acquisition-related costs, such as due diligence, legal and accounting fees, are expensed in the period incurred and are not capitalized or applied in determining the fair value of the acquired assets. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities, when purchased, of three months or less. Restricted Cash Restricted cash includes cash balances established as lender reserves required by our debt agreements and reserves for capital expenditures in accordance with certain of our management agreements. Allowance for Doubtful Accounts An allowance for doubtful accounts is provided on accounts receivable when losses are probable based on historical collection activity and current business conditions. Leases We consider an arrangement to contain a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for compensation. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the present value of our fixed payment obligations. Leases with a term of 12 months or less are not recorded on the balance sheet. We use our estimated incremental borrowing rate to determine the present value of our lease obligations. Our operating leases may require fixed payments, variable payments based on a percentage of revenue or income, or payments equal to the greater of a fixed or variable payment. Variable payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation is incurred. Operating lease expense is recognized on a straight-line basis over the lease term. Our lease terms include renewal options that we are reasonably certain to exercise, and renewal options controlled by the lessor. 62 Table of Content s Fair Value Measurements—Valuation Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (an exit price). We use the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-level hierarchy of inputs is summarized below: • Level 1—Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2—Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. • Level 3—Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety at the end of each reporting period. Revenue Recognition Our results of operations primarily consist of room rentals, food and beverage sales and other ancillary goods and services from hotel properties. Other revenues primarily relate to support services we provide to Hilton Grand Vacations (“HGV”). Hotel operating revenues are disaggregated into room revenue, food and beverage revenue, ancillary hotel revenue and other revenue on the consolidated statements of operations to illustrate how economic factors affect the nature, amount and timing, and uncertainty of revenue and cash flows. Rooms revenue is recognized over time when rooms are occupied and food and beverage revenue is recognized at a point in time when goods and services have been delivered or rendered. Ancillary hotel revenue and other revenue is generally recognized at a point in time as goods and services are delivered or rendered. We assess if we are the principal or agent for certain ancillary services provided by third parties. If we are the principal, we recognize revenue based on the gross sales price. If we are the agent, we recognize revenue net of costs paid to service providers. Payment received for a future stay or event is recognized as an advance deposit, which is included in other liabilities on our consolidated balance sheets. Advance deposits are recognized as revenue when rooms are occupied or goods or services have been delivered or rendered to our customer. Our advance deposit balance as of December 31, 2025 and 2024 was $ 127 million and $ 120 million, respectively, and are generally recognized as revenue within a one-year period. Additionally, we collect sales, use, occupancy and similar taxes at our hotels, which we present on a net basis (excluded from revenues) in our consolidated statements of operations. Share-based Compensation We recognize the cost of services received in share-based payment transactions with employees and non-employee directors as services are received and recognize a corresponding increase in additional paid-in capital for equity classified awards. We account for any forfeitures when they occur. The measurement objective for these equity awards is the estimated fair value at the grant date of the equity instruments that we will be obligated to issue when employees have rendered the requisite service and satisfied any other conditions necessary to earn the right to benefit from the instruments. The compensation expense for an award classified as an equity instrument is recognized ratably over the requisite service period. The requisite service period is the period during which an employee is required to provide service in exchange for an award. Income Taxes We have been organized and operated, and we expect to continue to be organized and operate, in a manner to qualify as a REIT. To qualify as a REIT, we must satisfy requirements related to, among other things, the real estate 63 Table of Content s qualification of sources of our income, the real estate composition and values of our assets, the amounts we distribute to our stockholders annually and the diversity of ownership of our stock. To the extent we continue to remain qualified as a REIT, we generally will not be subject to U.S. federal (and state) income tax on taxable income generated by our REIT activities that we distribute annually to our stockholders. Accordingly, no provision for U.S. federal income taxes has been included in our accompanying consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 related to our REIT activities other than taxes related to our sale of built-in gain property (representing property held by us with an excess of fair value over tax basis on January 4, 2017). We will remain subject to California income tax on taxable sales of built-in-gain property until January 2027. Further, our taxable REIT subsidiaries (“TRSs”) are generally subject to U.S. federal, state and local, and foreign income taxes (as applicable). We account for income taxes using the asset and liability method. