Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q3 2017 Earnings Presentation
36 slides from Park Hotels & Resorts's earnings presentation, Nov 2, 2017
Slide 1: Third Quarter 2017 Supplemental Data
Waldorf Astoria Orlando Park Hotels & Resorts at NYSE Hilton Hawaiian Village Waikiki Beach Resort SEPTEMBER 30, 2017 Third Quarter 2017 Supplemental Data Exhibit 99.2
Slide 2: About Park and Safe Harbor Disclosure
About Park and Safe Harbor Disclosure About Park 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 67 premium-branded hotels and resorts with over 35,000 r
Slide 3: Table of Contents
Financial Statements Non-GAAP Financial Measures Guidance Portfolio and Operating Metrics Debt Summary Definitions Table of Contents 4 7 14 18 29 31 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 Combined Consolidated Balance Sheets
Financial Statements Condensed Combined Consolidated Balance Sheets (unaudited, in millions, except share and per share data) June 30, 2017 December 31, 2016 ASSETS Property and equipment, net $8,495 $8,541 Investments in affiliates 87 81 Goodwill 605 604 Intangibles, net 43 44 Cash and cash equival
Slide 6: Condensed Combined Consolidated Statements of Operations
Financial Statements (cont’d) Condensed Combined Consolidated Statements of Operations Three Months Ended Six Months Ended (unaudited, in millions, except per share data) June 30, June 30, 2017 2016 2017 2016 Revenues Rooms $469 $472 $901 $901 Food and beverage 200 200 392 380 Other 64 53 124 105 To
Slide 7: Non-GAAP Financial Measures
Non-GAAP Financial Measures Juniper Hotel Cupertino, Curio Collection Caribe Hilton DoubleTree Hotel Washington DC – Crystal City
Slide 8: EBITDA, Adjusted EBITDA and Pro-forma Adjusted EBITDA
Non-GAAP Financial Measures EBITDA, Adjusted EBITDA and Pro-forma Adjusted EBITDA (1) Includes adjustments for incremental fees based on the terms of the post spin-off management agreements and estimated non-income taxes on certain REIT leases. Three Months Ended Six Months Ended (unaudited, in mill
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 Six Months Ended (unaudited, dollars in millions) June 30, June 30, 2017 2016 2017 2016 Pro-forma Adjusted EBITDA $217 $218 $394 $388 Less: Adjuste
Slide 10: NAREIT FFO, Adjusted FFO, Pro-forma Adjusted FFO
Non-GAAP Financial Measures (cont’d) NAREIT FFO, Adjusted FFO, Pro-forma Adjusted FFO (1)Includes derecognition of deferred tax liabilities for the three and nine months ended September 30, 2017, of $48 million and $2,360 million, respectively, associated with Park’s intention to be taxed as a REIT.
Slide 11: General and Administrative Expenses
General and Administrative Expenses Non-GAAP Financial Measures (cont’d) (unaudited, in millions) Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Corporate and other expenses $19 $19 $37 $35 Less: Laundry expenses 3 4 7 7 Share-based compensation expense 4 — 7 — Transition
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 (1) Trailing twelve months (“TTM”) data is presented for Pro-forma Adjusted EBITDA at September 30, 2017 (see slide 13). (unaudited, in millions) June 30, 2017 December 31, 2016 Debt $3,014 $3,012 Add: unam
Slide 13: TTM Pro-forma Adjusted EBITDA
Non-GAAP Financial Measures (cont’d) TTM Pro-forma Adjusted EBITDA (1) TTM September 30, 2017 is calculated as the year ended December 31, 2016 plus the nine months ended September 30, 2017 less the nine months ended September 30, 2016. (2) Includes adjustments for incremental fees based on the term
Slide 14: Guidance
Guidance Hilton San Francisco Union Square Hilton Waikoloa Village Hilton Chicago
Slide 15: 2017 Updated Guidance
Guidance 2017 Updated Guidance (1) Excludes unconsolidated joint ventures. (2) Excludes Hilton Waikoloa Village, Embassy Suites Washington DC Georgetown and Caribe Hilton. (3)Excludes an income tax benefit of $2,360 million for the nine months ended September 30, 2017, resulting from the derecogniti
Slide 16: Guidance (cont'd) EBITDA
Guidance (cont’d) EBITDA (1)Excludes an income tax benefit of $2,360 million for the nine months ended September 30, 2017, resulting from the derecognition of deferred tax liabilities associated with Park’s intention to be taxed as a REIT. Year Ending (unaudited, in millions) December 31, 2017 Low C
Slide 17: Guidance (cont'd) FFO
Guidance (cont’d) FFO (1)Excludes an income tax benefit of $2,360 million for the nine months ended September 30, 2017, resulting from the derecognition of deferred tax liabilities associated with Park’s intention to be taxed as a REIT. (2)Per share amounts are calculated based on unrounded numbers.
