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Mar 31, 2024
Park Hotels Q1 2024 Earnings Report
Park Hotels & Resorts Inc. reported strong first quarter results driven by accelerated demand across all segments and strategic investments.
Key Takeaways
Park Hotels & Resorts Inc. announced strong first-quarter results, with Comparable RevPAR increasing by nearly 8% compared to the first quarter of 2023, exceeding overall upper upscale hotel performance by nearly 500 basis points. The company's resort and urban hotels experienced accelerated performance, with comparable RevPAR growth of 8% each. Group demand exhibited ongoing strength, increasing Comparable group revenues for the first quarter of 2024 by over 15% year-over-year.
Comparable RevPAR increased nearly 8% compared to Q1 2023, outperforming the upper upscale hotel segment by almost 500 basis points.
Resort and urban hotels both saw an 8% increase in Comparable RevPAR compared to Q1 2023.
Hawaii hotels' combined RevPAR increased by nearly 7%, driven by group and transient demand at the Hilton Hawaiian Village resort.
Comparable Group Revenue Pace is up nearly 11% compared to the same time last year, boosted by business demand and citywide events.
Park Hotels
Park Hotels
Park Hotels Revenue by Segment
Park Hotels Revenue by Geographic Location
Revenue by Segment
Rooms Revenue
CapyFin.comFood & Beverage Revenue
CapyFin.comAncillary Hotel Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Hawaii Revenue
CapyFin.comOrlando Revenue
CapyFin.comNew York Revenue
CapyFin.comNew Orleans Revenue
CapyFin.comBoston Revenue
CapyFin.comSouthern California Revenue
CapyFin.comKey West Revenue
CapyFin.comChicago Revenue
CapyFin.comDenver Revenue
CapyFin.comMiami Revenue
CapyFin.comWashington, D.C. Revenue
CapyFin.comSeattle Revenue
CapyFin.comSan Francisco Revenue
CapyFin.com Forward Guidance
Park Hotels & Resorts anticipates full-year 2024 operating results with Comparable RevPAR between $186 and $188, Net income between $151 and $191 million, and Adjusted EBITDA between $655 and $695 million.
Positive Outlook
- Comparable RevPAR for the second quarter of 2024 is expected to be between $197 and $201, representing year-over-year growth of 3% to 5%.
- The mortgage loan secured by the Hilton Denver City Center is not called by the lender during 2024.
- Includes 50 bps of RevPAR and $9 million of Hotel Adjusted EBITDA disruption from renovations at certain of Park's hotels, of which $8 million is associated with renovations at Park's Hawaii hotels.
- Fully diluted weighted average shares for the full-year 2024 of 211 million.
- Park's Comparable portfolio as of April 30, 2024 and does not take into account potential future acquisitions, dispositions or any financing transactions, which could result in a material change to Park’s outlook.
Challenges Ahead
- Comparable Hotel Adjusted EBITDA margin change vs. 2023 (70) bps to 30 bps.
- Uncertainty surrounding macro-economic factors, such as inflation, changes in interest rates, supply chain disruptions and the possibility of an economic recession or slowdown.
- Adjusted FFO excludes $55 million of default interest and late payment administrative fees associated with default of the SF Mortgage Loan for full-year 2024, which began in June 2023 and is required to be recognized in interest expense until legal title to the Hilton San Francisco Hotels are transferred.
- Park's full-year 2024 outlook is based on a number of factors, many of which are outside the Company's control.
- Potential future acquisitions, dispositions or any financing transactions, which could result in a material change to Park’s outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income