Market Overview

Park Hotels & Resorts Inc. Reports Third Quarter 2019 Results

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Park Hotels & Resorts Inc. ("Park" or the "Company") (NYSE:PK) today announced results for the third quarter ended September 30, 2019. Highlights include:

Third Quarter 2019 Highlights

  • Park Comparable RevPAR was $183.51, an increase of 1.9% from the same period in 2018;
  • Park Comparable RevPAR increased 2.6% from the same period in 2018, excluding Florida renovation displacement and disruption from Hurricane Dorian;
  • Park Comparable Total RevPAR was $274.95, an increase of 4.9% from the same period in 2018;
  • Net income was $9 million and net income attributable to stockholders was $5 million;
  • Adjusted EBITDA was $180 million;
  • Park Comparable Hotel Adjusted EBITDA margin was 28.1%, an increase of 20 bps from the same period in 2018;
  • Adjusted FFO attributable to stockholders was $140 million;
  • Diluted earnings per share was $0.02;
  • Diluted Adjusted FFO per share was $0.68; and
  • Completed the $2.5 billion acquisition of Chesapeake Lodging Trust ("Chesapeake") on September 18, 2019.

Thomas J. Baltimore, Jr., Chairman, President and Chief Executive Officer, stated, "I am pleased to announce results for another solid quarter with Park Comparable RevPAR increasing 1.9%, and RevPAR index share increasing by an impressive 350 basis points driven by our strong group base and diversified platform that helped offset a challenging transient demand environment. Despite these challenges, the portfolio is still delivering margin growth due in part to relentless efforts from our aggressive asset management initiatives. I am also extremely excited by our strategic acquisition of Chesapeake Lodging Trust. We acquired an exceptional portfolio of 18 hotels, which accelerates the Company's strategic goals of upgrading the quality of the portfolio and achieving brand, operator and geographic diversity. This exciting acquisition positions the Company to drive superior, risk-adjusted earnings growth as we apply the success we have demonstrated within the legacy Park portfolio to this high-quality portfolio."

Selected Statistical and Financial Information

The amounts below, except Park comparable metrics, include the results from the 18 hotels acquired from Chesapeake for the 13 days in the third quarter following the acquisition. For additional information regarding the operating performance of the 18 Chesapeake hotels and total pro-forma comparable metrics, see Pro-forma Selected Statistical and Financial Information later in this release.

(unaudited, dollars in millions, except RevPAR and ADR)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

2019

 

 

2018

 

 

Change(1)

 

 

2019

 

 

2018

 

 

Change(1)

 

 

Park Comparable RevPAR

 

$

183.51

 

 

$

180.07

 

 

 

1.9

%

 

$

184.77

 

 

$

180.57

 

 

 

2.3

%

 

Park Comparable Occupancy

 

 

83.7

%

 

 

83.7

%

 

 

 

 

 

83.3

%

 

 

82.9

%

 

 

0.4

% pts

 

Park Comparable ADR

 

$

219.16

 

 

$

215.01

 

 

 

1.9

%

 

$

221.82

 

 

$

217.75

 

 

 

1.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Park Comparable Total RevPAR

 

$

274.95

 

 

$

262.12

 

 

 

4.9

%

 

$

286.77

 

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