Park Hotels & Resorts Inc. 10-Q

Item 1. Financial Statements. PARK HOTELS & RESORTS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share data) March 31, 2026 December 31, 2025 (unaudited) ASSETS Property and equipment, net $ 6,976 $ 6,955 Assets held for sale, net — 14 Intangibles, net 41 41 Cash and cash equivalents 156 232 Restricted cash 34 32 Accounts receivable, net of allowance for doubtful accounts of $ 3 and $ 2 142 116 Prepaid expenses 66 60 Other assets 77 80 Operating lease right-of-use assets 166 170 TOTAL ASSETS (variable interest entities – $ 207 and $ 207 ) $ 7,658 $ 7,700 LIABILITIES AND EQUITY Liabilities Debt $ 3,838 $ 3,838 Accounts payable and accrued expenses 225 198 Dividends payable 50 56 Due to hotel managers 104 134 Other liabilities 201 189 Operating lease liabilities 207 209 Total liabilities (variable interest entities – $ 197 and $ 198 ) 4,625 4,624 Commitments and contingencies – refer to Note 11 Stockholders’ Equity Common stock, par value $ 0.01 per share, 6,000,000,000 shares authorized, 202,511,845 shares issued and 201,249,407 shares outstanding as of March 31, 2026 and 200,938,658 shares issued and 199,901,086 shares outstanding as of December 31, 2025 2 2 Additional paid-in capital 4,023 4,031 Accumulated deficit ( 937 ) ( 902 ) Total stockholders’ equity 3,088 3,131 Noncontrolling interests ( 55 ) ( 55 ) Total equity 3,033 3,076 TOTAL LIABILITIES AND EQUITY $ 7,658 $ 7,700 Refer to the notes to the unaudited condensed consolidated financial statements. 3 Table of Content s PARK HOTELS & RESORTS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in millions, except per share data) Three Months Ended March 31, 2026 2025 Revenues Rooms $ 356 $ 363 Food and beverage 182 182 Ancillary hotel 60 63 Other 24 22 Total revenues 622 630 Operating expenses Rooms 97 100 Food and beverage 122 123 Other departmental and support 145 151 Other property 54 57 Management fees 30 30 Impairment 5 70 Depreciation and amortization 64 69 Corporate general and administrative 18 18 Other 24 21 Total expenses 559 639 Loss on sale of assets, net ( 1 ) — Gain on derecognition of assets — 16 Operating income 62 7 Interest income 1 3 Interest expense ( 51 ) ( 52 ) Interest expense associated with hotels in receivership — ( 16 ) Equity in earnings from investments in affiliates 1 — Other gain, net — 2 Income (loss) before income taxes 13 ( 56 ) Income tax expense ( 1 ) ( 1 ) Net income (loss) 12 ( 57 ) Net income attributable to noncontrolling interests ( 1 ) — Net income (loss) attributable to stockholders $ 11 $ ( 57 ) Earnings (loss) per share: Earnings (loss) per share – Basic $ 0.05 $ ( 0.29 ) Earnings (loss) per share – Diluted $ 0.05 $ ( 0.29 ) Weighted average shares outstanding – Basic 199 200 Weighted average shares outstanding – Diluted 200 200 Refer to the notes to the unaudited condensed consolidated financial statements. 4 Table of Content s PARK HOTELS & RESORTS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions) Three Months Ended March 31, 2026 2025 Operating Activities: Net income (loss) $ 12 $ ( 57 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 64 69 Loss on sale of assets, net 1 — Gain on derecognition of assets — ( 16 ) Impairment 5 70 Equity in earnings from investments in affiliates ( 1 ) — Share-based compensation expense 4 4 Amortization of deferred financing costs 3 3 Distributions from unconsolidated affiliates 1 — Changes in operating assets and liabilities ( 30 ) 13 Net cash provided by operating activities 59 86 Investing Activities: Capital expenditures for property and equipment ( 83 ) ( 77 ) Proceeds from asset dispositions, net 11 — Net cash used in investing activities ( 72 ) ( 77 ) Financing Activities: Repayments of mortgage debt ( 2 ) ( 2 ) Dividends paid ( 50 ) ( 131 ) Distributions to noncontrolling interests ( 1 ) ( 7 ) Tax withholdings on share-based compensation ( 8 ) ( 4 ) Repurchase of common stock — ( 45 ) Net cash used in financing activities ( 61 ) ( 189 ) Net decrease in cash and cash equivalents and restricted cash ( 74 ) ( 180 ) Cash and cash equivalents and restricted cash, beginning of period 264 440 Cash and cash equivalents and restricted cash, end of period $ 190 $ 260 Supplemental Disclosures Non-cash investing and financing activities: Accrued capital expenditures $ 36 $ 18 Dividends declared but unpaid 50 50 Refer to the notes to the unaudited condensed consolidated financial statements. 