Park Hotels Q3 2022 Earnings Report
Key Takeaways
Park Hotels & Resorts Inc. reported third-quarter 2022 results with a pro-forma RevPAR of $171.27, net income of $40 million, and adjusted EBITDA of $158 million. The company continued its capital recycling strategy, selling non-core assets and improving liquidity. Leisure demand remained strong, and business transient demand continued to accelerate.
Pro-forma RevPAR increased by 61.7% year-over-year to $171.27, but decreased 8.8% compared to 2019.
Pro-forma occupancy was 71.7%, a 1 percentage point increase from Q2 2022.
Net income was $40 million, and diluted earnings per share was $0.15.
Adjusted EBITDA was $158 million.
Park Hotels
Park Hotels
Park Hotels Revenue by Segment
Forward Guidance
Park Hotels & Resorts expects fourth quarter RevPAR to be between $163 and $166, net income between $6 million and $20 million, and adjusted EBITDA between $140 million and $155 million.
Positive Outlook
- RevPAR is expected to be between $163 and $166.
- Net income is projected to be between $6 million and $20 million.
- Adjusted EBITDA is anticipated to be between $140 million and $155 million.
- Hotel Adjusted EBITDA margin is expected to be between 24.0% and 25.0%.
- Adjusted FFO per share is forecasted to be between $0.35 and $0.43.
Challenges Ahead
- RevPAR change vs. 2019 is expected to be between -9% and -7%.
- Hotel Adjusted EBITDA margin change vs. 2019 is expected to be between -520 bps and -420 bps.
- The outlook does not account for potential future acquisitions and dispositions.
- The outlook is subject to uncertainty surrounding new disruptions from the COVID-19 pandemic.
- The outlook is subject to macro-economic factors, including inflation and potential economic slowdown.
Revenue & Expenses
Visualization of income flow from segment revenue to net income