Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q4 2017 Earnings Presentation
37 slides from Park Hotels & Resorts's earnings presentation, Mar 1, 2018
Slide 1: Fourth Quarter and Year End 2017 Supplemental Data
Waldorf Astoria Orlando Park Hotels & Resorts at NYSE Hilton Hawaiian Village Waikiki Beach Resort December 31, 2017 Fourth Quarter and Year End 2017 Supplemental Data Exhibit 99.2
Slide 2: About Park and Safe Harbor Disclosure
About Park and Safe Harbor Disclosure About Park Hotels & Resorts Inc. Park (NYSE: PK) is a leading lodging real estate company with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park’s portfolio consists of 55 premium-branded hotels and reso
Slide 3: Table of Contents
Financial Statements Non-GAAP Financial Measures Guidance Portfolio and Operating Metrics Acquisitions and Dispositions Debt Summary Definitions Table of Contents 4 7 13 17 28 30 32 New York Hilton Midtown Hilton Waikoloa Village Waldorf Astoria Orlando
Slide 4: Financial Statements
Financial Statements Casa Marina, a Waldorf Astoria Resort Hilton Chicago Parc 55 San Francisco – a Hilton Hotel
Slide 5: Consolidated Balance Sheets
Financial Statements Consolidated Balance Sheets (in millions, except share and per share data) December 31, 2017 December 31, 2016 ASSETS Property and equipment, net $8,311 $8,541 Assets held for sale, net 37 — Investments in affiliates 84 81 Goodwill 606 604 Intangibles, net 41 44 Cash and cash eq
Slide 6: Consolidated Statements of Operations
Financial Statements (cont’d) Consolidated Statements of Operations Three Months Ended Twelve Months Ended (unaudited, in millions, except per share data) December 31, December 31, 2017 2016 2017 2016 Revenues Rooms $433 $434 $1,794 $1,795 Food and beverage 187 183 739 719 Ancillary hotel 49 47 194
Slide 7: Non-GAAP Financial Measures
Non-GAAP Financial Measures Juniper Hotel Cupertino, Curio Collection Hilton Boston Logan Airport The Reach, a Waldorf Astoria Resort
Slide 8: EBITDA, Adjusted EBITDA and Pro-forma Adjusted EBITDA
Non-GAAP Financial Measures EBITDA, Adjusted EBITDA and Pro-forma Adjusted EBITDA (1) For 2017, includes $18 million of distributions received from investments in affiliates in excess of the investment balance that were included within Equity in earnings from investments in affiliates in the consoli
Slide 9: Pro-forma Comparable Hotel Adjusted EBITDA and Margin
Non-GAAP Financial Measures (cont’d) Pro-forma Comparable Hotel Adjusted EBITDA and Pro-forma Comparable Hotel Adjusted EBITDA Margin Three Months Ended Twelve Months Ended (unaudited, dollars in millions) December 31, December 31, 2017 2016 2017 2016 Pro-forma Adjusted EBITDA $180 $186 $757 $764 Le
Slide 10: NAREIT FFO, Adjusted FFO, Pro-forma Adjusted FFO
NAREIT FFO, Adjusted FFO, Pro-forma Adjusted FFO (1)For 2017, includes $18 million in distributions received from investments in affiliates in December 2017, net of $7 million of income tax expense, an income tax benefit of $25 million associated with the revaluation of deferred tax assets and liabi
Slide 11: General and Administrative Expenses
General and Administrative Expenses Non-GAAP Financial Measures (cont’d) (unaudited, in millions) Three Months Ended Twelve Months Ended December 31, December 31, 2017 2016 2017 2016 Corporate general and administrative expenses $23 $26 $68 $71 Less: Share-based compensation 4 — 14 — Transition cost
Slide 12: Net Debt and Net Debt to Pro-forma Adjusted EBITDA Ratio
Non-GAAP Financial Measures (cont’d) Net Debt and Net Debt to Pro-forma Adjusted EBITDA Ratio (unaudited, in millions) December 31, 2017 December 31, 2016 Debt $2,961 $3,012 Add: unamortized deferred financing costs 12 14 "Long-term debt, including current maturities and excluding unamortized deferr