5 Table of Content s PARK HOTELS & RESORTS INC. CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (unaudited, in millions) Common Stock Additional Paid-in Capital Accumulated Deficit Non- controlling Interests Total Shares Amount Balance as of December 31, 2025 200 $ 2 $ 4,031 $ ( 902 ) $ ( 55 ) $ 3,076 Share-based compensation, net 1 — ( 8 ) 4 — ( 4 ) Net income — — — 11 1 12 Dividends and dividend equivalents (1) — — — ( 50 ) — ( 50 ) Distributions to noncontrolling interests — — — — ( 1 ) ( 1 ) Balance as of March 31, 2026 201 $ 2 $ 4,023 $ ( 937 ) $ ( 55 ) $ 3,033 Common Stock Additional Paid-in Capital Accumulated Deficit Non- controlling Interests Total Shares Amount Balance as of December 31, 2024 203 $ 2 $ 4,063 $ ( 420 ) $ ( 51 ) $ 3,594 Share-based compensation, net 1 — ( 1 ) 1 — — Net loss — — — ( 57 ) — ( 57 ) Dividends and dividend equivalents (1) — — — ( 49 ) — ( 49 ) Distributions to noncontrolling interests — — — — ( 7 ) ( 7 ) Repurchase of common stock ( 4 ) — ( 45 ) — — ( 45 ) Balance as of March 31, 2025 200 $ 2 $ 4,017 $ ( 525 ) $ ( 58 ) $ 3,436 ___________________________________ (1) Dividends declared per common share were $ 0.25 for both the three months ended March 31, 2026 and 2025. Refer to the notes to the unaudited condensed consolidated financial statements. 6 Table of Content s PARK HOTELS & RESORTS INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 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”) 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. 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. 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. Our strategic focus is on our “Core” portfolio, which includes 20 of our consolidated hotels and one unconsolidated joint venture and consists primarily of hotels and resorts that cater to both group and leisure demand. Our remaining hotels are considered “Non-Core.” As of March 31, 2026, our remaining Non-Core portfolio included 12 consolidated hotels and one unconsolidated joint venture, all of which the Company intends to divest from its portfolio . Note 2: Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation Principles of Consolidation The unaudited condensed 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”). We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All significant intercompany transactions and balances within the financial statements have been eliminated. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2025 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 20, 2026. 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. Interim results are not necessarily indicative of full year performance. Summary of Significant Accounting Policies Our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 20, 2026, contains a discussion of significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2025. 7 Table of Content s Recently Issued Accounting Pronouncements Accounting Standards Not Yet Adopted In November 2024, the Financial Accounting Standards Board 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. Note 3: Dispositions In January 2026, we sold the Hilton Checkers Los Angeles for gross proceeds of approximately $ 13 million. We recognized a net loss of approximately $ 1 million, which is included in loss on sale of assets, net in our condensed consolidated statements of operations. Note 4: Property and Equipment Property and equipment were: March 31, 2026 December 31, 2025 (1) (in millions) Land $ 2,926 $ 2,918 Buildings and leasehold improvements 5,536 5,487 Furniture and equipment 992 931 Construction-in-progress 201 249 9,655 9,585 Accumulated depreciation ( 2,679 ) ( 2,630 ) $ 6,976 $ 6,955 _____________________________________ (1) Excludes $ 13 million of property and equipment, net, classified as held for sale as of December 31, 2025, which has been reclassified to held and used as of March 31, 2026, as a result of the hotel no longer being under contract. Depreciation of property and equipment was $ 64 million and $ 69 million during the three months ended March 31, 2026 and 2025, respectively. Note 5: Consolidated Variable Interest Entities (“VIEs”) and Investments in Affiliates Consolidated VIEs We consolidate VIEs that own two hotels. 