Park Hotels & Resorts Inc. (“Park” or the “Company”) (NYSE:PK)
today provided an update on fourth quarter operating trends.
“I am incredibly pleased with the strength of our portfolio as
operating trends remained very solid in both October and November.
Results were once again driven by improvements across our urban
portfolio which delivered year-over-year 10% Comparable RevPAR
growth during the first two months of the quarter. Business travel
accelerated in Boston, Chicago, New York and Denver, in addition to
continued upside from group and leisure business at our Hawaii
hotels with year-over-year RevPAR gains exceeding 9% in October and
14% in November. Additionally, we are near completion on our
transformative renovation projects including at our Bonnet Creek
and Casa Marina Key West, Curio Collection, properties which we
expect to drive solid performance in 2024. And finally, we remain
laser focused on creating long-term value for shareholders as
evidenced by the over $630 million of capital we are returning to
shareholders in 2023, including over $350 million, or $1.70 per
share, of dividends declared during the fourth quarter. As we look
ahead to 2024, we are excited about our growth prospects. Our
reduced market exposure to San Francisco helps to change the
narrative for the company and we remain well positioned to execute
on our strategic growth priorities with $1.3 billion of liquidity
expected to be available following the payment of our fourth
quarter and special cash dividend,” said Thomas J. Baltimore, Jr.,
Chairman and CEO of Park.
Operational Highlights:
- Park’s Hawaii hotels continue to
experience solid performance with RevPAR increasing 9.3% over prior
year in October, followed by RevPAR growth of 14.5% in
November;
- Park’s urban portfolio continues its
strong recovery with October Comparable RevPAR increasing 9.1%,
followed by November Comparable RevPAR increasing 11.2% versus
prior year, with New York and Chicago among Park’s top performing
urban markets in November, reporting year-over-year RevPAR gains of
15.1%, and 14.4%, respectively, followed by Boston, Denver, San
Francisco, and Washington, D.C., each increasing over 10% versus
the prior year on a Comparable basis;
- Hotel net income for October 2023
and November 2023 was $39 million and $17 million,
respectively;
- Comparable Hotel Adjusted EBITDA
margin for October 2023 was 32.6%, a 35 basis point decline
year-over-year, while Comparable Hotel Adjusted EBITDA margin
improved 53 basis points year-over-year in November 2023 to
25.0%;
- Park reaffirms its full-year 2023
outlook for Comparable RevPAR, Comparable Hotel Adjusted EBITDA
margin, Adjusted EBITDA and Adjusted FFO per diluted share provided
in its November 1, 2023 earnings press release; and
- Comparable Occupancy, ADR and RevPAR
for the third quarter of 2023, October 2023 and November 2023 and
comparisons to the same periods in 2022 are as follows:
|
Q3 2023 |
vs. Q3 2022 |
|
October2023 |
vs. October2022 |
|
November2023 |
vs. November2022 |
Comparable Occupancy |
|
75.3 |
% |
2.7 |
% pts |
|
|
77.3 |
% |
1.9 |
% pts |
|
|
71.4 |
% |
2.7 |
% pts |
Comparable ADR |
$ |
241.74 |
|
(0.9 |
%) |
|
$ |
254.47 |
|
2.3 |
% |
|
$ |
241.60 |
|
2.0 |
% |
Comparable RevPAR |
$ |
182.08 |
|
2.8 |
% |
|
$ |
196.67 |
|
4.9 |
% |
|
$ |
172.54 |
|
5.9 |
% |
Capital Expenditure Highlights:
- At Bonnet Creek, Park is expected to
complete its nearly $230 million transformative expansion and
full-scale renovation of The Waldorf Astoria Orlando and Signia by
Hilton Orlando Bonnet Creek hotels in January 2024. Both hotels are
well positioned to capitalize on their repositioning with 2024
Group Revenue Pace as of November 30, 2023 up 35% compared to the
same time last year, while the market is currently experiencing a
5% decline in 2024 group room night pace. The hotels are expected
to benefit from improved group positioning, with an increase in ADR
for future group business up over 10% on average, through
2025;
- In Key West, the approximately $80
million renovation at Casa Marina Key West, Curio Collection is
near completion with all guest room inventory online as of December
6th and the new oceanfront restaurant, Dorada, expected to debut
during the first quarter of 2024. Overall Group Revenue Pace at the
hotel is up 9% versus 2019; and
- The multi-phased renovation project
of the 1,021-room Tapa Tower at the Hilton Hawaiian Village Waikiki
Beach Resort is expected to be completed this week.
