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Park Hotels & Resorts' (PK) Preliminary Q4 FFO, Revenues Beat
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Park Hotels & Resorts Inc. (PK - Free Report) recently released its preliminary fourth quarter and full-year 2023 results, showcasing impressive performance and optimistic projections for the upcoming year.
This hotel REIT reported adjusted funds from operations (FFO) per share of 53 cents for the fourth quarter, which is ahead of the Zacks Consensus Estimate of 50 cents. Preliminary adjusted FFO per share also showcased an increase of 17.8% year over year. Results were backed by a better-than-expected preliminary revenue figure of $657 million, ahead of the consensus mark of $654 million.
For the full year 2023, preliminary adjusted FFO per share came in at $2.05, up 33.1% year over year. It also surpassed the Zacks Consensus Estimate of $2.03.
Preliminary comparable revenue per available room (RevPAR) for the fourth quarter of 2023 reached $178.25, reflecting a 4.1% increase year over year. The full-year 2023 results showed an even more robust performance, with remarkable 8.7% year-over-year growth in comparable RevPAR, reaching $178.62.
The urban portfolio experienced nearly 8% growth in comparable RevPAR, driven by the acceleration of business travel in key cities like Boston, Chicago and New York. Meanwhile, leisure demand remained strong at Hawaii hotels, contributing to a more than 8% increase in preliminary RevPAR for the resorts.
Comparable occupancy for the fourth quarter of 2023 increased by 1.5 percentage points to 71.0%, while the comparable Average Daily Rate rose by 1.9% to $250.93. These factors contributed to 4.9% growth in total comparable RevPAR, reaching $287.21.
Operating income experienced a notable 230.2% increase, resulting in a 42.1% operating income margin.
Comparable Hotel Adjusted EBITDA margin stood at 27.6%, showing a marginal decrease of 70 basis points. Adjusted EBITDA for the fourth quarter of 2023 was $163 million, representing a 2.5% increase.
Outlook
Park Hotels & Resorts is optimistic about the ongoing strength across its portfolio in 2024, anticipating positive impacts from transformative renovation projects at the Bonnet Creek Orlando complex and the Casa Marina Key West hotel.
The company aims to enhance its financial flexibility and improve the balance sheet through non-core asset sales while strategically reinvesting in value-enhancing Return on Investment projects.
Earnings Release
Park will release its finalized fourth-quarter and full-year 2023 financial results on Feb 27, 2024, followed by a conference call on Feb 28, 2024.
Conclusion
Park Hotels & Resorts’ preliminary 2023 results showcase a robust performance across key financial metrics. With positive trends in comparable RevPAR, occupancy rates and profitability, the company is poised for a promising 2024. Investors should pay close attention to the upcoming earnings release and conference call for a deeper insight into Park's future prospects and strategic initiatives.
Shares of this Zacks Rank #3 (Hold) company have rallied 35.8% in the past three months, outperforming the industry’s increase of 20%.
The Zacks Consensus Estimate for OUTFRONT Media’s 2023 FFO per share has moved 1.9% northward over the past three months to $1.63.
The Zacks Consensus Estimate for STAG Industrial’s 2023 FFO per share has moved marginally upward in the past three months to $2.28 and indicates an estimated increase of 3.2% year over year.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Park Hotels & Resorts' (PK) Preliminary Q4 FFO, Revenues Beat
Park Hotels & Resorts Inc. (PK - Free Report) recently released its preliminary fourth quarter and full-year 2023 results, showcasing impressive performance and optimistic projections for the upcoming year.
This hotel REIT reported adjusted funds from operations (FFO) per share of 53 cents for the fourth quarter, which is ahead of the Zacks Consensus Estimate of 50 cents. Preliminary adjusted FFO per share also showcased an increase of 17.8% year over year. Results were backed by a better-than-expected preliminary revenue figure of $657 million, ahead of the consensus mark of $654 million.
For the full year 2023, preliminary adjusted FFO per share came in at $2.05, up 33.1% year over year. It also surpassed the Zacks Consensus Estimate of $2.03.
Preliminary comparable revenue per available room (RevPAR) for the fourth quarter of 2023 reached $178.25, reflecting a 4.1% increase year over year. The full-year 2023 results showed an even more robust performance, with remarkable 8.7% year-over-year growth in comparable RevPAR, reaching $178.62.
The urban portfolio experienced nearly 8% growth in comparable RevPAR, driven by the acceleration of business travel in key cities like Boston, Chicago and New York. Meanwhile, leisure demand remained strong at Hawaii hotels, contributing to a more than 8% increase in preliminary RevPAR for the resorts.
Comparable occupancy for the fourth quarter of 2023 increased by 1.5 percentage points to 71.0%, while the comparable Average Daily Rate rose by 1.9% to $250.93. These factors contributed to 4.9% growth in total comparable RevPAR, reaching $287.21.
Operating income experienced a notable 230.2% increase, resulting in a 42.1% operating income margin.
Comparable Hotel Adjusted EBITDA margin stood at 27.6%, showing a marginal decrease of 70 basis points. Adjusted EBITDA for the fourth quarter of 2023 was $163 million, representing a 2.5% increase.
Outlook
Park Hotels & Resorts is optimistic about the ongoing strength across its portfolio in 2024, anticipating positive impacts from transformative renovation projects at the Bonnet Creek Orlando complex and the Casa Marina Key West hotel.
The company aims to enhance its financial flexibility and improve the balance sheet through non-core asset sales while strategically reinvesting in value-enhancing Return on Investment projects.
Earnings Release
Park will release its finalized fourth-quarter and full-year 2023 financial results on Feb 27, 2024, followed by a conference call on Feb 28, 2024.
Conclusion
Park Hotels & Resorts’ preliminary 2023 results showcase a robust performance across key financial metrics. With positive trends in comparable RevPAR, occupancy rates and profitability, the company is poised for a promising 2024. Investors should pay close attention to the upcoming earnings release and conference call for a deeper insight into Park's future prospects and strategic initiatives.
Shares of this Zacks Rank #3 (Hold) company have rallied 35.8% in the past three months, outperforming the industry’s increase of 20%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are OUTFRONT Media Inc. (OUT - Free Report) and STAG Industrial, Inc. (STAG - Free Report) . While OUTFRONT Media sports a Zacks Rank #1 (Strong Buy), STAG Industrial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OUTFRONT Media’s 2023 FFO per share has moved 1.9% northward over the past three months to $1.63.
The Zacks Consensus Estimate for STAG Industrial’s 2023 FFO per share has moved marginally upward in the past three months to $2.28 and indicates an estimated increase of 3.2% year over year.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.