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 condensed consolidated balance sheets include the following assets and liabilities of these entities: 8 Table of Content s March 31, 2026 December 31, 2025 (in millions) Property and equipment, net $ 180 $ 182 Cash and cash equivalents (1) 17 16 Restricted cash 4 3 Accounts receivable, net 3 3 Prepaid expenses 2 3 Other assets 1 — Debt 182 183 Accounts payable and accrued expenses 10 9 Due to hotel manager 1 2 Other liabilities 4 4 _____________________________________ (1) As of March 31, 2026 and December 31, 2025, includes $ 7 million of cash held in a VIE related to a hotel sold in December 2024, which has not yet been distributed. Unconsolidated Entities Two of our hotels are owned by unconsolidated joint ventures in which we hold an interest. These hotels are accounted for using the equity method and had total debt of approximately $ 575 million and $ 573 million as of March 31, 2026 and December 31, 2025, respectively. Substantially all the debt is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us. Note 6: Debt Debt balances and associated interest rates as of March 31, 2026 were: Principal balance as of Interest Rate at March 31, 2026 Maturity Date March 31, 2026 December 31, 2025 (in millions) HHV Mortgage Loan (1) 4.20 % November 2026 $ 1,275 $ 1,275 Other mortgage loans Average rate of 4.40 % 2026 to 2027 (2) 353 355 Revolver (3) SOFR + 2.25 % September 2029 — — 2024 Term Loan SOFR + 2.20 % (4) May 2027 200 200 2025 Delayed Draw Term Loan (5) SOFR + 2.20 % January 2030 — — 2028 Senior Notes (6) 5.88 % October 2028 725 725 2029 Senior Notes (6) 4.88 % May 2029 750 750 2030 Senior Notes (6) 7.00 % February 2030 550 550 Finance lease obligations 6.88 % 2027 to 2030 1 1 3,854 3,856 Less: unamortized deferred financing costs and discount ( 16 ) ( 18 ) $ 3,838 $ 3,838 _____________________________________ (1) In October 2016, we entered into a $ 1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV Mortgage Loan”). (2) 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 notice. As of March 31, 2026, we had not received notice from the lender. (3) Our senior unsecured revolving credit facility (“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. As of March 31, 2026, we had $ 1 billion of available capacity under our Revolver and no outstanding letters of credit. In April 2026, we drew $ 50 million under the Revolver. 9 Table of Content s (4) Our $ 200 million senior unsecured term loan (“2024 Term Loan”) was incurred in May 2024. As of March 31, 2026, our all-in interest rate was 5.88 %. (5) Our $ 800 million senior unsecured delayed draw term loan facility (“2025 Delayed Draw Term Loan”) was incurred in September 2025. As of March 31, 2026, there were no borrowings outstanding. (6) Our Operating Company, PK Domestic Property LLC, an indirect subsidiary of the Company, and PK Finance Co-Issuer Inc. issued an aggregate of $ 725 million of senior notes due 2028 (“2028 Senior Notes”) in September 2020, an aggregate of $ 750 million of senior notes due 2029 (“2029 Senior Notes”) in May 2021 and an aggregate of $ 550 million of senior notes due 2030 (“2030 Senior Notes”) in May 2024. Debt Maturities The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of March 31, 2026 were: Year (in millions) 2026 $ 1,599 2027 230 2028 725 2029 750 2030 550 $ 3,854 Note 7: 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: March 31, 2026 December 31, 2025 Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Liabilities: HHV Mortgage Loan 3 $ 1,275 $ 1,255 $ 1,275 $ 1,248 Other mortgage loans 3 353 349 355 351 2024 Term Loan 3 200 199 200 200 2028 Senior Notes 1 725 720 725 725 2029 Senior Notes 1 750 723 750 732 2030 Senior Notes 1 550 558 550 564 During the three months ended March 31, 2026, we recognized an impairment loss of approximately $ 5 million related to the Hilton Seattle Airport & Conference Center, which was subsequently sold in April 2026, as the gross proceeds of $ 18 million were less than the net book value of the hotel. During the three months ended March 31, 2025, we recognized an impairment loss of approximately $ 70 million related to the Hyatt Centric Fisherman’s Wharf, which was sold in May 2025, as the gross proceeds were less than the net book value of the hotel. 