Park Hotels & Resorts, the Virginia-based Real Estate Investment Trust (REIT), witnessed a nearly 13% surge in its share price to $12.79 during Thursday afternoon trading. The rise followed the company's Q3 results and a special dividend announcement related to the cessation of debt payments for two Hilton San Francisco hotels now under receivership.
The REIT's stock has seen an approximate increase of 9% this year. CEO Tom Baltimore reported that the economic slowdowns have not affected transient demand.
For the third quarter, Park Hotels & Resorts reported revenues of $679 million, surpassing the FactSet analysts' forecast of $664.8 million. Additionally, adjusted funds from operations exceeded the expected 43 cents per share.
In relation to the exit from two hotel properties, a one-off 77-cent dividend was declared. This announcement played a significant role in influencing the company's share price on Thursday.
InvestingPro Insights
InvestingPro's real-time data shows that Park Hotels & Resorts has a market cap of 2760M USD and a P/E ratio of -49.65. The company's revenue for the last twelve months as of Q3 2023 was 2721M USD, reflecting a growth of 18.72%. The company also has a notable dividend yield of 5.23%.
InvestingPro Tips highlight that the management of Park Hotels & Resorts has been actively buying back shares, which could be a positive sign of the company's confidence in its future. The company's strong earnings should also enable it to continue its dividend payments, which is a good sign for investors looking for income.
Moreover, the company is a prominent player in the Hotel & Resort REITs industry and it's worth noting that despite not being profitable over the last twelve months, analysts predict the company will turn a profit this year.
For those interested in gaining more insights, InvestingPro offers numerous additional tips related to Park Hotels & Resorts.
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