Park Hotels & Resorts Inc.

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). Forward-looking statements include, but are not limited to, statements related to the effects of our decision to cease payments on the $725 million non-recourse CMBS loan (“SF Mortgage Loan”) secured by two of our San Francisco hotels – 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”) and the lender’s exercise of its remedies, including placing such hotels into receivership, as well as our current expectations regarding the performance of our business, our financial results, our liquidity and capital resources, including anticipated repayment of certain of our indebtedness, the completion of capital allocation priorities, the expected repurchase of our stock, the impact from macroeconomic factors (including elevated inflation and interest rates, potential economic slowdown or a recession and geopolitical conflicts), the effects of competition, the effects of future legislation, executive action or regulations, tariffs, the expected completion of anticipated dispositions, the declaration, payment and any change in amounts of future dividends and other non-historical statements. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as the words “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “hopes” or the negative version of these words or other comparable words. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect our results of operations, financial condition, cash flows, performance or future achievements or events.

Current wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). Forward-looking statements include, but are not limited to, statements related to the effects of our decision to cease payments on the $725 million non-recourse CMBS loan (“SF Mortgage Loan”) secured by two of our San Francisco hotels – 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”) and the lender’s exercise of its remedies, including placing such hotels into receivership, as well as our current expectations regarding the performance of our business, our financial results, our liquidity and capital resources, including anticipated repayment of certain of our indebtedness, the completion of capital allocation priorities, the expected repurchase of our stock, the impact from macroeconomic factors (including elevated inflation and interest rates, potential economic slowdown or a recession and geopolitical conflicts or trends, including travel barriers or changes in travel preferences for U.S. destinations), the effects of competition, the effects of future legislation, executive action or regulations, tariffs, the expected completion of anticipated dispositions, the declaration, payment and any change in amounts of future dividends and other non-historical statements. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as the words “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “hopes” or the negative version of these words or other comparable words. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect our results of operations, financial condition, cash flows, performance or future achievements or events.

Previous wording

We have a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. We currently have interests in 40 hotels, consisting of premium-branded hotels and resorts with approximately 25,000 rooms, of which over 87% are luxury and upper upscale (as defined by Smith Travel Research) and are located in prime U.S. markets and its territories. Our high-quality portfolio currently includes hotels mostly in major urban and convention areas, such as New York City, Washington, D.C., Chicago, Boston, New Orleans and Denver; and premier resorts in key leisure destinations, including Hawaii, Orlando, Key West and Miami Beach; as well as hotels in select airport and suburban locations.

Current wording

We have a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. We currently have interests in 39 hotels, consisting of premium-branded hotels and resorts with approximately 25,000 rooms, of which over 87% are luxury and upper upscale (as defined by Smith Travel Research) and are located in prime U.S. markets and its territories. Our high-quality portfolio currently includes hotels mostly in major urban and convention areas, such as New York City, Washington, D.C., Chicago, Boston, New Orleans and Denver; and premier resorts in key leisure destinations, including Hawaii, Orlando, Key West and Miami Beach; as well as hotels in select airport and suburban locations.

Previous wording

We operate our business through two operating segments, our consolidated hotels and unconsolidated hotels. Our consolidated hotels operating segment is our only reportable segment. Refer to Note 9: “Business Segment Information” in our unaudited condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q for additional information regarding our operating segments.

Current wording

We operate our business through two operating segments, our consolidated hotels and unconsolidated hotels. Our consolidated hotels operating segment is our only reportable segment. Refer to Note 11: “Business Segment Information”

Previous wording

Economic disruptions, including as a result of elevated interest and inflation rates, may adversely affect our business by affecting consumer sentiment and demand for travel. Heightened uncertainty due to ongoing changes to trade policy, tax policy and disruptions to government spending has resulted in inflationary concerns and may affect the lodging industry. During the first quarter of 2025, we have relied on the performance of our hotels and active asset management to mitigate the effects of current macroeconomic uncertainty. Additionally, we continued to experience improvements in average daily rate (“ADR”), although this growth has slowed as the industry recovery has stabilized and seasonal patterns have normalized. While there can be no assurances that we will not experience further fluctuations in hotel revenues or earnings at our hotels due to inflation and other macroeconomic factors, local economic factors and demand, a potential economic slowdown or a recession and geopolitical conflicts, we are cautiously optimistic for 2025 based on expected improvements in demand trends and expected increases in city-wide events.

