Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q3 2019 Earnings Presentation
43 slides from Park Hotels & Resorts's earnings presentation, Nov 6, 2019
Slide 1: Third Quarter 2019 Supplemental Data
Royal Palm South Beach Miami, a Tribute Portfolio Resort Parc 55 San Francisco, a Hilton Hotel Hilton Hawaiian Village Waikiki Beach Resort September 30, 2019 Third Quarter 2019 Supplemental Data Exhibit 99.2
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 66 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 17 21 33 36 38 New York Hilton Midtown Le Meridien San Francisco Waldorf Astoria Orlando Table of Contents 1. Financial State
Slide 4: Financial Statements
Financial Statements Casa Marina, a Waldorf Astoria Resort Hilton Chicago Hyatt Regency Mission Bay Spa and Marina Financial Statements Hilton Chicago Casa Marina, a Waldorf Astoria Resort Hyatt Regency Mission Bay Spa and Marina
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 Nine Months Ended (unaudited in millions, except per share data) September 30, September 30,2019 2018 2019 2018 Revenue
Slide 7: Supplementary Financial Information
Supplementary Financial Information Juniper Hotel Cupertino, Curio Collection Hotel Adagio, Autograph Collection The Reach, a Waldorf Astoria Resort Supplementary Financial Information Juniper Hotel Cupertino, Curio Collection Hotel Adagio, Autograph Collection The Reach, a Waldorf Astoria Resort
Slide 8: EBITDA and Adjusted EBITDA
Supplementary Financial Information EBITDA and Adjusted EBITDA (1)Included in other gain (loss), net in the condensed consolidated statements of operations. Supplementary Financial Information EBITDA and Adjusted EBITDA (1) Included in other gain (loss), net in the condensed consolidated statements
Slide 9: Pro-forma Comparable Hotel Adjusted EBITDA and Margin
Supplementary Financial Information (continued) Pro-forma Comparable Hotel Adjusted EBITDA and Pro-forma Comparable Hotel Adjusted EBITDA Margin(1) (1) Includes results from the 18 hotels acquired in the Chesapeake acquisition as if it had taken place on January 1, 2018. (2) Includes EBITDA of $8 mi
Slide 10: Nareit FFO and Adjusted FFO
Nareit FFO and Adjusted FFO (1)Included in other gain (loss), net in the condensed consolidated statements of operations. (2)Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. Supplementary Financial Information (continued) Supplem
Slide 11: Historical Pro-forma Comparable Hotel Metrics
Historical Pro-forma Comparable Hotel Metrics Supplementary Financial Information (continued) The financial information below is for the 57 comparable hotels owned as of September 30, 2019(1). (1)Includes results from the 18 hotels acquired from Chesapeake as if the acquisition had taken place on Ja
Slide 12: Historical Pro-forma Comparable Hotel Adjusted EBITDA – 2019 TTM
Historical Pro-forma 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
Slide 13: Historical Pro-forma Comparable Hotel Adjusted EBITDA – 2018 TTM
Historical Pro-forma Comparable Hotel Adjusted EBITDA – 2018 TTM Supplementary Financial Information (continued) The financial information below is for the 57 comparable hotels owned as of September 30, 2019. (1) Included in other gain (loss), net in the condensed consolidated statement of operation
Slide 14: Historical Pro-forma Comparable Hotel Revenues – 2019 and 2018 TTM
Historical Pro-forma Comparable Hotel Revenues – 2019 and 2018 TTM Supplementary Financial Information (continued) The financial information below is for the 57 comparable hotels owned as of September 30, 2019. (1) Includes results from the 18 hotels acquired from Chesapeake as if the acquisition ha
Slide 15: 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 Nine Months Ended September 30, September 30,20192018 2019 2018 Corporate general and ad
Slide 16: Pro-forma Net Debt and Net Debt to Adjusted EBITDA Ratio
Supplementary Financial Information (continued) Pro-forma Net Debt and Pro-forma Net Debt to Pro-forma Adjusted EBITDA Ratio (1) Debt as of December 31, 2018 includes $312 million of assumed Chesapeake mortgage loans and $850 million term facility borrowings, less $12 million of related unamortized
Slide 17: Guidance
Guidance Hyatt Centric Fisherman’s Wharf Hilton Waikoloa Village San Francisco Union Square Guidance Hyatt Centric Fisherman’s Wharf Hilton Waikoloa Village San Francisco Union Square
Slide 18: 2019 Guidance and Assumptions
Guidance 2019 Guidance and Assumptions Net income, EBITDA and FFO includes projected Chesapeake results from the date of acquisition through the remainder of 2019; General and administrative expenses are projected to be $43 million, excluding $65 million of acquisition costs, $16 million of non-cash
Slide 19: EBITDA and Adjusted EBITDA Guidance
Guidance (continued) EBITDA and Adjusted EBITDA Guidance (continued) EBITDA and Adjusted EBITDA Year Ending (unaudited, in millions) December 31, 2019Low Case High Case Net income $264 $284 Depreciation and amortization expense 263 263 Interest income (6) (6) Interest expense 141 141 Income tax expe