Slide 13: Guidance
Guidance Hilton San Francisco Union Square Hilton Waikoloa Village Hilton Chicago
Slide 14: 2018 Assumptions and Outlook
Guidance 2018 Assumptions (1) Excludes unconsolidated joint ventures. (2) Excludes Hilton Waikoloa Village and Caribe Hilton. (3)Per share amounts are calculated based on unrounded numbers. (4) General and administrative expenses are projected to be $44 million, excluding $17 million of non-cash sha
Slide 15: Guidance: EBITDA
Guidance (cont’d) EBITDA Year Ending (unaudited, in millions) December 31, 2018 Low Case High Case Net income $232 $266 Depreciation and amortization expense 292 292 Interest income (2) (2) Interest expense 123 125 Income tax expense 8 12 "Interest expense, income tax and depreciation and amortizati
Slide 16: Guidance: FFO
Guidance (cont’d) FFO (1)Per share amounts are calculated based on unrounded numbers. Year Ending (unaudited, in millions except per share data) December 31, 2018 Low Case High Case Net income attributable to stockholders $227 $260 Depreciation and amortization expense 288 288 Equity investment adju
Slide 17: Portfolio and Operating Metrics
Portfolio and Operating Metrics Hilton New Orleans Riverside Hilton New Orleans Airport The Fess Parker Santa Barbara Hotel – a DoubleTree Resort
Slide 18: Hotel Portfolio
Portfolio and Operating Metrics Hotel Portfolio (1) Single $725 million CMBS loan secured by Hilton San Francisco Union Square and Parc 55 Hotel San Francisco. Consolidated Domestic Portfolio Hotel Name Rooms Market Meeting Space Ownership Equity Ownership "Debt (in millions)" Hilton Hawaiian Villag
Slide 19: Hotel Portfolio (cont'd)
Portfolio and Operating Metrics (cont’d) Hotel Portfolio Consolidated Domestic Portfolio cont'd Hotel Name Rooms Market Meeting Space Ownership Equity Ownership "Debt (in millions)" Hampton Inn & Suites Memphis – Shady Grove 130 Other U.S. 1,000 Fee Simple 100% — Hilton Garden Inn Chicago/Oak Brook
Slide 20: Comparable Hotels by Market and Hotel Type: Q4 2017 vs. Q4 2016
Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: Q4 2017 vs. Q4 2016 (1) Calculated based on unrounded numbers. (2) Excludes unconsolidated joint ventures. (unaudited) Comparable ADR Comparable Occupancy Comparable RevPAR Hotels Rooms 4Q17 4Q16 Change(1) 4Q17 4Q16
Slide 21: Comparable Hotels by Market: Q4 2017 EBITDA and Margin
Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: Q4 2017 vs. Q4 2016 (1) Calculated based on unrounded numbers. (2) Excludes unconsolidated joint ventures. (unaudited, dollars in millions) Comparable Hotel Adjusted EBITDA Comparable Hotel Revenue "Comparable Hotel
Slide 22: Comparable Hotels by Market and Hotel Type: Full Year 2017
Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: Full Year 2017 vs. Full Year 2016 (1) Calculated based on unrounded numbers. (2) Excludes unconsolidated joint ventures. (unaudited) Comparable ADR Comparable Occupancy Comparable RevPAR Hotels Rooms 2017 2016 Chang
Slide 23: Comparable Hotels by Market: Full Year 2017 EBITDA and Margin
Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: Full Year 2017 vs. Full Year 2016 (1) Calculated based on unrounded numbers. (2) Excludes unconsolidated joint ventures. (unaudited, dollars in millions) Comparable Hotel Adjusted EBITDA Comparable Hotel Revenue "Co
Slide 24: Top Assets: Q4 2017 vs. Q4 2016
Portfolio and Operating Metrics (cont’d) Top 10 Assets: Q4 2017 vs. Q4 2016 (1)Calculated based on unrounded numbers. (2)Classified as a non-comparable hotel. (3)Includes non-comparable hotels and excludes unconsolidated joint ventures. (unaudited) ADR Occupancy RevPAR 4Q17 4Q16 Change(1) 4Q17 4Q16
Slide 25: Top Assets: Q4 2017 EBITDA and Margin