Current wording

Economic disruptions, including as a result of elevated interest and inflation rates, may adversely affect our business by affecting consumer sentiment and demand for travel. Heightened uncertainty due to ongoing changes to trade policy, tax policy and disruptions to government spending has resulted in inflationary concerns and changes in demand and travel preferences, which may affect the lodging industry. During the second quarter of 2025, we have relied on the performance of our hotels and active asset management to mitigate the effects of current macroeconomic uncertainty. While there can be no assurances that we will not experience further fluctuations in hotel revenues or earnings at our hotels due to inflation and other macroeconomic factors, local economic factors and demand, a potential economic slowdown or a recession and geopolitical conflicts, we are cautiously optimistic for 2025 based on expected improvements in demand trends and continued benefits from transformative renovations at certain of our hotels.

Previous wording

(1)For the three months ended March 31, 2025 and 2024, represents accrued interest expense associated with the default of the SF Mortgage Loan, which is offset by a gain on derecognition for the corresponding increase of thecontract asset on our condensed consolidated balance sheets, as we expect to be released from this obligation upon final resolution with the lender.

Current wording

(1)For the three and six months ended June 30, 2025 and 2024, represents accrued interest expense associated with the default of the SF Mortgage Loan, which is offset by a gain on derecognition for the corresponding increase of thecontract asset on our condensed consolidated balance sheets, as we expect to be released from this obligation upon final resolution with the lender.

Previous wording

(1)For the three months ended March 31, 2025 and 2024, represents accrued interest expense associated with the default of the SF Mortgage Loan, which is offset by a gain on derecognition for the corresponding increase of thecontract asset on our condensed consolidated balance sheets, as we expect to be released from this obligation upon final resolution with the lender.

Current wording

(1)For the three and six months ended June 30, 2025 and 2024, represents accrued interest expense associated with the default of the SF Mortgage Loan, which is offset by a gain on derecognition for the corresponding increase of thecontract asset on our condensed consolidated balance sheets, as we expect to be released from this obligation upon final resolution with the lender.

Previous wording

Our non-comparable hotels in the table of Hotel Revenues and Operating Expenses below consist of one hotel sold and one hotel returned to the lessor upon termination of the ground lease since January 1, 2024. The results of operations of these hotels are included in our consolidated results only during our period of ownership.

Current wording

Our non-comparable hotels in the table of Hotel Revenues and Operating Expenses below consist of two hotels sold and one hotel returned to the lessor upon termination of the ground lease since January 1, 2024. The results of operations of these hotels are included in our consolidated results only during our period of ownership.

Previous wording

Group, transient, contract and other rooms revenue for the three months ended March 31, 2025, as well as the change for each type of rooms revenue compared to the same period in 2024 are as follows:

Current wording

Group, transient, contract and other rooms revenue for the three and six months ended June 30, 2025, as well as the change for each type of rooms revenue compared to the same periods in 2024 are as follows:

Previous wording

(1)Change from our comparable hotels primarily relates to the market-specific conditions discussed below.

Current wording

(1)Change from other factors primarily relates to the market-specific conditions discussed below.

Previous wording

The changes in hotel revenues and operating expenses for our comparable hotels during the three months ended March 31, 2025 compared to the same period in 2024 were primarily attributable to increases at our hotels in the Orlando, Key West and New Orleans markets, offset by decreases at our hotels in the Hawaii, New York and Boston markets.

Current wording

The changes in hotel revenues and operating expenses for our comparable hotels during the three and six months ended June 30, 2025 compared to the same periods in 2024 were primarily attributable to increases at our hotels in the Orlando, New Orleans, New York and Key West markets, offset by decreases at our hotels in our Hawaii, Miami and Boston markets.

