NYSE$PK

Park Hotels & Resorts Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Park Hotels & Resorts Inc. reported fourth quarter results exceeding expectations and provided an operational update.

Park Hotels & Resorts Inc. announced strong fourth-quarter results, exceeding expectations with group business acceleration and growth in business transient demand. The company executed capital allocation priorities, including non-core asset sales and share repurchases, while improving financial flexibility. Positive momentum continues into early 2023, with optimism for city-wide calendars and international travel return.

  • Comparable RevPAR increased by 46.7% to $162.81 compared to Q4 2021.
  • Net income attributable to stockholders was $34 million, a significant improvement from the $(67) million loss in Q4 2021.
  • Operating income reached $84 million, a substantial increase from $2 million in Q4 2021.
  • The company amended its Revolver, increasing capacity to $950 million and extending the maturity date to December 2026.

Headline financials

Total Revenue

$665M

Previous: $451M+47.5%
EPS (adj)

$0.45

Previous: $0.05+800.0%
Comparable RevPAR

$162.81

Previous: $110.22+47.7%
Comparable ADR

$240.57

Previous: $210.00+14.6%
Comparable Occupancy

67.7%

Previous: 52.5%+29.0%
Comparable Total RevPAR

$258.41

Previous: $169.36+52.6%
Capital Expenditures

$64M

Previous: $26M+146.2%
Free Cash Flow

$6M

Previous: -$68M+108.8%
Net Income

$35M

Previous: -$65M+153.8%
Operating Income

$84M

Previous: $2M+4100.0%
Gross Profit

$186M

Previous: $101M+84.2%
Cash & Equivalents

$906M

Previous: $688M+31.7%
Total Assets

$9.73B

Previous: $9.74B-0.1%
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

Park Hotels · Revenue · Quarterly

$665M

Q4 2022+47.5%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Park Hotels · $644M total across 3 segments · Q4 2022

  • Rooms
    $406M+43.5%
  • Food & Beverage
    $175M+76.8%
  • Ancillary Hotel
    $63M+18.9%

Forward guidance

Park Hotels & Resorts provided its outlook for Q1 2023 and the full year 2023, anticipating continued recovery and growth in key performance metrics.

Tailwinds

  • RevPAR is expected to be between $156 and $162 for Q1 2023, reflecting a 34% to 40% increase compared to 2022.
  • Net income is projected to be between $12 million and $28 million for Q1 2023.
  • Operating income is estimated to be between $63 million and $79 million for Q1 2023.
  • Adjusted EBITDA is forecasted to be between $124 million and $140 million for Q1 2023.
  • Hotel Adjusted EBITDA margin is expected to be between 22.8% and 23.4% for Q1 2023.

Headwinds

  • An increase in interest expense during the second half of 2023 is anticipated upon extending the maturity date of the $725 million mortgage loan secured by the Hilton San Francisco Union Square and Parc 55 Hotel San Francisco.
  • The removal of $4 million of Hotel Adjusted EBITDA for Q1 related to the sale of the Hilton Miami Airport.
  • 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.
  • The outlook is based on factors outside the Company's control, including macro-economic factors, uncertainty surrounding inflation and potential economic slowdown.
  • The forecast does not account for potential future acquisitions and dispositions, which could significantly alter 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 Q4 2022

Historical avgQ4 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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