NYSE$PK

Park Hotels & Resorts Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Park Hotels & Resorts Inc. reported strong first quarter results, exceeding expectations with urban hotel rebound and sustained resort market strength.

Park Hotels & Resorts Inc. reported a strong first quarter, exceeding expectations due to improvements in urban hotels and sustained resort market strength. Group trends accelerated, driving healthy margin gains. The company repurchased 8.8 million shares, increased the quarterly dividend to $0.15 per share, and continued to reshape its portfolio through value-enhancing ROI projects.

  • Comparable RevPAR increased by 36.5% compared to Q1 2022, driven by strong urban and resort performance.
  • Urban hotels experienced a robust rebound, with RevPAR increasing 81% compared to Q1 2022.
  • Group revenues exceeded forecast by 15%, with 2023 Group Revenue Pace now at 82% of 2019 levels.
  • The company repurchased 8.8 million shares and increased the recurring quarterly dividend to $0.15 per share.

Headline financials

Total Revenue

$648M

Previous: $479M+35.3%
EPS (adj)

$0.42

Previous: $0.08+425.0%
Comparable RevPAR

$158.84

Previous: $116.42+36.4%
Comparable ADR

$244.38

Previous: $224.42+8.9%
Comparable Occupancy

65.0%

Previous: 51.9%+25.2%
Comparable Total RevPAR

$260.85

Previous: $184.11+41.7%
Capital Expenditures

-$54M

Previous: -$21M-157.1%
Free Cash Flow

-$21M

Previous: -$78M+73.1%
Net Income

$33M

Previous: -$57M+157.9%
Operating Income

$80M

Previous: $1M+7900.0%
Gross Profit

-$60M

Previous: -$50M-20.0%
Cash & Equivalents

$842M

Previous: $639M+31.8%
Total Assets

$9.55B

Previous: $9.7B-1.5%
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

Park Hotels · Revenue · Quarterly

$648M

Q1 2023+35.3%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Park Hotels · $628M total across 3 segments · Q1 2023

  • Rooms
    $382M+30.8%
  • Food & Beverage
    $181M+64.5%
  • Ancillary Hotel
    $65M+6.6%

Forward guidance

Park Hotels & Resorts expects full-year 2023 operating results with RevPAR between $167 and $179, net income between $113 and $191 million, operating income between $324 and $404 million, and Adjusted EBITDA between $624 and $704 million.

Tailwinds

  • Fully diluted weighted average shares are expected to be 216 million.
  • RevPAR growth for the second quarter of 2023 is expected to be between 7% to 11% as compared to the second quarter of 2022.
  • The repayment of the $75 million mortgage loan secured by the W Chicago – City Center.
  • The mortgage loan secured by the Hilton Denver City Center is not called by the lender during 2023.
  • Current portfolio as of May 1, 2023 and does not take into account potential future acquisitions and dispositions, which could result in a material change to Park’s outlook.

Headwinds

  • Uncertainty surrounding macro-economic factors, including inflation
  • Increases in interest rates
  • Supply chain disruptions
  • The possibility of an economic recession or slowdown
  • 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

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 2023

Historical avgQ1 2023

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro