Park Hotels & Resorts(US:PK)2024-02-28 21:04Financial Performance - Total revenues for 2023 reached $2,698 million, an increase of 7.9% compared to $2,501 million in 2022 [294]. - Net income attributable to stockholders for 2023 was $97 million, down from $162 million in 2022, reflecting a decrease of 40.1% [294]. - Earnings per share (basic and diluted) for 2023 were $0.44, compared to $0.71 in 2022, representing a decline of 38.0% [294]. - Operating income for 2023 was $343 million, an increase from $296 million in 2022, reflecting a growth of 15.9% [294]. - Net income for the year ended December 31, 2023, was $106 million, a decrease of 38.7% compared to $173 million in 2022 [297]. - Hotel Adjusted EBITDA increased to $686 million in 2023, up from $630 million in 2022, representing an 8.9% growth [404]. Assets and Liabilities - Total assets decreased to $9,419 million in 2023 from $9,731 million in 2022, a reduction of 3.2% [293]. - Total liabilities increased to $5,651 million in 2023, up from $5,440 million in 2022, marking a rise of 3.9% [293]. - Cash and cash equivalents decreased to $717 million in 2023 from $906 million in 2022, a decline of 20.9% [293]. - Total cash and cash equivalents and restricted cash at the end of the period was $750 million, down from $939 million at the end of 2022 [297]. - The company had a net deferred tax liability of $23 million as of December 31, 2023, compared to $9 million in 2022 [386]. Impairment and Losses - The company reported an impairment and casualty loss of $204 million in 2023, significantly higher than $6 million in 2022 [294]. - The company recognized an impairment loss of approximately $202 million for the year ended December 31, 2023, related to a hotel securing a $725 million mortgage loan [352]. - The company experienced a loss of $221 million on the derecognition of assets in 2023, compared to no such loss in 2022 [297]. - The company reported an impairment loss of $202 million related to one of its hotels, with a fair value of $234 million as of December 31, 2023 [378]. Debt and Financing - The company had no variable rate debt outstanding as of December 31, 2023, with borrowings under its Revolver bearing interest based on the secured overnight financing rate (SOFR) [259]. - The company’s fixed-rate debt has a total carrying value of $3,786 million, with an average interest rate of 4.88% [260]. - Total debt as of December 31, 2023, was $3.765 billion, a decrease from $3.892 billion in 2022 [358]. - The company had approximately $946 million of available capacity under its Revolver as of December 31, 2023 [363]. - The company issued an aggregate of $725 million of 2028 Senior Notes with an interest rate of 5.875% per annum, and net proceeds were used to repay $80 million of the outstanding balance under the Revolver [366]. Capital Expenditures - Capital expenditures for property and equipment were $285 million in 2023, up from $168 million in 2022, representing a 69.6% increase [297]. - Capital expenditures for the year 2023 amounted to $307 million, an increase from $188 million in 2022 [418]. - Outstanding commitments for capital expenditures as of December 31, 2023, were approximately $90 million, including $16 million for the Bonnet Creek complex [405]. Revenue Recognition and Operations - The company recognizes revenue from room rentals, food and beverage sales, and ancillary services, with room revenue recognized over time when rooms are occupied [333]. - The company’s average daily rate (ADR) is calculated as rooms revenue divided by the total number of room nights sold in a given period [15]. - The company’s occupancy rate is defined as the total number of room nights sold divided by the total number of room nights available [15]. - The company’s RevPAR (revenue per available room) is calculated as rooms revenue divided by the total number of room nights available to guests [15]. Shareholder Returns - The company repurchased $180 million of common stock in 2023, compared to $227 million in 2022, indicating a decrease of 20.7% [300]. - Dividends declared per common share were $2.15 for the year ended December 31, 2023, which includes a special cash dividend of $0.77 [300]. - The company declared $355 million in unpaid dividends as of December 31, 2023, compared to $56 million in 2022 [411]. Internal Controls and Compliance - The company maintains effective internal control over financial reporting as of December 31, 2023, according to management's assessment [268]. - The company maintained effective internal control over financial reporting as of December 31, 2023, according to the auditor's opinion [284]. - The company operates as a REIT and has not included provisions for U.S. federal income taxes in its financial statements for the years ended December 31, 2023, 2022, and 2021, except for taxes related to built-in gain property sales [337]. Future Outlook and Strategy - Future guidance indicates a projected revenue growth of 5% for the upcoming fiscal year [415]. - The company is actively pursuing new acquisitions to enhance its market position and diversify its asset base [415]. - Park Hotels & Resorts Inc. is investing in technology upgrades to improve operational efficiency across its properties [415]. - The company aims to increase its customer loyalty program participation by 20% over the next year [415]. - A new marketing strategy is being implemented to target millennial travelers, expected to boost occupancy rates by 10% [415]. - The company plans to open three new hotels in high-demand areas by the end of 2024 [415]. - The company is focusing on sustainability initiatives, aiming for a 30% reduction in energy consumption by 2025 [415].