Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q1 2024 Earnings Presentation
37 slides from Park Hotels & Resorts's earnings presentation, May 1, 2024
Slide 1: Waldorf Astoria Orlando, May 2024
May 2024 Waldorf Astoria Orlando
Slide 2: Park at a Glance
Park at a Glance Park Hotels & Resorts (ex-Hilton San Francisco Hotels) Hilton Waikoloa Village 43 26K $6.9B 10.2x Waldorf Astoria Orlando Hotels Rooms Enterprise Value(1) EBITDA Multiple(2) Top 10 Markets: 2023 EBITDA(3) Signia Hilton Bonnet Creek 1. Hawaii 36% Hilton Denver City Center 2. Orlando
Slide 3: Park: A Compelling Investment Story
Park: A Compelling Investment Story Undervalued Internal Growth ROI Pipeline Financial Flexibility Iconic portfolio at Improving demand ROI pipeline to drive Ample liquidity to wide discount(1) value creation execute strategy 2024 Comp RevPAR growth 29% discount to consensus Significant embedded rea
Slide 4: Overview of Orlando Market
Overview of Orlando Market Change Waldorf Astoria Orlando 4|
Slide 5: Summary: Bonnet Creek—Best in Class Destination
Summary: Bonnet Creek—Best in Class Destination Top destination for group and leisure travelers Orlando 74M visitors in ’22 (Visit Orlando) #1 meetings destination (Cvent) Premier meeting platform with nearly 300K sf Bonnet Creek of meeting space—well positioned to compete Orlando against other
Slide 6: Orlando: Top Destination for Groups + Leisure
Orlando: Top Destination for Groups + Leisure Orlando is Regarded as Among the Nation’s Top Destinations for Groups and Conventions Orange County Convention Center (OCCC): 1.4M Annual Attendees 200+ programs a year, including 115 conventions and trade shows 2nd largest convention center footprin
Slide 7: Group Hotels Across Greater Orlando Market
Group Hotels Across Greater Orlando Market Orlando ‘Big Box’ Competitive Set 5 4 7 3 8 3 1 2 6 Signia by Hilton Orlando Bonnet Creek 2 Prior to expansion, Bonnet Creek’s 3 Attractions meeting platform was undersized relative 2 1 5 1 Walt Disney World – Magic Kingdom Attractions to its competition
Slide 8: Bonnet Creek: Signia + Waldorf
Bonnet Creek: Signia + Waldorf Waldorf Astoria Orlando Golf Course 8|
Slide 9: Bonnet Creek Complex by the Numbers
Waldorf Astoria Orlando and Signia by Hilton Orlando Bonnet Creek Signia by Hilton Orlando Bonnet Creek Waldorf Astoria Orlando 1,009 234,000 6 502 62,000 5 Rooms SF of Meeting Dining Options Rooms SF of Meeting Dining Options Space Space Bonnet Creek Complex by the Numbers $60M 7% 30% +30% $40,000
Slide 10: Bonnet Creek: Historical Operating Trends
Bonnet Creek: Historical Operating Trends Significant Upside Potential as Occupancy Builds Occupancy ADR RevPAR Banquet/Catering Rev. +19% -2% (in millions) +8% -13.6 %pts 78.4% $260 $54.9 $172 $169 $51.0 64.8% $219 2019 2023 2019 2023 2019 2023 2019 2023 Hotel Adjusted EBITDA (in millions) 18% 20
Slide 11: Investment Rationale: Drive Higher Rated Group
Investment Rationale: Drive Higher Rated Group Business Rationale Changes/Improvements Upbranding the Hilton to a Signia (in 2021) positioned the hotel better against the Upper Upscale set and aligns the Bonnet Creek complex more closely with MI's Grande Lakes hotels (JW Marriott & Ritz-Carlton) S
Slide 12: How 2024 Is Shaping Up
How 2024 Is Shaping Up Spotlight Market – Orlando 2024 While Orlando citywide pace is 2% below 2023, Signia and Waldorf are benefiting from solid in-house group production in 2024 Expanded complex is expected to materially outperform the broader market in 2024. Combined group rooms and F&B reven
Slide 13: Development: Executing the Plan
Development: Executing the Plan Signia Bonnet Creek 13 |
Slide 14: Scope of Bonnet Creek Expansion Vision: 2016 vs. Today
Scope of Bonnet Creek Expansion Vision: 2016 vs. Today Bonnet Vision 2016: 40K Sf Ballroom at Waldorf Astoria Orlando 2016 Add 40,000 sf multi-purpose space: Ballroom Waterside Ballroom and meeting space Meeting space Waldorf : Central Park Pre-function Ballroom Bonnet Today: 107K sf of Mult
Slide 15: Signia + Waldorf Bonnet Creek $220M Investment
Signia + Waldorf Bonnet Creek $220M Investment Signia by Hilton Bonnet Creek Waldorf Astoria Orlando Renovation: $44M Renovation: $62M Rebrand to Signia from Hilton All 1,009 guestrooms All 502 guestrooms Lobby, Peacock Alley, Spa, and Bull & Bear $220M+ Lobby, Spa, Muse Coffee Shop, and M