Previous wording

Our Orlando hotels continued to benefit from the comprehensive renovation and expansion projects completed in early 2024, increasing food and beverage revenue by 9% for the three months ended March 31, 2025 compared to the same period in 2024. The Signia by Hilton Orlando Bonnet Creek benefited from an increase in group demand, resulting in increases in occupancy and ADR of 0.4 percentage points and 2.5%, respectively, and the Waldorf Astoria Orlando benefited from an increase in transient demand, resulting in increases in occupancy and ADR of 14.8 percentage points and 5.9%, respectively, for the three months ended March 31, 2025 compared to the same period in 2024.

Current wording

Our Orlando hotels experienced an increase in food and beverage revenue of 5.3% and 7.4% for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 as a result of the benefit derived from the comprehensive renovation and expansion projects at the Bonnet Creek complex completed in early 2024. The Waldorf Astoria Orlando benefited from an increase in both group and transient demand, resulting in increases in occupancy and ADR of 12.6 percentage points and 2.6%, respectively, for the three months ended June 30, 2025, and 13.7 percentage points and 4.4%, respectively, for the six months ended June 30, 2025, compared to the same periods in 2024. The Signia by Hilton Orlando Bonnet Creek benefited primarily from an increase in group demand, resulting in an increase in ADR of 3.2% and 2.8%, respectively, for the three and six months ended June 30, 2025 compared to the same periods in 2024, while occupancy remained steady.

Previous wording

The Hilton New Orleans Riverside benefited from increased group demand driven by the Super Bowl that was held in February 2025, with ADR increasing 14.6% for the three months ended March 31, 2025 compared to the same period in 2024.

Current wording

For the three months ended June 30, 2025, the Hilton New Orleans Riverside benefited from an increase in both group and transient demand, with occupancy increasing 3.3 percentage points, and food and beverage revenue increasing 9.3% compared to the same period in 2024. For the six months ended June 30, 2025, the hotel benefited from an increase in group demand, which was driven by the Super Bowl that was held in February 2025, with ADR increasing 5.9% and food and beverage revenue increasing 7.2% compared to the same period in 2024.

Previous wording

The increase in the Key West market was a result of the Casa Marina Key West, Curio Collection, which continues to benefit from the hotel’s comprehensive renovation completed in 2023 and an increase in transient demand, resulting in increases in occupancy and ADR of 6.8 percentage points and 3.5%, respectively, for the three months ended March 31, 2025 compared to the same period in 2024.

Current wording

The increase in the Key West market was a result of the Casa Marina Key West, Curio Collection, which continues to benefit from the hotel’s comprehensive renovation completed in 2023 and an increase in transient demand, resulting in increases in occupancy of 9.1 percentage points and 7.9 percentage points, respectively, for the three and six months ended June 30, 2025, compared to the same periods in 2024.

Previous wording

These increases were offset by decreases in hotel revenues and operating expenses at our two Hawaii hotels where combined occupancy and ADR decreased 11.8 percentage points and 2.4%, respectively, for the three months ended March 31, 2025 compared to the same period in 2024 due to decreases in group and transient demand partially related to disruption from the renovations at both hotels during the first quarter of 2025.

Current wording

These increases were offset by decreases in hotel revenues and operating expenses at our two Hawaii hotels where combined occupancy and ADR decreased 8.3 percentage points and 2.2%, respectively, for the three months ended June 30, 2025 and 10.1 percentage points and 2.3%, respectively, for the six months ended June 30, 2025 compared to the same periods in 2024 due to decreases in group and transient demand, partially related to disruption from renovations at both hotels. Additionally, the Royal Palm South Beach Miami, a Tribute Portfolio Resort, suspended operations beginning in May 2025 for a full-scale renovation.

Previous wording

During the three months ended March 31, 2024, our Boston hotels benefited from a $5 million grant received from a state program and our Hawaii hotels benefited from a state unemployment tax refund of approximately $4 million, both of which reduced operating expenses.

Current wording

During the six months ended June 30, 2024, our Boston hotels benefited from a $5 million grant received from a state program and our Hawaii hotels benefited from a state unemployment tax refund of approximately $4 million, both of which reduced operating expenses.

