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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.
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 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.
- Includes $14 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.
- The outlook is based on factors outside the Company's control, including macro-economic factors, uncertainty surrounding inflation and potential economic slowdown.
- The forecast does not account for potential future acquisitions and dispositions, which could significantly alter Park’s outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income