NYSE$PK

Park Hotels & Resorts Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Park Hotels & Resorts Inc. reported third quarter results and announced a special dividend.

Park Hotels & Resorts Inc. announced third quarter results driven by RevPAR growth in urban markets and group business acceleration. Comparable RevPAR increased approximately 3% compared to Q3 2022, or nearly 5% excluding Casa Marina Key West. The company repurchased 5.8 million shares and reinvested over $70 million back into the portfolio. The company has exited its two Hilton San Francisco Hotels.

  • Comparable RevPAR increased approximately 3% compared to the third quarter of 2022.
  • Comparable group revenues for the third quarter of 2023 were up 12% year-over-year.
  • The company repurchased 5.8 million shares of common stock.
  • A special cash dividend of $0.77 per share was declared in connection with the effective exit from the Hilton San Francisco Hotels.

Headline financials

Total Revenue

$679M

Previous: $662M+2.6%
EPS (adj)

$0.51

Previous: $0.42+21.4%
Comparable RevPAR

$182.08

Previous: $171.27+6.3%
Comparable ADR

$241.74

Previous: $238.87+1.2%
Comparable Occupancy

75.3%

Previous: 71.7%+5.0%
Comparable Total RevPAR

$281.21

Previous: $257.78+9.1%
Capital Expenditures

-$195M

Previous: -$104M-87.5%
Free Cash Flow

-$168M

Previous: -$69M-143.5%
Net Income

$27M

Previous: $35M-22.9%
Operating Income

$85M

Previous: $92M-7.6%
Gross Profit

-$59M

Previous: -$58M-1.7%
Cash & Equivalents

$726M

Previous: $971M-25.2%
Total Assets

$9.31B

Previous: $9.79B-4.9%
Stock-Based Comp

$5M

Previous: $4M+25.0%

Revenue & EPS history

Park Hotels · Revenue · Quarterly

$679M

Q3 2023+2.6%vs Q3 2022
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 expects full-year 2023 operating results to be as follows:

Tailwinds

  • Comparable RevPAR for the fourth quarter of 2023 is expected to be between $170 and $180.
  • Comparable Hotel Adjusted EBITDA margin for the fourth quarter of 2023 is expected to be between 26.9% and 28.9%.
  • Adjusted EBITDA includes Hotel Adjusted EBITDA for the two Hilton San Francisco Hotels of $3 million from January 2023 to October 2023, the period prior to the hotels being placed into receivership.
  • Fully diluted weighted average shares for the full-year 2023 are expected to be 214 million, while fully diluted weighted average shares for the fourth quarter of 2023 are expected to be 210 million.
  • Includes $15 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.

Headwinds

  • Park is not providing a full year 2023 outlook for net income, net income attributable to stockholders, earnings per share, operating income and operating income margin
  • Uncertainty surrounding macro-economic factors, such as inflation and increases in interest rates.
  • Supply chain disruptions may impact the company's performance.
  • Possibility of an economic recession or slowdown could adversely affect results.
  • Comparable portfolio as of November 1, 2023 and does not take into account potential future acquisitions and dispositions, 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 Q3 2023

Historical avgQ3 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