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year, to recognize the deferred tax assets and liabilities that relate to tax consequences in future years, which result from differences between the respective tax basis of assets and liabilities and their financial reporting amounts, and to recognize tax loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the respective temporary differences or operating loss or tax credit carry forwards are expected to be recovered or settled. The realization of deferred tax assets and tax loss and tax credit carry forwards is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. We use a prescribed recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken in a tax return. For all income tax positions, we first determine whether it is “more-likely-than-not” that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If it is determined that a position meets the more-likely-than-not recognition threshold, the benefit recognized in the financial statements is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. Recently Issued Accounting Pronouncements Accounting Standards Not Yet Adopted In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03 (“ASU 2024-03”), Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) , which adds guidance on providing qualitative and quantitative disclosures about certain costs and expenses. Although early adoption is permitted, we expect to adopt ASU-2024 03 on a prospective basis when the requirements become effective for the year ended December 31, 2027. We are currently evaluating the effect that ASU 2024-03 will have on our consolidated financial statements. Accounting Standards Adopted In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which enhances income tax disclosures, including disclosures about the existing rate reconciliation and income taxes paid information. We adopted this ASU on a prospective basis for the year-ended December 31, 2025 and incorporated any such material disclosures in Note 10: “Income Taxes” for additional information. Note 3: Acquisitions, Dispositions and Assets Held for Sale Acquisitions During the year ended December 31, 2023, we acquired two parcels of land, adjacent to the Hilton Hawaiian Village Waikiki Beach Resort, for a purchase price of approximately $ 18 million, including transaction costs. We accounted for the purchase as an acquisition of an asset, and the entire purchase price was allocated to land. 64 Table of Content s Dispositions In May 2025, we sold the Hyatt Centric Fisherman’s Wharf, and in November 2025, we sold our ownership interest in the unconsolidated joint venture that owned and operated the Capital Hilton. We received total gross proceeds from all dispositions of $ 120 million, and proceeds for the Capital Hilton were reduced by $ 28 million for our share of the mortgage debt in the joint venture. We recognized a net gain of approximately $ 17 million for the sale of our consolidated hotel and for the sale of our interest in the Capital Hilton, which is included in gain on sale of assets, net , and other gain (loss), net , respectively , in our consolidated statements of operations. Additionally, in September 2025, we permanently closed the Embassy Suites Kansas City Plaza and terminated its ground lease and, on December 31, 2025, the ground leases for the DoubleTree Hotel Sonoma Wine Country and the DoubleTree Hotel Seattle Airport expired. These three properties were surrendered to their respective ground lessors. In December 2024, the consolidated joint venture that owned the DoubleTree Hotel Spokane City Center sold the hotel for gross proceeds of approximately $ 35 million. Proceeds were used to repay the $ 14 million mortgage loan secured by the hotel, and after paying customary closing expenses, our pro-rata share of the remaining net proceeds was approximately $ 10 million. We recognized a gain of approximately $ 8 million, which is included in gain on sale of assets, net in our consolidated statements of operations. In July 2024, the unconsolidated joint venture that owned and operated the Hilton La Jolla Torrey Pines sold the hotel for gross proceeds of approximately $ 165 million, and our pro-rata share of the gross proceeds was approximately $ 41 million, which was reduced by our portion of debt of approximately $ 17 million. We recognized a gain of approximately $ 19 million, which is included in equity in earnings from investments in affiliates in our consolidated statements of operations. Additionally, in August 2024, we permanently closed the Hilton Oakland Airport and subsequently terminated its ground lease, returning the property to the ground lessor. In February 2023, we sold the Hilton Miami Airport hotel for gross proceeds of $ 118 million. We recognized a net gain of approximately $ 15 million, which is included in gain on sale of assets, net in our consolidated statements of operations. Additionally, in June 2023, the ground lessor terminated the ground lease for the Embassy Suites Phoenix Airport hotel and, pursuant to an agreement, we received an early termination fee of approximately $ 4 million, which is included in other gain (loss), net in our consolidated statements of operations. Assets Held for Sale In November 2025, we entered into a definitive agreement to sell one of our Non-Core hotels. Assets held for sale related to this hotel were as follows as of December 31, 2025: (in millions) Assets: Property and equipment, net $ 13 Other 1 Total Assets Held for Sale $ 14 Liabilities held for sale related to this hotel were approximately $ 1 million as of December 31, 2025, which is included in other liabilities in our consolidated balance sheets. 65 Table of Content s Note 4: Property and Equipment Property and equipment were: December 31, 2025 (1) 2024 (in millions) Land $ 2,918 $ 3,018 Buildings and leasehold improvements 5,487 5,989 Furniture and equipment 931 1,023 Construction-in-progress 249 152 9,585 10,182 Accumulated depreciation ( 2,630 ) ( 2,784 ) $ 6,955 $ 7,398 ___________________________________________________________________________________ (1) Excludes $ 13 million of property and equipment, net, classified as held for sale as of December 31, 2025. Depreciation of property and equipment was $ 336 million, $ 256 million and $ 286 million during the years ended December 31, 2025, 2024 and 2023, respectively. Depreciation expense for the year ended December 31, 2025 includes accelerated depreciation recognized in connection with renovations at certain of our hotels, including the Royal Palm South Beach Miami, a Tribute Portfolio Resort (“Royal Palm”), which began in May 2025. Note 