Slide 16: Bonnet Creek Complex: Pre-Construction
Bonnet Creek Complex Pre-Construction 16 |
Slide 17: Target Areas for Renovation and Expansion
Bonnet Creek Complex Target Areas for Renovation (Red) and Expansion (Blue) LOBBY 2022 LOBBY 2023 EXISTING PARKING SIGNIA GUESTROOMS GARAGE 2019 EXISTING SIGNIA MEETING SPACE 2019-2022 NEW SIGNIA BALLROOM 2024 WALDORF ASTORIA GOLF COURSE RENOVATION 2022-2024 17 |
Slide 18: Bonnet Creek: Executing the Development Plan
Bonnet Creek: Executing the Development Plan LOGISTICS Access & Marine Const. Laydown Job Trailer Dumpster Pulls Constraints Pandemic – Covid Impact Active Loading Dock Large Steel Deliveries Power, Water, Fire Line-AHJ Chiller Expansion 18 |
Slide 19: Bonnet Creek Waldorf Central Park Ballroom
Bonnet Creek Waldorf Central Park Ballroom July 2021 December 2021 March 2022 November 2022 19 |
Slide 20: Bonnet Creek Signia Waterside Ballroom
Bonnet Creek Signia Waterside Ballroom November 2020 May 2022 March 2023 February 2024 20 |
Slide 21: Signia Renovation: Before and After
Signia Renovation: Before and After Before After Arrival Guest Room Lobby 21 |
Slide 22: Signia by Hilton: Waterside Ballroom
Signia by Hilton: Waterside Ballroom 22 |
Slide 23: Waldorf Astoria: Before and After
Waldorf Astoria: Before and After Before After Lobby Guest Room Peacock Alley Morning 23 |
Slide 24: Waldorf Astoria: Central Park Ballroom Addition
Waldorf Astoria: Central Park Ballroom Addition 24 |
Slide 25: Waldorf Astoria Golf Course
Waldorf Astoria Golf Course 25 | Waldorf Astoria Orlando Golf Course
Slide 26: Waldorf Astoria Golf Course Renovation
Waldorf Astoria Golf Course Renovation Bunker erosion/drainage: Effects of erosion on bunker design, drainage and playability Putting collars: Encroachment and contamination of fairway grass onto putting green surfaces – impacting hole locations Tee Boxes: Shrinkage and level inconsistencies d
Slide 27: Bonnet Creek Team at Work
Bonnet Creek Team at Work 27 |
Slide 28: Additional ROI Opportunities
Additional ROI Opportunities Hilton Hawaiian Village Hilton Hawaiian Village: Tower Rendering 28 |
Slide 29: Value Enhancing ROIs: Track Record of Success
Value Enhancing ROIs: Track Record of Success Other Recent Value Enhancing ROI Projects Hilton Santa Barbara Beachfront The Reach Key West, Curio Casa Marina Key West, Curio Resort Collection by Hilton Collection by Hilton Re-branded from DoubleTree by Hilton Re-branded from Waldorf Astoria Re-brand
Slide 30: Casa Marina Resort: Dorado Bar and Restaurant
Casa Marina Resort: Dorado Bar and Restaurant Evening 30 |
Slide 31: Robust ROI Pipeline: Significant Embedded Value
Robust ROI Pipeline: Significant Embedded Value ~$1.5B Potential Development Projects: ~$1B (2027 – 2037) Hilton Hawaiian Village — New Tower Hilton Hawaiian Village — Campus Improvements Potential & Completed Hilton Santa Barbara — New Tower ROI Pipeline Hilton Waikoloa Village — New Tower
Slide 32: Appendix
Appendix Hilton Waikoloa Hilton Chicago Village 32 |
Slide 33: Definitions
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 (loss) excluding depreciation and amortization, interest income, interest expense, i
Slide 34: Definitions (Continued)
Definitions (Continued) Core Core, presented herein, refers to Park’s portfolio of its highest quality, upper-upscale and luxury branded hotels located in top 25 Metropolitan Statistical Areas by population and premier resort destinations. Hilton San Francisco Hotels Park's Hilton San Francisco Hote
Slide 35: Non-GAAP Financial Measures
Non-GAAP Financial Measures Comparable Hotel Adjusted EBITDA 1) Represents accrued interest expense associated with the default of the SF Mortgage Loan, which was offset by a gain on derecognition for the corresponding increase of the contract asset on the condensed balance sheet, as Park expects to
Slide 36: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) Comparable Hotel Adjusted EBITDA Margin 1) Percentages are calculated based on unrounded numbers. 36 |
Slide 37: About Park and Safe Harbor Disclosure
About Park and Safe Harbor Disclosure About Park Hotels & Resorts Inc. Park is one of the largest publicly-traded lodging REITs with a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. Park's portfolio currently consists of 43 premium-br
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