Park Hotels & Resorts (PK) Q4 2024 earnings summary

Executive summary

• Achieved sector-leading 2024 results, advancing strategic objectives, with strong performance at Bonnet Creek and Key West hotels despite labor and renovation disruptions.

• Disposed of non-core assets, including three hotels for $200 million, exited Hilton Oakland Airport, and improved portfolio quality and margins.

• Returned over $400 million to shareholders in 2024 through dividends and share repurchases.

• Announced and began major renovations, including $100 million at Royal Palm South Beach Miami and significant projects in Hawaii and New Orleans.

• Portfolio includes 40 premium-branded hotels with approximately 25,000 rooms as of February 2025.

Financial highlights

• Q4 2024 RevPAR was $179, down 1.4% year-over-year; full-year RevPAR was $186.78, up 2.9%.

• Q4 occupancy was 69.9% and ADR was $256; hotel revenue was $600 million, adjusted EBITDA $147 million, margin 24.6%.

• Full-year adjusted EBITDA was $652 million, nearly flat year-over-year, with margin at 27.5%, down 70 bps.

• Net income attributable to stockholders for 2024 was $97 million, down from $212 million in 2023.

• Adjusted FFO per share for 2024 was $2.06.

Outlook and guidance

• 2025 RevPAR guidance: $187–$192, or 0%–3% year-over-year growth; excluding Miami renovation, up 1%–4%.

• Hotel adjusted EBITDA margin expected at 26.1%–27.7%, a 60 bps decrease at midpoint.

• Adjusted EBITDA forecast: $610–$670 million; adjusted FFO per share: $1.90–$2.20.

• 2025 capital expenditures projected at $310–$330 million, including $100 million for Miami renovation.

• Group revenue pace for 2025 up nearly 6% year-over-year, with strong corporate and convention demand.