Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q4 2024 Earnings Presentation
31 slides from Park Hotels & Resorts's earnings presentation, Feb 20, 2025
Slide 1: Investor Presentation March 2025
INVESTOR PRESENTATION MARCH 2025
Slide 2: Park Hotels & Resorts: Mission, Investment Strategy, Guiding Principles
PARK HOTELS & RESORTS MISSION INVESTMENT STRATEGY GUIDING PRINCIPLES To be the preeminent lodging Upper-Upscale & Luxury Active Asset Management REIT, focused on consistently Full-Service delivering superior, risk- Prudent Capital Allocation adjusted returns to Premier Urban and Resort 2 stockholder
Slide 3: Park at a Glance
PARK AT A GLANCE 40 25K $6.2B 9.4x HOTEL REVENUE SEGMENTATION4 HOTELS ROOMS ENTERPRISE 1 EBITDA2 4% VALUE MULTIPLE 6% 28% 62% TOP 10 MARKETS 20243 1) Hawaii 30% 2) Orlando 15% Rooms Ancillary Hotel 3) New York 8% (Parking, Golf, Spa) 3 4) New Orleans 8% Other Food & Beverage (Lease Income, 5) Southe
Slide 4: Park: A Compelling Investment Story
PARK: A COMPELLING INVESTMENT STORY UNDERVALUED INTERNAL GROWTH ROI PIPELINE FINANCIAL FLEXIBILITY ICONIC PORTFOLIO AT WIDE IMPROVING DEMAND ROI PIPELINE TO DRIVE VALUE AMPLE LIQUIDITY TO EXECUTE DISCOUNT1 CREATION STRATEGY 46% discount to consensus 2025 Comparable RevPAR Significant embedded real $
Slide 5: Experienced Management Team with Track Record of Success
EXPERIENCED MANAGEMENT TEAM WITH TRACK RECORD OF SUCCESS KEY ACCOMPLISHMENTS: EIGHT-YEAR TRACK RECORD OF CREATING VALUE Capital Allocation: Acquired Chesapeake Lodging Trust for $2.5B, improving the overall quality of the portfolio; Sold or disposed of 45 hotels1 Thomas J. Baltimore, Jr. for over $3
Slide 6: Iconic Portfolio: Urban Destinations
ICONIC PORTFOLIO URBAN DESTINATIONS 6 HYATT REGENCY BOSTON NEW YORK HILTON MIDTOWN HILTON DENVER CITY CENTER HILTON NEW ORLEANS RIVERSIDE
Slide 7: Iconic Portfolio: Resort Destinations
ICONIC PORTFOLIO RESORT DESTINATIONS 7 HILTON HAWAIIAN VILLAGE WAIKIKI BEACH RESORT HILTON WAIKOLOA VILLAGE ROYAL PALM SOUTH BEACH MIAMI CASA MARINA KEY WEST, CURIO COLLECTION WALDORF ASTORIA ORLANDO
Slide 8: Building Blocks for Growth
BUILDING BLOCKS FOR GROWTH HILTON WAIKOLOA VILLAGE
Slide 9: 2025 Outlook
2025 OUTLOOK Bridging 2024A to 2025E Adjusted EBITDA FY 2025 Outlook 2024A Adjusted EBITDA $652M as of February 19, 2025 ü Recovery from Strike Activity $32M Metrics Low High Comparable RevPAR $187 $192 ü Royal Palm Renovation Disruption ($17M) Y/Y Growth 0.0% 3.0% 2024 Employment Tax Refunds/Relief
Slide 10: Park Portfolio: Well-Insulated from Supply
PARK PORTFOLIO: WELL-INSULATED FROM SUPPLY Favorable supply picture for Park through 20301 National Supply Growth Average: 0.9% 30.0% 15.0% 10.0% 5.0% 2.2% 1.6% 1.5% 1.3% 1.2% 1.2% 1.1% 1.1% 1.0% 1.0% 1.0% 0.9% 0.9% 0.8% 0.7% 0.7% 0.5% 0.3% —% 10 0.0% N Ph D Sa D M O H Lo A N B Se N W Ph H Ch Sa tl
Slide 11: Why Hawaii: Among Top Resort Markets in US with Bright Future
WHY HAWAII: AMONG TOP RESORT MARKETS IN US WITH BRIGHT FUTURE Key drivers of Hawaii’s success Consistently Ranked Among Top Resort Markets in US: Over the last 20 years, Oahu’s RevPAR growth has BY THE NUMBERS: outpaced the US by 120 bps PARK’S HAWAII Increased Domestic Airlift: US Airlines have mea
Slide 12: Robust ROI Pipeline: Significant Embedded Value
ROBUST ROI PIPELINE SIGNIFICANT EMBEDDED VALUE COMPLETED IN PLANNING/UNDER ADDITIONAL ~$330M (2018-2024) CONSTRUCTION ~$1B POTENTIAL PROJECTS VALUE CREATION $1B 12 Potential ROI Pipeline CASA MARINA KEY WEST HILTON SANTA BARBARA HILTON NEW YORK MIDTOWN • Royal Palm South Beach1 • DoubleTree Crystal
Slide 13: ROI Case Study: Signia + Waldorf Bonnet Creek
ROI CASE STUDY: SIGNIA + WALDORF BONNET CREEK $220M meeting space expansion and comprehensive renovation elevates group profile of iconic complex 13 RESORT COMPLEX PROFILE • 1,511 guestrooms SCOPE • 296,000 sf of meeting and event space Signia by Hilton • 11 dining options • Conversion to elevated,
Slide 14: ROI Case Study: Casa Marina Key West, Curio Collection
ROI CASE STUDY: CASA MARINA KEY WEST, CURIO COLLECTION $80M investment in transformative rebranding, renovation and resiliency upgrade of iconic key west resort FINANCIAL HIGHLIGHTS • $415 2024 RevPAR, up 110% to last year; lapped renovation disruption in 2023 • 2025 expected to be a record year for
Slide 15: Value Enhancing ROIs: Track Record of Success
VALUE ENHANCING ROIs: TRACK RECORD OF SUCCESS Other value enhancing ROI projects HILTON SANTA THE REACH KEY WEST, CASA MARINA KEY WEST, SIGNIA BY HILTON BARBARA BEACHFRONT CURIO COLLECTION CURIO COLLECTION ORLANDO BONNET CREEK & RESORT WALDORF ASTORIA ORLANDO • $14M renovation • $13M renovation • $8
Slide 16: Major Projects Underway
