Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q4 2016 Earnings Presentation
35 slides from Park Hotels & Resorts's earnings presentation, Mar 1, 2017
Slide 1: Fourth Quarter and Year End 2016 Supplemental Data
Waldorf Astoria Orlando Park Hotels & Resorts at NYSE Hilton Hawaiian Village Waikiki Beach Resort December 31, 2016 Fourth Quarter and Year End 2016Supplemental Data
Slide 2: About Park Hotels & Resorts Inc. and Safe Harbor Disclosure
About Park Hotels & Resorts Inc. 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 67 premium-br
Slide 3: Table of Contents
Financial Statements Non-GAAP Financial Measures Guidance Portfolio and Operating Metrics Debt Summary Definitions Table of Contents 4712172830 New York Hilton Midtown Hilton Waikoloa Village Waldorf Astoria Bonnet Creek Orlando
Slide 4: Financial Statements
Financial Statements Casa Marina, a Waldorf Astoria Resort Hilton Chicago Parc 55 San Francisco
Slide 5: Combined Consolidated Balance Sheets
Financial Statements Combined Consolidated Balance Sheets (unaudited, in millions)20162015ASSETSProperty and equipment, net8,541$ 8,676$ Investments in affiliates 81 104Goodwill 604 617Intangibles, net 44 52Cash and cash equivalents 293 72Restricted cash 57 72Accounts receivable, net 130 122Prepaid
Slide 6: Combined Consolidated Statements of Operations
Financial Statements Combined Consolidated Statements of Operations Combined Consolidated Statements of Operations(unaudited, in millions)2016201520162015RevenuesRooms434$ 443$ 1,795$ 1,783$ Food and beverage 183 179 719 691Other 53 53 213 214Total revenues 670 675 2,727 2,688Operating expensesRooms
Slide 7: Non-GAAP Financial Measures
Non-GAAP Financial Measures Juniper Cupertino, Curio Collection Caribe Hilton DoubleTree 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) Spin-off Adjustments include adjustments for incremental fees based on the terms of the post spin-off management agreements and estimated non-income taxes on certain REIT leases.(unaudited, in millions)201620152016
Slide 9: Pro-forma Hotel Adjusted EBITDA, Revenue and Margin
Non-GAAP Financial Measures (cont’d) Pro-forma Hotel Adjusted EBITDA, Pro-forma Hotel Revenue and Pro-forma Hotel Adjusted EBITDA Margin
Slide 10: NAREIT FFO and Adjusted FFO Attributable to Parent
Non-GAAP Financial Measures (cont’d) NAREIT FFO Attributable to Parent, Adjusted FFO Attributable to Parent and Pro-forma Adjusted FFO Attributable to Parent (1) Represents costs incurred and accelerated amortization of deferred financing fees on extinguished debt. (2) Includes the portion of genera
Slide 11: 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 (unaudited, in millions)20162015Debt3,012$ 4,057$ Add: unamortized deferred financing costs 14 29Long-term debt, including current maturities and excluding unamortized deferred financing costs 3,026 4,086Ad
Slide 12: Guidance
Guidance Hilton San Francisco Union Square Hilton Waikoloa Village Hilton Chicago
Slide 13: 2017 Assumptions
Guidance 2017 Assumptions (1) Excludes unconsolidated joint ventures. (2) Excludes Hilton Waikoloa Village and Embassy Suites Washington, D.C. Refer to slide 15 for further detail on Park’s 2016 results excluding these properties. (3) Excludes an expected income tax benefit of approximately $2.3 bil
Slide 14: Guidance: EBITDA
Guidance (cont’d) EBITDA (1) Excludes an expected income tax benefit of approximately $2.3 billion in the first quarter of 2017 resulting from the derecognition of deferred tax liabilities upon Park’s election to be taxed as a REIT. (2) Represents adjustments for separation costs. (unaudited, in mil
Slide 15: Guidance: FFO
Guidance (cont’d) FFO (1) Excludes an expected income tax benefit of approximately $2.3 billion in the first quarter of 2017 resulting from the derecognition of deferred tax liabilities upon Park’s election to be taxed as a REIT. (2) Represents adjustments for separation costs.(unaudited, in million
Slide 16: Selected 2016 Operating Metrics for 2017 Comparable Hotels
Guidance (cont’d) Selected 2016 Operating Metrics for 2017 Comparable Hotels (1) Due to the transfer of a significant number of rooms at the Hilton Waikoloa Village and Embassy Suites Washington, D.C. to Hilton Grand Vacations; the results from these properties will be excluded from Park’s comparabl
Slide 17: Portfolio and Operating Metrics
Portfolio and Operating Metrics Hilton New York Midtown Conrad Dublin Hilton New Orleans Riverside
Slide 18: 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 PortfolioHotel NameRoomsMarketMeeting SpaceOwnershipEquity Ownership Hilton Hawaiian Village Beach Resort 2,860Hawaii96,244Fee
Slide 19: Hotel Portfolio (cont'd)
Portfolio and Operating Metrics (cont’d) Hotel Portfolio Consolidated Domestic Portfolio cont'dHotel NameRoomsMarketMeeting SpaceOwnershipEquity Ownership Hilton Garden Inn LAX/El Segundo 162Southern CA —Fee Simple100% — DoubleTree Hotel Durango 159Other U.S.5,488Leasehold100% — Waldorf Astoria Reac
Slide 20: Top Assets: Fourth Quarter 2016 vs. Fourth Quarter 2015