Capital Return Highlights:
- On October 27, 2023, Park's Board of
Directors declared a special cash dividend of $0.77 per share in
connection with the effective exit from two of Park's San Francisco
hotels – the 1,921-room Hilton San Francisco Union Square and the
1,024-room Parc 55 San Francisco – a Hilton Hotel (collectively,
the “Hilton San Francisco Hotels”). The special dividend will be
paid on January 16, 2024 to stockholders of record as of December
29, 2023;
- On November 30, 2023, Park's Board
of Directors declared a fourth quarter dividend of $0.93 per share
of common stock which includes Park’s regular quarterly dividend of
$0.15 coupled with a $0.78 top off dividend based on 2023 operating
results. This dividend will also be paid on January 16, 2024 to
stockholder of record as of December 29, 2023. The fourth quarter
dividend, together with the regular cash dividends declared for the
first three quarters of 2023, represent an annual yield of 8.4%
based on the closing stock price as of December 19, 2023; and
- Park has not repurchased any of its
stock in the fourth quarter to date.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (“Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended (“Exchange Act”). Forward-looking
statements include, but are not limited to, statements related to
the anticipated effects of the Company's decision to cease payments
on its $725 million non-recourse CMBS loan secured by the Hilton
San Francisco Hotels and the effects of the lender's exercise of
its remedies, including placing such hotels into receivership, as
well as our current expectations regarding the performance of our
business, our financial results, our liquidity and capital
resources, including anticipated repayment of certain of the
Company's indebtedness, the completion of capital allocation
priorities, the expected repurchase of the Company's stock, the
impact from macroeconomic factors (including inflation, increases
in interest rates, potential economic slowdown or a recession and
geopolitical conflicts), the effects of competition, the effects of
future legislation or regulations, the expected completion of
anticipated dispositions, the declaration and payment of future
dividends and other non-historical statements. Forward-looking
statements include all statements that are not historical facts,
and in some cases, can be identified by the use of forward-looking
terminology such as the words “outlook,” “believes,” “expects,”
“potential,” “continues,” “may,” “will,” “should,” “could,”
“seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,”
“anticipates”, “hopes” or the negative version of these words or
other comparable words. You should not rely on forward-looking
statements since they involve known and unknown risks,
uncertainties and other factors which are, in some cases, beyond
our control and which could materially affect our results of
operations, financial condition, cash flows, performance or future
achievements or events.
All such forward-looking statements are based on current
expectations of management and therefore involve estimates and
assumptions that are subject to risks, uncertainties and other
factors that could cause actual results to differ materially from
the results expressed in these forward-looking statements. You
should not put undue reliance on any forward-looking statements and
we urge investors to carefully review the disclosures Park make
concerning risks and uncertainties in Item 1A: “Risk Factors” in
Park's Annual Report on Form 10-K for the year ended December 31,
2022, as such factors may be updated from time to time in Park's
filings with the SEC, which are accessible on the SEC's website at
www.sec.gov. Except as required by law, Park undertakes no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Non-GAAP Financial Measures
Park presents certain non-GAAP financial measures in this press
release, including Hotel EBITDA, Hotel Adjusted EBITDA and Hotel
Adjusted EBITDA margin. These non-GAAP financial measures should be
considered along with, but not as alternatives to, net income
(loss) as a measure of its operating performance. Please see the
schedules included in this press release including the
“Definitions” section for additional information and
reconciliations of such non-GAAP financial measures.
About Park Hotels & Resorts
Park is one of the largest publicly traded lodging REIT with a
diverse portfolio of market-leading hotels and resorts with
significant underlying real estate value. Park’s portfolio
currently consists of 43 premium-branded hotels and resorts with
over 26,000 rooms primarily located in prime city center and resort
locations. Visit www.pkhotelsandresorts.com for more
information.
PARK HOTELS & RESORTS INC.NON-GAAP
FINANCIAL MEASURES RECONCILIATIONSHOTEL EBITDA,
HOTEL ADJUSTED EBITDA ANDHOTEL ADJUSTED EBITDA
MARGIN |
(unaudited, in millions) |
|
|
|
|
Month Ended |
|
Month Ended |
|
October 31, 2023 |
|
November 30, 2023 |
Hotel net income |
$ |
39 |
|
$ |
17 |
Depreciation and amortization expense |
|
21 |
|
|
20 |
Interest expense |
|
10 |
|
|
10 |
Hotel
EBITDA |
|
70 |
|
|
47 |
Other |
|
5 |
|
|
2 |
Hotel Adjusted
EBITDA |
|
75 |
|
|
49 |
Less: Adjusted EBITDA from the Hilton San Francisco Hotels |
|
1 |
|
|
— |
Comparable Hotel
Adjusted EBITDA |
$ |
76 |
|
$ |
49 |
|
|
|
|
|
Month Ended |
|
Month Ended |
|
October 31, 2023 |
|
November 30, 2023 |
Total Revenues |
$ |
256 |
|
|
$ |
202 |
|
Less: Other revenue |
|
(7 |
) |
|
|
(8 |
) |
Less: Revenue from the Hilton San Francisco Hotels |
|
(16 |
) |
|
|
— |
|
Comparable Hotel
Revenues |
$ |
233 |
|
|
$ |
194 |
|
|
Month Ended |
|
Month Ended |
|
October 31, 2023 |
|
November 30, 2023 |
Comparable Hotel Revenues |
$ |
233 |
|
|
$ |
194 |
|
Comparable Hotel
Adjusted EBITDA |
$ |
76 |
|
|
$ |
49 |
|
Comparable Hotel
Adjusted EBITDA margin |
|
32.6 |
% |
|
|
25.0 |
% |
PARK HOTELS & RESORTS
INC.
