TYSONS, VA—Park Hotels & Resorts Inc. has released the results for the fourth quarter and full year ended Dec. 31, 2018.
“I am extremely pleased to announce another outstanding quarter, with RevPAR increasing 3.6%, capping a very productive year for Park with full-year earnings exceeding consensus estimates,” said Thomas J. Baltimore, Jr., chairman, president and CEO. “Operationally, we continue to make meaningful progress on our internal growth initiatives, with comparable hotel adjusted EBITDA margins improving 40 basis points during the quarter and 60 basis points for the full year. With respect to capital recycling, continuing our success from 2018, we recently closed on the sale of the Squaw Peak Resort for $51.4 million, and we have now sold 14 non-core assets for approximately $570 million.
“Looking ahead, I remain very optimistic on the fundamentals of our business. With group pace up 10% for our 2019 comparable hotels, coupled with our exposure to San Francisco, Hawaii, New York and Chicago where we are seeing increased demand, we believe Park is well positioned to once again deliver strong results in 2019,” he said.
Highlights include the following:
Fourth Quarter 2018:
- Comparable RevPAR was $170.57, an increase of 3.6% from the same period in 2017.
- Net income was $55 million and net income attributable to stockholders was $54 million.
- Adjusted EBITDA was $184 million.
- Adjusted FFO attributable to stockholders was $147 million.
- Diluted earnings per share was $0.27.
- Diluted Adjusted FFO per share was $0.73, an increase of 7.4% from the same period in 2017.
- Comparable Hotel Adjusted EBITDA margin was 28.2%, an increase of 40 bps from the same period in 2017.
Full-Year 2018:
- Comparable RevPAR was $174.29, an increase of 2.9% from the same period in 2017.
- Net income was $477 million and net income attributable to stockholders was $472 million.
- Adjusted EBITDA was $754 million.
- Adjusted FFO attributable to stockholders was $603 million.
- Diluted earnings per share was $2.31.
- Diluted Adjusted FFO per share was $2.96, an increase of 6.5% from the same period in 2017.
- Comparable Hotel Adjusted EBITDA margin was 28.8%, an increase of 60 bps from the same period in 2017.
- Completed the sale of 12 hotels for total gross proceeds of $379 million, and the joint venture ownership interest in the Hilton Berlin for which Park’s pro rata share of the sales price was $140 million
- Repurchased 14,000,000 shares of Park’s common stock at $24.85 per share