NYSE$PK

Park Hotels & Resorts Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Park Hotels & Resorts Inc. reported first quarter results, demonstrating significant RevPAR growth and improved financial performance compared to the same period last year.

Park Hotels & Resorts Inc. announced its first quarter 2022 results, highlighting a RevPAR increase of 181.7% compared to Q1 2021 and a net loss improvement of 70.7%. The company's Adjusted EBITDA was $82 million, and Hotel Adjusted EBITDA reached $89 million. The company also repurchased 3.4 million shares of common stock and reinstated its quarterly cash dividend.

  • RevPAR increased by 181.7% compared to the same period in 2021, reaching $116.42.
  • Net loss improved by 70.7% compared to the same period in 2021, with a net loss of $(56) million.
  • Adjusted EBITDA was $82 million, reflecting a positive shift from the previous year.
  • The company reopened the Hilton Short Hills, NJ, and anticipates reopening the Parc 55 San Francisco - a Hilton Hotel, on May 19, 2022.

Headline financials

Total Revenue

$479M

Previous: $165M+190.3%
EPS (adj)

$0.08

Previous: -$0.48+116.7%
Comparable RevPAR

$116.42

Previous: $40.79+185.4%
Comparable ADR

$224.42

Previous: $154.63+45.1%
Comparable Occupancy

51.9%

Previous: 26.4%+96.6%
Comparable Total RevPAR

$184.11

Previous: $59.99+206.9%
Capital Expenditures

-$21M

Previous: -$5M-320.0%
Free Cash Flow

-$78M

Previous: -$195M+60.0%
Net Income

-$57M

Previous: -$190M+70.0%
Operating Income

$1M

Previous: -$123M+100.8%
Gross Profit

-$50M

Previous: -$48M-4.2%
Cash & Equivalents

$639M

Previous: $868M-26.4%
Total Assets

$9.7B

Previous: $10.4B-7.0%
Stock-Based Comp

$4M

Previous: $6M-33.3%

Revenue & EPS history

Park Hotels · Revenue · Quarterly

$479M

Q1 2022+190.3%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Park Hotels · $463M total across 3 segments · Q1 2022

  • Rooms
    $292M+175.5%
  • Food & Beverage
    $110M+400.0%
  • Ancillary Hotel
    $61M+110.3%

Forward guidance

Park's outlook for Q2 2022 anticipates continued recovery with RevPAR between $160 and $164, and net income between $16 and $36 million.

Tailwinds

  • RevPAR is projected to grow between 104% and 109% compared to 2021.
  • Net income is expected to be between $16 million and $36 million.
  • Adjusted EBITDA is forecasted to be between $160 million and $180 million.
  • Adjusted FFO per share is anticipated to be between $0.40 and $0.49.
  • Hotel Adjusted EBITDA margin change vs. 2021 is expected to be between 1,320 bps and 1,470 bps.

Headwinds

  • Q2 2022 outlook is based on many factors, many of which are outside the Company's control, including uncertainty surrounding any new disruptions from the COVID-19 pandemic, and all of which are subject to change.
  • RevPAR growth vs 2019 is expected to be between (16)% and (14)%.
  • Hotel Adjusted EBITDA margin change vs. 2019 is expected to be between (390) bps and (240) bps.
  • The Company continues to be unable to provide a full-year outlook for 2022 given the continued economic uncertainty as the global economy continues to recover from the COVID-19 pandemic.
  • Outlook does not take into account potential future acquisitions and dispositions, including those currently under contract, which could result in a material change to Park’s outlook.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.5%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+1.8%

Avg return

30 days after

37%

15 / 41 earnings

Positive

+11.8%

Q3 2023

Best reaction

-16.4%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%+0.3%+7.1%
Q4 2025-1.3%-1.4%-10.1%
Q3 2025-4.8%-6.0%+0.8%
Q1 2025-1.2%+1.2%-1.9%
Q4 2024-0.5%-5.7%-14.7%
Q3 2024+0.7%-0.9%+11.5%
Q2 2024-2.5%-9.8%+1.0%
Q1 2024-4.2%-3.5%-6.7%
Q4 2023+6.0%+9.4%+9.8%
Q3 2023+11.8%+16.7%+29.6%
Q2 2023-5.3%-1.8%-5.2%
Q1 2023+1.9%+7.4%+7.4%
Q4 2022+3.3%+3.9%-16.6%
Q3 2022-9.0%-9.4%-4.1%
Q2 2022-1.0%-0.5%-8.3%
Q1 2022-1.1%-2.1%-5.6%
Q4 2021-4.1%-7.2%-5.8%
Q3 2021+0.7%+6.7%-14.2%
Q2 2021+7.7%+6.9%+7.2%
Q1 2021+1.2%-1.5%-7.1%
Q4 2020-3.1%-7.1%-2.6%
Q3 2020-1.7%+37.2%+73.1%
Q2 2020-3.7%+13.6%+22.1%
Q1 2020-16.4%-16.2%+46.8%
Q4 2019-9.0%-9.3%-57.7%
Q3 2019-3.5%-6.5%+0.9%
Q2 2019-5.0%-9.5%-12.3%
Q1 2019-5.4%-6.8%-16.8%
Q4 2018-0.4%+1.3%-0.9%
Q3 2018+1.2%+2.0%+6.0%
Q2 2018+4.2%+3.7%+6.9%
Q1 2018+2.6%+4.3%+13.5%
Q4 2017-6.0%+0.6%+4.0%
Q4 2015-6.0%+0.6%+4.0%
Q3 2016+0.7%+0.8%-0.8%
Q3 2017+0.5%+1.1%-0.4%
Q2 2016-0.7%-1.4%+1.0%
Q2 2017-3.9%-1.5%-0.7%
Q4 2016+0.2%-1.8%+4.4%
Q1 2016+0.2%-1.8%+4.4%
Q1 2017-0.6%-3.4%+4.1%
Q3 2015
Q2 2015
Q1 2015

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