5: Consolidated Variable Interest Entities (“VIEs”) and Investments in Affiliates Consolidated VIEs As of December 31, 2025, we consolidate VIEs that own two hotels in the U.S. We are the primary beneficiary of these VIEs as we have the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our VIEs are only available to settle the obligations of these entities. Our consolidated balance sheets include the following assets and liabilities of these entities: December 31, 2025 2024 (in millions) Property and equipment, net $ 182 $ 181 Cash and cash equivalents 16 34 Restricted cash 3 2 Accounts receivable, net 3 3 Prepaid expenses 3 3 Debt 183 186 Accounts payable and accrued expenses 9 10 Due to hotel manager 2 3 Other liabilities 4 2 Unconsolidated Entities As of December 31, 2025, two of our hotels are owned by unconsolidated joint ventures in which we hold an interest. In November 2025, we sold our ownership interest in the unconsolidated joint venture that owned and operated the Capital Hilton. These hotels are accounted for using the equity method and had total debt of approximately $ 573 million and $ 685 million as of December 31, 2025 and 2024, respectively. Substantially all the debt is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us. 66 Table of Content s Note 6: Intangibles Intangible assets were: December 31, 2025 2024 (in millions) Air rights contract $ 45 $ 45 Other 3 3 Accumulated amortization ( 7 ) ( 7 ) $ 41 $ 41 As of December 31, 2025, we estimated our future amortization expense for our intangible assets to be: Year (in millions) 2026 $ 1 2027 1 2028 1 2029 1 2030 1 Thereafter 36 $ 41 Note 7: Debt Debt balances and associated interest rates as of December 31, 2025 were: Principal balance as of Interest Rate at December 31, 2025 Maturity Date December 31, 2025 December 31, 2024 (in millions) HHV Mortgage Loan 4.20 % November 2026 $ 1,275 $ 1,275 Other mortgage loans Average rate of 4.40 % 2026 to 2027 (1) 355 364 Revolver SOFR + 2.25 % September 2029 — — 2024 Term Loan SOFR + 2.20 % May 2027 200 200 2025 Delayed Draw Term Loan SOFR + 2.20 % January 2030 — — 2028 Senior Notes 5.88 % October 2028 725 725 2029 Senior Notes 4.88 % May 2029 750 750 2030 Senior Notes 7.00 % February 2030 550 550 Finance lease obligations 6.88 % 2026 to 2030 1 1 3,856 3,865 Less: unamortized deferred financing costs and discount ( 18 ) ( 24 ) $ 3,838 $ 3,841 ____________________________________________________________________________________ (1) Assumes the exercise of all extensions that are exercisable solely at our option. The mortgage loan for Hilton Denver City Center matures in 2042 but became callable by the lender in August 2022 with six months of notice. As of December 31, 2025, we had not received notice from the lender. 67 Table of Content s Mortgage Loans In October 2016, we entered into a $ 1.275 billion CMBS loan secured by the Hilton Hawaiian Village (“HHV Mortgage Loan”). The HHV Mortgage Loan bears interest at a fixed-rate and requires interest-only payments through its maturity date. The HHV Mortgage Loan may be partially or fully prepaid without penalty on or after May 1, 2026. Our other mortgage loans all bear interest at fixed-rates. Certain of our mortgage loans require interest-only loan payments through their respective maturity dates, and the remaining mortgage loans require payments of both principal and interest on a monthly basis. Credit Facilities Revolver, 2024 Term Loan and 2025 Delayed Draw Term Loan In September 2025, the Company and our Operating Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement provides for an increase in the aggregate commitments for the senior unsecured revolving credit facility (“Revolver”) from $ 950 million to $ 1 billion, a new $ 800 million senior unsecured delayed draw term loan facility (“2025 Delayed Draw Term Loan”), which allows for up to three draws through September 17, 2026, and the continuation of the $ 200 million senior unsecured term loan (“2024 Term Loan”). The Credit Agreement extended the Revolver’s maturity date to September 17, 2029, with an option to extend its maturity by one year as either (i) a one-year extension or (ii) two six-month extensions. The 2025 Delayed Draw Term Loan matures on January 2, 2030, with an option to extend its maturity by an additional one-year period. The maturity date of the 2024 Term Loan remains May 14, 2027. The Credit Agreement includes the option to increase the Revolver and increase or add new term loans under the Credit Agreement by up to $ 1 billion in the aggregate, subject to obtaining additional lender commitments and the satisfaction of certain customary conditions. Borrowings under the Revolver, the 2024 Term Loan and the 2025 Delayed Draw Term Loan bear interest based upon the secured overnight financing rate (“SOFR”), plus an applicable margin based on our leverage ratio. The Credit Agreement removed the previous credit spread adjustment on the Revolver and the 2024 Term Loan of 0.10 %. We are subject to fees between 0.20 % and 0.25 % based on unused commitments under the Revolver, as well as a 0.25 % ticking fee on the undrawn portion of the 2025 Delayed Draw Term Loan. Additionally, the Revolver permits one or more standby letters of credit, up to a maximum aggregate outstanding balance of $ 50 million, to be issued on behalf of us. Any outstanding standby letters of credit reduce the available borrowings on the Revolver by a corresponding amount. As of December 31, 2025, our all-in interest rate for the 2024 Term Loan was 5.93 %, and there were no borrowings outstanding under the Revolver or the 2025 Delayed Draw Term Loan. The Credit Agreement generally maintained the financial covenants under our existing credit agreement, including a maximum leverage ratio, minimum fixed charge coverage ratio, maximum secured leverage ratio, maximum unsecured indebtedness to unencumbered asset value ratio and minimum unencumbered adjusted net operating income to unsecured interest coverage ratio. The Credit Agreement allows for our continued ability to conduct share repurchases, subject to compliance with the financial covenants. The Credit Agreement restricts certain activities of the Company, including our ability to grant liens on certain properties, mergers, affiliate transactions, asset sales and, in the event the Company is in default