10 Table of Content s 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: March 31, 2026 (1) 2025 (2) (in millions) Property and equipment Level 2 $ 18 $ — Level 3 — 74 Total $ 18 $ 74 _____________________________________ (1) We estimated the fair value of the asset based on a contracted sales price (Level 2). (2) We estimated the fair value of the asset using a discounted cash flow analysis, with an estimated stabilized growth rate of 3.0 %, a discounted cash flow term of 10 years, terminal capitalization rate of 7.3 % and a discount rate of 10.0 % (Level 3). The discount and terminal capitalization rates used for the fair value of the asset reflect the risk profile of the market where the property is located. Note 8: 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 March 31, 2026, 2,928,548 shares of common stock remain available for future issuance. The 2017 Director Plan provides that a maximum of 1,825,000 shares of our common stock may be issued, and as of March 31, 2026, 836,399 shares of common stock remain available for future issuance. For both the three months ended March 31, 2026 and 2025, we recognized $ 4 million of share-based compensation expense. As of March 31, 2026, unrecognized compensation expense was $ 33 million, which is expected to be recognized over a weighted-average period of 1.9 years. The total fair value of shares vested (calculated as the number of shares multiplied by the vesting date share price) for the three months ended March 31, 2026 and 2025 was $ 20 million and $ 11 million, respectively. Stock Awards Stock awards generally vest in annual installments between one and three years from each grant date. The following table provides a summary of stock awards for the three months ended March 31, 2026: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2026 1,253,844 $ 13.47 Granted 913,412 11.41 Vested ( 544,834 ) 14.03 Forfeited ( 34,518 ) 12.49 Unvested at March 31, 2026 1,587,904 $ 12.11 Performance Stock Units Performance Stock Units (“PSUs”) generally vest at the end of a three-year performance period. All PSUs granted prior to 2026 are subject to the achievement of a market condition based on a measure of our total shareholder return (“TSR metric”) 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 “Peer Companies”). Beginning in 2026, 75 % of PSUs granted continue to be subject to the foregoing TSR metric, while the remaining 25 % of PSUs are subject to the achievement of a performance condition based on our growth in revenue per available room (“RevPAR”) relative to RevPAR growth of the Peer Companies (“RevPAR metric”) . 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 market and performance conditions. 11 Table of Content s The following table provides a summary of PSUs for the three months ended March 31, 2026: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2026 1,866,254 $ 15.63 Granted 1,456,501 15.67 Vested ( 1,165,826 ) 19.96 Forfeited ( 6,685 ) 13.86 Unvested at March 31, 2026 2,150,244 $ 13.32 The grant date fair values and the corresponding compensation cost of the awards that are subject to the achievement of the TSR metric were determined using a Monte Carlo simulation valuation model with the following assumptions: Expected volatility (1) 34.0 % Dividend yield (2) — Risk-free rate (3) 3.6 % Expected term 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. The grant date fair values and the corresponding compensation cost of the awards that are subject to the achievement of the RevPAR metric were determined using the closing stock price on the grant date multiplied by the percentage of shares expected to vest, and such percentage is reevaluated based on the probability of meeting the RevPAR metric each period. Note 9: Earnings Per Share The following table presents the calculation of basic and diluted earnings per share (“EPS”): Three Months Ended March 31, 2026 2025 (in millions, except per share amounts) Numerator: Net income (loss) attributable to stockholders $ 11 $ ( 57 ) Earnings attributable to participating securities ( 1 ) ( 1 ) Net income (loss) attributable to stockholders, net of earnings allocated to participating securities $ 10 $ ( 58 ) Denominator: Weighted average shares outstanding – basic 199 200 Unvested restricted shares 1 — Weighted average shares outstanding – diluted 200 200 Earnings (loss) per share – Basic (1) $ 0.05 $ ( 0.29 ) Earnings (loss) per share – Diluted (1) $ 0.05 $ ( 0.29 ) _____________________________________ (1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. 