Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q1 2019 Earnings Presentation
39 slides from Park Hotels & Resorts's earnings presentation, May 6, 2019
Slide 1: First Quarter 2019 Supplemental Data
Waldorf Astoria Orlando Parc 55 San Francisco, a Hilton Hotel Hilton Hawaiian Village Waikiki Beach Resort March 31, 2019 First Quarter 2019 Supplemental Data Exhibit 99.2 First Quarter 2019 Supplemental Data Exhibit 99.2 March 31, 2019
Slide 2: About Park and Safe Harbor Disclosure
About Park and Safe Harbor Disclosure About Park Hotels & Resorts Inc. Park (NYSE: PK) is the second largest publicly traded 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 51 premiu
Slide 3: Table of Contents
Financial Statements Supplementary Financial Information Guidance Portfolio and Operating Metrics Acquisitions and Dispositions Debt Summary Definitions Table of Contents 4 7 19 23 30 32 34 New York Hilton Midtown Hilton Waikoloa Village Waldorf Astoria Orlando Table of Contents 1.Financial Statemen
Slide 4: Financial Statements
Financial Statements Casa Marina, a Waldorf Astoria Resort Hilton Chicago Parc 55 San Francisco – a Hilton Hotel Financial Statements Hilton Chicago Parc 55 San Francisco – a Hilton Hotel Casa Marina, a Waldorf Astoria Resort PARK HOTELS & RESORTS 4
Slide 5: Condensed Consolidated Balance Sheets
Financial Statements Condensed Consolidated Balance Sheets (unaudited in millions, except share and per share data) March 31, 2019 December 31, 2018 ASSETS Property and equipment, net $7,944 $7,975 Investments in affiliates 49 50 Goodwill 607 607 Intangibles, net 2 27 Cash and cash equivalents 276 4
Slide 6: Condensed Consolidated Statements of Operations
Financial Statements (continued) Condensed Consolidated Statements of Operations Three Months Ended (unaudited in millions, except per share data) March 31, 2019 2018 Revenues Rooms $405 $418 Food and beverage 183 183 Ancillary hotel 53 50 Other 18 17 Total revenues 659 668 Operating expenses Rooms
Slide 7: Supplementary Financial Information
Supplementary Financial Information Juniper Hotel Cupertino, Curio Collection Hilton Boston Logan Airport The Reach, a Waldorf Astoria Resort Supplementary Financial Information
Slide 8: EBITDA and Adjusted EBITDA
Supplementary Financial Information EBITDA and Adjusted EBITDA Three Months Ended (unaudited, in millions) March 31, 2019 2018 Net income $97 $149 Depreciation and amortization expense 62 70 Interest income (1) (1) Interest expense 32 31 Income tax expense 7 — "Interest expense, income tax and depre
Slide 9: Comparable Hotel Adjusted EBITDA and Margin
Supplementary Financial Information (continued) Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin (1)Includes other revenues and other expenses, non-income taxes on REIT leases included in other property-level expenses and corporate general and administrative expenses in t
Slide 10: NAREIT FFO and Adjusted FFO
NAREIT FFO and Adjusted FFO (1)Per share amounts are calculated based on unrounded numbers. Supplementary Financial Information (continued) Supplementary Financial Information (continued) NAREIT FFO and Adjusted FFO Three Months Ended (unaudited, in millions, except per share data) March 31, 2019 20
Slide 11: Historical Comparable Hotel Metrics
Historical Comparable Hotel Metrics Supplementary Financial Information (continued) The financial information below is for the 42 comparable hotels owned as of March 31, 2019. (1)Trailing Twelve Months (“TTM”) Supplementary Financial Information (continued) Historical Comparable Hotel Metrics The fi
Slide 12: Historical Comparable Hotel Adjusted EBITDA – 2019 TTM
Historical Comparable Hotel Adjusted EBITDA – 2019 TTM Supplementary Financial Information (continued) Three Months Ended TTM Full Year(unaudited, dollars in millions)September 30,December 31, March 31, June 30,June 30,December 31, 201720172018201820182017Net income $105 $61 $149 $218 $533 $2,631 De