Slide 20: 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 21: 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 Waldorf Astoria Orlando Golf Club
Slide 22: Hotel Portfolio as of November 6, 2019
Portfolio and Operating Metrics Hotel Portfolio as of November 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 November 6
Slide 23: Hotel Portfolio as of November 6, 2019 (continued)
Portfolio and Operating Metrics (continued) Hotel Portfolio as of November 6, 2019 Portfolio and Operating Metrics (continued) Hotel Portfolio as of November 6, 2019 Hotel Name Rooms Market "Meeting Space(square feet)“ Ownership Equity Ownership "Debt(in millions)" Consolidated Domestic Portfolio (c
Slide 24: Hotel Portfolio as of November 6, 2019 (continued)
Portfolio and Operating Metrics (continued) Hotel Portfolio as of November 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 November 6, 2019 Hotel Name Rooms Market "Meeting Space(square feet
Slide 25: Pro-forma Comparable Hotels By Market: Q3 2019 vs. Q3 2018
Portfolio and Operating Metrics (continued) Pro-forma Comparable Hotels By Market: Q3 2019 vs. Q3 2018 (1)Includes results from the 18 hotels acquired from Chesapeake as if the acquisition had taken place on January 1, 2018. (2)Presented on a currency neutral basis (prior periods are reflected using
Slide 26: Pro-forma Comparable Hotels By Market: Q3 2019 vs. Q3 2018 (EBITDA)
Portfolio and Operating Metrics (continued) (1)Includes results from the 18 hotels acquired from Chesapeake as if the acquisition had taken place on January 1, 2018. (2)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (3) Calculated based o
Slide 27: Pro-forma Comparable Hotels By Market: Q3 YTD 2019 vs. 2018
Portfolio and Operating Metrics (continued) (1)Includes results from the 18 hotels acquired from Chesapeake as if the acquisition had taken place on January 1, 2018. (2)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (3) Calculated based o
Slide 28: Pro-forma Comparable Hotels By Market: Q3 YTD 2019 vs. 2018 (EBITDA)
Portfolio and Operating Metrics (continued) (1)Includes results from the 18 hotels acquired from Chesapeake as if the acquisition had taken place on January 1, 2018. (2)Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates). (3) Calculated based o
Slide 29: Top Assets: Q3 2019 vs. Q3 2018
Portfolio and Operating Metrics (continued) Top 10 Assets: Q3 2019 vs. Q3 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) Excludes hotels acquired as part of the Chesapeake acquisition
Slide 30: Top 10 Assets: Q3 2019 vs. Q3 2018
Portfolio and Operating Metrics (continued) Top 10 Assets: Q3 2019 vs. Q3 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) Excludes hotels acquired as part of the Chesapeake acquisition
Slide 31: Top Assets: Q3 YTD 2019 vs. Q3 YTD 2018
Portfolio and Operating Metrics (continued) Top 10 Assets: Q3 YTD 2019 vs. Q3 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) Excludes hotels acquired as part of the Chesapeake acq
Slide 32: Top 10 Assets: Q3 YTD 2019 vs. Q3 YTD 2018
Portfolio and Operating Metrics (continued) Top 10 Assets: Q3 YTD 2019 vs. Q3 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) Excludes hotels acquired as part of the Chesapeake acq
Slide 33: Acquisitions & Dispositions
Acquisitions & Dispositions Hyatt Regency Boston Caribe Hilton W New Orleans French Quarter Acquisitions & Dispositions Caribe Hilton W New Orleans French Quarter
Slide 34: Property Acquisitions
Property Acquisitions and Dispositions Property Acquisitions Property Acquisitions and Dispositions Property Acquisitions Hotel Location Room Count Chesapeake Lodging Trust Acquisition (1) Hilton Denver City Center Denver, CO 613 W Chicago – Lakeshore Chicago, IL 520 Hyatt Regency Boston Boston, MA
Slide 35: Property 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. (3) Park sold a total of 18 h
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 W Chicago – City Center Hilton Denver City Center Definitions Hilton Orlando Bonnet Creek Hilton Denver City Center W Chicago – City Center
Slide 39: Definitions: EBITDA and 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 40: 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 41: 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 42: Definitions (cont'd): Comparable Hotels and Occupancy
Definitions (cont’d) Chesapeake Comparable Hotels The Company presents certain data for Chesapeake’s comparable hotels on a pro-forma comparable hotel basis, which includes 18 hotels the Company acquired from Chesapeake in September 2019. Total Pro-Forma Comparable Hotels The Company presents certai
Slide 43: Analyst Coverage
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 Ari Klein BMO Capital Markets (212) 885-4103 ari.klein@bmo.com Neil Malkin Capital One Securities (571) 6
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