On November 1, 2023, Park Hotels & Resorts Inc (PK, Financial) released its earnings report for the third quarter ended September 30, 2023. The company also announced a special dividend and provided an operational update.
Financial Highlights
For Q3 2023, Park Hotels & Resorts Inc (PK, Financial) reported a net income of $31 million, a decrease of 22.5% compared to Q3 2022. The net income attributable to stockholders was $27 million, a drop of 22.9% from the same period last year. Operating income was $85 million, down by 8.5% from Q3 2022. The company's earnings per share diluted was $0.13, a decrease of 13.3% from Q3 2022.
However, the company's Adjusted FFO per share diluted increased by 21.4% to $0.51. The company also reported a 14.9% increase in Adjusted FFO attributable to stockholders, reaching $108 million.
Operational Highlights
According to Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, the Q3 results were driven by continued RevPAR growth in key urban markets and the acceleration of group business. He stated,
Comparable RevPAR for the third quarter of 2023 increased approximately 3% compared to the third quarter of 2022, or nearly 5% excluding the Casa Marina Key West, Curio Collection, where operations were suspended throughout the third quarter for a comprehensive renovation."
The company also executed strategic capital allocation initiatives, including the repurchase of 5.8 million shares of common stock under the existing repurchase program at a significant discount to the estimated net asset value. Additionally, over $70 million was reinvested back into the current portfolio.
Special Dividend Announcement
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 the Hilton San Francisco Hotels. The special dividend will be paid on January 16, 2024, to stockholders of record as of December 29, 2023.
Future Outlook
While Park Hotels & Resorts Inc (PK, Financial) did not provide a full year 2023 outlook for net income, net income attributable to stockholders, earnings per share, operating income, and operating income margin, it expects full-year 2023 operating results to be based on a number of factors, including uncertainty surrounding macro-economic factors such as inflation, increases in interest rates, supply chain disruptions, and the possibility of an economic recession or slowdown.
Explore the complete 8-K earnings release (here) from Park Hotels & Resorts Inc for further details.
