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Jun 30, 2024
Park Hotels Q2 2024 Earnings Report
Park Hotels & Resorts Inc. reported second quarter 2024 results, showing improvements driven by strategic investments and strong demand trends.
Key Takeaways
Park Hotels & Resorts reported a net income of $67 million for the second quarter of 2024, a significant increase from the net loss of $146 million in the same period last year. Comparable RevPAR grew by 2% year-over-year, driven by strong group and leisure demand, particularly in Boston, Miami, and New York. The company also executed capital allocation strategies, including debt refinancing and share repurchases.
Comparable RevPAR increased by 2% compared to Q2 2023, driven by strategic investments and strong demand trends.
Net income was $67 million, a substantial improvement from the $146 million loss in Q2 2023.
Group demand continues to improve, with 2024 Comparable Group Revenue Pace up nearly 10% compared to the same time last year.
The company repurchased nearly 1.7 million shares of common stock for $25 million.
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 has revised its full-year 2024 outlook. The guidance includes assumptions about RevPAR, Hotel Adjusted EBITDA, and Adjusted FFO per share.
Positive Outlook
- Comparable RevPAR is projected to be between $185 and $187.
- Net income is expected to be between $155 million and $185 million.
- Operating income is anticipated to be between $410 million and $441 million.
- Adjusted EBITDA is forecasted to be between $660 million and $690 million.
- Adjusted FFO per share is projected to be between $2.10 and $2.26.
Challenges Ahead
- The outlook 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.
- Adjusted FFO excludes $60 million of default interest and late payment administrative fees associated with default of the SF Mortgage Loan for full-year 2024.
- The outlook does not take into account potential future acquisitions, dispositions, including the Hilton Oakland Airport, or any financing transactions, which could result in a material change to Park’s outlook.
- Uncertainty surrounding macro-economic factors, such as inflation, changes in interest rates and the possibility of an economic recession or slowdown.
- The loan matures in August 2042 but became callable by the lender in August 2022 with six months of notice. As of June 30, 2024, Park had not received notice from the lender.
Revenue & Expenses
Visualization of income flow from segment revenue to net income