under the Credit Agreement, the payment of dividends and distributions (except certain limited exceptions including to the extent required to maintain REIT status). During the year ended December 31, 2025, we capitalized $ 9 million of financing fees incurred related to the Revolver and $ 8 million related to the 2025 Delayed Draw Term Loan. We will begin amortizing financing fees for the 2025 Delayed Draw Term Loan when drawn upon. During the year ended December 31, 2024, we capitalized $ 2 million of financing fees incurred related to the 2024 Term Loan. Senior Notes 2025 Senior Notes In May 2020, our Operating Company, PK Domestic Property LLC, an indirect subsidiary of the Company (“PK Domestic”) and PK Finance Co-Issuer Inc. (“PK Finance”) issued an aggregate of $ 650 million of senior notes due 2025 (“2025 Senior Notes”), which bore interest at a rate of 7.500 % per annum. In May 2024, all of the 2025 Senior Notes were 68 Table of Content s repurchased or redeemed using the proceeds from the $ 550 million of senior notes due in 2030 (“2030 Senior Notes”) and the 2024 Term Loan. 2028 Senior Notes In September 2020, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 725 million of senior notes due 2028 (“2028 Senior Notes”). The 2028 Senior Notes bear interest at a rate of 5.875 % per annum, payable semi-annually in arrears on April 1 and October 1 of each year beginning April 1, 2021. The 2028 Senior Notes will mature on October 1, 2028. We may redeem the 2028 Senior Notes at 100 % of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. 2029 Senior Notes In May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 750 million of senior notes due 2029 (“2029 Senior Notes”). The 2029 Senior Notes bear interest at a rate of 4.875 % per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning November 15, 2021. The 2029 Senior Notes will mature on May 15, 2029. We may redeem the 2029 Senior Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after May 15, 2026, we may redeem the 2029 Senior Notes at 100 % of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. 2030 Senior Notes In May 2024, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 550 million of 2030 Senior Notes. Net proceeds from the 2030 Senior Notes and the 2024 Term Loan were used to repurchase or redeem all of the 2025 Senior Notes, and the remainder was used for general corporate purposes. The 2030 Senior Notes bear interest at a rate of 7.000 % per annum, payable semi-annually in arrears on February 1 and August 1 of each year, beginning February 1, 2025. The 2030 Senior Notes will mature on February 1, 2030. We capitalized approximately $ 9 million of issuance costs during the year ended December 31, 2024. We may redeem the 2030 Senior Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after August 1, 2028, we may redeem the 2030 Senior Notes at 100 % of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Indentures The 2028 Senior Notes, 2029 Senior Notes and 2030 Senior Notes (collectively, the “Senior Notes”) are guaranteed by Park Parent, PK Domestic REIT Inc., and by the subsidiaries of our Operating Company that also guarantee indebtedness under our credit facility. The guarantees are full and unconditional and joint and several. The indentures governing the Senior Notes contain customary covenants that limit the issuers’ ability and, in certain instances, the ability of the issuers’ subsidiaries, to borrow money, create liens on assets, make distributions and pay dividends on or redeem or repurchase stock, make certain types of investments, sell stock in certain subsidiaries, enter into agreements that restrict dividends or other payments from subsidiaries, enter into transactions with affiliates, issue guarantees of indebtedness, and sell assets or merge with other companies. These covenants are subject to a number of exceptions and qualifications, including the ability to declare or pay any cash dividend or make any cash distribution to us to the extent necessary for us to fund a dividend or distribution by us that we believe is necessary to maintain our status as a REIT or to avoid payment of any tax for any calendar year that could be avoided by reason of such distribution, and the ability to make certain restricted payments not to exceed $ 100 million, plus 95 % of our cumulative Funds From Operations (as defined in the indentures), plus the aggregate net proceeds from (i) the sale of certain equity interests in, (ii) capital contributions to, and (iii) certain convertible indebtedness of the Operating Company. In addition, the indentures require our Operating Company to maintain total unencumbered assets as of each fiscal quarter of at least 150 % of total unsecured indebtedness, in each case calculated on a consolidated basis. 69 Table of Content s Debt Maturities The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of December 31, 2025 were: Year (in millions) 2026 $ 1,601 2027 230 2028 725 2029 750 2030 550 $ 3,856 Debt Associated with Hotels in Receivership In June 2023, we ceased making debt service payments towards the $ 725 million non-recourse CMBS loan (“SF Mortgage Loan”) secured by the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco – a Hilton Hotel (collectively, the “Hilton San Francisco Hotels”), which was due November 2023, and we received a notice of default from the servicer. In October 2023, the trustee for the SF Mortgage Loan filed a lawsuit against the borrowers under the SF Mortgage Loan. In connection with the lawsuit, the court appointed a receiver to take control of the Hilton San Francisco Hotels, which served as security for the SF Mortgage Loan, and their operations, and thus, we had no further economic interest in the operations of the hotels. The receiver operated and had authority over the Hilton San Francisco Hotels until they were sold by the court-appointed receiver on November 21, 2025, and the SF Mortgage Loan was assumed by the buyer in connection with the sale. The stated rate on the loan was 4.11 %; however, beginning June 1, 2023, the default interest rate on the loan was 7.11 %. Additionally, beginning June 1, 2023, the loan accrued a monthly late payment administrative fee of 3 % of the monthly amount due. We derecognized the Hilton San Francisco Hotels from our consolidated balance sheet in October 2023, when the