Park Hotels & Resorts(US:PK)2023-08-03 20:06Financial Performance - For Q2 2023, the company reported a net loss of $146 million compared to a net income of $154 million in Q2 2022[80]. - Adjusted EBITDA for Q2 2023 was $187 million, down from $207 million in Q2 2022[80]. - Hotel Adjusted EBITDA for the first half of 2023 was $344 million, compared to $297 million in the same period of 2022[80]. - Nareit FFO attributable to stockholders for Q2 2023 was $114 million, down from $129 million in Q2 2022, while Adjusted FFO attributable to stockholders was $129 million compared to $139 million in the same period[85]. - For the six months ended June 30, 2023, Nareit FFO attributable to stockholders increased to $196 million from $142 million in 2022, and Adjusted FFO attributable to stockholders rose to $221 million from $157 million[85]. - Rooms revenue for Q2 2023 was $442 million, a 2.1% increase from $433 million in Q2 2022, while for the six months ended June 30, 2023, it reached $824 million, up 13.7% from $725 million in 2022[89][93]. - The company recognized an impairment loss of approximately $202 million during Q2 2023[97]. - Interest income increased by $9 million and $19 million for Q2 2023 and the six months ended June 30, 2023, respectively, due to higher cash levels and interest rates[99]. - General and administrative expenses remained stable at $10 million for Q2 2023, with a slight increase to $21 million for the six months ended June 30, 2023, compared to $20 million in 2022[96]. - Interest expense decreased by 1.6% to $61 million for the three months ended June 30, 2023, compared to $62 million in the same period of 2022[100]. - Net cash provided by operating activities increased by 30.9% to $250 million for the six months ended June 30, 2023, compared to $191 million in 2022[115]. Investments and Assets - The company holds investments in 45 hotels with over 29,000 rooms, of which approximately 88% are luxury and upper upscale[63]. - The company aims to enhance asset value through single-asset and portfolio acquisitions and dispositions[64]. - The company’s portfolio includes hotels in major urban areas and key leisure destinations, indicating a strategic focus on prime locations[63]. - The company has construction contract commitments of approximately $163 million for capital expenditures at its properties[110]. - The company disposed of seven consolidated hotels since January 1, 2022, impacting year-over-year comparability of operations[88]. Debt and Financial Obligations - In June 2023, the company ceased debt service payments on a $725 million non-recourse CMBS loan, leading to a notice of default[66]. - Total indebtedness as of June 30, 2023, was approximately $4.5 billion, including $2.1 billion of Senior Notes and a $725 million SF Mortgage Loan[123]. - The company intends to work with the servicer of the SF Mortgage Loan to determine the most effective path forward, which may result in the removal of certain hotels from its portfolio[108]. Market Trends and Expectations - The company expects positive momentum in hotel demand to continue through the remainder of 2023, driven by improvements in leisure and business travel[67]. - Current economic challenges, including inflation and supply chain disruptions, are impacting discretionary spending and travel demand[67]. - The company anticipates that international travel demand will continue to improve in the second half of 2023[67]. - The company expects positive momentum in leisure, group, and business transient demand to continue through the remainder of 2023[107]. Occupancy and Revenue Performance - The occupancy rate at Hawaii hotels increased by 6.1 percentage points for Q2 2023 compared to the same period in 2022, driven by increased domestic transient demand[94]. - The New York Hilton Midtown saw occupancy increases of 17.6 percentage points for Q2 2023 compared to Q2 2022, benefiting from higher group and transient demand[94]. - Other revenue increased by $3 million and $7 million for Q2 2023 and the six months ended June 30, 2023, respectively, due to increased business costs allocated to Hilton Grand Vacations[95]. Shareholder Returns - The company repurchased approximately 8.8 million shares of common stock for a total of $105 million during the six months ended June 30, 2023[114]. - Dividends declared for 2023 were $0.15 per share for both March 31 and June 30[122].