Park Hotels Reports 2024 Results, Royal Palm Renovation
Park Hotels & Resorts Inc. Reports 2024 Financial Results and Announces Royal Palm Renovation
Park Hotels & Resorts Inc,released its financial results for Q4 and the full year ending December 31, 2024, reporting solid performance despite renovation disruptions and labor strikes.
Key Financial Highlights:
- Comparable RevPAR: Increased by 2.9% year-over-year to $186.78, though Q4 experienced a slight 1.4% decline.
- Comparable Occupancy: Rose to 74.2% from 73.0% in 2023.
- Net Income: Jumped by 113.2% to $226 million, with diluted earnings per share (EPS) increasing by 129.5% to $1.01.
- Adjusted EBITDA: Slightly declined by 1.1% to $652 million.
The disruptions from labor strikes in Hawaii, Seattle, and Boston impacted Q4 performance, reducing Comparable RevPAR by 450 basis points. Excluding strike impacts, Q4 Comparable RevPAR would have grown by over 3%, and full-year growth would have reached 4.2%. Strong performance from Bonnet Creek and Key West properties contributed to the overall positive results.
Portfolio Reshaping and Shareholder Returns:
- Sold three non-core assets in 2024, including two joint venture hotels, for a total of $200 million.
- Returned over $400 million to shareholders, including the repurchase of 8 million shares at an average price of $14.44.
- Declared total dividends of $1.40 per share, including a $0.65 Q4 dividend.
Operational Update and Renovation Plans:
- The $100 million renovation of Royal Palm South Beach Miami will begin in late spring 2025, expected to impact 2025 Comparable RevPAR by 110 basis points.
- Guestroom renovations and room conversions will continue in Hawaii and New Orleans.
- Hilton Waikoloa Village anticipates a 70% increase in 2025 Group Revenue Pace.
Awards and Recognitions:
- Named one of America’s Most Responsible Companies and Most Trustworthy Companies by Newsweek.
- Awarded ENERGY STAR Partner of the Year for Energy Management for the second consecutive year.
- Waldorf Astoria Orlando ranked 9th in the world by Condé Nast Traveler Readers’ Choice Awards.
Outlook for 2025:
Park anticipates continued strength in group demand and expects Comparable RevPAR growth between 0.0% and 3.0% despite anticipated renovation disruptions.
Balance Sheet and Liquidity
As of December 31, 2024, Park’s liquidity stood at approximately $1.4 billion, including $950 million of available capacity under the Company’s revolving credit facility (“Revolver”). Park’s Net Debt was approximately $3.6 billion, excluding the $725 million non-recourse CMBS Loan (“SF Mortgage Loan”) secured by the Hilton San Francisco Hotels, placed in receivership in October 2023.
The weighted average maturity of Park’s consolidated debt, excluding the SF Mortgage Loan, was 3.2 years as of December 31, 2024. The following table outlines Park’s debt as of that date:
Debt Summary (unaudited, dollars in millions)
| Debt Type | Collateral | Interest Rate | Maturity Date | Outstanding Balance |
|---|---|---|---|---|
| Fixed Rate Debt | ||||
| Mortgage Loan | Hilton Denver City Center | 4.90% | June 2025 (1) | $53 |
| Mortgage Loan | Hyatt Regency Boston | 4.25% | July 2026 | $125 |
| Mortgage Loan | Hilton Hawaiian Village Beach Resort | 4.20% | November 2026 | $1,275 |
| Mortgage Loan | Hilton Santa Barbara Beachfront Resort | 4.17% | December 2026 | $156 |
| Mortgage Loan | DoubleTree Hotel Ontario Airport | 5.37% | May 2027 | $30 |
| 2028 Senior Notes | Unsecured | 5.88% | October 2028 | $725 |
| 2029 Senior Notes | Unsecured | 4.88% | May 2029 | $750 |
| 2030 Senior Notes | Unsecured | 7.00% | February 2030 | $550 |
| Finance Lease Obligations | 7.04% | 2025 to 2028 | $1 | |
| Total Fixed Rate Debt | 5.11% (2) | $3,665 | ||
| Variable Rate Debt | ||||
| Revolver (3) | Unsecured | SOFR + 1.80% | December 2026 | $— |
| 2024 Term Loan | Unsecured | SOFR + 1.75% | May 2027 | $200 |
| Total Variable Rate Debt | 6.21% | $200 |
Notes:
- The Hilton Denver City Center loan matures in August 2042 but became callable in August 2022. No notice had been received as of December 31, 2024.
- Weighted average interest rates.
- As of February 19, 2025, $950 million of capacity was available under the Revolver.
