Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| Additionally, continued strength in Hawaii, well-positioned urban portfolio, supported by strong convention calendars and encouraging momentum in our group business give us optimism in our outlook |
| I think we’re a pretty good value |
| Our strong operational performance was broad-based as we witnessed ongoing strength in Hawaii as well as an acceleration in group demand across several of our core markets, including New York, Boston, Denver and Chicago, which helped to drive RevPAR growth of nearly 16% versus 2022 in our urban hotel portfolio |
| And I think we had a very successful outcome in 2023, and we would expect something similar here in 2024 and beyond as we look out |
| Look, we have enjoyed, I think, very strong relations with our partners |
| And obviously, we think we're incredibly well positioned there |
| I'm also incredibly excited about our relative position in 2024 |
| So I think we certainly expect that it's better performance in the first half of the year |
| economy, strong convention and group activity in our key markets, and the ongoing resilience of leisure travel create a favorable setup for Park |
| But I think certainly, I think feel pretty good about our guidance |
| Furthermore, we will continue to strengthen our balance sheet by extending maturities, all while maintaining sufficient liquidity to opportunistically acquire assets to capital market conditions improve |
| As we previously reported, I am incredibly pleased with our results for both the quarter and full-year 2023 exceeded expectations |
| RevPAR growth increased 4.1% for the fourth quarter and 8.7% for the full year or 50 basis points higher than the midpoint of our full year guidance |
| Excluding the impact from renovation, primarily at Bonnet Creek and Casa Marina, RevPAR increased an impressive 6% and nearly 11%, respectively |
| Total RevPAR growth of nearly 5% in the fourth quarter was supported by an 8% increase in food and beverage spend driven by solid banquet and catering in our urban and resort markets, translating into an incremental $3.5 million increase in EBITDA in the fourth quarter |
| With respect to group, we saw a continued trend of accelerating performance throughout the quarter, with comparable group revenues for the fourth quarter are up nearly 9% year-over-year, or a sequential 12% improvement over the third quarter, while Q4 results represented the first quarter since the start of the pandemic for group revenue the past 2019's quarterly results |
| Tom Morey and his team have done an exceptional job every year |
| Group revenue pace up 13% year-over-year and total group revenues forecasted to exceed 2019 levels this year, driven by a material pickup in group demand at our Bonnet Creek complex in Orlando, where our meeting space expansion project was completed recently, coupled with strong citywide calendars across several of our core markets including Chicago, Honolulu, New Orleans, San Diego and Miami, all of which are expected to produce double-digit increase in convention room nights 2024 |
| New York continued to benefit from impressive recovery of both group and leisure demand, which when combined with a nearly 9% decrease in hotel supply since 2019, translated into a material increase in compression room nights during the quarter |
| Specifically, our Hilton New York Midtown recorded 45 sellout nights in the quarter, almost double the same period last year and most notably, the highest quarterly revenue in the property's history, rounding out a great year for the asset, which grew RevPAR by over 30% versus 2022 |
| Boston also delivered a very strong quarter with our Hyatt Regency Hotel benefiting from better-than-expected group demand, helping to lift rate with ADR up 10% year-over-year or 12.5% above 2019 |
| Excluding disruption primarily from the Casa Marina and Waldorf Bonnet Creek renovation, RevPAR for the fourth quarter exceeded 2022 by over 6%, led once again by the sustained demand in Hawaii, specifically at the Hilton Hawaiian Village, RevPAR increased 5%, driven by increased group room nights and ADR improvements from continued domestic leisure strength |
| Total air available seats into Oahu grew by 11% over 2022 during the fourth quarter with domestic improving by 5% and international available seats increasing by nearly 30%, although still pacing 28% below 2019 level |
| We saw particular strength at our Hilton Waikoloa Village, which achieved a 22% increase in RevPAR during the quarter, driven by exceptionally strong group demand |
| Group revenues were up more than 145% over 2022, including increased demand from several groups relocating their programs from Maui to Big Island during the fourth quarter |
| Even without the benefit of the still recovering international demand, both hotels reported record profits 2023 |
| We’re confident in our ability to be able to sell assets |
| Looking ahead to 2024, Park remains well positioned to generate solid year-over-year RevPAR gains driven by tailwinds from our ROI investments, the ongoing strength of our resort markets and an acceleration of group, business transient demand in markets which stand to benefit strong convention calendar |
| But look, we are very pleased |
| 2024 group revenue forecast to be a record year for the complex with revenue on the books facing over 30% ahead of 2023 and hotel adjusted EBITDA forecasted to exceed 2023 by over 20%, while group revenue pace versus 2019 is currently ahead by 30% |
| Statement |
|---|
| While the Easter calendar shift is an additional headwind to March performance |
| Renovation displacement in Hawaii this year is expected to be approximately $8 million, placing a nearly 180 basis points drag on Hawaii RevPAR performance or a 40 basis point drag on total portfolio results, while negatively impacting total portfolio margin by 20 basis points for the year |
| There are a lot of people out there who believe that there's going to be tremendous distress |
| If you kind of adjust for the disruption we expect in the back part of the year, it's really Waikoloa that has paces down 30-plus percent for the year |
| With respect to full year hotel adjusted EBITDA margin, which is forecast to be down 50 basis points at the midpoint, prior year comparisons will be impacted by last year's favorable property tax appeals and other non-repeating items, which will negatively impact margin by approximately 40 basis points |
| But certainly, it's a drag towards Hawaii overall as a market |
| It would be impossible, and I emphasize impossible to replicate what we have at Hilton Hawaiian Village |
| And so we expect kind of a negative growth pattern for that, like mid-single digits down |
| Group is going to be down |
| I think just the back half of the year that kind of softens a little bit for that market |
| But I think also, keep in mind that uncertainty is the enemy of decision-making |
| I think even the worst of times, we didn't do a dilutive equity raise |
| Just I'd also add, there is a headwind of a 50 basis point renovation impact to RevPAR this year, most of it will be in Hawaii, which we pointed out |
| That said, I think -- and I think it's probably back half of the year, it's more we see the group down for Waikoloa on top of disruption |
| Banks are got their own regulatory challenges, but there's certainly plenty of private capital, private credit capital in particular out there |
| And that shouldn't surprise anyone |
| I think ultimately, you're going to cut expenses as well as you lower revenues |
| That's a little bit lower flow-through than you might see in the banquet and catering |
| There will be a decel in March for all the reasons that we pointed out |
| So you're still 50%, 60% plus or minus below normalized levels |
Please consider a small donation if you think this website provides you with relevant information