TYSONS, Va., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Park Hotels & Resorts Inc. ("Park” or the "Company”) (NYSE: PK) today announced results for the third quarter ended September 30, 2024 and provided an operational update.
Selected Statistical and Financial Information
(unaudited, amounts in millions, except RevPAR, ADR, Total RevPAR and per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
| 2024 | 2023 | Change(1) | 2024 | 2023 | Change(1) | ||||||||||||||||
| Comparable RevPAR | $ | 189.73 | $ | 183.64 | 3.3 | % | $ | 188.08 | $ | 180.33 | 4.3 | % | |||||||||
| Comparable Occupancy | 78.1 | % | 75.6 | % | 2.5% pts | 75.7 | % | 73.5 | % | 2.2% pts | |||||||||||
| Comparable ADR | $ | 242.88 | $ | 242.89 | - | % | $ | 248.57 | $ | 245.34 | 1.3 | % | |||||||||
| Comparable Total RevPAR | $ | 294.65 | $ | 283.82 | 3.8 | % | $ | 300.83 | $ | 287.74 | 4.5 | % | |||||||||
| Net income (loss) | $ | 57 | $ | 31 | 83.9 | % | $ | 153 | $ | (82 | ) | 286.6 | % | ||||||||
| Net income (loss) attributable to stockholders | $ | 54 | $ | 27 | 100.0 | % | $ | 146 | $ | (90 | ) | 262.2 | % | ||||||||
| Operating income | $ | 95 | $ | 85 | 12.3 | % | $ | 308 | $ | 67 | 358.9 | % | |||||||||
| Operating income margin | 14.6 | % | 12.5 | % | 210 bps | 15.6 | % | 3.3 | % | 1,230 bps | |||||||||||
| Comparable Hotel Adjusted EBITDA | $ | 170 | $ | 173 | (1.9 | )% | $ | 539 | $ | 512 | 5.2 | % | |||||||||
| Comparable Hotel Adjusted EBITDA margin | 27.2 | % | 28.8 | % | (160) bps | 28.3 | % | 28.2 | % | 10 bps | |||||||||||
| Adjusted EBITDA | $ | 159 | $ | 163 | (2.5 | )% | $ | 514 | $ | 496 | 3.6 | % | |||||||||
| Adjusted FFO attributable to stockholders | $ | 102 | $ | 108 | (5.6 | )% | $ | 350 | $ | 329 | 6.4 | % | |||||||||
| Earnings (loss) per share - Diluted(1) | $ | 0.26 | $ | 0.13 | 100.0 | % | $ | 0.69 | $ | (0.42 | ) | 264.3 | % | ||||||||
| Adjusted FFO per share - Diluted(1) | $ | 0.49 | $ | 0.51 | (3.9 | )% | $ | 1.67 | $ | 1.52 | 9.9 | % | |||||||||
| Weighted average shares outstanding - Diluted | 208 | 212 | (4 | ) | 210 | 216 | (6 | ) | |||||||||||||
(1) Amounts are calculated based on unrounded numbers.
Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, "I am very pleased with our third quarter results, with Comparable RevPAR increasing over 3% compared to the third quarter of 2023, driven by accelerating demand trends at our hotels in Chicago, New Orleans, and Boston coupled with strong performance at our Key West and Orlando hotels, which continue to benefit from recently completed transformative renovations. Group demand continues to improve with 2024 Comparable Group Revenue Pace up over 9% compared to the same time last year, driven by improvements in business demand, an increase in citywide events and strong convention calendars benefiting our Chicago, New Orleans and New York hotels, as well as in-house group events benefiting our Florida hotels. Our Florida hotels sustained minimal damage and business interruption from Hurricanes Helene and Milton and remain fully operational. I am grateful to our teams for navigating these hurricanes that have impacted many communities in the Southeast.
Additionally, during the third quarter, we continued to execute our capital allocation strategies by disposing of non-core assets, including the Hilton Oakland Airport, repurchasing an additional 2.5 million shares of our common stock for $35 million at a significant discount to our estimated net asset value, and investing in our portfolio, commencing over $200 million of comprehensive guestroom renovations at the iconic Rainbow Tower at the Hilton Hawaiian Village Waikiki Beach Resort, the Palace Tower at the Hilton Waikoloa Village and the Main Tower at the Hilton New Orleans Riverside. With current liquidity of over $1.4 billion, we remain laser-focused on creating long-term shareholder value by further strengthening our balance sheet through non-core asset sales and investments back into our core portfolio with value-enhancing ROI projects and returning capital to shareholders in the form of dividends and leverage neutral share repurchases.”
Additional Highlights
- In July 2024, the unconsolidated joint venture that owns and operates the Hilton La Jolla Torrey Pines sold the hotel for gross proceeds of approximately $165 million, and the Company's pro-rata share of the gross proceeds was approximately $41 million, which was reduced by Park's portion of debt of approximately $17 million;
- In August 2024, repurchased 2.5 million shares of common stock for a total purchase price of $35 million at an average purchase price of $13.85 per share;
- In August 2024, permanently closed the 360-room Hilton Oakland Airport, which incurred an EBITDA loss of nearly $4 million for the trailing twelve months, and subsequently terminated its ground lease, returning the property to the ground lessor;
- In October 2024, paid its third quarter 2024 cash dividend of $0.25 per share to stockholders of record as of September 30, 2024; and
- In October 2024, the Waldorf Astoria Orlando was ranked 9th in the world by Condé Nast Traveler in its prestigious 2024 Readers' Choice Awards for the Best Resorts in the World.
Results for Park's Comparable hotels in each of the Company's key markets are as follows:
| (unaudited) | Comparable ADR | Comparable Occupancy | Comparable RevPAR | |||||||||||||||||||||||||||
| Hotels | Rooms | 3Q24 | 3Q23 | Change(1) | 3Q24 | 3Q23 | Change | 3Q24 | 3Q23 | Change(1) | ||||||||||||||||||||
| Hawaii | 2 | 3,507 | $ | 312.86 | $ | 322.09 | (2.9 | %) | 87.0 | % | 92.0 | % | (5.0% pts) | $ | 272.29 | $ | 296.29 | (8.1 | %) | |||||||||||
| Orlando | 3 | 2,325 | 201.39 | 188.44 | 6.9 | 65.1 | 60.2 | 4.9 | 131.18 | 113.54 | 15.5 | |||||||||||||||||||
| New York | 1 | 1,878 | 304.42 | 302.44 | 0.7 | 91.1 | 92.2 | (1.1 | ) | 277.19 | 278.78 | (0.6 | ) | |||||||||||||||||
| New Orleans | 1 | 1,622 | 173.42 | 157.49 | 10.1 | 64.3 | 56.4 | 7.9 | 111.44 | 88.82 | 25.5 | |||||||||||||||||||
| Boston | 3 | 1,536 | 281.13 | 267.12 | 5.2 | 87.6 | 86.1 | 1.5 | 246.23 | 230.03 | 7.0 | |||||||||||||||||||
| Southern California | 5 | 1,773 | 250.89 | 263.09 | (4.6 | ) | 85.0 | 79.6 | 5.4 | 213.29 | 209.58 | 1.8 | ||||||||||||||||||
| Key West | 2 | 461 |
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