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Mar 31, 2023
Park Hotels Q1 2023 Earnings Report
Park Hotels & Resorts Inc. reported strong first quarter results, exceeding expectations with urban hotel rebound and sustained resort market strength.
Key Takeaways
Park Hotels & Resorts Inc. reported a strong first quarter, exceeding expectations due to improvements in urban hotels and sustained resort market strength. Group trends accelerated, driving healthy margin gains. The company repurchased 8.8 million shares, increased the quarterly dividend to $0.15 per share, and continued to reshape its portfolio through value-enhancing ROI projects.
Comparable RevPAR increased by 36.5% compared to Q1 2022, driven by strong urban and resort performance.
Urban hotels experienced a robust rebound, with RevPAR increasing 81% compared to Q1 2022.
Group revenues exceeded forecast by 15%, with 2023 Group Revenue Pace now at 82% of 2019 levels.
The company repurchased 8.8 million shares and increased the recurring quarterly dividend to $0.15 per share.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Park Hotels & Resorts expects full-year 2023 operating results with RevPAR between $167 and $179, net income between $113 and $191 million, operating income between $324 and $404 million, and Adjusted EBITDA between $624 and $704 million.
Positive Outlook
- Fully diluted weighted average shares are expected to be 216 million.
- RevPAR growth for the second quarter of 2023 is expected to be between 7% to 11% as compared to the second quarter of 2022.
- The repayment of the $75 million mortgage loan secured by the W Chicago – City Center.
- The mortgage loan secured by the Hilton Denver City Center is not called by the lender during 2023.
- Current portfolio as of May 1, 2023 and does not take into account potential future acquisitions and dispositions, which could result in a material change to Park’s outlook.
Challenges Ahead
- Uncertainty surrounding macro-economic factors, including inflation
- Increases in interest rates
- Supply chain disruptions
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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