receiver took control of the hotels and, accordingly, recognized a gain of $ 221 million for the year ended December 31, 2023, which is included in gain on derecognition of assets in our consolidated statements of operations. Until the Hilton San Francisco Hotels were sold by the court-appointed receiver in November 2025 and the SF Mortgage Loan was assumed by the buyer, we recognized a gain of $ 58 million and $ 60 million, respectively, representing accrued interest expense associated with the default of the SF Mortgage Loan for the years ended December 31, 2025 and December 31, 2024, with a corresponding increase of the contract asset on our consolidated balance sheets. In November 2025, we derecognized the SF Mortgage Loan and associated accrued interest expense included in debt associated with hotels in receivership and accrued interest associated with hotels in receivership , respectively, through and including the date of the sale, and the corresponding contract asset on our consolidated balance sheets. 70 Table of Content s Note 8: 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, 2025 December 31, 2024 Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Liabilities: HHV Mortgage Loan 3 $ 1,275 $ 1,248 $ 1,275 $ 1,212 Other mortgage loans 3 355 351 364 349 2024 Term Loan 3 200 200 200 199 2028 Senior Notes 1 725 725 725 712 2029 Senior Notes 1 750 732 750 706 2030 Senior Notes 1 550 564 550 559 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 3 260 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. Note 9: 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. 71 Table of Content s 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 2027 23 2028 23 2029 22 2030 22 Thereafter 282 Total minimum rent payments 395 Less: imputed interest 186 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, 2025 2024 2023 (in millions) Operating lease expense $ 25 $ 23 $ 23 Variable lease expense 16 16 16 Operating cash flows for operating leases 27 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. Note 10: Income Taxes We have been organized and operated, and we expect to continue to be organized and operate in a manner to qualify as a REIT. To qualify as a REIT, we must satisfy requirements related to, among other things, the real estate qualification of sources of our income, the real estate composition and values of our assets, the amounts we distribute to our stockholders annually and the diversity of ownership of our stock. To the extent we continue to remain qualified as a REIT, we generally will not be subject to U.S. federal (and state) income tax on taxable income generated by our REIT activities that we distribute annually to our stockholders. Accordingly, no provision for U.S. federal income taxes has been included in our accompanying consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 related to our REIT activities other than taxes related to our sale of built-in gain property. Our TRSs are generally subject to U.S. federal, state and local, and foreign income taxes (as applicable). 72 Table of Content s The components of our provision (benefit) for income taxes were: Year Ended December 31, 2025 2024 2023 (in millions) Current: U.S. Federal $ 3 $ 5 $ 5 State — ( 4 ) 19 Total current 3 1 24 Deferred: U.S. Federal 3 ( 43 ) 4 State 1 ( 19 ) 10 Total deferred 4 ( 62 ) 14 Total provision (benefit) for income taxes: U.S. Federal 6 ( 38 ) 9 State 1 ( 23 ) 29 Total provision (benefit) for income taxes $ 7 $ ( 61 ) $ 38 Reconciliations of our tax provision at the U.S. statutory rate to the provision (benefit) for income taxes were: Year Ended December 31, 2025 2024 2023 Amount Percent Amount Percent Amount Percent (dollars in millions) Statutory U.S. federal income tax (benefit) provision $ ( 56 ) 21 % $ 35 21 % $ 30 21 % State income taxes, net of U.S. federal tax benefit — — ( 6 ) ( 3 ) 29 19 Change in deferred tax asset valuation allowance — — ( 54 ) ( 33 ) — — REIT income not subject to tax 60 ( 23 ) ( 24 ) ( 15 ) ( 23 ) ( 16 ) Derecognition and remeasurement of deferred taxes — — ( 14 ) ( 9 ) — — Other 3 ( 1 ) 2 2 2 2 Provision (benefit) for income taxes $ 7 ( 3 ) % $ ( 61 ) ( 37 ) % $ 38 26 % Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items. The composition of net deferred tax balances were as follows: December 31, 2025 2024 (in millions) Deferred income tax assets (1) $ 36 $ 39 Deferred income tax liabilities (2) ( 1 ) — Net deferred tax asset $ 35 $ 39 ____________________________________________________________________________________ (1) Included within other assets in our consolidated balance sheets, net of valuation allowance. (2) Included within other liabilities in our consolidated balance sheets. 73 Table of Content s The tax effects of the temporary differences and carryforwards that give rise to our net deferred tax balances were: December 31, 2025 2024 (in millions) Deferred tax assets: Net operating loss carryforwards $ 44 $ 45 Investments 6 6 Interest expense limitation 4 3 Other 4 4 Total gross deferred tax assets 58 58 Less: valuation allowance ( 5 ) ( 5 ) Deferred tax assets 53 53 Deferred tax liabilities: Investments ( 15 ) ( 13 ) Other ( 3 ) ( 1 ) Deferred tax liabilities ( 18 ) ( 14 ) Net deferred tax asset $ 35 $ 39 As of December 31, 2025, we had U.S. federal and state net operating loss carryforwards of approximately $ 698 million, which resulted in deferred tax assets of $ 44 million. Our U.S. federal net operating loss carryforwards of approximately $ 259 million are not subject to expiration. We have U.S. state net operating loss carryforwards of approximately $ 439 million, certain of which will begin to expire in 2031. Income taxes paid net of refunds received during the year ended December 31, 2025 were as follows: Year Ended December 31, 2025 (in millions) U.S. Federal $ 1 State and local 2 Total income taxes paid $ 3 We paid $ 15 million and $ 7 million in income taxes during the years ended December 31, 2024, and 2023, respectively. The cash distributions to stockholders in 2025, 2024 and 2023 are characterized, for U.S. federal income tax purposes, as follows: Year Ended December 31, 2025 2024 2023 Common distributions (per share): Ordinary dividends (1) $ 0.759540 $ 1.285731 $ 0.000000 Capital gain distributions (2) 0.240460 0.114269 2.150000 ____________________________________________________________________________________ (1) For the years ended December 31, 2025 and 2024, the ordinary dividends include qualified dividends of $ 0.025164 and $ 0.292918 , respectively. (2) Capital gain distribution disclosure pursuant to Treasury Regulation §1.1061-6(c). The following additional information relates to the capital gain distributions for calendar years 2025, 2024 and 2023, as reported on Park Hotels & Resorts Inc. Form 1099-DIV, Box 2a. For purposes of Internal Revenue Code Section 1061, which is generally applicable to direct and indirect holders of “applicable partnership interests”: (i) the “One Year Amounts” are $ 0.000000 per share, and (ii) the “Three Year Amounts” are $ 0.000000 per share, with respect to the 2025, 2024 and 2023 capital gain distributions. 