Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q1 2018 Earnings Presentation
34 slides from Park Hotels & Resorts's earnings presentation, May 3, 2018
Slide 1: First Quarter 2018 Supplemental Data
Waldorf Astoria Orlando Parc 55 San Francisco, a Hilton Hotel Hilton Hawaiian Village Waikiki Beach Resort March 31, 2018 First Quarter 2018 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 14 18 25 27 29 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: Condensed Consolidated Balance Sheets
Financial Statements Condensed 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 a
Slide 6: Financial Statements (cont'd)
Financial Statements (cont’d) 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 47 194 190 Other 17 6 64 23 Total revenues 68
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 and Adjusted EBITDA
Non-GAAP Financial Measures EBITDA and Adjusted EBITDA 8 | Non-GAAP Financial Measures EBITDA and Adjusted EBITDA (unaudited, in millions) 2018 2017 Net income $ 149 $ 2,350 Depreciation and amortization expense 70 70 Interest income (1) — Interest expense 31 30 Income tax benefit — (2,281) Interest
Slide 9: Comparable Hotel Adjusted EBITDA and Margin
Non-GAAP Financial Measures (cont’d) Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin 9 | Non-GAAP Financial Measures (cont’d) Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin (unaudited, dollars in millions) 2018 2017 Adjusted EBITDA $ 174 $ 1
Slide 10: NAREIT FFO and Adjusted FFO
NAREIT FFO and Adjusted FFO (1)The three months ended March 31, 2017 includes an income tax benefit from the derecognition of deferred tax liabilities of $2,288 million associated with Park’s intent to elect REIT status. (2)Per share amounts are calculated based on unrounded numbers. Non-GAAP Financ
Slide 11: General and Administrative Expenses
General and Administrative Expenses Non-GAAP Financial Measures (cont’d) 11 | General and Administrative Expenses Non-GAAP Financial Measures (cont’d) (unaudited, in millions) (unaudited, in millions) 2018 2017 Corporate general and administrative expenses $ 16 $ 14 Less: Share-based compensation ex
Slide 12: Net Debt and Net Debt to Adjusted EBITDA Ratio
Non-GAAP Financial Measures (cont’d) Net Debt and Net Debt to Adjusted EBITDA Ratio 12 | Non-GAAP Financial Measures (cont’d) Net Debt and Net Debt to Adjusted EBITDA Ratio (unaudited, in millions) (unaudited, in millions) Debt $ 2,946 $ 2,961 Add: unamortized deferred financing costs 11 12 Long-ter
Slide 13: TTM Adjusted EBITDA
Non-GAAP Financial Measures (cont’d) TTM Adjusted EBITDA 13 | Non-GAAP Financial Measures (cont’d) TTM Adjusted EBITDA (unaudited, in millions) (1) TTM March 31, 2018 is calculated as year ended December 31, 2017 plus the three months ended March 31, 2018 less the three months ended March 31, 2017.
Slide 14: Guidance
Guidance Hilton San Francisco Union Square Hilton Waikoloa Village Hilton Chicago
Slide 15: Guidance 2018 Assumptions
Guidance 2018 Assumptions General and administrative expenses are projected to be $44 million, excluding $16 million of non-cash share-based compensation expense and $6 million of transition expense; Fully diluted weighted average shares are expected to be 203.8 million; Includes $8 million of Adjus
Slide 16: Guidance: EBITDA and Adjusted EBITDA
Guidance (cont’d) EBITDA and Adjusted EBITDA 16 | Guidance (cont’d) EBITDA and Adjusted EBITDA Year Ending (unaudited, in millions) Low Case High Case Net income $ 336 $ 369 Depreciation and amortization expense 283 283 Interest income (4) (4) Interest expense 125 128 Income tax expense 12 16 Intere
Slide 17: Guidance: NAREIT FFO and Adjusted FFO
Guidance (cont’d) NAREIT FFO and Adjusted FFO (1)Per share amounts are calculated based on unrounded numbers. 17 | Guidance (cont’d) NAREIT FFO and Adjusted FFO (1) Per share amounts are calculated based on unrounded numbers. Year Ending (unaudited, in millions except per share data) (unaudited, in
Slide 18: Portfolio and Operating Metrics
Portfolio and Operating Metrics Hilton New Orleans Riverside Hilton New Orleans Airport Hilton Santa Barbara Beachfront Resort
Slide 19: Hotel Portfolio
Portfolio and Operating Metrics Hotel Portfolio(1) (1)As of May 3, 2018. (2)Single $725 million CMBS loan secured by Hilton San Francisco Union Square and Parc 55 Hotel San Francisco. Hotel NameRoomsMarketMeeting SpaceOwnershipEquity Ownership"Debt(in millions)"Consolidated Domestic Portfolio Hilton
Slide 20: Hotel Portfolio (cont'd)
Portfolio and Operating Metrics (cont’d) Hotel Portfolio(1) (1)As of May 3, 2018. (2)Debt related to unconsolidated joint ventures is presented on a pro-rata basis. (3)In April 2018, Park and the other joint ventures of the entities that own the Hilton Berlin entered into an agreement to sell the ow
Slide 21: Comparable Hotels By Market and Hotel Type
Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: Q1 2018 vs. Q1 2017 (1) Calculated based on unrounded numbers. 21 | Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: Q1 2018 vs. Q1 2017 (1) Calculated based on unrounded numbers.
