The following is a summary of the Park Hotels & Resorts Inc. (PK) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Park Hotels & Resorts reported $618 million in hotel revenue in Q1, with a hotel adjusted EBITDA of $168 million giving a 27.3% EBITDA margin.

• A RevPAR increase of 7.8% exceeded their guidance, with an occupancy of nearly 71% in the quarter indicating a strong recovery in the company's financial performance.

• Q1 Adjusted EBITDA was $162 million and adjusted FFO per share was $0.52.

• Net Debt to Adjusted EBITDA ratio improved to 5.2x.

• The company returned $630 million of capital to shareholders last year, hinting towards their strong financial position.

• The company issued increased full-year 2024 guidance following its promising Q1 results.

Business Progress:

• Investments of around $300 million were made in 2023, and an additional $260 to $280 million in strategic investments is targeted for 2024.

• An uptick in group room revenues (increase of 15% YoY) and broad-based strength across the company's portfolio has driven growth.

• Strategic renovations are planned, specifically for the Rainbow Tower at the Hilton Hawaiian Village and Palace Tower at Hilton Waikoloa Village, demonstrating a focus on asset improvement.

• Strong group bookings and increased room rates imply positive future prospects, while the company adapts to increased operational fees and potential expenses growth in Q2.

• Portfolio reshaping continues, with 42 successful asset dispositions to date, suggesting strategic reinvention.

• Despite a shortfall in corporate negotiated demand recovery, the company expects leisure and group demand to compensate adequately.

• The company focuses on investing in high return markets, like Hawaii, Key West and Orlando, avoiding acquisitions at high multiples, suggesting a cautious and strategic approach to growth.

More details: Park Hotels & Resorts Inc IR

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