74 Table of Content s Note 11: Share-Based Compensation We issue equity-based awards to our employees pursuant to the 2017 Omnibus Incentive Plan (the “2017 Employee Plan”) and our non-employee directors pursuant to the 2017 Stock Plan for Non-Employee Directors (the “2017 Director Plan”) both of which are amended and restated from time to time. The 2017 Employee Plan provides that a maximum of 14,070,000 shares of our common stock may be issued, and as of December 31, 2025, 5,258,954 shares of common stock remain available for future issuance. An amendment and restatement of the 2017 Director Plan was approved by our stockholders in April 2025 to, among other changes, increase the number of shares available to be issued by 875,000 , from 950,000 to 1,825,000 . As of December 31, 2025, 846,938 shares of common stock remain available for future issuance. For the years ended December 31, 2025, 2024 and 2023, we recognized $ 19 million, $ 19 million and $ 18 million of share-based compensation expense, respectively. As of December 31, 2025, unrecognized compensation expense was $ 18 million, which is expected to be recognized over a weighted-average period of 1.5 years. The total fair value of shares vested (calculated as the number of shares multiplied by the vesting date share price) during the years ended December 31, 2025, 2024 and 2023 was $ 12 million, $ 14 million and $ 7 million, respectively. Restricted Stock Awards Restricted Stock Awards (“RSAs”) generally vest in annual installments between one and three years from each grant date. The following table provides a summary of RSAs for the years ended December 31, 2025, 2024 and 2023: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2023 843,846 20.19 Granted 696,356 13.45 Vested ( 539,133 ) 20.39 Forfeited ( 18,484 ) 15.52 Unvested at December 31, 2023 982,585 15.40 Granted 629,151 16.17 Vested ( 548,947 ) 15.79 Forfeited ( 53,118 ) 15.47 Unvested at December 31, 2024 1,009,671 15.66 Granted 868,711 12.25 Vested ( 567,090 ) 15.48 Forfeited ( 57,448 ) 13.63 Unvested at December 31, 2025 1,253,844 $ 13.47 Performance Stock Units Performance Stock Units (“PSUs”) generally vest at the end of a three-year performance period and are subject to the achievement of a market condition based on a measure of our total shareholder return relative to the total shareholder return of the companies that comprise the FTSE Nareit Lodging Resorts Index (that have a market capitalization in excess of $ 1 billion as of the first day of the applicable performance period). The number of PSUs that may become vested ranges from zero to 200 % of the number of PSUs granted to an employee, based on the level of achievement of the foregoing performance measure. 75 Table of Content s The following table provides a summary of PSUs for the years ended December 31, 2025, 2024 and 2023: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2023 1,198,325 20.71 Granted 590,805 19.96 Forfeited ( 261,554 ) 24.80 Unvested at December 31, 2023 1,527,576 19.72 Granted 592,132 17.75 Vested ( 337,283 ) 26.99 Forfeited ( 265,854 ) 7.78 Unvested at December 31, 2024 1,516,571 19.43 Granted 758,610 11.18 Vested ( 381,857 ) 21.93 Forfeited ( 27,070 ) 14.74 Unvested at December 31, 2025 1,866,254 $ 15.63 The grant date fair values of the awards that are subject to the achievement of market conditions based on total shareholder return were determined using a Monte Carlo simulation valuation model with the following assumptions: Year Ended December 31, 2025 2024 2023 Expected volatility (1) 33.0 % 36.0 % 48.0 % Dividend yield (2) — — — Risk-free rate (3) 4.4 % 4.5 % 4.3 % Expected term 3 years 3 years 3 years ____________________________________________________________________________________ (1) Estimated using a blended approach of historical and implied volatility. Historical volatility is based on the historical movement of the Company’s stock price for a period that corresponds to the expected terms of the PSUs. (2) Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected terms of the PSUs at the grant date of each award. 76 Table of Content s Note 12: Earnings Per Share The following table presents the calculation of basic and diluted earnings per share (“EPS”): Year Ended December 31, 2025 2024 2023 (in millions, except per share amounts) Numerator: Net (loss) income attributable to stockholders $ ( 283 ) $ 212 $ 97 Earnings attributable to participating securities — ( 1 ) ( 2 ) Net (loss) income attributable to stockholders, net of earnings allocated to participating securities $ ( 283 ) $ 211 $ 95 Denominator: Weighted average shares outstanding – basic 199 207 214 Unvested restricted shares — 2 1 Weighted average shares outstanding – diluted 199 209 215 (Loss) earnings per share – Basic (1) $ ( 1.43 ) $ 1.02 $ 0.44 (Loss) earnings per share – Diluted (1) $ ( 1.43 ) $ 1.01 $ 0.44 ____________________________________________________________________________________ (1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. Certain of our outstanding equity awards were excluded from the above calculation of EPS for the years ended December 31, 2025, 2024 and 2023 because their effect would have been anti-dilutive. Note 13: Hotel Management Operating and License Agreements Management and Franchise Fees We have management agreements, whereby we pay a base fee equal to a percentage of total revenues, as defined, as well as an incentive fee if specified financial performance targets are achieved. Our managers generally have sole responsibility for all activities necessary