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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.
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 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.
- Supply chain disruptions may impact the company's performance.
- Possibility of an economic recession or slowdown could adversely affect results.
- Comparable portfolio as of November 1, 2023 and does not take into account potential future acquisitions and dispositions, which could result in a material change to Park’s outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income