Park Hotels & Resorts Achieves Sector-Leading Results, Sets Sights on Further Growth and Capital Efficiency
In its recently reported Fourth Quarter and Full Year 2024 Earnings Conference Call, Park Hotels & Resorts revealed a stellar performance that has earned it sector-leading results. The company's Chairman and Chief Executive Officer, Tom Baltimore, expressed his pride in the exceptional quality of their portfolio, which was further enhanced by strategic capital investments and operational excellence.
The company's operations exceeded expectations for both top line and bottom line performance, showcasing its ability to adapt and thrive in a rapidly changing market. On the capital allocation front, Park Hotels & Resorts has continued to reshape its portfolio through the strategic divestment of non-core hotels. In 2024 alone, they sold three hotels, including two hotels and joint ventures that were sold for a combined $200 million. This move not only improved RevPAR by $3 but also increased EBITDA margin by over 30 basis points.
As Park Hotels & Resorts looks to the future, it intends to be more aggressive with its disposition efforts, targeting between $300 million and $400 million of non-core asset sales in 2025. This strategic move aims to further improve the overall quality of their portfolio, enhance long-term growth profile, and pay down debt.
One notable example of the company's commitment to maximizing shareholder returns is the recent redevelopment at its Bonnet Creek Resort in Orlando and Casa Marina resort in Key West. Both properties have delivered exceptional performance since their improvement, with RevPAR increasing 17% at Bonnet Creek in 2024 over the prior year. EBITDA for the complex exceeded $82 million, which is nearly $22 million or 36% above last year.
At Casa Marina, RevPAR increased almost 29% since 2019 and EBITDA for the resort finished the year at $30 million, or over $96,000 per key, up over 31% since 2019. Looking ahead to 2025, Park Hotels & Resorts expects continued growth at both resorts, with group revenue pace at the Bonnet Creek complex up 15%. The opening of Universal's new Epic theme park is also anticipated to accelerate leisure transient demand into the market after its expected opening in May.
The Waldorf Astoria is poised for a further lift benefiting from the Condé Nast recognition as a top 10 global resort destination in 2024. This endorsement is a testament to Park Hotels & Resorts' commitment to delivering exceptional experiences and maintaining the highest standards of quality across its portfolio.
