Oct. 2 at 7:56 PM
S&P Global Ratings has revised Park Hotels & Resorts Inc.’s outlook from stable to negative while confirming its existing credit ratings. The downgrade reflects expectations that the company’s leverage will stay above S&P’s 5.5x downgrade threshold through 2026, amid lower revenue per available room (RevPAR) and compressed margins. S&P recently lowered its U.S. RevPAR forecast for 2025 to a 0.5%–1.5% decline, citing weakness in lower-tier hotel segments and slower anticipated leisure travel, with potential flat growth in 2026.
During its Q2 earnings call, Park reported weaker-than-expected group demand, with a 380-basis-point slowdown, alongside softer short-term leisure travel due to economic uncertainty. S&P now expects Park’s portfolio RevPAR to fall 1%–2% in 2025, in line with management guidance, while adjusted EBITDA margins are forecast to compress 50–100 basis points to roughly 24%, driven by rising wages, benefits, and planned renovation-related disruptions.
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