TYSONS, Va. - Park Hotels & Resorts Inc. (NYSE:PK), a publicly-traded lodging real estate investment trust (REIT), has declared a fourth-quarter dividend of $0.65 per share of common stock. This payout includes a regular quarterly dividend of $0.25 and an additional $0.40 top-off dividend, reflecting the company's 2024 operating results. Stockholders on record as of December 31, 2024, will receive the dividend in cash on January 15, 2025.
The announced dividend, in conjunction with the dividends from the previous three quarters, yields an annual rate of 9.0% based on Park's closing stock price as of November 25, 2024. Park has returned a substantial amount of capital to its shareholders throughout 2024, totaling approximately $375 million. This sum comprises nearly $290 million in cumulative dividend payments and over $85 million in share repurchases, amounting to nearly 6 million shares, including about $26 million bought back in the current quarter.
Park's portfolio includes 41 premium-branded hotels and resorts, encompassing over 25,000 rooms, mainly situated in key urban and resort locales. The company's strategic financial decisions, including dividend declarations and share repurchases, are part of its broader capital allocation strategy.
The press release also mentions forward-looking statements, which are based on Park's current expectations and projections about future events. These statements are inherently uncertain and subject to various risks and factors that could cause actual results to differ materially from those expressed or implied. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their date.
The forward-looking statements in the press release cover a range of topics, including the anticipated effects of ceasing payments on a significant mortgage loan and the lender's subsequent remedies, the impact of labor activity on the company's operations, and expectations regarding business performance, financial outcomes, and capital resource management.
Park Hotels & Resorts Inc. is one of the largest lodging REITs, and its actions, such as dividend payments and share repurchases, are closely watched by investors and market analysts. This information is based on a press release statement from Park Hotels & Resorts Inc.
In other recent news, Park Hotels & Resorts reported moderate growth in Q3 revenue per available room (RevPAR), rising 3.3% to approximately $190, despite disruptions. The company's earnings call also highlighted the sale of non-core assets and a steady dividend, indicating a strategic focus on long-term shareholder value and portfolio reinvestment. UBS analyst Chris Woronka responded to these developments by upgrading the financial model for Park Hotels & Resorts, raising the price target to $15.00 from $14.00, while maintaining a neutral rating on the stock.
However, the company's fourth-quarter RevPAR forecast was decreased to -5% year-over-year, reflecting the company's guidance. This adjustment was followed by a reduction in the fourth-quarter EBITDA estimate to $128 million from $150 million, and a decrease in the adjusted funds from operations estimate for the quarter to $0.37 from $0.51.
Park Hotels & Resorts has also made significant investments in property renovations, with over $200 million expected to be completed by early 2025. Despite challenges such as labor strikes and Hurricane Helene, analysts from various firms have noted strong RevPAR growth in urban markets like Chicago, New Orleans, and Boston, and resort markets, particularly Orlando and Miami. These are recent developments in the ongoing story of Park Hotels & Resorts.
InvestingPro Insights
Park Hotels & Resorts Inc. (NYSE:PK) continues to demonstrate strong financial management and shareholder value creation, as evidenced by its recent dividend declaration and share repurchase program. This aligns with several key metrics and insights from InvestingPro.
According to InvestingPro data, Park Hotels & Resorts boasts an impressive dividend yield of 6.45%, which is consistent with the company's commitment to returning capital to shareholders. This high yield is further supported by a remarkable dividend growth of 66.67% over the last twelve months, underscoring the company's ability to increase shareholder returns.
InvestingPro Tips highlight that management has been aggressively buying back shares, which is reflected in the company's recent $85 million share repurchase program. This strategy, combined with the dividend payments, contributes to a high shareholder yield, another key InvestingPro Tip for Park Hotels & Resorts.
The company's financial health appears robust, with InvestingPro data showing that liquid assets exceed short-term obligations. This strong liquidity position enables Park to maintain its generous dividend policy and share repurchase program while navigating the dynamic hospitality industry landscape.
It's worth noting that Park Hotels & Resorts has shown a significant return over the last week, with InvestingPro data indicating a 1-week price total return of 8.39%. This recent performance, coupled with a 1-year price total return of 24.01%, suggests growing investor confidence in the company's strategy and market position.
For investors seeking a deeper understanding of Park Hotels & Resorts' financial profile, InvestingPro offers 11 additional tips, providing a comprehensive analysis of the company's strengths and potential areas of concern.
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