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01/11 12:01
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals a mixed picture with negative elements outweighing positives. EPS missed expectations significantly, and RevPAR declined. Despite share repurchases and dividends, guidance was lowered across key metrics, and management expressed uncertainty about asset sales. The Q&A highlighted concerns about geopolitical factors and slow recovery in Hawaii. The market cap indicates moderate sensitivity, suggesting a stock price decline between -2% to -8% over the next two weeks.
EPS Reported EPS is $-0.29, missing expectations of $0.41.
RevPAR Reported RevPAR is $178, representing a 70 basis point decline year-over-year due to difficult comparisons following last year’s nearly 8% growth.
Total Hotel Revenues Total hotel revenues for the quarter were $608 million.
Hotel Adjusted EBITDA Hotel adjusted EBITDA was $151 million, resulting in a nearly 25% hotel adjusted EBITDA margin.
Adjusted EBITDA Adjusted EBITDA for the quarter was $144 million.
Adjusted FFO per share Adjusted FFO per share was $0.46.
Dividend Paid a cash dividend of $0.25 per share for Q1 and declared a second quarter cash dividend of $0.25 per share.
Total Expenses Total expenses were up 3.3% during the quarter, primarily due to nearly $10 million of employment tax credits and other relief grants received in Q1 of last year.
Comparable Operating Expenses Excluding the previous items, total comparable operating expenses increased just 1% over the prior year period.
Capital Improvements Invested over $80 million in capital improvements during the quarter, with a total expected investment of $310 million to $330 million for 2025.
Share Repurchase Repurchased approximately 3.5 million shares for a total purchase price of $45 million.
Noncore Hotel Sales Progressing towards selling $300 million to $400 million of noncore hotels this year.
RevPAR Growth Forecast Lowered RevPAR growth forecast by 100 basis points to a new range of negative 1% to positive 2%.
Adjusted EBITDA Forecast Lowered adjusted EBITDA forecast by 3% to a new range of $590 million to $650 million.
Adjusted FFO per Share Forecast Adjusted FFO per share was reduced by $0.11 to a new range of $1.79 to $2.09 per share.
Capital Improvements: Initiated over $80 million of capital improvements during the quarter, with plans for a $100 million transformative renovation of the Royal Palm South Beach, Miami.
Renovation Projects: Completed Phase 1 of the Rainbow Tower renovation at Hilton Hawaiian Village, upgrading 392 guestrooms.
New Room Additions: Addition of 11 new rooms at Royal Palm South Beach as part of the renovation.
Market Expansion: Achieved major milestone in entitlements for a planned 515 room tower at Hilton Hawaiian Village, with City Council approval.
Group Revenue Growth: Group revenue pace for Orlando hotels is up 9%, driven by the opening of Universal’s new Epic Theme Park.
Operational Efficiency: Achieved a 32% RevPAR increase at Waldorf Astoria, driven by a surge in transient revenues of nearly 65%.
Cost Management: Total comparable operating expenses increased just 1% over the prior year period, excluding employment tax credits.
Share Repurchase: Repurchased approximately 3.5 million shares for $45 million, totaling 11.5 million shares over the past year.
Asset Disposition Strategy: Progressing towards selling $300 million to $400 million of noncore hotels this year.
Earnings Expectations: Park Hotels & Resorts Inc. missed earnings expectations with a reported EPS of $-0.29, while expectations were $0.41.
Regulatory Issues: The company is subject to numerous risks and uncertainties that could cause future results to differ from those expressed in forward-looking statements.
Market Uncertainty: The ongoing global trade war continues to delay decision-making and amplify geopolitical tensions, causing booking windows across most segments to narrow significantly.
Supply Chain Challenges: The Hilton Hawaiian Village Hotel continues to recover from a labor strike, which has impacted its performance.
Economic Factors: The company has revised its full-year outlook to reflect a modest slowdown in demand due to the escalated trade war on global travel.
Transaction Market: The transaction market remains episodic, and there are no assurances regarding the timing of the sale of non-core hotels.
Renovation Impact: Renovation-related displacement at the Royal Palm South Beach Hotel is expected to reduce RevPAR growth by approximately 110 basis points for the year.
Capital Improvements: Initiated over $80 million of capital improvements during the quarter, with a total expected investment of $310 million to $330 million in 2025.
Transformative Renovation: Announced a $100 million renovation of the Royal Palm South Beach, Miami, expected to double the hotel’s EBITDA once stabilized.
Share Repurchase: Repurchased approximately 3.5 million shares for $45 million, totaling 11.5 million shares over the past year.
Non-Core Hotel Sales: Progressing towards selling $300 million to $400 million of non-core hotels this year.
Hilton Hawaiian Village Expansion: Achieved milestone in entitlements for a planned 515 room tower at Hilton Hawaiian Village, with expected final approval by year-end.
RevPAR Growth: Revised full year RevPAR growth forecast to a range of negative 1% to positive 2%.
Adjusted EBITDA: Lowered adjusted EBITDA forecast to a range of $590 million to $650 million.
Adjusted FFO per Share: Adjusted FFO per share reduced to a range of $1.79 to $2.09.
Hotel Adjusted EBITDA Margin: Adjusted hotel EBITDA margin range now at 25.6% to 27.2%.
Q1 2025 Cash Dividend: Paid $0.25 per share on April 15, 2025.
Q2 2025 Cash Dividend: Declared $0.25 per share to be paid on July 15, 2025.
Share Repurchase Program: Repurchased approximately 3.5 million shares for a total purchase price of $45 million during the quarter.
Total Shares Repurchased in Last Year: Approximately 11.5 million shares repurchased over the past year.
The earnings call summary highlights strong financial performance, strategic partnerships, and optimistic guidance. The company's focus on asset sales, cost reduction, and strategic investments, along with a positive outlook for key markets like Hawaii, supports a positive sentiment. Despite some challenges, such as market volatility and a potential government shutdown, management's confidence and clear strategic direction indicate a positive stock price movement. Considering the market cap, the stock is likely to see a positive reaction in the 2% to 8% range over the next two weeks.
The earnings call presents a mixed picture: strong RevPAR growth in key markets and a robust shareholder return plan are offset by lowered guidance for RevPAR and adjusted EBITDA, and challenges in Hawaii. The Q&A reveals management's confidence in asset sales and refinancing, but there are uncertainties in group bookings and labor costs. The market cap suggests moderate reactions. Overall, the sentiment is neutral, reflecting balanced positive and negative factors.
The earnings call reveals a mixed picture with negative elements outweighing positives. EPS missed expectations significantly, and RevPAR declined. Despite share repurchases and dividends, guidance was lowered across key metrics, and management expressed uncertainty about asset sales. The Q&A highlighted concerns about geopolitical factors and slow recovery in Hawaii. The market cap indicates moderate sensitivity, suggesting a stock price decline between -2% to -8% over the next two weeks.
The earnings call presents a mixed picture: strong total hotel revenues and positive RevPAR growth in some areas are offset by challenges like labor issues and RevPAR declines in key locations. The Q&A section reveals uncertainty in asset sales and market variability, but management remains cautiously optimistic. The share repurchase program and high dividend yield are positives, but the lack of clear guidance on asset impairments and weak group pace for Q2 and Q3 temper enthusiasm. Given the market cap, the stock is expected to have a neutral reaction.
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