Slide 13: Historical Comparable Hotel Revenues – 2019 TTM
Historical Comparable Hotel Revenues – 2019 TTM Supplementary Financial Information (continued) The financial information below is for the 42 comparable hotels owned as of March 31, 2019. (1) Includes revenues from Park's non-comparable hotels and rental revenues from office space and antenna rent l
Slide 14: Historical Comparable Hotel Adjusted EBITDA – 2018 TTM
Historical Comparable Hotel Adjusted EBITDA – 2018 TTM Supplementary Financial Information (continued) The financial information below is for the 42 comparable hotels owned as of March 31, 2019. (1) Includes other revenues and other expenses, non-income taxes on REIT leases included in other propert
Slide 15: Historical Comparable Hotel Revenues – 2018 TTM
Historical Comparable Hotel Revenues – 2018 TTM Supplementary Financial Information (continued) The financial information below is for the 42 comparable hotels owned as of March 31, 2019. (1) Includes revenues from Park's non-comparable hotels and rental revenues from office space and antenna rent l
Slide 16: General and Administrative Expenses
General and Administrative Expenses Supplementary Financial Information (continued) Supplementary Financial Information (continued) General and Administrative Expenses (unaudited, in millions) Three Months Ended March 31, 2019 2018 Corporate general and administrative expenses $17 $16 Less: Share-ba
Slide 17: Net Debt and Net Debt to Pro-forma Adjusted EBITDA Ratio
Supplementary Financial Information (continued) Net Debt and Net Debt to Pro-forma Adjusted EBITDA Ratio (1) See slide 18 for Pro-forma Adjusted EBITDA at March 31, 2019. Pro-forma Adjusted EBITDA excludes results from the 13 hotels disposed of in 2018, 1 hotel returned to the ground lessor at the e
Slide 18: Pro-forma TTM Adjusted EBITDA
Supplementary Financial Information (continued) Pro-forma TTM Adjusted EBITDA (1) TTM March 31, 2019 is calculated as year ended December 31, 2018 plus the three months ended March 31, 2019 less the three months ended March 31, 2018. (2) Included in other (loss) gain, net in the consolidated stateme
Slide 19: Guidance
Guidance Hilton San Francisco Union Square Hilton Waikoloa Village Hilton Chicago Guidance Hilton Waikoloa Village Hilton Chicago Hilton San Francisco Union Square PARK HOTELS & RESORTS 19
Slide 20: 2019 Guidance and Assumptions
Guidance 2019 Guidance and Assumptions Hilton Waikoloa Village will be included in Park’s comparable hotels as its room count is expected to remain consistent throughout 2019 as compared to 2018; General and administrative expenses are projected to be $46 million, excluding $15 million of non-cash s
Slide 21: Guidance: EBITDA and Adjusted EBITDA
Guidance (continued) EBITDA and Adjusted EBITDA Guidance (continued) EBITDA and Adjusted EBITDA Year Ending (unaudited, in millions) December 31, 2019 Low Case High Case Net income $358 $386 Depreciation and amortization expense 245 245 Interest income (8) (8) Interest expense 128 129 Income tax exp
Slide 22: Guidance: NAREIT FFO and Adjusted FFO
Guidance (continued) NAREIT FFO and Adjusted FFO (1) Per share amounts are calculated based on unrounded numbers. Guidance (continued) NAREIT FFO and Adjusted FFO Year Ending (unaudited, in millions except per share data) December 31, 2019 Low Case High Case Net income attributable to stockholders $
Slide 23: Portfolio and Operating Metrics
Portfolio and Operating Metrics Hilton New Orleans Riverside Hilton New Orleans Airport Hilton Santa Barbara Beachfront Resort Portfolio and Operating Metrics Hilton New Orleans Riverside Hilton New Orleans Airport Hilton Santa Barbara Beachfront Resort PARK HOTELS & RESORTS 23
Slide 24: Hotel Portfolio as of May 6, 2019