DEFINITIONS
Comparable
The Company presents certain data for
its consolidated hotels on a Comparable basis as supplemental
information for investors: Comparable Hotel Revenues, Comparable
RevPAR, Comparable Occupancy, Comparable ADR, Comparable Hotel
Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin. The
Company presents Comparable hotel results to help the Company and
its investors evaluate the ongoing operating performance of its
hotels. The Company’s Comparable metrics exclude results from
property dispositions that have occurred through December 20, 2023
and include results from property acquisitions as though such
acquisitions occurred on the earliest period presented. Park's
Comparable hotels also exclude the two Hilton San Francisco Hotels,
the1,921-room Hilton San Francisco Union Square and 1,024-room Parc
55 San Francisco – a Hilton Hotel, which were placed into
receivership at the end of October 2023.
EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA
Margin
Hotel earnings before interest
expense, taxes and depreciation and amortization (“Hotel EBITDA”),
presented herein, reflects net income excluding depreciation and
amortization, interest income, interest expense and income taxes of
the Company’s consolidated hotels. Hotel Adjusted EBITDA is Hotel
EBITDA further adjusted to exclude items that management believes
are not reflective of the Company’s ongoing operating performance
or incurred in the normal course of business, and thus, excluded
from management's analysis in making day-to-day operating decisions
and evaluations of Park's operating performance against other
companies within the industry. Hotel Adjusted EBITDA is a key
measure of the Company’s consolidated hotels profitability. The
Company presents Hotel Adjusted EBITDA to help the Company and its
investors evaluate the ongoing operating performance of the
Company’s consolidated hotels.
Hotel Adjusted EBITDA margin is
calculated as Hotel Adjusted EBITDA divided by total hotel
revenue.
Hotel EBITDA, Hotel Adjusted EBITDA
and Hotel Adjusted EBITDA margin are not recognized terms under
United States (“U.S.”) GAAP. Hotel EBITDA and Hotel Adjusted EBITDA
should not be considered as an alternative to net income or other
measures of financial performance or liquidity derived in
accordance with U.S. GAAP. In addition, the Company’s definition of
Hotel EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA
margin may not be comparable to similarly titled measures of other
companies.
The Company believes that Hotel
EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin
provide useful information to investors about the Company and its
financial condition and results of operations for the following
reasons: (i) Hotel EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted
EBITDA margin are among the measures used by the Company’s
management team to make day-to-day operating decisions and evaluate
its operating performance between periods and between REITs by
removing the effect of its capital structure (primarily interest
expense) and asset base (primarily depreciation and amortization)
from its operating results; and (ii) Hotel EBITDA, Hotel Adjusted
EBITDA and Hotel Adjusted EBITDA margin are frequently used by
securities analysts, investors and other interested parties as
common performance measures to compare results or estimate
valuations across companies in the industry.
Hotel EBITDA, Hotel Adjusted EBITDA
and Hotel Adjusted EBITDA margin have limitations as analytical
tools and should not be considered either in isolation or as a
substitute for net income (loss) or other methods of analyzing the
Company’s operating performance and results as reported under U.S.
GAAP.
Occupancy
Occupancy represents the total number
of room nights sold divided by the total number of room nights
available at a hotel or group of hotels. Occupancy measures the
utilization of the Company’s hotels’ available capacity. Management
uses occupancy to gauge demand at a specific hotel or group of
hotels in a given period. Occupancy levels also help management
determine achievable Average Daily Rate (“ADR”) levels as demand
for rooms increases or decreases.
Average Daily Rate
ADR (or rate) represents rooms
revenue divided by total number of room nights sold in a given
period. ADR measures average room price attained by a hotel and ADR
trends provide useful information concerning the pricing
environment and the nature of the customer base of a hotel or group
of hotels. ADR is a commonly used performance measure in the hotel
industry, and management uses ADR to assess pricing levels that the
Company is able to generate by type of customer, as changes in
rates have a more pronounced effect on overall revenues and
incremental profitability than changes in occupancy, as described
above.
Revenue per Available Room
Revenue per Available Room (“RevPAR”)
represents rooms revenue divided by the total number of room nights
available to guests for a given period. Management considers RevPAR
to be a meaningful indicator of the Company’s performance as it
provides a metric correlated to two primary and key factors of
operations at a hotel or group of hotels: Occupancy and ADR. RevPAR
is also a useful indicator in measuring performance over comparable
periods.
Group Revenue Pace
Group Revenue Pace represents
bookings for future business and is calculated as group room nights
multiplied by the contracted room rate expressed as a percentage of
a prior period relative to a prior point in time.
For more information, contact:Ian
WeissmanSenior Vice President, Corporate
Strategy571-302-5591iweissman@pkhotelsandresorts.com
For additional information or to receive press
releases via e-mail, please visit our website at
www.pkhotelsandresorts.com
Grafico Azioni Park Hotels and Resorts (NYSE:PK)
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Da Ago 2024 a Set 2024
Grafico Azioni Park Hotels and Resorts (NYSE:PK)
Storico
Da Set 2023 a Set 2024