TYSONS, Va., July 31, 2024 (GLOBE NEWSWIRE) -- Park Hotels & Resorts Inc. ("Park" or the "Company") (NYSE:PK) today announced results for the second quarter ended June 30, 2024 and provided an operational update. Selected Statistical and Financial Information (unaudited, amounts in millions, except RevPAR, ADR, Total RevPAR and per share data)   Three Months Ended June 30,   Six Months Ended June 30,     2024       2023     Change(1)     2024       2023     Change(1) Comparable RevPAR $ 194.90     $ 191.03     2.0 %   $ 185.28     $ 177.05     4.6 % Comparable Occupancy   77.1 %     77.0 %   0.1% pts     74.0 %     72.2 %   1.8% pts Comparable ADR $ 252.90     $ 248.33     1.8 %   $ 250.51     $ 245.38     2.1 %                         Comparable Total RevPAR $ 311.32     $ 301.74     3.2 %   $ 300.50     $ 286.81     4.8 %                         Net income (loss) $ 67     $ (146 )   145.9 %   $ 96     $ (113 )   185.0 % Net income (loss) attributable to stockholders $ 64     $ (150 )   142.7 %   $ 92     $ (117 )   178.6 %                         Operating income (loss) $ 121     $ (98 )   223.0 %   $ 213     $ (18 )   1,315.2 % Operating income (loss) margin   17.5 %     (13.7 %)   3,120 bps     16.1 %     (1.3 %)   1,740 bps                         Comparable Hotel Adjusted EBITDA $ 199     $ 192     3.4 %   $ 367     $ 337     8.8 % Comparable Hotel Adjusted EBITDA margin   29.9 %     29.8 %   10 bps     28.6 %     27.7 %   90 bps                         Adjusted EBITDA $ 193     $ 187     3.2 %   $ 355     $ 333     6.6 % Adjusted FFO attributable to stockholders $ 137     $ 129     6.2 %   $ 248     $ 221     12.2 %                         Earnings (loss) per share - Diluted(1) $ 0.30     $ (0.70 )   142.9 %   $ 0.44     $ (0.54 )   181.5 % Adjusted FFO per share – Diluted(1) $ 0.65     $ 0.60     8.3 %   $ 1.18     $ 1.01     16.8 % Weighted average shares outstanding – Diluted   211       215     (4 )     211       218     (7 ) ______________________________________________ (1) Amounts are calculated based on unrounded numbers.   Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, "I am pleased with our second quarter results as the strategic investments we made in Key West and Orlando continued to bolster our performance, coupled with strong group and leisure demand trends at our hotels in Boston, Miami and New York, resulting in Comparable RevPAR growth of 2% compared to the second quarter of 2023. Group demand continues to improve with 2024 Comparable Group Revenue Pace up nearly 10% compared to the same time last year, driven by accelerated business demand, an increase in citywide events and strong convention calendars at our Boston, Chicago and New York hotels, especially in the third quarter where Comparable Group Revenue Pace is up nearly 13% and is expected to drive increased Comparable RevPAR growth relative to the second quarter. Additionally, during the second quarter, we continued to execute our capital allocation strategies by extending our debt maturities by refinancing our $650 million of senior notes that were due in June 2025, advancing our efforts to dispose of non-core assets, and repurchasing nearly 1.7 million shares of our common stock for $25 million at a significant discount to our estimated net asset value. With current liquidity of nearly $1.4 billion, we remain laser-focused on creating long-term shareholder value by further strengthening our balance sheet, while reshaping our portfolio through non-core asset sales and investments back in our core portfolio with value-enhancing ROI projects and leverage-neutral share repurchases." Additional Highlights In May 2024, issued $550 million of 7.000% senior notes due 2030 ("2030 Senior Notes") and amended the Company's existing credit agreement to include a new $200 million senior unsecured term loan facility due May 2027 ("2024 Term Loan"). Net proceeds from the 2030 Senior Notes and the 2024 Term Loan were used to repurchase or redeem all of the $650 million of 7.500% senior notes due in 2025 ("2025 Senior Notes"), and the remainder was used for general corporate purposes; In June 2024, repurchased nearly 1.7 million shares of common stock for a total purchase price of $25 million, or an average purchase price of $15.01 per share; In June 2024, made the decision to permanently close the Hilton Oakland Airport, which the Company anticipates will occur during the third quarter of 2024. In connection with that decision, the Company notified the ground lessor of the hotel of its termination of the ground lease on or about the date on which the hotel closes. The Hilton Oakland Airport incurred an EBITDA loss of $3 million for the trailing twelve months; In July 2024, the joint ventures that own and operate the Hilton La Jolla Torrey Pines sold the hotel