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Sep 30, 2023
Park Hotels Q3 2023 Earnings Report
Park Hotels & Resorts Inc. reported third quarter results and announced a special dividend.
Key Takeaways
Park Hotels & Resorts Inc. announced third quarter results driven by RevPAR growth in urban markets and group business acceleration. Comparable RevPAR increased approximately 3% compared to Q3 2022, or nearly 5% excluding Casa Marina Key West. The company repurchased 5.8 million shares and reinvested over $70 million back into the portfolio. The company has exited its two Hilton San Francisco Hotels.
Comparable RevPAR increased approximately 3% compared to the third quarter of 2022.
Comparable group revenues for the third quarter of 2023 were up 12% year-over-year.
The company repurchased 5.8 million shares of common stock.
A special cash dividend of $0.77 per share was declared in connection with the effective exit from the Hilton San Francisco Hotels.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Park expects full-year 2023 operating results to be as follows:
Positive Outlook
- Comparable RevPAR for the fourth quarter of 2023 is expected to be between $170 and $180.
- Comparable Hotel Adjusted EBITDA margin for the fourth quarter of 2023 is expected to be between 26.9% and 28.9%.
- Adjusted EBITDA includes Hotel Adjusted EBITDA for the two Hilton San Francisco Hotels of $3 million from January 2023 to October 2023, the period prior to the hotels being placed into receivership.
- Fully diluted weighted average shares for the full-year 2023 are expected to be 214 million, while fully diluted weighted average shares for the fourth quarter of 2023 are expected to be 210 million.
- Includes $15 million of Hotel Adjusted EBITDA disruption from a full-scale renovation at the Casa Marina Key West, Curio Collection, which is expected to be completed in the fourth quarter of 2023.
Challenges Ahead
- Park is not providing a full year 2023 outlook for net income, net income attributable to stockholders, earnings per share, operating income and operating income margin
- Uncertainty surrounding macro-economic factors, such as inflation and increases in interest rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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