Park Hotels & Resorts Detractor in Q4, RevPAR $182 Up 1% YoY
Longleaf’s Small-Cap Fund named Park Hotels & Resorts a Q4 2025 detractor, citing Hilton Hawaiian Village’s labor-strike recovery and weaker yen cutting Japanese tourism. RevPAR reached $182 (+1% YoY, +3% ex-Royal Palm) though shares slipped 8.7% over the past year.
1. Q4 Fund Performance and Stock Detractor
In its Q4 2025 letter, Longleaf Partners’ Small-Cap Fund delivered a 1.13% return versus 2.19% for the Russell 2000 and singled out Park Hotels & Resorts as a top detractor after the stock underperformed relative to its leisure-focused peers.
2. Macro Headwinds Impacting Tourism
The flagship Hilton Hawaiian Village remains in recovery from a 2024 labor strike, while a weakened yen has curbed Japanese inbound travel, compounding concerns over leisure segment revenues at Park Hotels & Resorts.
3. Operational Metrics and Share Performance
Park’s RevPAR rose to $182, up 1% year-over-year (3% excluding Royal Palm), even as its shares fell 8.7% over the past 52 weeks.
4. Asset Sales and Capital Allocation
Management continued selling non-core hotels at attractive valuations and repurchasing shares, while Longleaf Partners exited its position to redeploy capital into higher-conviction opportunities.