MAJOR PROJECTS UNDERWAY Park’s investment in value-enhancing capex projects is expected to deliver strong growth Project & Scope Budget Completion Date1 Royal Palm South Beach Miami, a Tribute Portfolio Resort Full property renovation, including the renovation of 393 guestrooms and the addition of 1
Slide 17: Royal Palm South Beach Repositioning
ROYAL PALM SOUTH BEACH REPOSITIONING PROJECT SUMMARY • Comprehensive renovation of all 393 rooms, along with the addition of 11 new rooms, at the oceanfront hotel and repositioning to higher quality, upper upscale product offering • Scope will address all areas of hotel and incorporate amenities tha
Slide 18: Ala Moana Tower Development
HILTON HAWAIIAN VILLAGE ALA MOANA TOWER DEVELOPMENT PROJECT SUMMARY • Develop a ~400K sf, 515-key high-rise tower adjacent to HHV – Park’s most iconic asset and largest EBITDA producer • Amenities expected to include arrivals/departures lounge, 8th floor outdoor pool and bar, 1st floor retail (flags
Slide 19: Hilton Waikoloa Village Development
HILTON WAIKOLOA VILLAGE DEVELOPMENT PROJECT SUMMARY • Utilize existing density to develop up to 213 additional keys (timeshare or hotel) on existing parking and tennis court area • Park could develop additional hotel keys or pursue alternative use or monetization strategy for excess land (e.g., time
Slide 20: Casa Marina Outparcel Development
CASA MARINA OUTPARCEL DEVELOPMENT PROJECT SUMMARY • Develop two land parcels adjacent to Casa Marina that Casa Marina The Reach are currently occupied by admin offices and vacant structures Potential • Requires zoning change and legislative measures to Development Site permit commercial transient re
Slide 21: Hilton Santa Barbara Development
HILTON SANTA BARBARA1 DEVELOPMENT PROJECT SUMMARY • Create ~73 net new keys through redevelopment of existing tennis courts and portion of parking lot • Development plan requires transfer of development rights from adjacent parcel that is owned by JV partner RATIONALE & ROI DRIVERS • Add keys to pre
Slide 22: Appendix
APPENDIX CASA MARINA KEY WEST, CURIO COLLECTION
Slide 23: Strong Balance Sheet with Ample Liquidity
STRONG BALANCE SHEET WITH AMPLE LIQUIDITY Park’s balance sheet remains strong with ample liquidity and improved financial flexibility for growth while providing protection during economic uncertainty DEBT METRICS OVER TIME COMMENTARY Actual Actual • Well-laddered and improved debt maturity schedule
Slide 24: Definitions
DEFINITIONS Comparable The Company presents certain data for its consolidated hotels on a Comparable basis as supplemental information for investors: Comparable Hotel Revenues, Comparable RevPAR, Comparable Occupancy, Comparable ADR, Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBI
Slide 25: Definitions (continued)
DEFINITIONS (continued) 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 a
Slide 26: Definitions (continued)
DEFINITIONS (continued) 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
Slide 27: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Comparable Adjusted EBITDA and Hotel Adjusted EBITDA (unaudited, in millions) Year Ended December 31, 2024 2023 Net income $ 226 $ 106 Depreciation and amortization expense 257 287 Interest income (21) (38) Interest expense 214 207 Interest expense associated with hotels
Slide 28: Non-GAAP Financial Measures (continued)
NON-GAAP FINANCIAL MEASURES (continued) Net Debt to Comparable Adjusted EBITDA (unaudited, in millions) December 31, 2024 December 31, 2023 Debt $ 3,841 $ 3,765 Add: unamortized deferred financing costs and discount 24 22 Less: unamortized premium — (1) Debt, excluding unamortized deferred financing
Slide 29: Non-GAAP Financial Measures (continued)
NON-GAAP FINANCIAL MEASURES (continued) Guidance - Comparable Hotel Adjusted EBITDA, Comparable Hotel Revenues and Comparable Hotel Adjusted EBITDA Margin Year Ending December 31, 2025 Low Case High Case Net income $ 87 $ 147 Depreciation and amortization expense 263 263 Interest income (8) (8) Inte
Slide 30: Non-GAAP Financial Measures (continued)
NON-GAAP FINANCIAL MEASURES (continued) Guidance - Nareit FFO Attributable to Stockholders and Adjusted FFO Attributable to Stockholders Year Ending December 31, 2025 Low Case High Case Net income attributable to stockholders $ 79 $ 139 Depreciation and amortization expense 263 263 Depreciation and
Slide 31: About Park and Safe Harbor Disclosure
ABOUT PARK AND SAFE HARBOR DISCLOSURE ABOUT PARK HOTELS & RESORTS INC. You should not rely on forward-looking statements since they involve known Park (NYSE: PK) is one of the largest publicly-traded lodging real estate and unknown risks, uncertainties and other factors which are, in some cases, inv
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