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Sep 30, 2022
Park Hotels Q3 2022 Earnings Report
Park Hotels' Q3 2022 results were announced, demonstrating significant recovery driven by strong leisure demand and accelerating business transient demand.
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
Revenue by Segment
Rooms Revenue
CapyFin.comFood & Beverage Revenue
CapyFin.comAncillary Hotel Revenue
CapyFin.comOther Revenue
CapyFin.com 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