NYSE$PK

Park Hotels & Resorts Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Park Hotels & Resorts Inc. reported second quarter 2024 results, showing improvements driven by strategic investments and strong demand trends.

Park Hotels & Resorts reported a net income of $67 million for the second quarter of 2024, a significant increase from the net loss of $146 million in the same period last year. Comparable RevPAR grew by 2% year-over-year, driven by strong group and leisure demand, particularly in Boston, Miami, and New York. The company also executed capital allocation strategies, including debt refinancing and share repurchases.

  • Comparable RevPAR increased by 2% compared to Q2 2023, driven by strategic investments and strong demand trends.
  • Net income was $67 million, a substantial improvement from the $146 million loss in Q2 2023.
  • Group demand continues to improve, with 2024 Comparable Group Revenue Pace up nearly 10% compared to the same time last year.
  • The company repurchased nearly 1.7 million shares of common stock for $25 million.

Headline financials

Total Revenue

$686M

Previous: $714M-3.9%
EPS

$0.30

Previous: $0.60-50.0%
Comparable RevPAR

$194.90

Previous: $191.03+2.0%
Comparable ADR

$252.90

Previous: $248.33+1.8%
Comparable Occupancy

77.1%

Previous: 76.9%+0.3%
Comparable Total RevPAR

$311.32

Previous: $301.74+3.2%
Capital Expenditures

-$121M

Previous: -$124M+2.4%
Free Cash Flow

-$57M

Previous: -$274M+79.2%
Net Income

$64M

Previous: -$150M+142.7%
Operating Income

$121M

Previous: -$98M+223.5%
Gross Profit

-$57M

Previous: -$63M+9.5%
Cash & Equivalents

$449M

Previous: $797M-43.7%
Total Assets

$9.17B

Previous: $9.34B-1.9%
Stock-Based Comp

$5M

Previous: $5M+0.0%

Revenue & EPS history

Park Hotels · Revenue · Quarterly

$686M

Q2 2024-3.9%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Park Hotels · $657M total across 3 segments · Q3 2023

  • Rooms
    $432M+0.9%
  • Food & Beverage
    $159M+7.4%
  • Ancillary Hotel
    $66M-1.5%

Forward guidance

Park Hotels has revised its full-year 2024 outlook. The guidance includes assumptions about RevPAR, Hotel Adjusted EBITDA, and Adjusted FFO per share.

Tailwinds

  • Comparable RevPAR is projected to be between $185 and $187.
  • Net income is expected to be between $155 million and $185 million.
  • Operating income is anticipated to be between $410 million and $441 million.
  • Adjusted EBITDA is forecasted to be between $660 million and $690 million.
  • Adjusted FFO per share is projected to be between $2.10 and $2.26.

Headwinds

  • The outlook includes 50 bps of RevPAR and $9 million of Hotel Adjusted EBITDA disruption from renovations at certain of Park's hotels, of which $8 million is associated with renovations at Park's Hawaii hotels.
  • Adjusted FFO excludes $60 million of default interest and late payment administrative fees associated with default of the SF Mortgage Loan for full-year 2024.
  • The outlook does not take into account potential future acquisitions, dispositions, including the Hilton Oakland Airport, or any financing transactions, which could result in a material change to Park’s outlook.
  • Uncertainty surrounding macro-economic factors, such as inflation, changes in interest rates and the possibility of an economic recession or slowdown.
  • The loan matures in August 2042 but became callable by the lender in August 2022 with six months of notice. As of June 30, 2024, Park had not received notice from the lender.

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 Q2 2024

Historical avgQ2 2024

-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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