Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q2 2019 Earnings Presentation
43 slides from Park Hotels & Resorts's earnings presentation, Jul 31, 2019
Slide 1: Second Quarter 2019 Supplemental Data
Waldorf Astoria Orlando Parc 55 San Francisco, a Hilton Hotel Hilton Hawaiian Village Waikiki Beach Resort June 30, 2019 Second Quarter 2019 Supplemental Data Exhibit 99.2 Exhibit 99.2 Second Quarter 2019Supplemental DataJune 30, 2019Waldorf Astoria OrlandoParc 55 San Francisco, a Hilton HotelHilton
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 48 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 34 36 38 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 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 (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 Financial Statements (continued) Condensed Consolidated Statements of Operations Three Months Ended Six Months Ended(unaudited in millions, except per share data)June 30,June 30,2019 2018 2019 2018 Revenues Rooms $435 $
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 Juniper Hotel Cupertino, Curio Collection Hilton Boston Logan Airport The Reach, a Waldorf Astoria Resort
Slide 8: EBITDA and Adjusted EBITDA
Supplementary Financial Information EBITDA and Adjusted EBITDA (1)Included in other (loss) gain, net. 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 —
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 TRS leases included in other property-level expenses and corporate general and administrative expenses in th
Slide 10: Nareit FFO and Adjusted FFO
Nareit FFO and Adjusted FFO (1)Included in other (loss) gain, net (2)Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. Supplementary Financial Information (continued) Supplementary Financial Information (continued) Nareit FFO and
Slide 11: Historical Comparable Hotel Metrics
Historical Comparable Hotel Metrics Supplementary Financial Information (continued) The financial information below is for the 39 comparable hotels owned as of June 30, 2019. (1)Trailing Twelve Months (“TTM”) Supplementary Financial Information (continued) Historical Comparable Hotel Metrics (1) Tra
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 39 comparable hotels owned as of June 30, 2019. (1) Includes revenues from Park's non-comparable hotels and rental revenues from office space and antenna rent le
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 39 comparable hotels owned as of June 30, 2019. (1) Included in other (loss) gain, net in the condensed consolidated statement of operations. (2)Includes
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 39 comparable hotels owned as of June 30, 2019. (1) Includes revenues from Park's non-comparable hotels and rental revenues from office space and antenna rent le
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Corporate general and administrat
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 TTM Adjusted EBITDA at June 30, 2019. Pro-forma TTM Adjusted EBITDA excludes results from the 13 hotels disposed of in 2018, 1 hotel returned to the ground lessor a
Slide 18: Pro-forma TTM Adjusted EBITDA
Supplementary Financial Information (continued) Pro-forma TTM Adjusted EBITDA (1) TTM June 30, 2019 is calculated as year ended December 31, 2018 plus the six months ended June 30, 2019 less the six months ended June 30, 2018. (2) Included in other (loss) gain, net in the condensed consolidated stat
Slide 19: Guidance
Guidance Hilton San Francisco Union Square Hilton Waikoloa Village Hilton Chicago Guidance Hilton San Francisco Union Square Hilton Waikoloa Village Hilton Chicago
Slide 20: 2019 Guidance and Assumptions
Guidance 2019 Guidance and Assumptions General and administrative expenses are projected to be $44 million, excluding $15 million of non-cash share-based compensation expense, $7 million of transaction costs and $1 million of severance expense; Fully diluted weighted average shares are expected to b
Slide 21: EBITDA and Adjusted EBITDA Guidance
Guidance (continued) EBITDA and Adjusted EBITDA Guidance (continued) EBITDA and Adjusted EBITDA Year Ending (unaudited, in millions) December 31, 2019 Low CaseHigh Case Net income $329 $353 Depreciation and amortization expense 239 239 Interest income (6) (6) Interest expense 128 128 Income tax expe
Slide 22: Nareit FFO and Adjusted FFO Guidance
Guidance (continued) Nareit FFO and Adjusted FFO (1) Per share amounts are calculated based on unrounded numbers. Guidance (continued) Nareit FFO and Adjusted FFO (1) Per share amounts are calculated based on unrounded numbers. Year Ending (unaudited, in millions except per share data) December 31,
Slide 23: Portfolio and Operating Metrics
