TYSONS, Va.,
“I am incredibly pleased with the strength of our portfolio as operating trends remained very solid in both October and November. Results were once again driven by improvements across our urban portfolio which delivered year-over-year 10% Comparable RevPAR growth during the first two months of the quarter. Business travel accelerated in
Operational Highlights:
- Park’s
Hawaii hotels continue to experience solid performance with RevPAR increasing 9.3% over prior year in October, followed by RevPAR growth of 14.5% in November; - Park’s urban portfolio continues its strong recovery with October Comparable RevPAR increasing 9.1%, followed by November Comparable RevPAR increasing 11.2% versus prior year, with
New York andChicago among Park’s top performing urban markets in November, reporting year-over-year RevPAR gains of 15.1%, and 14.4%, respectively, followed byBoston ,Denver ,San Francisco , andWashington, D.C. , each increasing over 10% versus the prior year on a Comparable basis; - Hotel net income for
October 2023 andNovember 2023 was$39 million and$17 million , respectively; Comparable Hotel Adjusted EBITDA margin forOctober 2023 was 32.6%, a 35 basis point decline year-over-year, whileComparable Hotel Adjusted EBITDA margin improved 53 basis points year-over-year inNovember 2023 to 25.0%;- Park reaffirms its full-year 2023 outlook for Comparable RevPAR,
Comparable Hotel Adjusted EBITDA margin, Adjusted EBITDA and Adjusted FFO per diluted share provided in itsNovember 1, 2023 earnings press release; and - Comparable Occupancy, ADR and RevPAR for the third quarter of 2023,
October 2023 andNovember 2023 and comparisons to the same periods in 2022 are as follows:
Q3 2023 | vs. Q3 2022 | October 2023 | vs. October 2022 | November 2023 | vs. November 2022 | ||||||||||||
Comparable Occupancy | 75.3 | % | 2.7 | % pts | 77.3 | % | 1.9 | % pts | 71.4 | % | 2.7 | % pts | |||||
Comparable ADR | $ | 241.74 | (0.9 | %) | $ | 254.47 | 2.3 | % | $ | 241.60 | 2.0 | % | |||||
Comparable RevPAR | $ | 182.08 | 2.8 | % | $ | 196.67 | 4.9 | % | $ | 172.54 | 5.9 | % |
Capital Expenditure Highlights:
- At
Bonnet Creek , Park is expected to complete its nearly$230 million transformative expansion and full-scale renovation of The Waldorf Astoria Orlando and Signia byHilton Orlando Bonnet Creek hotels inJanuary 2024 . Both hotels are well positioned to capitalize on their repositioning with 2024 Group Revenue Pace as ofNovember 30, 2023 up 35% compared to the same time last year, while the market is currently experiencing a 5% decline in 2024 group room night pace. The hotels are expected to benefit from improved group positioning, with an increase in ADR for future group business up over 10% on average, through 2025; - In
Key West , the approximately$80 million renovation at Casa Marina Key West, Curio Collection is near completion with all guest room inventory online as ofDecember 6 th and the new oceanfront restaurant,Dorada , expected to debut during the first quarter of 2024. Overall Group Revenue Pace at the hotel is up 9% versus 2019; and - The multi-phased renovation project of the 1,021-room
Tapa Tower at theHilton Hawaiian Village Waikiki Beach Resort is expected to be completed this week.
Capital Return Highlights:
- On
October 27, 2023 , Park's Board of Directors declared a special cash dividend of$0.77 per share in connection with the effective exit from two of Park'sSan Francisco hotels – the 1,921-roomHilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco – aHilton Hotel (collectively, the “Hilton San Francisco Hotels”). The special dividend will be paid onJanuary 16, 2024 to stockholders of record as ofDecember 29, 2023 ; - On
November 30, 2023 , Park's Board of Directors declared a fourth quarter dividend of$0.93 per share of common stock which includes Park’s regular quarterly dividend of$0.15 coupled with a$0.78 top off dividend based on 2023 operating results. This dividend will also be paid onJanuary 16, 2024 to stockholder of record as ofDecember 29, 2023 . The fourth quarter dividend, together with the regular cash dividends declared for the first three quarters of 2023, represent an annual yield of 8.4% based on the closing stock price as ofDecember 19, 2023 ; and - Park has not repurchased any of its stock in the fourth quarter to date.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). Forward-looking statements include, but are not limited to, statements related to the anticipated effects of the Company's decision to cease payments on its
All such forward-looking statements are based on current expectations of management and therefore involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements and we urge investors to carefully review the disclosures Park make concerning risks and uncertainties in Item 1A: “Risk Factors” in Park's Annual Report on Form 10-K for the year ended
Non-GAAP Financial Measures
Park presents certain non-GAAP financial measures in this press release, including
About
Park is one of the largest publicly traded lodging REIT with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park’s portfolio currently consists of 43 premium-branded hotels and resorts with over 26,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS HOTEL EBITDA, HOTEL ADJUSTED EBITDA AND HOTEL ADJUSTED EBITDA MARGIN | |||||
(unaudited, in millions) | |||||
Month Ended | Month Ended | ||||
Hotel net income | $ | 39 | $ | 17 | |
Depreciation and amortization expense | 21 | 20 | |||
Interest expense | 10 | 10 | |||
70 | 47 | ||||
Other | 5 | 2 | |||
75 | 49 | ||||
Less: Adjusted EBITDA from the | 1 | — | |||
$ | 76 | $ | 49 |
Month Ended | Month Ended | ||||||
Total Revenues | $ | 256 | $ | 202 | |||
Less: Other revenue | (7 | ) | (8 | ) | |||
Less: Revenue from the | (16 | ) | — | ||||
$ | 233 | $ | 194 |
Month Ended | Month Ended | ||||||||||
$ | 233 | $ | 194 | ||||||||
$ | 76 | $ | 49 | ||||||||
32.6 | % | 25.0 | % |
DEFINITIONS
Comparable
The Company presents certain data for its consolidated hotels on a Comparable basis as supplemental information for investors:
EBITDA,
Hotel earnings before interest expense, taxes and depreciation and amortization (“Hotel EBITDA”), presented herein, reflects net income excluding depreciation and amortization, interest income, interest expense and income taxes of the Company’s consolidated hotels.
The Company believes that
Occupancy
Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels. Occupancy measures the utilization of the Company’s hotels’ available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable Average Daily Rate (“ADR”) levels as demand for rooms increases or decreases.
Average Daily Rate
ADR (or rate) represents rooms revenue divided by total number of room nights sold in a given period. ADR measures average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the hotel industry, and management uses ADR to assess pricing levels that the Company is able to generate by type of customer, as changes in rates have a more pronounced effect on overall revenues and incremental profitability than changes in occupancy, as described above.
Revenue per
Revenue per
Group Revenue Pace
Group Revenue Pace represents bookings for future business and is calculated as group room nights multiplied by the contracted room rate expressed as a percentage of a prior period relative to a prior point in time.
For more information, contact:
Senior Vice President, Corporate Strategy
571-302-5591
iweissman@pkhotelsandresorts.com
For additional information or to receive press releases via e-mail, please visit our website at www.pkhotelsandresorts.com
Source:
2023 GlobeNewswire, Inc., source