TYSONS, Va. - Park Hotels & Resorts Inc . (NYSE: NYSE:PK) has surpassed analyst revenue expectations for the first quarter ended March 31, 2024, while also providing updated guidance for the full year that falls short of consensus estimates.
The company reported first-quarter earnings per share (EPS) of $0.13, which was $0.03 higher than the analyst estimate of $0.10. Revenue for the quarter reached $639 million, exceeding the consensus estimate of $629.63 million.
Despite the positive revenue outcome, Park Hotels & Resorts has adjusted its full-year 2024 EPS guidance to a range of $0.66 to $0.85, below the analyst consensus of $0.99. The adjusted funds from operations (FFO) per share are projected to be between $2.07 and $2.27.
The first quarter performance reflects a robust 7.8% increase in Comparable RevPAR (Revenue per Available Room) compared to the same quarter last year, with Comparable Occupancy rising by 3.5 percentage points.
The Average Daily Rate (ADR) also saw a 2.5% increase. Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, expressed satisfaction with the results, attributing the success to strategic investments and demand trends across all segments.
The company's resort and urban hotels both reported an 8% growth in Comparable RevPAR year-over-year. Notably, the Casa Marina resort in Key West experienced RevPAR gains exceeding 34%, driven by a significant increase in rate. The Hilton Hawaiian Village resort also contributed to the growth with a nearly 7% increase in RevPAR.
Park's group demand has shown considerable strength with 2024 Comparable Group Revenue Pace up nearly 11% from the previous year, indicating a solid recovery in business demand and group travel. The company's financial position remains strong, with over $1.3 billion in liquidity, allowing it to focus on strategic objectives such as portfolio reshaping and balance sheet strengthening.
Despite the reduced EPS guidance for the full year, the company's performance in the first quarter and strategic positioning suggest a continued focus on long-term shareholder value. The reported figures and future expectations are based on management's current assumptions and understanding of the company's operational capabilities and market conditions.
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