Portfolio and Operating Metrics Hotel Portfolio as of May 6, 2019 Single $725 million CMBS loan secured by Hilton San Francisco Union Square and Parc 55 San Francisco – a Hilton Hotel. Classified as a non-comparable hotel in 2019. Portfolio and Operating Metrics Hotel Portfolio as of May 6, 2019 Sin
Slide 25: Hotel Portfolio as of May 6, 2019 (continued)
Portfolio and Operating Metrics (continued) Hotel Portfolio as of May 6, 2019 (1) Debt related to unconsolidated joint ventures is presented on a pro-rata basis. Portfolio and Operating Metrics (continued) Hotel Portfolio as of May 6, 2019 (1) Debt related to unconsolidated joint ventures is present
Slide 26: Comparable Hotels By Market: Q1 2019 vs. Q1 2018
Portfolio and Operating Metrics (continued) Comparable Hotels By Market: Q1 2019 vs. Q1 2018 (1) Calculated based on unrounded numbers. Portfolio and Operating Metrics (continued) Comparable Hotels By Market: Q1 2019 vs. Q1 2018 (1) Calculated based on unrounded numbers. (unaudited) Comparable ADR C
Slide 27: Comparable Hotels By Market: Q1 2019 vs. Q1 2018 (EBITDA)
Portfolio and Operating Metrics (continued) (1) Calculated based on unrounded numbers. (2)Percentage change is not meaningful. (3) Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). Comparable Hotels By Market: Q1 2019 vs. Q1 2018 Portfolio a
Slide 28: Top 10 Assets: Q1 2019 vs. Q1 2018
Portfolio and Operating Metrics (continued) Top 10 Assets: Q1 2019 vs. Q1 2018 (1)Calculated based on unrounded numbers. (2)Includes the Caribe Hilton and assets disposed of in 2018 and 2019. Portfolio and Operating Metrics (continued) Top 10 Assets: Q1 2019 vs. Q1 2018 (1) Calculated based on unrou
Slide 29: Top 10 Assets: Q1 2019 vs. Q1 2018 (EBITDA)
Portfolio and Operating Metrics (continued) Top 10 Assets: Q1 2019 vs. Q1 2018 (1)Calculated based on unrounded numbers. (2) Includes the Caribe Hilton and assets disposed of in 2018 and 2019. (3) Percentage change is not meaningful. (4) Presented on a currency neutral basis (prior periods are refle
Slide 30: Acquisitions & Dispositions
Acquisitions & Dispositions Hilton Sao Paulo Morumbi Caribe Hilton Hilton Miami Airport Blue Lagoon Acquisitions & Dispositions Caribe Hilton Hilton Miami Airport Blue Lagoon Hilton Sao Paulo Morumbi PARK HOTELS & RESORTS 34
Slide 31: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Property Dispositions (1) Hotels were sold as a portfolio. (2) The unconsolidated hotel was sold for a total sales price of approximately $350 million, of which $140 million represents Park’s pro rata share. Acquisitions and Dispositions Dispositions (1) Hotels
Slide 32: Debt Summary
Debt Summary Casa Marina, a Waldorf Astoria Resort Hilton Orlando Bonnet Creek New York Hilton Midtown Debt Summary Hilton Orlando Bonnet Creek New York Hilton Midtown Casa Marina, a Waldorf Astoria Resort PARK HOTELS & RESORTS 36
Slide 33: 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 $234 million of Park’s share of debt of its unconsolidated joint ventures. Debt Summary Fi
Slide 34: Definitions
Definitions Hilton Orlando Bonnet Creek Hilton Hawaiian Village Waikiki Beach Resort New York Hilton Midtown Definitions New York Hilton Midtown Hilton Hawaiian Village Waikiki Beach Resort Hilton Orlando Bonnet Creek PARK HOTELS & RESORTS 38
Slide 35: EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Margin
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 36: NAREIT FFO and Adjusted FFO definitions
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 37: 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 38: Occupancy, ADR and RevPAR definitions
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 39: 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 Smedes Rose Citi Research (212) 816-6243 smedes.rose@citi.com Chris Woronka Deutsche Bank (212) 250-9376 chris.woronka@db.
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