Previous wording

During the three months ended March 31, 2025 and 2024, we recognized impairment losses of approximately $70 million and $5 million, respectively, each relating to one hotel and our inability to recover the carrying value of the assets. Refer to Note 6: “Fair Value Measurements” in our unaudited condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q for additional information.

Current wording

During the six months ended June 30, 2025, we recognized an impairment loss of approximately $70 million related to the Hyatt Centric Fisherman’s Wharf, which was sold in May 2025, due to a change in our intent to hold the hotel and our inability to recover the carrying value of the asset. During the three and six months ended June 30, 2024, we recognized impairment losses of approximately $7 million and $12 million, respectively, 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. Refer to Note 7: “Fair Value Measurements” in our unaudited condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q for additional information.

Previous wording

During the three months ended March 31, 2025 and 2024, we recognized a gain of $16 million and $14 million, respectively, from the accrued interest expense associated with the default of the SF Mortgage Loan, which resulted in a corresponding increase of thecontract asset in our condensed consolidated balance sheets, as we expect to be released from this obligation upon final resolution with the lender.

Current wording

During the three and six months ended June 30, 2025, we recognized a gain of $16 million and $32 million, respectively, and during the three and six months ended June 30, 2024, we recognized a gain of $15 million and $29 million, respectively, from the accrued interest expense associated with the default of the SF Mortgage Loan, which resulted in a corresponding increase of thecontract asset in our condensed consolidated balance sheets, as we expect to be released from this obligation upon final resolution with the lender.

Previous wording

Interest income decreased $2 million during the three months ended March 31, 2025 compared to the same period in 2024 primarily as a result of a decrease in average cash balances.

Current wording

Interest income decreased $3 million and $5 million during the three and six months ended June 30, 2025 compared to the same periods in 2024 primarily as a result of a decrease in average cash balances.

Previous wording

Interest expense associated with our debt for the three months ended March 31, 2025 and 2024 were as follows:

Current wording

Interest expense associated with our debt for the three and six months ended June 30, 2025 and 2024 were as follows:

Previous wording

For the three months ended March 31, 2025 and 2024, interest expense of $16 million and $14 million, respectively, represents accrued interest associated with the default of the SF Mortgage Loan. Refer to Note 5: “Debt” in our unaudited condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q for additional information.

Current wording

For the three and six months ended June 30, 2025, interest expense of $16 million and $32 million, respectively, and for the three and six months ended June 30, 2024, interest expense of $15 million and $29 million, respectively, represents accrued interest associated with the default of the SF Mortgage Loan. Refer to Note 6: “Debt” in our unaudited condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q for additional information.

Previous wording

We seek to maintain sufficient amounts of liquidity with an appropriate balance of cash, debt and equity to provide financial flexibility. As of March 31, 2025, we had total cash and cash equivalents of $233 million and $27 million of restricted cash. Restricted cash primarily consists of cash restricted as to use by our debt agreements and reserves for capital expenditures in accordance with certain of our management agreements.

Current wording

We seek to maintain sufficient amounts of liquidity with an appropriate balance of cash, debt and equity to provide financial flexibility. As of June 30, 2025, we had total cash and cash equivalents of $319 million and $28 million of restricted cash. Restricted cash primarily consists of cash restricted as to use by our debt agreements and reserves for capital expenditures in accordance with certain of our management agreements.

Previous wording

With $950 million available under our revolving credit facility (“Revolver”) and $233 million in existing cash and cash equivalents, we have sufficient liquidity to pay our debt maturities and to fund other liquidity obligations over the next 12 months and beyond. Excluding the SF Mortgage Loan for which we ceased to make debt service payments in June 2023 and is in default, and following the issuance of the 2030 Senior Notes and borrowings under the 2024 Term Loan in 2024, the proceeds from which collectively were used to repurchase or redeem all of the 2025 Senior Notes and for other general corporate purposes, we have no significant maturities until the fourth quarter of 2026. Refer to Note 5: “Debt” in our unaudited condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q for additional information. We may also take actions to improve our liquidity, such as the issuance of additional debt, equity or equity-linked securities, if we determine that doing so would be beneficial to us. However, there can be no assurance as to the timing of any such issuance, which may be in the near term, or that any such additional financing will be completed on favorable terms, or at all.

