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Dec 31, 2024
Park Hotels Q4 2024 Earnings Report
Park Hotels reported a decline in revenue and net income for Q4 2024, impacted by strike-related disruptions and renovation activities.
Key Takeaways
Park Hotels & Resorts Inc. reported a revenue decline of 4.9% year-over-year for Q4 2024, with net income dropping by 61.2%. The company faced disruptions due to labor strikes at key properties, impacting its RevPAR and EBITDA margins. Despite these challenges, management highlighted strong group demand and strategic asset disposals to improve financial positioning. The company also announced a $100 million renovation project at its Royal Palm South Beach Miami property.
Q4 2024 revenue declined 4.9% to $625 million due to strike-related disruptions.
Net income dropped 61.2% year-over-year to $73 million.
Comparable RevPAR declined 1.4% to $179.02.
Announced a $100 million renovation at Royal Palm South Beach Miami.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Park Hotels anticipates a modest RevPAR increase in 2025, with potential growth between 0.0% and 3.0%. Renovation-related disruptions at Royal Palm South Beach Miami are expected to have a short-term negative impact, but long-term strategic investments are expected to enhance value.
Positive Outlook
- 2025 Comparable Group Revenue Pace is up nearly 6% year-over-year.
- Continued strength in corporate demand and citywide convention bookings.
- Strategic asset disposals have improved portfolio quality and capital efficiency.
- Significant renovations completed at key properties, enhancing long-term value.
- Company has repurchased 8 million shares and returned over $400 million to shareholders.
Challenges Ahead
- Renovation at Royal Palm South Beach Miami will impact 2025 Comparable RevPAR by 110 basis points.
- Strike-related disruptions led to a decline in Q4 performance and may have lingering effects.
- Comparable Hotel Adjusted EBITDA margin is expected to decline by 140 basis points in 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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