Park Hotels & Resorts Inc. reported a net income of $226 million for the fiscal year ending December 31, 2024, a significant increase from $106 million in the previous year. The company's total revenues for 2024 were approximately $2.6 billion, down from $2.7 billion in 2023, primarily due to a decrease in rooms revenue, which fell to $1.57 billion from $1.65 billion. The decline in revenue was attributed to the impact of labor strikes and related disruptions, particularly affecting operations in Hawaii, as well as the absence of the two Hilton San Francisco Hotels, which were placed into receivership in October 2023.
In terms of operational metrics, Park Hotels & Resorts managed a portfolio of 40 hotels with approximately 25,000 rooms, of which over 87% are classified as luxury and upper upscale. The company has focused on enhancing its asset management strategies, completing over $220 million in renovations at its Bonnet Creek complex and initiating additional projects at other properties. The company’s total debt as of December 31, 2024, stood at approximately $3.8 billion, with a weighted average interest rate of 5.2%. Notably, the company ceased payments on a $725 million non-recourse CMBS loan in June 2023, which has since led to the hotels being placed into receivership.
Strategically, Park Hotels & Resorts has been active in managing its capital structure, issuing $550 million in senior notes due in 2030 and a $200 million senior unsecured term loan in May 2024. These actions were part of a broader effort to enhance liquidity and manage debt obligations, particularly following the redemption of all $650 million of its senior notes due in 2025. The company reported a cash balance of $402 million and $950 million available under its revolving credit facility, indicating a strong liquidity position to meet upcoming obligations.
Looking ahead, Park Hotels & Resorts anticipates continued improvements in demand across its portfolio, driven by an increase in city-wide events and a recovery in international travel. However, the company remains cautious about potential economic disruptions, including inflation and interest rate fluctuations, which could impact consumer sentiment and travel demand. The management expressed optimism about maintaining positive momentum in 2025, contingent on the stabilization of macroeconomic conditions and the resolution of labor-related disruptions.
About Park Hotels & Resorts Inc.
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