Slide 22: Comparable Hotel Adjusted EBITDA by Market
Portfolio and Operating Metrics (cont’d) (1) Calculated based on unrounded numbers. 22 | Portfolio and Operating Metrics (cont’d) (1) Calculated based on unrounded numbers. (unaudited, dollars in millions) Comparable Hotel Adjusted EBITDA Comparable Hotel Revenue "Comparable Hotel Adjusted EBITDA Ma
Slide 23: Top 10 Assets: Q1 2018 vs. Q1 2017
Portfolio and Operating Metrics (cont’d) Top 10 Assets: Q1 2018 vs. Q1 2017 (1)Calculated based on unrounded numbers. (2)Classified as a non-comparable hotel. 23 | Portfolio and Operating Metrics (cont’d) Top 10 Assets: Q1 2018 vs. Q1 2017 (1) Calculated based on unrounded numbers. (2) Classified as
Slide 24: Top 10 Assets: EBITDA and Revenue
Portfolio and Operating Metrics (cont’d) Top 10 Assets: Q1 2018 vs. Q1 2017 (1)Calculated based on unrounded numbers. (2)Classified as a non-comparable hotel. 24 | Portfolio and Operating Metrics (cont’d) Top 10 Assets: Q1 2018 vs. Q1 2017 (1) Calculated based on unrounded numbers. (2) Classified as
Slide 25: Acquisitions & Dispositions
Acquisitions & Dispositions Hilton Sao Paulo Morumbi Caribe Hilton Hilton Miami Airport Blue Lagoon
Slide 26: Acquisitions and Dispositions
Acquisitions and Dispositions Dispositions (1)Hotels were sold as a portfolio. HotelLocationMonth SoldRoom CountGross Proceeds Hilton RotterdamRotterdam, NetherlandsJanuary 2018 254 $62.2 254 62.2 Embassy Suites Portfolio(1) Embassy Suites by Hilton Kansas City Overland ParkOverland Park, KansasFebr
Slide 27: Debt Summary
Debt Summary Casa Marina, a Waldorf Astoria Resort Hilton Orlando Bonnet Creek New York Hilton Midtown
Slide 28: Fixed and Variable Rate Debt
Debt Summary Fixed and Variable Rate Debt (1)Calculated on a weighted average basis. (2)$1 billion available. (3)Assumes the exercise of all extensions that are exercisable solely at Park’s option. (4)Excludes $236 million of Park’s share of debt of its unconsolidated joint ventures. 28 | Debt Summa
Slide 29: Definitions
Definitions Hilton Orlando Bonnet Creek Hilton Hawaiian Village Waikiki Beach Resort New York Hilton Midtown
Slide 30: Definitions: EBITDA and 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 31: 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 32: 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 33: Definitions (cont'd): Occupancy and ADR
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 34: Analyst Coverage
Analyst Coverage 34 | 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
Park Hotels & Resorts — Q1 2018 Earnings Presentation on 6ix