Current wording

With $950 million available under our revolving credit facility (“Revolver”) and $319 million in existing cash and cash equivalents, we have sufficient liquidity to pay our debt maturities and to fund other liquidity obligations over the next 12 months and beyond. Excluding the SF Mortgage Loan for which we ceased to make debt service payments in June 2023 and is in default, we have no significant maturities until the fourth quarter of 2026. Refer to Note 6: “Debt” in our unaudited condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q for additional information. We may also take actions to improve our liquidity, such as the issuance of additional debt, equity or equity-linked securities, if we determine that doing so would be beneficial to us. However, there can be no assurance as to the timing of any such issuance, which may be in the near term, or that any such additional financing will be completed on favorable terms, or at all.

Previous wording

Our known short-term liquidity requirements primarily consist of funds necessary to pay for operating expenses and other expenditures, including reimbursements to our hotel manager for payroll and related benefits, costs associated with the operation of our hotels, interest and contractually due principal payments on our outstanding indebtedness, capital expenditures for in-progress renovations and maintenance at our hotels, corporate general and administrative expenses and dividends to our stockholders. In February 2025, we declared a first quarter dividend of $0.25 per share that was paid on April 15, 2025 to stockholders of record as of March 31, 2025. In addition, we declared a second quarter dividend of $0.25 per share in April 2025 to be paid on July 15, 2025 to stockholders of record as of June 30, 2025. Many of the other expenses associated with our hotels are relatively fixed, including portions of rent expense, property taxes and insurance. Since we generally are unable to decrease these costs significantly or rapidly when demand for our hotels decreases, the resulting decline in our revenues can have a greater adverse effect on our net cash flow, margins and profits. Our long-term liquidity requirements primarily consist of funds necessary to pay for scheduled debt maturities, capital improvements at our hotels, and costs associated with potential acquisitions.

Current wording

Our known short-term liquidity requirements primarily consist of funds necessary to pay for operating expenses and other expenditures, including reimbursements to our hotel manager for payroll and related benefits, costs associated with the operation of our hotels, interest and contractually due principal payments on our outstanding indebtedness, capital expenditures for in-progress renovations and maintenance at our hotels, corporate general and administrative expenses and dividends to our stockholders. In April 2025, we declared a second quarter dividend of $0.25 per share that was paid on July 15, 2025 to stockholders of record as of June 30, 2025. In addition, we declared a third quarter dividend of $0.25 per share in July 2025 to be paid on October 15, 2025 to stockholders of record as of September 30, 2025. Many of the other expenses associated with our hotels are relatively fixed, including portions of rent expense, property taxes and insurance. Since we generally are unable to decrease these costs significantly or rapidly when demand for our hotels decreases, the resulting decline in our revenues can have a greater adverse effect on our net cash flow, margins and profits. Our long-term liquidity requirements primarily consist of funds necessary to pay for scheduled debt maturities, capital improvements at our hotels, and costs associated with potential acquisitions.

Previous wording

Our commitments to fund capital expenditures for renovations and maintenance at our hotels will be funded by cash and cash equivalents, restricted cash to the extent permitted by our lending agreements and cash flow from operations. We have construction contract commitments of approximately $121 million for capital expenditures at our properties, of which $40 million relates to guestroom renovations at the Hilton Hawaiian Village Waikiki Beach Resort, $30 million relates the transformative renovation at the Royal Palm South Beach Miami, a Tribute Portfolio Hotel, and $13 million relates to guestroom renovations at the Hilton Waikoloa Village. Our contracts contain clauses that allow us to cancel all or some portion of the work. Additionally, we have established reserves for capital expenditures (“FF&E reserve”) in accordance with our management and certain debt agreements. Generally, these agreements require that we fund 4% of hotel revenues into an FF&E reserve, unless such amounts have been incurred.

