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What's in Store for Park Hotels & Resorts (PK) in Q4 Earnings?
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Park Hotels & Resorts Inc. (PK - Free Report) is scheduled to release fourth-quarter and full-year 2023 earnings results on Feb 27 after market close. While the quarterly results are likely to display marginal year-over-year growth in revenues, funds from operations (FFO) per share are expected to showcase a decent increase.
In the previous quarter, the Tysons, VA-based lodging real estate investment trust (REIT) delivered a surprise of 15.91% in terms of adjusted FFO (AFFO) per share. The quarterly results reflected better-than-anticipated revenues.
Over the trailing four quarters, Park Hotels’ AFFO per share surpassed estimates on three occasions and met in the remaining period, the average beat being 12.30%. The graph below depicts this surprise history:
In its January released preliminary fourth-quarter and full-year 2023 results, Park Hotels showcased impressive performance and optimistic projections for the upcoming year.
This lodging REIT, with a diverse portfolio of market-leading hotels and resorts, reported an adjusted FFO per share of 53 cents for the fourth quarter, which is ahead of the Zacks Consensus Estimate of 51 cents. Preliminary adjusted FFO per share also showcased an increase of 17.8% year over year. Results were backed by a preliminary revenue figure of $657 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 $2.04.
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%, 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. The 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.
The company’s activities during the to-be-reported quarter were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for the fourth-quarter 2023 adjusted FFO per share has moved up a cent to 51 cents over the past month. Moreover, the figure implies a 13.3% increase year over year. This is based on fourth-quarter revenue growth of 0.02% year over year to $665.16 million.
For the full year 2023, the Zacks Consensus Estimate for adjusted FFO per share has moved a cent north over the past month to $2.04. The figure indicates a 32.47% increase year over year on 7.94% year-over-year growth in revenues to $2.70 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model predicts a surprise in terms of adjusted FFO per share for Park Hotels this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
Park Hotels currently has a Zacks Rank of 3 and an Earnings ESP of +1.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Another Stock That Warrants a Look
Our model shows that Extra Space Storage Inc. (EXR - Free Report) also has the right combination of elements to report a surprise this quarter.
Host Hotels & Resorts, Inc. (HST - Free Report) reported fourth-quarter AFFO per share of 44 cents, which was in line with the Zacks Consensus Estimate. Moreover, the figure remained unchanged from the prior-year quarter. Results reflected higher revenues, driven by year-over-year occupancy growth. Host Hotels & Resorts issued a better-than-anticipated 2024 outlook for AFFO per share.
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.
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What's in Store for Park Hotels & Resorts (PK) in Q4 Earnings?
Park Hotels & Resorts Inc. (PK - Free Report) is scheduled to release fourth-quarter and full-year 2023 earnings results on Feb 27 after market close. While the quarterly results are likely to display marginal year-over-year growth in revenues, funds from operations (FFO) per share are expected to showcase a decent increase.
In the previous quarter, the Tysons, VA-based lodging real estate investment trust (REIT) delivered a surprise of 15.91% in terms of adjusted FFO (AFFO) per share. The quarterly results reflected better-than-anticipated revenues.
Over the trailing four quarters, Park Hotels’ AFFO per share surpassed estimates on three occasions and met in the remaining period, the average beat being 12.30%. The graph below depicts this surprise history:
Park Hotels & Resorts Inc. Price and EPS Surprise
Park Hotels & Resorts Inc. price-eps-surprise | Park Hotels & Resorts Inc. Quote
Preliminary Results & Projections
In its January released preliminary fourth-quarter and full-year 2023 results, Park Hotels showcased impressive performance and optimistic projections for the upcoming year.
This lodging REIT, with a diverse portfolio of market-leading hotels and resorts, reported an adjusted FFO per share of 53 cents for the fourth quarter, which is ahead of the Zacks Consensus Estimate of 51 cents. Preliminary adjusted FFO per share also showcased an increase of 17.8% year over year. Results were backed by a preliminary revenue figure of $657 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 $2.04.
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%, 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. The 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.
The company’s activities during the to-be-reported quarter were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for the fourth-quarter 2023 adjusted FFO per share has moved up a cent to 51 cents over the past month. Moreover, the figure implies a 13.3% increase year over year. This is based on fourth-quarter revenue growth of 0.02% year over year to $665.16 million.
For the full year 2023, the Zacks Consensus Estimate for adjusted FFO per share has moved a cent north over the past month to $2.04. The figure indicates a 32.47% increase year over year on 7.94% year-over-year growth in revenues to $2.70 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model predicts a surprise in terms of adjusted FFO per share for Park Hotels this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
Park Hotels currently has a Zacks Rank of 3 and an Earnings ESP of +1.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Another Stock That Warrants a Look
Our model shows that Extra Space Storage Inc. (EXR - Free Report) also has the right combination of elements to report a surprise this quarter.
Extra Space Storage, scheduled to report quarterly numbers on Feb 27, has an Earnings ESP of +0.70% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Performance of Another REIT
Host Hotels & Resorts, Inc. (HST - Free Report) reported fourth-quarter AFFO per share of 44 cents, which was in line with the Zacks Consensus Estimate. Moreover, the figure remained unchanged from the prior-year quarter. Results reflected higher revenues, driven by year-over-year occupancy growth. Host Hotels & Resorts issued a better-than-anticipated 2024 outlook for AFFO per share.
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.