for gross proceeds of approximately $165 million, and the Company's pro-rata share of the gross proceeds was approximately $41 million, which was reduced by Park's portion of debt of approximately $17 million; and In July 2024, paid its second quarter 2024 cash dividend of $0.25 per share to stockholders of record as of June 28, 2024 and declared its third quarter 2024 cash dividend of $0.25 per share to stockholders of record as of September 30, 2024, to be paid on October 15, 2024. Operational Update Results for Park's Comparable hotels in each of the Company's key markets are as follows: (unaudited)         Comparable ADR   Comparable Occupancy   Comparable RevPAR   Hotels   Rooms   2Q24   2Q23   Change(1)   2Q24   2Q23   Change   2Q24   2Q23   Change(1) Hawaii 2   3,507   $ 304.25   $ 300.71   1.2 %   86.9 %   93.1 %   (6.2% pts)   $ 264.54   $ 280.11   (5.6 %) Orlando 3   2,325     239.96     231.00   3.9     68.3     68.4     (0.1 )     164.01     158.12   3.7   New York 1   1,878     314.23     308.51   1.9     88.7     86.8     1.9       278.70     267.78   4.1   New Orleans 1   1,622     218.36     214.74   1.7     66.4     73.3     (6.9 )     145.06     157.46   (7.9 ) Boston 3   1,536     279.37     264.23   5.7     85.9     82.4     3.5       239.91     217.79   10.2   Southern California 5   1,773     224.55     239.42   (6.2 )   81.8     77.8     4.0       183.69     186.29   (1.4 ) Key West 2   461     555.43     516.68   7.5     77.0     42.8     34.2       427.75     221.08   93.5   Chicago 3   2,467     246.98     248.86   (0.8 )   70.7     70.3     0.4       174.63     174.93   (0.2 ) Puerto Rico 1   652     288.67     287.33   0.5     74.8     82.1     (7.3 )     216.03     235.92   (8.4 ) Washington, D.C. 2   1,085     212.73     197.56   7.7     81.7     80.8     0.9       173.88     159.66   8.9   Denver 1   613     204.90     209.98   (2.4 )   69.4     75.0     (5.6 )     142.28     157.53   (9.7 ) Miami 1   393     252.49     245.71   2.8     84.0     81.6     2.4       212.07     200.52   5.8   Seattle 2   1,246     165.56     167.61   (1.2 )   78.8     69.8     9.0       130.47     117.06   11.5   San Francisco 2   660     227.67     245.53   (7.3 )   75.6     70.9     4.7       172.13     174.15   (1.2 ) Other 10   3,210     182.36     181.43   0.5     68.3     69.7     (1.4 )     124.62     126.41   (1.4 ) All Markets 39   23,428   $ 252.90   $ 248.33   1.8 %   77.1 %   77.0 %   0.1% pts   $ 194.90   $ 191.03   2.0 % ______________________________________________ (1) Calculated based on unrounded numbers.     Changes in Park's 2024 Comparable RevPAR for the three and six months ended June 30, 2024 compared to the same periods in 2023, by hotel type were as follows:   Three Months Ended June 30,   Six Months Ended June 30,   2024 vs 2023   2024 vs 2023 Resort 2.2 %   5.2 % Urban (0.1 )   3.1   Airport 6.5     6.0   Suburban 5.5     6.9   All Types 2.0     4.6               Park continued to see improvements in demand as business travel accelerated and group demand continued to witness ongoing strength at its resort hotels and certain urban hotels, with Comparable group revenues for the second quarter of 2024 increasing by nearly 8% year-over-year. Comparable RevPAR growth for the second quarter was driven by increases at its resort hotels of over 2% year-over-year. RevPAR at the Casa Marina Key West, Curio Collection, where full-scale renovations occurred between May 2023 and December 2023, increased nearly 215% compared to the second quarter of 2023, while the hotel achieved the highest food and beverage revenue quarter from group events. The Bonnet Creek Orlando complex continued to benefit from its transformative renovation, with RevPAR at the Signia Bonnet Creek hotel increasing 9% compared to the second quarter of 2023, driven by group demand for its Waterside Ballroom and renovated meeting space, while RevPAR at the Waldorf Astoria Orlando increased 11%, with rate increasing over 13%, compared to the second quarter of 2023. Group revenues increased nearly 24% and 8% at the Signia Bonnet Creek hotel and Waldorf Astoria Orlando, respectively, compared to the second quarter of 2023. Certain of Park's urban hotels benefited from increased group business and citywide events, including the Hyatt Regency Boston and Hilton New York Midtown where group revenues increased nearly 24% and 15%, respectively, compared to the second quarter of 2023. At the end of June 2024, Comparable Group Revenue Pace and room night bookings for 2024 increased nearly 10% and 5%, respectively, as compared to what 2023 group bookings were at the end of June 2023, with 2024 average Comparable group rates projected to exceed 2023 average Comparable group rates by approximately 5% for the same time period. Additionally, at the end of