Park Hotels & Resorts(US:PK)2025-02-20 21:08Financial Performance - Total revenues for the year ended December 31, 2024, were $2,599 million, a decrease of 3.7% compared to $2,698 million in 2023 [294]. - Net income attributable to stockholders for 2024 was $212 million, significantly up from $97 million in 2023, representing a 118.6% increase [294]. - Earnings per share (EPS) for 2024 were $1.02 (basic) and $1.01 (diluted), compared to $0.44 for both in 2023, marking a 131.8% increase in basic EPS [294]. - Operating income increased to $391 million in 2024, up from $343 million in 2023, reflecting a 14.0% growth [294]. - Net income for the year ended December 31, 2023, was $226 million, an increase from $106 million in 2022, representing a growth of approximately 113.2% [299]. - The company reported a net income of $196.3 million, representing a 1.9% increase from the previous year [408]. Assets and Liabilities - Total assets as of December 31, 2024, were $9,161 million, a decrease from $9,419 million in 2023 [292]. - Total liabilities decreased to $5,567 million in 2024 from $5,651 million in 2023, a reduction of 1.5% [292]. - Cash and cash equivalents at the end of 2024 were $402 million, down from $717 million in 2023, indicating a decrease of 44.0% [292]. - The company had total assets of $9,161 million as of December 31, 2024, down from $9,419 million in 2023 [397]. - The aggregate cost of real estate for U.S. federal income tax purposes was approximately $5,807 billion as of December 31, 2024 [412]. Debt and Financing - The Company has fixed-rate debt with a carrying value of $3,665 million and an average interest rate of 5.11% [258]. - Variable-rate debt amounts to $200 million, with an average interest rate of 6.21% [258]. - As of December 31, 2024, total debt amounted to $3.841 billion, an increase from $3.765 billion in 2023 [350]. - The HHV Mortgage Loan has a principal balance of $1.275 billion with an interest rate of 4.20% and matures in November 2026 [351]. - The 2024 Term Loan of $200 million bears an all-in interest rate of 6.21% and matures on May 14, 2027 [355]. - The contractual maturities of debt as of December 31, 2024, include $60 million due in 2025 and $1.55 billion due in 2026 [365]. Capital Expenditures and Investments - Capital expenditures for property and equipment in 2024 were $227 million, compared to $285 million in 2023, a decrease of 20.4% [296]. - The company had outstanding commitments of approximately $95 million for capital expenditures as of December 31, 2024 [397]. - The company acquired two parcels of land for approximately $18 million during the year ended December 31, 2023 [337]. Dividends and Shareholder Returns - Dividends paid in 2024 totaled $512 million, significantly higher than $152 million in 2023, reflecting a 236.8% increase [296]. - Dividends declared per common share were $1.40 for 2024, $2.15 for 2023, and $0.28 for 2022, indicating a significant increase in dividend payouts [299]. - The company repurchased 8 million shares of common stock for $116 million in 2023, compared to 15 million shares for $180 million in 2022 [299]. - Ordinary dividends per share for 2024 were $1.285731, with capital gain distributions of $0.114269 [379]. Impairment and Depreciation - The Company reported property and equipment, net of $7,398 million as of December 31, 2024, with an impairment loss of approximately $12 million recognized during the year [276]. - The company recognized impairment losses of approximately $12 million related to two hotels in 2024 and $202 million for one hotel in 2023 [345][346]. - Depreciation of property and equipment was $256 million in 2024, compared to $286 million in 2023 [344]. - Accumulated depreciation at the end of 2024 was $2,771 million, up from $2,620 million in 2023 [412]. Revenue Recognition and Operations - The company recognizes revenue primarily from room rentals, food and beverage sales, and ancillary services, with a focus on timely revenue recognition [326]. - Hotel Adjusted EBITDA for 2024 was $683 million, slightly down from $686 million in 2023, but up from $630 million in 2022 [395]. - The company achieved an occupancy rate of 80.2%, which is a 3.4% increase compared to the previous year [408]. Strategic Initiatives and Future Outlook - The company plans to continue operating as a Real Estate Investment Trust (REIT) to maintain tax advantages and optimize capital structure [302]. - Future guidance indicates an expected revenue growth of 5% to 7% for the next fiscal year, driven by increased travel demand [408]. - The company is investing in new technology to enhance guest experience, with a budget allocation of $50 million for the upcoming fiscal year [408]. - Park Hotels & Resorts Inc. plans to expand its portfolio by acquiring additional properties, targeting a growth of 10% in total assets over the next two years [408]. - The company is focusing on sustainability initiatives, aiming to reduce energy consumption by 15% over the next three years [408].