Slide 18: Portfolio and Operating Metrics
Portfolio and Operating Metrics New York Hilton Midtown Conrad Dublin Hilton New Orleans Riverside
Slide 19: Hotel Portfolio
Portfolio and Operating Metrics Hotel Portfolio (1) Single $725 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 Village Waikik
Slide 20: 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)" Hilton Garden Inn LAX/El Segundo 162 Southern CA 3,000 Fee Simple 100% — DoubleTree Hotel Durango 159 Other U.S. 6,000
Slide 21: Comparable Hotels by Market and Hotel Type: Q3 2017 vs. Q3 2016
Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: Q3 2017 vs. Q3 2016 (1) Calculated based on unrounded numbers. (2) Excludes unconsolidated joint ventures. (unaudited) Comparable ADR Comparable Occupancy Comparable RevPAR Hotels Rooms 2Q17 2Q16 Change(1) 2Q17 2Q16
Slide 22: Comparable Hotels by Market and Hotel Type: Q3 2017 EBITDA and Revenue
Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: Q3 2017 vs. Q3 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 23: Comparable Hotels by Market and Hotel Type: YTD 2017 vs. YTD 2016
Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: YTD 2017 vs. YTD 2016 (1) Calculated based on unrounded numbers. (2) Excludes unconsolidated joint ventures. (unaudited) Comparable ADR Comparable Occupancy Comparable RevPAR Hotels Rooms YTD17 YTD16 Change(1) YTD17
Slide 24: Comparable Hotels by Market and Hotel Type: YTD 2017 EBITDA and Revenue
Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: YTD 2017 vs. YTD 2016 (1) Calculated based on unrounded numbers. (2) Excludes unconsolidated joint ventures. (unaudited, dollars in millions) Comparable Hotel Adjusted EBITDA Comparable Hotel Revenue "Comparable Hot
Slide 25: Top Assets: Q3 2017 vs. Q3 2016
Portfolio and Operating Metrics (cont’d) Top 10 Assets: Q3 2017 vs. Q3 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 2Q17 2Q16 Change(1) 2Q17 2Q16
Slide 26: Top Assets: Q3 2017 EBITDA and Revenue
Portfolio and Operating Metrics (cont’d) Top 10 Assets: Q3 2017 vs. Q3 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 27: Top Assets: YTD 2017 vs. YTD 2016
Portfolio and Operating Metrics (cont’d) Top 10 Assets: YTD 2017 vs. YTD 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 YTD17 YTD16 Change(1) YTD17
Slide 28: Top Assets: YTD 2017 EBITDA and Revenue
Portfolio and Operating Metrics (cont’d) Top 10 Assets: YTD 2017 vs. YTD 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
Slide 29: Debt Summary
Debt Summary Casa Marina, a Waldorf Astoria Resort Hilton Orlando Bonnet Creek Hilton San Francisco Union Square
Slide 30: Fixed and Variable Rate Debt
Debt Summary Fixed and Variable Rate Debt (1)$1 billion available. (2)Assumes the exercise of all extensions that are exercisable solely at Park’s option. (3)Excludes $215 million of Park’s share of debt of its unconsolidated joint ventures. (unaudited, dollars in millions) Debt Collateral Interest
Slide 31: Definitions
Definitions Hilton Belfast Hilton Durban New York Hilton Midtown
Slide 32: 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 33: 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 34: 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 35: Definitions (cont'd): Occupancy and Average Daily Rate
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 36: 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 Ryan Meliker Canaccord Genuity (212) 38
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