NYSE$PK

Park Hotels & Resorts Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Park Hotels' Q3 2022 results were announced, demonstrating significant recovery driven by strong leisure demand and accelerating business transient demand.

Park Hotels & Resorts Inc. reported third-quarter 2022 results with a pro-forma RevPAR of $171.27, net income of $40 million, and adjusted EBITDA of $158 million. The company continued its capital recycling strategy, selling non-core assets and improving liquidity. Leisure demand remained strong, and business transient demand continued to accelerate.

  • Pro-forma RevPAR increased by 61.7% year-over-year to $171.27, but decreased 8.8% compared to 2019.
  • Pro-forma occupancy was 71.7%, a 1 percentage point increase from Q2 2022.
  • Net income was $40 million, and diluted earnings per share was $0.15.
  • Adjusted EBITDA was $158 million.

Headline financials

Total Revenue

$662M

Previous: $423M+56.5%
EPS (adj)

$0.42

Previous: $0.02+2000.0%
Comparable RevPAR

$171.27

Previous: $105.48+62.4%
Comparable ADR

$238.87

No prior period
Comparable Occupancy

71.7%

Previous: 58.0%+23.6%
Comparable Total RevPAR

$257.78

No prior period
Capital Expenditures

-$104M

Previous: -$28M-271.4%
Free Cash Flow

-$69M

Previous: -$114M+39.5%
Net Income

$35M

Previous: -$86M+140.7%
Operating Income

$92M

Previous: -$14M+757.1%
Gross Profit

-$58M

Previous: -$51M-13.7%
Cash & Equivalents

$971M

Previous: $772M+25.8%
Total Assets

$9.79B

Previous: $9.79B-0.1%
Stock-Based Comp

$4M

Previous: $5M-20.0%

Revenue & EPS history

Park Hotels · Revenue · Quarterly

$662M

Q3 2022+56.5%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Park Hotels · $643M total across 3 segments · Q3 2022

  • Rooms
    $428M+56.2%
  • Food & Beverage
    $148M+94.7%
  • Ancillary Hotel
    $67M+15.5%

Forward guidance

Park Hotels & Resorts expects fourth quarter RevPAR to be between $163 and $166, net income between $6 million and $20 million, and adjusted EBITDA between $140 million and $155 million.

Tailwinds

  • RevPAR is expected to be between $163 and $166.
  • Net income is projected to be between $6 million and $20 million.
  • Adjusted EBITDA is anticipated to be between $140 million and $155 million.
  • Hotel Adjusted EBITDA margin is expected to be between 24.0% and 25.0%.
  • Adjusted FFO per share is forecasted to be between $0.35 and $0.43.

Headwinds

  • RevPAR change vs. 2019 is expected to be between -9% and -7%.
  • Hotel Adjusted EBITDA margin change vs. 2019 is expected to be between -520 bps and -420 bps.
  • The outlook does not account for potential future acquisitions and dispositions.
  • The outlook is subject to uncertainty surrounding new disruptions from the COVID-19 pandemic.
  • The outlook is subject to macro-economic factors, including inflation and potential economic slowdown.

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 Q3 2022

Historical avgQ3 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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