Park Hotels & Resorts(US:PK)2025-05-05 20:10Company Overview - Park Hotels & Resorts Inc. has interests in 40 hotels with approximately 25,000 rooms, over 87% of which are luxury and upper upscale, located in prime U.S. markets[61]. Financial Performance - The company reported a net loss of $57 million for the three months ended March 31, 2025, compared to a net income of $29 million for the same period in 2024[78]. - Adjusted EBITDA for the same period was $144 million, down from $162 million year-over-year[78]. - Hotel Adjusted EBITDA was $151 million for the three months ended March 31, 2025, compared to $169 million for the same period in 2024[78]. - For the three months ended March 31, 2025, the company reported a net loss attributable to stockholders of $57 million, compared to a net income of $28 million for the same period in 2024[82]. - Adjusted FFO attributable to stockholders for the three months ended March 31, 2025 was $92 million, down from $111 million in 2024, with Adjusted FFO per diluted share decreasing from $0.52 to $0.46[82]. - Total hotel revenues for the three months ended March 31, 2025 were $363 million, a decrease of $11 million compared to $374 million in 2024[85]. - The company recognized impairment losses of approximately $70 million for the three months ended March 31, 2025, compared to $5 million in the same period of 2024[94]. - Interest expense for the three months ended March 31, 2025 was $52 million, a slight decrease of 1.9% from $53 million in 2024[97]. Liquidity and Capital Management - As of March 31, 2025, the company had total cash and cash equivalents of $233 million and $27 million of restricted cash, providing sufficient liquidity for upcoming obligations[99]. - The company has $950 million available under its revolving credit facility, ensuring liquidity to meet debt maturities and other obligations over the next 12 months[100]. - The company intends to distribute at least 90% of its REIT taxable income to stockholders, limiting its ability to retain substantial cash balances for liquidity needs[111]. - The company aims to maintain liquidity, minimize operational costs, and fund capital expenditures and future acquisitions through cash management objectives[105]. Capital Expenditures and Investments - The company has construction contract commitments of approximately $121 million for capital expenditures, including $40 million for guestroom renovations at Hilton Hawaiian Village and $30 million for renovations at Royal Palm South Beach Miami[104]. - Net cash used in investing activities was $77 million for the three months ended March 31, 2025, compared to $70 million in 2024, reflecting increased capital expenditures[109]. - The company reported a 10% increase in net cash used in investing activities, indicating a focus on capital improvements[109]. Operational Insights - Average Daily Rate (ADR) has shown improvements, although growth has slowed as the industry recovery stabilizes[65]. - Revenue per Available Room (RevPAR) is considered a key performance indicator, correlating occupancy and ADR[68]. - The Orlando hotels experienced a 9% increase in food and beverage revenue for the three months ended March 31, 2025, attributed to renovations completed in early 2024[87]. - The Hilton New Orleans Riverside saw a 14.6% increase in ADR due to increased group demand from the Super Bowl held in February 2025[89]. - The Hawaii hotels reported a decline in occupancy and ADR of 11.8 percentage points and 2.4%, respectively, due to decreased group and transient demand[90]. Future Outlook - The company is cautiously optimistic for 2025, expecting improvements in demand trends and increases in city-wide events despite macroeconomic uncertainties[65]. - The company has ceased payments on a $725 million non-recourse CMBS loan secured by two San Francisco hotels, which may lead to receivership[59]. - The company has a new stock repurchase program allowing for the repurchase of up to $300 million of common stock over a two-year period ending in February 2027[106]. Dividends - The company declared a first quarter dividend of $0.25 per share, payable on April 15, 2025, and a second quarter dividend of $0.25 per share, payable on July 15, 2025[103].