After adjustments for unamortized premium, deferred financing costs, and discounts, the total debt was approximately $3.84 billion.
Capital Investments
In January 2024, Park completed a $220 million project at Bonnet Creek Orlando, including new ballrooms and renovations of guestrooms, meeting spaces, and recreational areas. Phase one of the Hilton New Orleans Riverside’s Main Tower guestroom renovation was completed in November 2024 for $16 million. By early 2025, Park finished guestroom renovations and room conversions at Hilton Hawaiian Village Waikiki Beach Resort and Hilton Waikoloa Village, totaling $76 million.
Park invested approximately $230 million in capital improvements in 2024, with $65 million spent in the fourth quarter. For 2025, Park anticipates spending $310 million to $330 million, including a $100 million renovation at the Royal Palm South Beach Miami, expected to yield a 15% to 20% return on investment. Hotel operations will pause in mid-May 2025, with reopening scheduled for May 2026.
Recent and Upcoming Renovations (dollars in millions)
| Project | Scope of Work | Start Date | Completion Date | Budget | Incurred as of Dec 31, 2024 |
| Royal Palm South Beach Miami | Full renovation of 393 guestrooms; addition of 11 rooms | Q2 2025 | Q2 2026 | $103 | $5 |
| Hilton Hawaiian Village Waikiki Beach Resort | Phase 1: Renovation of 392 rooms; addition of 12 rooms | Q3 2024 | Feb 2025 | $44 | $32 |
| Phase 2: Renovation of 404 rooms; addition of 14 rooms | Q3 2025 | Q1 2026 | $42 | $4 | |
| Hilton Waikoloa Village | Phase 1: Renovation of 197 rooms; addition of 6 rooms | Q3 2024 | Jan 2025 | $32 | $27 |
| Phase 2: Renovation of 203 rooms; addition of 8 rooms | Q3 2025 | Q1 2026 | $33 | $2 | |
| Hilton New Orleans Riverside | Phase 1: Renovation of 250 rooms | Q3 2024 | Nov 2024 | $16 | $15 |
| Phase 2: Renovation of 428 rooms | Q2 2025 | Q4 2025 | $31 | $— |
Dividends
Park declared a fourth-quarter 2024 cash dividend of $0.65 per share, including a regular quarterly dividend of $0.25 and a $0.40 top-off dividend. This represents an annual yield of 10% based on the stock price as of December 31, 2024. On February 14, 2025, Park declared a first-quarter 2025 dividend of $0.25 per share, payable on April 15, 2025.
Full-Year 2025 Outlook
| Metric | Low Estimate | High Estimate |
| Comparable RevPAR | $187 | $192 |
| Comparable RevPAR Change vs. 2024 | 0.0% | 3.0% |
| Net Income | $87 million | $147 million |
| Net Income Attributable to Stockholders | $79 million | $139 million |
| Diluted Earnings Per Share (EPS) | $0.39 | $0.69 |
This outlook reflects anticipated operating results as of February 19, 2025, including impacts from the Royal Palm South Beach Miami renovation and room conversions at Hawaii and New Orleans hotels.
Corporate Responsibility
In December 2024, Park released its 2024 Annual Corporate Responsibility Report (“CR Report”), aligning with key global frameworks such as the Task Force on Climate-Related Financial Disclosures (“TCFD”), Sustainability Accounting Standards Board (“SASB”), United Nations Sustainable Development Goals (“UNSDGs”), and Global Reporting Initiative (“GRI”). The report showcases Park’s performance metrics related to energy, carbon emissions, water usage, and waste management, while also emphasizing the sustainability initiatives led by Park’s Green Park Committee and community-focused efforts by the Park Cares Committee.
For the fifth consecutive year, Park participated in the 2024 Global Real Estate Sustainability Benchmark (“GRESB”) assessment, reinforcing its commitment to corporate responsibility and decarbonization. Park ranked within the top 30% of all publicly listed GRESB participants in the Americas, achieving a one-point increase from 2023. Since 2020, Park’s GRESB Real Estate Assessment score has improved by nine points overall. Additionally, Park maintained a GRESB Public Disclosure score of “A” in 2024.
Park’s achievements continued with industry recognition from Newsweek as one of America’s Most Responsible Companies in both 2024 and 2025—marking its fifth appearance on the list—as well as being named one of America’s Most Trustworthy Companies for 2024. Furthermore, Park received the ENERGY STAR® Partner of the Year award for Energy Management for the second consecutive year, recognizing its leadership in advancing clean energy solutions. Eight of Park’s properties earned ENERGY STAR® Certification for Superior Energy Performance in 2024, including its flagship Hilton Hawaiian Village Waikiki Beach Re