Current wording

Our commitments to fund capital expenditures for renovations and maintenance at our hotels will be funded by cash and cash equivalents, restricted cash to the extent permitted by our lending agreements and cash flow from operations. We have construction contract commitments of approximately $161 million for capital expenditures at our properties, and our contracts contain clauses that allow us to cancel all or some portion of the work. Refer to Note 12: “Commitments and Contingencies” in our unaudited condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q for additional information. Additionally, we have established reserves for capital expenditures (“FF&E reserve”) in accordance with our management and certain debt agreements. Generally, these agreements require that we fund 4% of hotel revenues into an FF&E reserve, unless such amounts have been incurred.

Previous wording

In February 2025, our Board of Directors terminated a previous $300 million stock repurchase program that was approved in February 2023 (the “February 2023 Stock Repurchase Program”) and authorized and approved a new stock repurchase program allowing us to repurchase up to $300 million of our common stock over a two-year period ending in February 2027 (the “February 2025 Stock Repurchase Program”), subject to any applicable limitations or restrictions set forth in our credit facility and indentures related to our senior notes. Stock repurchases may be made through open market purchases, including through Rule 10b5-1 trading programs, in privately negotiated transactions, or in such other manner that would comply with applicable securities laws. The timing of any future stock repurchases and the number of shares to be repurchased will depend upon prevailing market conditions and other factors, and we may suspend the repurchase program at any time. During the three months ended March 31, 2025, we repurchased approximately 1.4 million shares of our common stock under the 2023 Stock Repurchase Program and 2.1 million shares of our common stock under the 2025 Stock Repurchase Program for a total purchase price of $45 million. As of March 31, 2025, $275 million remained available for stock repurchases under the 2025 Stock Repurchase Program.

Current wording

In February 2025, our Board of Directors terminated a previous $300 million stock repurchase program that was approved in February 2023 (the “February 2023 Stock Repurchase Program”) and authorized and approved a new stock repurchase program allowing us to repurchase up to $300 million of our common stock over a two-year period ending in February 2027 (the “February 2025 Stock Repurchase Program”), subject to any applicable limitations or restrictions set forth in our credit facility and indentures related to our senior notes. Stock repurchases may be made through open market purchases, including through Rule 10b5-1 trading programs, in privately negotiated transactions, or in such other manner that would comply with applicable securities laws. The timing of any future stock repurchases and the number of shares to be repurchased will depend upon prevailing market conditions and other factors, and we may suspend the repurchase program at any time. During the six months ended June 30, 2025, we repurchased 3.5 million shares of our common stock, including 1.4 million shares under the 2023 Stock Repurchase Program and 2.1 million shares under the 2025 Stock Repurchase Program, for a total purchase price of $45 million. As of June 30, 2025, $275 million remained available for stock repurchases under the 2025 Stock Repurchase Program.

Previous wording

Cash flow from operating activities are primarily generated from the operating income generated at our hotels. The $6 million decrease in net cash provided by operating activities for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to timing of receipts from our customers and payments to our vendors and other third parties.

Current wording

Cash flow from operating activities are primarily generated from the operating income generated at our hotels. The $15 million decrease in net cash provided by operating activities for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to decreases in occupancy at certain of our hotels, including the Royal Palm South Beach Miami, a Tribute Portfolio Resort, which suspended operations in May 2025 for full-scale renovations.

Previous wording

The $77 million and $70 million in net cash used in investing activities for the three months ended March 31, 2025 and 2024, respectively, was attributable to capital expenditures.

Current wording

The $121 million in net cash used in investing activities for the six months ended June 30, 2024 was attributable to capital expenditures.

Previous wording

The $189 million in net cash used in financing activities for the three months ended March 31, 2025 was primarily attributable to $131 million of dividends paid and the repurchase of approximately 3.5 million shares of our common stock for $45 million.

Current wording

The $242 million in net cash used in financing activities for the six months ended June 30, 2025 was primarily attributable to $181 million of dividends paid and the repurchase of approximately 3.5 million shares of our common stock for $45 million.