Portfolio and Operating Metrics (cont’d) Top 10 Assets: Fourth Quarter 2016 vs. Fourth Quarter 2015 (1) Excludes unconsolidated joint ventures. (unaudited)4Q164Q15Change4Q164Q154Q164Q15ChangeTop 10 Hotels1Hilton Hawaiian Village Beach Resort$243.96$249.06(2.0)%94.4%94.3%0.1%pts$230.27$234.96(2.0)%2N
Slide 21: Top Assets: Fourth Quarter 2016 vs. Fourth Quarter 2015 (financials)
Portfolio and Operating Metrics (cont’d) Top 10 Assets: Fourth Quarter 2016 vs. Fourth Quarter 2015 (1) Excludes unconsolidated joint ventures. (unaudited, dollars in millions)4Q164Q15Change4Q164Q15Change4Q164Q15Top 10 Hotels1Hilton Hawaiian Village Beach Resort$34$35(2.9)%$93$94(1.1)%36.6%37.2%(60)
Slide 22: By Market and Property Type: Fourth Quarter 2016 vs. 2015
Portfolio and Operating Metrics (cont’d) By Market and Property Type: Fourth Quarter 2016 vs. Fourth Quarter 2015 (1) Includes Hilton Short Hills. (2) Excludes unconsolidated joint ventures. (unaudited)PropertiesRooms4Q164Q15Change4Q164Q154Q164Q15ChangeNew York(1)22,233$329.79$334.97(1.5)%90.2%92.6%
Slide 23: By Market and Property Type: Fourth Quarter (financials)
Portfolio and Operating Metrics (cont’d) By Market and Property Type: Fourth Quarter 2016 vs. Fourth Quarter 2015 (1) Includes Hilton Short Hills. (2) Excludes unconsolidated joint ventures. (unaudited, dollars in millions)PropertiesRooms4Q164Q15Change4Q164Q15Change4Q164Q15New York(1)22,233$24$26(7.
Slide 24: Top Ten Assets: Full Year 2016 vs. Full Year 2015
Portfolio and Operating Metrics (cont’d) Top Ten Assets: Full Year 2016 vs. Full Year 2015 (1) Excludes unconsolidated joint ventures. (unaudited)20162015Change2016201520162015ChangeTop 10 Hotels1Hilton Hawaiian Village Beach Resort$248.81$240.623.4%94.6%94.4%0.2%pts$235.47$227.203.6%2New York Hilto
Slide 25: Top Ten Assets: Full Year 2016 vs. 2015 (financials)
Portfolio and Operating Metrics (cont’d) Top Ten Assets: Full Year 2016 vs. Full Year 2015 (1) Excludes unconsolidated joint ventures. (unaudited, dollars in millions)20162015Change20162015Change20162015Top 10 Hotels1Hilton Hawaiian Village Beach Resort$140$1372.2%$376$3672.5%37.2%37.3%(10) bps2New
Slide 26: By Market and Property Type: Full Year 2016 vs. 2015
Portfolio and Operating Metrics (cont’d) By Market and Property Type: Full Year 2016 vs. Full Year 2015 (1) Includes Hilton Short Hills. (2) Excludes unconsolidated joint ventures. (unaudited) PropertiesRooms20162015Change2016201520162015ChangeNew York(1)22,233$288.54$296.45(2.7)%86.9%88.4%(1.5)%pts
Slide 27: By Market and Property Type: Full Year (financials)
Portfolio and Operating Metrics (cont’d) By Market and Property Type: Full Year 2016 vs. Full Year 2015 (1) Includes Hilton Short Hills. (2) Excludes unconsolidated joint ventures. (unaudited, dollars in millions)PropertiesRooms20162015Change20162015Change20162015New York(1)22,233$56$64(12.5)%$305$3
Slide 28: Debt Summary
Debt Summary Casa Marina, a Waldorf Astoria Resort Hilton Orlando Bonnet Creek Hilton San Francisco Union Square
Slide 29: Fixed and Variable Rate Debt
Debt Summary Fixed and Variable Rate Debt (1) $1 billion revolving credit facility. Borrowings were not permitted until the consummation of the spin-off, effective January 2017. (unaudited, dollars in millions)DebtCollateralInterest RateMaturity DateAs ofDecember 31, 2016Fixed Rate DebtUnsecured not
Slide 30: Definitions
Definitions Hilton Belfast Hilton Durban Hilton New York Midtown
Slide 31: Definitions: EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA
Definitions EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA MarginEarnings before interest expense, taxes and depreciation and amortization (“EBITDA”), presented herein, reflects net income (loss), excluding interest expense, a provision for income taxes and depreciation and
Slide 32: Definitions (cont'd): NAREIT FFO and Adjusted FFO
Definitions (cont’d) NAREIT FFO attributable to Parent, or stockholders, and Adjusted FFO attributable to Parent, or stockholdersNAREIT FFO attributable to Parent, or stockholders, presented herein, is calculated as net income (loss) attributable to Parent, or stockholders, (calculated in accordance
Slide 33: Definitions (cont'd): Net Debt
Definitions (cont’d) Net DebtNet 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 sha
Slide 34: Definitions (cont'd): Occupancy and Average Daily Rate
Definitions (cont’d) OccupancyOccupancy represents the total number of room nights sold divided by the total number of room nights available at a property or group of properties. Occupancy measures the utilization of the Company’s properties available capacity. Management uses occupancy to gauge dem
Slide 35: Analyst Coverage
Analyst Coverage Analyst Company Phone Email Shaun Kelley Bank of America(646) 855-1005shaun.kelley@baml.comAnthony Powell Barclays(212) 526-8768anthony.powell@barclays.comRyan Meliker Canaccord Genuity (212) 389-8094rmeliker@canaccordgenuity.comStephen Grambling Goldman Sachs(212) 902-7832stephen.g
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