Portfolio and Operating Metrics (cont’d) Top 10 Assets: Q4 2017 vs. Q4 2016 (1)Calculated based on unrounded numbers. (2)Classified as a non-comparable hotel. (3)Includes non-comparable hotels and excludes unconsolidated joint ventures. (unaudited, dollars in millions) Hotel Adjusted EBITDA Hotel Re
Slide 26: Top Assets: Full Year 2017 vs. Full Year 2016
Portfolio and Operating Metrics (cont’d) Top 10 Assets: Full Year 2017 vs. Full Year 2016 (1)Calculated based on unrounded numbers. (2)Classified as a non-comparable hotel. (3)Includes non-comparable hotels and excludes unconsolidated joint ventures. (unaudited) ADR Occupancy RevPAR 2017 2016 Change
Slide 27: Top Assets: Full Year 2017 EBITDA and Margin
Portfolio and Operating Metrics (cont’d) Top 10 Assets: Full Year 2017 vs. Full Year 2016 (1)Calculated based on unrounded numbers. (2)Classified as a non-comparable hotel. (3)Includes non-comparable hotels and excludes unconsolidated joint ventures. (unaudited, dollars in millions) Hotel Adjusted E
Slide 28: Acquisitions & Dispositions
Acquisitions & Dispositions Hilton Sao Paulo Morumbi Caribe Hilton Hilton Miami Airport Blue Lagoon
Slide 29: Acquisitions and Dispositions: Dispositions
Acquisitions and Dispositions Dispositions (1)Hotels were sold as a portfolio. (unaudited, dollars in millions) Property Location Transaction Date Room Count Gross Proceeds Hilton Rotterdam Rotterdam, Netherlands January 2018 254 $62.2 254 62.2 Embassy Suites Portfolio(1) Embassy Suites by Hilton Ka
Slide 30: Debt Summary
Debt Summary Casa Marina, a Waldorf Astoria Resort Hilton Orlando Bonnet Creek New York Hilton Midtown
Slide 31: Fixed and Variable Rate Debt
Debt Summary Fixed and Variable Rate Debt (1)The weighted average interest rate of Park’s total debt outstanding is 3.9%. The weighted average interest rate of Park’s fixed rate debt outstanding is 4.2%. (2)$1 billion available. (3)Assumes the exercise of all extensions that are exercisable solely a
Slide 32: Definitions
Definitions Hilton Orlando Bonnet Creek Hilton Hawaiian Village Waikiki Beach Resort New York Hilton Midtown
Slide 33: Definitions: EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA
Definitions EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin Earnings before interest expense, taxes and depreciation and amortization (“EBITDA”), presented herein, reflects net income excluding depreciation and amortization, interest income, interest expense, income t
Slide 34: Definitions (cont'd): NAREIT FFO and Adjusted FFO
Definitions (cont’d) NAREIT FFO attributable to stockholders, Adjusted FFO attributable to stockholders, NAREIT FFO per share – Diluted and Adjusted FFO per share - Diluted NAREIT FFO attributable to stockholders and NAREIT FFO per diluted share (defined as set forth below) are presented herein as n
Slide 35: Definitions (cont'd): Net Debt
Definitions (cont’d) Net Debt Net debt, presented herein, is a non-GAAP financial measure that the Company uses to evaluate its financial leverage. Net debt is calculated as (i) long-term debt, including current maturities and excluding unamortized deferred financing costs; and (ii) the Company’s sh
Slide 36: Definitions (cont'd): Occupancy, ADR, RevPAR
Definitions (cont’d) Occupancy Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels. Occupancy measures the utilization of the Company’s hotels’ available capacity. Management uses occupancy to gauge demand at a
Slide 37: Analyst Coverage
Analyst Coverage Analyst Company Phone Email Shaun Kelley Bank of America (646) 855-1005 shaun.kelley@baml.com Anthony Powell Barclays (212) 526-8768 anthony.powell@barclays.com Floris Van Dijkum Boenning & Scattergood (212) 922-3572 fvandijkum@boenninginc.com Smedes Rose Citi Research (212) 816-624
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