for the operation of the hotels, including establishing room rates, processing reservations and promoting and publicizing the hotels. Our managers also generally provide all employees for the hotels, prepare reports, budgets and projections, and provide other administrative and accounting support services to the hotels. We have consultative and limited approval rights with respect to certain actions of our managers, including entering into long-term or high value contracts, engaging in certain actions relating to legal proceedings, approving the operating budget, making certain capital expenditures and the hiring of certain management personnel. Our management agreements have initial terms ranging from 5 to 30 years and most allow for one or more renewal periods. Assuming all renewal periods are exercised by our hotel managers, the total term of our management agreements range from 5 to 70 years. We also have franchise agreements for five hotels. The franchise agreements have an initial term of 10 to 20 years and cannot be extended without the franchisor’s consent. Marketing Fees Additionally, the management and franchise agreements generally require a marketing fee equal to a percentage of rooms revenues. Total marketing fees were $ 41 million, $ 45 million and $ 47 million for the years ended December 31, 2025, 2024 and 2023, respectively, and were included in other departmental and support expense in our consolidated statements of operations. 77 Table of Content s Employee Cost Reimbursements We are responsible for reimbursing our managers for certain employee related costs outside of payroll. These costs include contributions to a defined contribution 401(k) Retirement Savings Plan administered by our managers, union-sponsored pension plans and other post-retirement plans. All of these plans are the responsibility of our managers and our obligation is only for the reimbursement of these costs for individuals who work at our hotel properties. Note 14: 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. 78 Table of Content s 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: 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. 79 Table of Content s 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 Note 15: Commitments and Contingencies As of December 31, 2025, we had outstanding commitments under third-party contracts of approximately $ 110 million for capital expenditures at our properties, of which $ 32 million relates to the transformative renovation at the Royal Palm, $ 18 million relates to guestroom, lobby, pool and exterior renovations at the Hilton Hawaiian Village Waikiki Beach Resort and $ 15 million relates to guestroom renovations at the Hilton New Orleans Riverside. Our contracts contain clauses that allow us to cancel all or some portion of the work. If cancellation of a contract occurred, our commitment would be any costs incurred up to the cancellation date, in addition to any costs associated with the discharge of the contract. We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums, and may make certain indemnifications or guarantees to select buyers of our hotels as part of a sale process. Currently, we are in active litigation with a ground lessor who alleges breach of a ground lease(s) related to the Hilton Salt Lake City Center, DoubleTree Hotel San Diego - Mission Valley and/or DoubleTree Hotel Durango and against whom we allege, among other things, breach of the same ground lease(s). We are also involved in claims and litigation that is not in the ordinary course of business in connection with the spin-off from Hilton. The spin-off agreements provide that Hilton will indemnify us from certain of these claims as well as require us to indemnify Hilton for other claims. In addition, losses related to certain contingent liabilities could be apportioned to us under the spin-off agreements. In connection with our obligation to indemnify Hilton under the spin-off agreements, we have reserved approximately $ 8 million as of December 31, 2025 related to litigation with respect to an audit by the Australian Tax Office (“ATO”) of Hilton related to the sale of the Hilton Sydney in June 2015. This amount could change as the litigation of the ATO’s claim progresses. 80 Table of Content s Additionally, as of December 31, 2025, Hilton remains subject to U.S. federal income tax examinations from 2011 through 2017, the year of our spin-off. Various income tax returns for Hilton filed with state, local and foreign jurisdictions remain subject to examination by the applicable taxing authorities. Note 16: Supplemental Disclosures of Cash Flow Information Interest paid during the years ended December 31, 2025, 2024 and 2023 was $ 212 million, $ 185 million and $ 215 million, respectively. Capital expenditures included within accounts payable and accrued expenses in our consolidated balance sheets were $ 29 million, $ 37 million and $ 37 million as of December 31, 2025, 2024 and 2023, respectively. The following non-cash financing activity was excluded from the consolidated statements of cash flows: During the years ended December 31, 2025, 2024 and 2023, we declared $ 50 million, $ 131 million and $ 355 million, respectively, of dividends that were unpaid and accrued as of December 31, 2025, 2024 and 2023, respectively. Note 17: Subsequent Events In January 2026, we sold the Hilton Checkers Los Angeles for gross proceeds of $ 12.5 million. 