Loading...
•
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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...