Park Hotels & Resorts Inc. Reports Fourth Quarter and Full Year 2019 Results
Park Hotels & Resorts Inc. Reports Fourth Quarter and Full Year 2019 Results
Published on : Thursday, February 27, 2020
Fourth Quarter 2019 Highlights
- Pro-forma Comparable RevPAR was $178.39, an increase of 0.7% from the same period in 2018;
- Excluding renovation displacement at The Reach Key West, Curio Collection, Pro-forma Comparable RevPAR increased 1.1% from the same period in 2018;
- Pro-forma Comparable Total RevPAR was $275.63, an increase of 2.1% from the same period in 2018;
- Net income was $126 million and net income attributable to stockholders was $123 million;
- Adjusted EBITDA was $223 million;
- Pro-forma Comparable Hotel Adjusted EBITDA margin was 28.3%, a decrease of 40 bps from the same period in 2018;
- Adjusted FFO attributable to stockholders was $173 million;
- Diluted earnings per share was $0.51;
- Diluted Adjusted FFO per share was $0.72; and
- Completed the sales of three non-core hotels for total gross proceeds of $262 million and terminated the ground lease at the Hilton Sheffield.
Full-Year 2019 Highlights
- Pro-forma Comparable RevPAR was $183.32, an increase of 1.9% from the same period in 2018;
- Excluding renovation displacement at The Reach Key West, Curio Collection, Pro-forma Comparable RevPAR, increased 2.1% from the same period in 2018;
- Pro-forma Comparable Total RevPAR was $284.14, an increase of 3.2% from the same period in 2018;
- Net income was $316 million and net income attributable to stockholders was $306 million;
- Adjusted EBITDA was $786 million;
- Pro-forma Comparable Hotel Adjusted EBITDA margin was 29.2%, a decrease of 10 bps from the same period in 2018;
- Adjusted FFO attributable to stockholders was $613 million;
- Diluted earnings per share was $1.44;
- Diluted Adjusted FFO per share was $2.88;
- Completed the $2.5 billion acquisition of Chesapeake Lodging Trust (“Chesapeake”) on September 18, 2019; and
- Completed the sales of eight non-core hotels for total gross proceeds of $497 million.
Thomas J. Baltimore, Jr., Chairman, President and Chief Executive Officer, stated, “I am pleased to announce our fourth quarter and full-year 2019 results, which exceeded our expectations. Comparable RevPAR increased 0.7% in the fourth quarter, bringing our full-year 2019 Pro-forma Comparable RevPAR growth to 1.9% when including the Chesapeake portfolio for the fourth quarter. Our fourth quarter results were driven by continued strength from the Hawaii and San Francisco markets, which have been strong all year, as well as overall group strength that offset business transient softness, which is another trend we’ve seen throughout the year. From a corporate perspective, I am thrilled with our meaningful progress toward integrating the Chesapeake portfolio, and we continue to be excited about the upside we see in these assets. We remain confident in our ability to deliver the previously identified $24 million of EBITDA synergies expected in 2020. Additionally, I am very pleased with our progress toward de-levering the balance sheet, having sold three hotels for gross proceeds of over $260 million during the quarter to reduce our net leverage.”
Selected Statistical and Financial Information
The amounts below, except pro-forma comparable metrics, include the results from the 18 hotels acquired in the Chesapeake merger for Park’s period of ownership following the merger. Pro-forma comparable metrics are presented with respect to our Pro-forma Comparable Hotels and include fourth quarter activity only for the 16 Chesapeake hotels remaining in Park’s portfolio as of December 31, 2019 for each period presented. See definition of “Pro-forma Comparable Hotels” below for more information.
Source:- Park Hotels & Resorts
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