81 Table of Contents Park Hotels & Resorts Inc. Schedule III Real Estate and Accumulated Depreciation (Dollars in millions) December 31, 2025 Initial Cost Gross Amounts at Which Carried at Close of Period Hotel Property Encumbrances Land Building & Improvements Furniture, Fixtures & Equipment Costs Capitalized Subsequent to Acquisition, net (1) Land Building & Improvements (2) Furniture, Fixtures & Equipment Total Accumulated Depreciation Date of Construction Date Acquired (3) Life Upon Which Depreciation is Computed Consolidated Core Hotels Caribe Hilton $ — $ 38 $ 56 $ 7 $ 83 $ 41 $ 111 $ 32 $ 184 $ ( 69 ) 1949 10/24/2007 3 - 40 years Hilton Boston Logan Airport — — 108 6 33 — 131 16 147 ( 71 ) 1999 10/24/2007 3 - 40 years Hilton Chicago — 69 233 12 203 71 383 63 517 ( 216 ) 1927 10/24/2007 3 - 40 years Hilton Hawaiian Village Waikiki Beach Resort 1,275 925 807 17 560 984 1,168 157 2,309 ( 607 ) 1961 10/24/2007 3 - 40 years Hilton McLean Tysons Corner — 50 82 3 ( 6 ) 23 60 46 129 ( 72 ) 1987 10/24/2007 3 - 40 years Hilton New Orleans Riverside — 89 217 3 148 90 306 61 457 ( 153 ) 1977 10/24/2007 3 - 40 years Hilton Santa Barbara Beachfront Resort 153 71 50 2 63 73 85 28 186 ( 53 ) 1986 10/24/2007 3 - 40 years Hilton Waikoloa Village — 160 340 25 ( 4 ) 112 346 63 521 ( 179 ) 1988 10/24/2007 3 - 40 years New York Hilton Midtown — 1,096 542 13 157 1,043 671 94 1,808 ( 366 ) 1963 10/24/2007 3 - 40 years DoubleTree Hotel Washington DC – Crystal City — 43 95 2 51 43 129 19 191 ( 79 ) 1982 12/14/2007 3 - 40 years Signia by Hilton Orlando Bonnet Creek — 15 377 31 134 30 467 60 557 ( 152 ) 2009 2/12/2015 3 - 40 years Waldorf Astoria Orlando — 34 274 29 78 48 313 54 415 ( 114 ) 2009 2/12/2015 3 - 40 years Casa Marina Key West, Curio Collection — 164 174 9 58 170 199 36 405 ( 58 ) 1920 2/17/2015 3 - 40 years The Reach Key West, Curio Collection — 57 67 3 23 57 83 10 150 ( 31 ) 1970 2/17/2015 3 - 40 years Juniper Hotel Cupertino, Curio Collection — 40 64 8 2 40 65 9 114 ( 25 ) 1973 6/2/2015 3 - 40 years Hilton Denver City Center 51 14 163 21 5 14 165 24 203 ( 47 ) 1982 9/18/2019 3 - 40 years Hyatt Regency Boston 121 — 177 14 4 — 180 15 195 ( 42 ) 1985 9/18/2019 3 - 40 years Hyatt Regency Mission Bay Spa and Marina — 5 118 15 9 7 121 19 147 ( 39 ) 1961 9/18/2019 3 - 40 years JW Marriott San Francisco Union Square — — 191 13 9 — 199 14 213 ( 44 ) 1987 9/18/2019 3 - 40 years Royal Palm South Beach Miami, a Tribute Portfolio Resort — 16 139 12 4 15 154 2 171 ( 13 ) 1926 9/18/2019 3 - 40 years Total Consolidated Core Hotels 1,600 2,886 4,274 245 1,614 2,861 5,336 822 9,019 ( 2,430 ) 82 Table of Contents Park Hotels & Resorts Inc. Schedule III Real Estate and Accumulated Depreciation (Dollars in millions) December 31, 2025 Initial Cost Gross Amounts at Which Carried at Close of Period Hotel Property Encumbrances Land Building & Improvements Furniture, Fixtures & Equipment Costs Capitalized Subsequent to Acquisition, net (1) Land Building & Improvements (2) Furniture, Fixtures & Equipment Total Accumulated Depreciation Date of Construction Date Acquired (3) Life Upon Which Depreciation is Computed Consolidated Non-Core Hotels DoubleTree Hotel Durango — — — 2 6 — 2 6 8 ( 6 ) 1985 10/24/2007 3 - 40 years DoubleTree Hotel Ontario Airport 30 14 58 3 20 13 64 18 95 ( 46 ) 1974 10/24/2007 3 - 40 years DoubleTree Hotel San Diego – Mission Valley — — — 2 18 — 10 10 20 ( 16 ) 1989 10/24/2007 3 - 40 years DoubleTree Hotel San Jose — 15 67 5 ( 59 ) 7 20 1 28 — 1980 10/24/2007 3 - 40 years Embassy Suites Austin Downtown South Congress — — 45 2 ( 40 ) — 7 — 7 — 1983 10/24/2007 3 - 40 years Hilton Salt Lake City Center — — — 10 22 — 9 23 32 ( 26 ) 2002 10/24/2007 3 - 40 years Hilton Seattle Airport & Conference Center — — 70 3 ( 43 ) — 29 1 30 — 1961 10/24/2007 3 - 40 years Hilton Orlando Lake Buena Vista — — 137 10 42 — 157 32 189 ( 91 ) 1983 8/30/2010 3 - 40 years Boston Marriott Newton — 24 74 15 ( 53 ) 15 44 1 60 — 1969 9/18/2019 3 - 40 years Hilton Checkers Los Angeles (4) — 19 44 7 ( 58 ) 4 8 — 12 — 1927 9/18/2019 3 - 40 years The Midland Hotel, a Tribute Portfolio Hotel (5) — 20 76 14 ( 73 ) 9 27 1 37 — 1928 9/18/2019 3 - 40 years The Wade (6) — 22 58 8 ( 57 ) 9 21 1 31 — 1965 9/18/2019 3 - 40 years Total Consolidated Non-Core Hotels 30 114 629 81 ( 275 ) 57 398 94 549 ( 185 ) Total Consolidated Core and Non-Core Hotels $ 1,630 $ 3,000 $ 4,903 $ 326 $ 1,339 $ 2,918 $ 5,734 $ 916 $ 9,568 $ ( 2,615 ) ___________________________________________________________________________________ (1) Subsequent costs capitalized are net of impairment expense. (2) Includes amounts classified as construction-in-progress. (3) On October 24, 2007, a predecessor to our Parent became a wholly owned subsidiary of an affiliate of The Blackstone Group L.P. following the completion of the Blackstone Merger. (4) In January 2026, we sold the Hilton Checkers Los Angeles. (5) In January 2025, the W Chicago – City Center was converted to The Midland Hotel, a Tribute Portfolio Hotel. (6) In February 2025, the W Chicago – Lakeshore was converted to The Wade. 83 Table of Contents Park Hotels & Resorts Inc. Schedule III Real Estate and Accumulated Depreciation—(continued) (Dollars in millions) December 31, 2025 Notes: (A) The change in total cost of properties for the fiscal years ended December 31, 2025, 2024 and 2023 is as follows: Year Ended December 31, 2025 2024 2023 (in millions) Balance at beginning of period $ 10,166 $ 10,075 $ 11,008 Additions during period: Capital expenditures 288 227 307 Deductions during period: Transfers to assets held for sale ( 13 ) — — Dispositions, including casualty losses and impairment loss on planned dispositions ( 873 ) ( 136 ) ( 199 ) Derecognition of assets (1) — — ( 1,041 ) Balance at end of period $ 9,568 $ 10,166 $ 10,075 ____________________________________________________________________________________ (1) For the year ended December 31, 2023, represents the derecognition of the Hilton San Francisco Hotels from our consolidated balance sheet in October 2023, when the receiver took control of the hotels. The Hilton San Francisco Hotels were sold by the court-appointed receiver on November 21, 2025. (B) The change in accumulated depreciation for the fiscal years ended December 31, 2025, 2024 and 2023 is as follows: Year Ended December 31, 2025 2024 2023 (in millions) Balance at beginning of period $ 2,771 $ 2,620 $ 2,712 Additions during period: Depreciation expense 264 255 254 Deductions during period: Dispositions, including casualty losses and impairment loss on planned dispositions ( 420 ) ( 104 ) ( 68 ) Derecognition of assets (1) — — ( 278 ) Balance at end of period $ 2,615 $ 2,771 $ 2,620 ____________________________________________________________________________________ (1) For the year ended December 31, 2023, represents the derecognition of the Hilton San Francisco Hotels from our consolidated balance sheet in October 2023, when the receiver took control of the hotels. The Hilton San Francisco Hotels were sold by the court-appointed receiver on November 21, 2025. (C) The aggregate cost of real estate for U.S. federal income tax purposes is approximately $ 5.800 billion as of December 31, 2025. 84 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None.