Shares of Park Hotels & Resorts experienced a significant boost following the release of their third-quarter results. The hotel-focused real estate investment trust also announced a special dividend in connection with the exit of two hotels in San Francisco.
Stock Price Surge
In afternoon trading, Park Hotels & Resorts saw its stock rise by almost 12%, reaching $12.78. This increase comes as a welcome development for investors, who have already witnessed a 9% uptick in share prices throughout the year.
CEO Optimistic About Transient Demand
Despite concerns about a potential economic slowdown, Chief Executive Tom Baltimore remains optimistic about the current state of transient demand. This positive outlook bodes well for Park Hotels & Resorts going forward.
Impressive Revenue and Adjusted Funds from Operations
For the third quarter, Park Hotels & Resorts reported revenue of $679 million. This figure represents a nearly 3% increase and surpasses the $664.8 million projected by analysts surveyed by FactSet. Additionally, adjusted funds from operations came in at 51 cents per share, exceeding the expected 43 cents predicted by analysts.
Special Dividend Declaration
As part of the company's strategic exit from its Hilton San Francisco hotels, Park Hotels & Resorts has ceased making debt payments related to these properties, which are now under receivership. To mark this transition, the real estate investment trust has declared a one-time dividend of 77 cents per share.
This announcement further reinforces Park Hotels & Resorts' commitment to delivering value to its shareholders.