Park Hotels & Resorts gains after guidance update

da-kuk Park Hotels & Resorts Inc. (NYSE:PK) edged higher in early trading on Thursday after the company provided an update on Q4 operating trends and capital allocation activity. Hotel net income was reported at $41M for for October and $15M for November.

RevPAR for October 2022 was up 77% year-over-year to $178.62 on a pro-forma basis. RevPAR for the month was down 9.7% vs. 2019.

Hotel adjusted EBITDA margin was 30.8% for October. Occupancy for October was 73.4%, up 23.7 percentage point increase versus October 2021 on a pro-forma basis and an 11.2 percentage point decrease versus 2019 on a pro-forma basis. RevPAR for November was up 48.9% to $156.14 on a pro-forma basis and was down 10.9% vs.

2019. Hotel adjusted EBITDA margin during the month was 22.1%. Occupancy for November was 67.1%, a 15.5 percentage point increase vs.

a year ago on a pro-forma basis and a 14.0 percentage point decrease vs. 2019. The company updated its Q4 2022 outlook to reflect slightly lower than expected RevPAR performance but better than expected hotel adjusted EBITDA margin, adjusted EBITDA and adjusted FFO per share as a result of higher than expected group business yielding additional incremental food & beverage revenue, offset by weaker than expected leisure demand in certain resort markets.

Shares of Park Hotels & Resorts (PK) rose 1.44% in premarket action.