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Dec 31, 2022
Park Hotels Q4 2022 Earnings Report
Park Hotels & Resorts Inc. reported fourth quarter results exceeding expectations and provided an operational update.
Key Takeaways
Park Hotels & Resorts Inc. announced strong fourth-quarter results, exceeding expectations with group business acceleration and growth in business transient demand. The company executed capital allocation priorities, including non-core asset sales and share repurchases, while improving financial flexibility. Positive momentum continues into early 2023, with optimism for city-wide calendars and international travel return.
Comparable RevPAR increased by 46.7% to $162.81 compared to Q4 2021.
Net income attributable to stockholders was $34 million, a significant improvement from the $(67) million loss in Q4 2021.
Operating income reached $84 million, a substantial increase from $2 million in Q4 2021.
The company amended its Revolver, increasing capacity to $950 million and extending the maturity date to December 2026.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Park Hotels & Resorts provided its outlook for Q1 2023 and the full year 2023, anticipating continued recovery and growth in key performance metrics.
Positive Outlook
- RevPAR is expected to be between $156 and $162 for Q1 2023, reflecting a 34% to 40% increase compared to 2022.
- Net income is projected to be between $12 million and $28 million for Q1 2023.
- Operating income is estimated to be between $63 million and $79 million for Q1 2023.
- Adjusted EBITDA is forecasted to be between $124 million and $140 million for Q1 2023.
- Hotel Adjusted EBITDA margin is expected to be between 22.8% and 23.4% for Q1 2023.
Challenges Ahead
- An increase in interest expense during the second half of 2023 is anticipated upon extending the maturity date of the $725 million mortgage loan secured by the Hilton San Francisco Union Square and Parc 55 Hotel San Francisco.
- The removal of $4 million of Hotel Adjusted EBITDA for Q1 related to the sale of the Hilton Miami Airport.
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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