June 2024, Comparable Group Revenue Pace and room night bookings for 2025 increased over 7% and 3%, respectively, as compared to what 2024 group bookings were at the end of June 2023, with 2025 average Comparable group rates projected to exceed 2024 average Comparable group rates by approximately 4% for the same time period. Balance Sheet and Liquidity Park's current liquidity is nearly $1.4 billion, including approximately $950 million of available capacity under the Company's revolving credit facility ("Revolver"). As of June 30, 2024, Park's Net Debt was approximately $3.6 billion, which excludes the $725 million non-recourse CMBS Loan ("SF Mortgage Loan") secured by the 1,921-room Hilton San Francisco Union Square and 1,024-room Parc 55 San Francisco – a Hilton Hotel (collectively, the "Hilton San Francisco Hotels"). Following the repurchase or redemption of all the $650 million 2025 Senior Notes, which were due in June 2025, with proceeds from the issuance of the $550 million 2030 Senior Notes and the $200 million 2024 Term Loan in May 2024, and excluding the SF Mortgage Loan, the weighted average maturity of Park's consolidated debt is 3.6 years as of June 30, 2024. Park had the following debt outstanding as of June 30, 2024: (unaudited, dollars in millions)          Debt   Collateral   Interest Rate   Maturity Date   As of June 30, 2024 Fixed Rate Debt                 Mortgage loan   Hilton Denver City Center   4.90%   September 2024(1)   $ 53   Mortgage loan   Hyatt Regency Boston   4.25%   July 2026     127   Mortgage loan   DoubleTree Hotel Spokane City Center   3.62%   July 2026     14   Mortgage loan   Hilton Hawaiian Village Beach Resort   4.20%   November 2026     1,275   Mortgage loan   Hilton Santa Barbara Beachfront Resort   4.17%   December 2026     158   Mortgage loan   DoubleTree Hotel Ontario Airport   5.37%   May 2027     30   2028 Senior Notes       5.88%   October 2028     725   2029 Senior Notes       4.88%   May 2029     750   2030 Senior Notes       7.00%   February 2030     550   Finance lease obligations       7.66%   2024 to 2028     1   Total Fixed Rate Debt       5.10%(2)         3,683                     Variable Rate Debt                 Revolver(3)   Unsecured   SOFR + 1.80%(4)   December 2026     —   2024 Term Loan   Unsecured   SOFR + 1.75%(4)   May 2027     200   Total Variable Rate Debt       7.18%         200                     Add: unamortized premium                 —   Less: unamortized deferred financing costs and discount             (27 ) Total Debt(5)(6)       5.21%(2)       $ 3,856   ______________________________________________ (1) The loan matures in August 2042 but became callable by the lender in August 2022 with six months of notice. As of June 30, 2024, Park had not received notice from the lender. (2) Calculated on a weighted average basis. (3) Park has approximately $950 million of available capacity under the Revolver. (4) SOFR includes a credit spread adjustment of 0.1%. (5) Excludes $157 million of Park's share of debt of its unconsolidated joint ventures, which excludes approximately $17 million of Park's share of debt that was repaid in connection with the sale of the Hilton La Jolla Torrey Pines in July 2024. (6) Excludes the SF Mortgage Loan, which is included in debt associated with hotels in receivership in Park's consolidated balance sheets. In October 2023, the Hilton San Francisco Hotels were placed into court-ordered receivership, and thus, Park has no further economic interest in the operations of the hotels.     Capital Investments Park expects to incur approximately $270 million to $290 million in capital improvement costs during 2024, of which $51 million was spent during the second quarter of 2024. Key upcoming renovations and return on investment projects include: (dollars in millions)             Projects & Scope of Work   Estimated Start Date   EstimatedCompletion Date   Budget Hilton Hawaiian Village Waikiki Beach Resort               Phase 1: Renovation of 392 guestrooms and the addition of 12 guestrooms through the conversion of suites to increase room count at the Rainbow Tower to 808   Q3 2024   Q1 2025   $ 44   Phase 2: Renovation of 404 guestrooms and the addition of 14 guestrooms through the conversion of suites to increase room count at the Rainbow Tower to 822   Q3 2025   Q1 2026   $ 43   Lobby renovation: Renovation of the Rainbow Tower lobby   Q3 2025   Q1 2026   $ 1 Hilton Waikoloa Village               Phase 1: Renovation of 197 guestrooms and the addition of 6 guestrooms through the conversion of suites to increase room count at the Palace Tower to 406   Q3 2024   Q4 2024   $ 32   Phase 2: Renovation of 203 guestrooms and the addition of 5 guestrooms through the conversion of suites to increase room count at the Palace Tower to 411   Q3 2025