Portfolio and Operating Metrics Hilton New Orleans Riverside Waldorf Astoria Orlando Golf Club Hilton Santa Barbara Beachfront Resort Portfolio and Operating Metrics Hilton Santa Barbara Beachfront Resort Hilton New Orleans Riverside Hilton New Orleans Airport
Slide 24: Hotel Portfolio
Portfolio and Operating Metrics Hotel Portfolio as of July 31, 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 S
Slide 25: Hotel Portfolio as of July 31, 2019
Portfolio and Operating Metrics (continued) Hotel Portfolio as of July 31, 2019 (1) Debt related to unconsolidated joint ventures is presented on a pro-rata basis. Portfolio and Operating Metrics (continued) Hotel Portfolio as of July 31, 2019 Hotel Name Rooms Market "Meeting Space(square feet)" Own
Slide 26: Comparable Hotels By Market: Q2 2019 vs. Q2 2018
Portfolio and Operating Metrics (continued) Comparable Hotels By Market: Q2 2019 vs. Q2 2018 (1)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (2) Calculated based on unrounded numbers. Portfolio and Operating Metrics (continued) Comparab
Slide 27: Comparable Hotels By Market: Q2 2019 vs. Q2 2018 (EBITDA)
Portfolio and Operating Metrics (continued) (1)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (2) Calculated based on unrounded numbers. Comparable Hotels By Market: Q2 2019 vs. Q2 2018 Portfolio and Operating Metrics (continued) Comparab
Slide 28: Comparable Hotels By Market: Q2 YTD 2019 vs. Q2 YTD 2018
Portfolio and Operating Metrics (continued) (1)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (2) Calculated based on unrounded numbers. Comparable Hotels By Market: Q2 YTD 2019 vs. Q2 YTD 2018 Portfolio and Operating Metrics (continued)
Slide 29: Comparable Hotels By Market: Q2 YTD 2019 vs. Q2 YTD 2018 (EBITDA)
Portfolio and Operating Metrics (continued) (1)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (2) Calculated based on unrounded numbers. Comparable Hotels By Market: Q2 YTD 2019 vs. Q2 YTD 2018 Portfolio and Operating Metrics (continued)
Slide 30: Top 10 Assets: Q2 2019 vs. Q2 2018
Portfolio and Operating Metrics (continued) Top 10 Assets: Q2 2019 vs. Q2 2018 (1)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (2) Calculated based on unrounded numbers. (3)Includes the Caribe Hilton and assets disposed of in 2018 and 2
Slide 31: Top 10 Assets: Q2 2019 vs. Q2 2018 (EBITDA)
Portfolio and Operating Metrics (continued) Top 10 Assets: Q2 2019 vs. Q2 2018 (1)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (2) Calculated based on unrounded numbers. (3)Includes the Caribe Hilton and assets disposed of in 2018 and 2
Slide 32: Top 10 Assets: Q2 YTD 2019 vs. Q2 YTD 2018
Portfolio and Operating Metrics (continued) Top 10 Assets: Q2 YTD 2019 vs. Q2 YTD 2018 (1)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (2) Calculated based on unrounded numbers. (3)Includes the Caribe Hilton and assets disposed of in 20
Slide 33: Top 10 Assets: Q2 YTD 2019 vs. Q2 YTD 2018 (EBITDA)
Portfolio and Operating Metrics (continued) Top 10 Assets: Q2 YTD 2019 vs. Q2 YTD 2018 (1)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (2) Calculated based on unrounded numbers. (3)Includes the Caribe Hilton and assets disposed of in 20
Slide 34: Acquisitions & Dispositions
Acquisitions & Dispositions Hilton Sao Paulo Morumbi Caribe Hilton Hilton Miami Airport Blue Lagoon Acquisitions & Dispositions Hilton Sao Paulo Morumbi Caribe Hilton Hilton Miami Airport Blue Lagoon
Slide 35: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Property Dispositions (1) The unconsolidated hotel was sold for a total sales price of approximately $350 million, of which $140 million represents Park’s pro rata share. (2) Hotels were sold as a portfolio in the same transaction. Property Acquisitions and Dis
Slide 36: Debt Summary
Debt Summary Casa Marina, a Waldorf Astoria Resort Hilton Orlando Bonnet Creek New York Hilton Midtown Debt Summary Casa Marina, a Waldorf Astoria Resort Hilton Orlando Bonnet Creek New York Hilton Midtown
Slide 37: 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 38: Definitions
Definitions Hilton Orlando Bonnet Creek Hilton Hawaiian Village Waikiki Beach Resort New York Hilton Midtown Definitions Hilton Orlando Bonnet Creek New York Hilton Midtown Hilton Hawaiian Village Waikiki Beach Resort
Slide 39: 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 40: 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 41: 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 42: Occupancy, Average Daily Rate and 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 43: Analyst Coverage
Analyst Coverage Analyst Coverage Analyst Company Phone Email Shaun Kelley Bank of America (646) 855-100 shaun.kelley@baml.com Anthony Powell Barclays (212) 526-768 anthony.powell@barclays.com Neil Malkin Capital One Securities (571) 633-8191neil.malkin@capitalone.com Smedes Rose Citi Research (212)
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