12 Table of Content s Certain of our outstanding equity awards were excluded from the above calculation of EPS for the three months ended March 31, 2026 and 2025 because their effect would have been anti-dilutive. Note 10: Business Segment Information As a result of a shift in our business strategy during the quarter ended December 31, 2025, we 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 Chief Operating Decision Maker (the “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. 13 Table of Content s The following tables present our reportable segment expenses, Hotel Adjusted EBITDA reconciled to net income (loss) and reportable segment revenues reconciled to our consolidated amounts. Prior period amounts have been recast to reflect the change in our reportable segments: Three Months Ended March 31, 2026 2025 Total Core Hotels Non-Core Hotels Total Core Hotels Non-Core Hotels (in millions) Revenues: Rooms $ 356 $ 299 $ 57 $ 363 $ 294 $ 69 Food and beverage 182 157 25 182 152 30 Ancillary hotel 60 54 6 63 56 7 Total segment revenues 598 510 88 608 502 106 Less: Rooms expense 97 80 17 100 77 23 Food and beverage expense 122 106 16 123 102 21 Other departmental and support expense 145 117 28 151 115 36 Management fees 30 26 4 30 25 5 Other property segment expenses (1) 53 40 13 53 39 14 Total segment expenses 447 369 78 457 358 99 Hotel Adjusted EBITDA 151 $ 141 $ 10 151 $ 144 $ 7 Other revenues 24 22 Depreciation and amortization expense ( 64 ) ( 69 ) Corporate general and administrative expense ( 18 ) ( 18 ) Impairment ( 5 ) ( 70 ) Other operating expenses ( 24 ) ( 21 ) Loss on sales of assets, net ( 1 ) — Gain on derecognition of assets — 16 Interest income 1 3 Interest expense ( 51 ) ( 52 ) Interest expense associated with hotels in receivership — ( 16 ) Equity in earnings from investments in affiliates 1 — Income tax expense ( 1 ) ( 1 ) Other gain, net — 2 Other items ( 1 ) ( 4 ) Net income (loss) $ 12 $ ( 57 ) _____________________________________ (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. 14 Table of Content s Three Months Ended March 31, 2026 2025 Total Core Hotels Non-Core Hotels Total Core Hotels Non-Core Hotels (in millions) Revenues: Total revenues $ 622 $ 630 Less: Other revenues ( 24 ) ( 22 ) Total segment revenues $ 598 $ 510 $ 88 $ 608 $ 502 $ 106 The following table presents total assets for our consolidated Core and Non-Core hotels, reconciled to total assets: March 31, 2026 December 31, 2025 (in millions) Consolidated Core hotels $ 7,177 $ 7,194 Consolidated Non-Core hotels 439 461 All other 42 45 Total assets $ 7,658 $ 7,700 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: Three Months Ended March 31, 2026 2025 (in millions) Consolidated Core hotels $ 80 $ 73 Consolidated Non-Core hotels 3 4 Total capital expenditures for property and equipment $ 83 $ 77 Note 11: Commitments and Contingencies As of March 31, 2026, we had outstanding commitments under third-party contracts of approximately $ 124 million for capital expenditures at our properties, primarily related to the full-scale renovation of the Ali’i Tower at the Hilton Hawaiian Village Waikiki Beach Resort, guestroom renovations at the Hilton New Orleans Riverside and the transformative renovation at the Royal Palm South Beach Miami, a Tribute Portfolio Resort. 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, which remain in our portfolio, as well as the DoubleTree Hotel Sonoma Wine Country and/or the DoubleTree Hotel Seattle Airport for our period of ownership prior to their ground lease expiration in December 31, 2025, 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 March 31, 2026 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. 15 Table of Content s Note 12: Subsequent Events On April 30, 2026, Park’s indirect, wholly owned subsidiaries entered into a delayed draw loan facility, which provides the ability to draw between $ 650 million to $ 700 million no later than September 30, 2026 and matures on April 30, 2029 (“Bonnet Creek Mortgage Loan”). When drawn upon, the Bonnet Creek Mortgage Loan will be secured by the 1,009-room Signia by Hilton Orlando Bonnet Creek and the 502-room Waldorf Astoria Orlando and associated golf course. 16 Table of Content s