Park Hotels & Resorts(PK) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenues for Q1 2025 were $630 million, a decrease of 1.4$639 million in Q1 2024[14] - Operating income fell significantly to $7 million, down 92.6$92 million in the same period last year[14] - Net loss attributable to stockholders was $57 million, compared to a net income of$28 million in Q1 2024, resulting in a loss per share of $0.29[16][25] - Adjusted EBITDA for Q1 2025 was$144 million, a decline of 11.1% from $162 million in Q1 2024[21] - Adjusted FFO attributable to stockholders for Q1 2025 was$92 million, down from $111 million in Q1 2024, representing a decrease of 17.1$0.33, compared to $0.40 in Q1 2024, a decline of 17.5$151 million, down 10.4% from $169 million in the prior year[23] - Comparable total revenue per available room (Total RevPAR) for Q1 2025 was$297.30, reflecting a 0.5% increase from Q1 2024[50] - Total Comparable Hotel Revenue for Q1 2025 was $608 million, slightly down by 0.5$610 million in Q1 2024[51] - Comparable Hotel Adjusted EBITDA for Q1 2025 was $151 million, a decrease of 10.4$169 million in Q1 2024[51] Balance Sheet and Debt - The company reported a total asset value of $8.901 billion as of March 31, 2025, down from$9.161 billion at the end of 2024[13] - Total liabilities stood at $5.465 billion, a slight decrease from$5.567 billion at the end of 2024[13] - The company has $725 million in debt associated with hotels currently in receivership[5] - Cash and cash equivalents decreased to$233 million from $402 million at the end of 2024[13] - Net Debt as of March 31, 2025, increased to$3,760 million from $3,582 million as of December 31, 2024, reflecting a rise of 5$3.66 billion, with a weighted average interest rate of 5.11%[80] - The company has $950 million of available capacity under the Revolver with no outstanding letters of credit as of May 5, 2025[82] Future Outlook - Full-year 2025 Comparable RevPAR is projected to range from$185 to $191, with a midpoint change of -2$1.79 and $2.09, indicating a potential decrease of$0.11 from previous estimates[34] - Total Revenues for the year ending December 31, 2025, are forecasted to be between $2,569 million and$2,643 million[38] - Comparable Hotel Adjusted EBITDA for 2025 is anticipated to range from $633 million to$692 million, reflecting a margin of 25.6% to 27.2%[38] - The company expects a net (loss) income attributable to stockholders for 2025 to range from $(16) million to$44 million[39] - The outlook for 2025 is influenced by macroeconomic factors, including inflation and potential changes in interest rates, which are outside the company's control[35] Hotel Operations Metrics - Comparable average daily rate (ADR) for Q1 2025 was $256.62, representing a 2.3$177.67, a slight decrease of 0.7% from Q1 2024[50] - In Hawaii, the comparable ADR decreased by 2.4% to $303.66, with occupancy at 78.4$295.00, with occupancy rising to 79.9%[48] - The average daily rate (ADR) for Core Hotels increased by 3.3% to $287.54 in Q1 2025 from$278.45 in Q1 2024[53] - Occupancy rates for Core Hotels decreased by 2.8 percentage points to 72.2% in Q1 2025 compared to 75.0% in Q1 2024[53] - RevPAR for Core Hotels remained relatively stable, decreasing by 0.5% to $207.50 in Q1 2025 from$208.63 in Q1 2024[53] - The total revenue per available room (Total RevPAR) for Core Hotels increased by 0.7% to $353.48 in Q1 2025 from$350.87 in Q1 2024[53] Acquisitions and Dispositions - The company sold two hotels in 2024, generating gross proceeds of $76.3 million[67] - Total sales from hotel dispositions since 2018 amounted to approximately$2.21 billion from 38 hotels[65] - The company acquired 5,981 rooms through various acquisitions, including the Hilton Denver City Center and Hyatt Regency Boston[61] Tax and Refunds - The company received a state unemployment tax refund of approximately $4 million for its Hawaii hotels during Q1 2024[52] - The company reported a state unemployment tax refund of approximately$4 million for its Hawaii hotels in Q1 2024[57] Accounting and Financial Metrics - The Company emphasizes that EBITDA, Adjusted EBITDA, and Hotel Adjusted EBITDA should not be considered as substitutes for net income or other performance measures under U.S. GAAP[92] - Nareit FFO attributable to stockholders is calculated by excluding depreciation, amortization, and gains or losses on asset sales, providing a clearer view of operating performance[93] - The Company believes that Nareit FFO offers useful insights for investors and facilitates performance comparisons across periods and REITs[94] - Adjusted FFO attributable to stockholders is presented to provide supplemental information regarding ongoing operating performance, excluding certain non-recurring items[95] - Net Debt is calculated as total debt minus cash and cash equivalents, providing a measure of financial leverage[98] - The Net Debt to Adjusted EBITDA ratio is frequently used by analysts to assess financial condition, though it should not replace U.S. GAAP measures[100] - Occupancy is defined as the total number of room nights sold divided by available room nights, serving as a key demand indicator[101] - Average Daily Rate (ADR) measures the average room price and is crucial for assessing pricing strategies and revenue generation[102] - Revenue per Available Room (RevPAR) combines occupancy and ADR, providing a comprehensive performance metric for hotel operations[103] - Total RevPAR includes all hotel revenues, indicating overall performance and revenue generation capabilities[104]