Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q1 2025 Earnings Presentation
33 slides from Park Hotels & Resorts's earnings presentation, May 5, 2025
Slide 1: Investor Presentation June 2025
INVESTOR PRESENTATION JUNE 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 39 25K $5.8B 9.2x HOTEL REVENUE SEGMENTATION4 HOTELS ROOMS ENTERPRISE 1 EBITDA2 4% 6% VALUE MULTIPLE 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% Food & Beverage Other 5) Southern California 8
Slide 4: Park: A Compelling Investment Story
PARK: A COMPELLING INVESTMENT STORY UNDERVALUED CORE PORTFOLIO7 ROI PIPELINE FINANCIAL FLEXIBILITY ICONIC PORTFOLIO AT WIDE CORE PORTFOLIO AMONG ROI PIPELINE TO DRIVE VALUE AMPLE LIQUIDITY TO EXECUTE DISCOUNT1 HIGHEST QUALITY IN SECTOR CREATION STRATEGY 50% discount to consensus 20 core hotels7; 16k
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 46 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: Q1 + Preliminary Q2 Results
2025: Q1 + PRELIMINARY Q2 RESULTS Solid trends across several core markets, offset by softer transient demand in Hawaii Comparable Metrics vs. 2024 (0.9)% Hotel Adjusted Q1 2025 Y/Y Period Occupancy ADR RevPAR Occupancy ADR RevPAR EBITDA Margin RevPAR Change1 Q1 2025 69.1% $258 $178 (2.3)% pts 2.5%
Slide 10: 2025 Outlook
2025 OUTLOOK Outlook adjusted due to the sale of the Hyatt Centric Fisherman’s Wharf FY 2025 Outlook as of June 2, 2025 Change at Metrics Low High Midpoint1 Comparable RevPAR $185 $191 $— Y/Y Growth (1.0)% 2.0% — bps Comparable RevPAR, excluding the $186 $192 $— Royal Palm South Beach Miami CARIBE H
Slide 11: Park Portfolio: Well-Insulated from Supply
PARK PORTFOLIO: WELL-INSULATED FROM SUPPLY Favorable supply picture for Park through 20301 National Supply Growth Average: 0.8% 25.0% 15.0% 10.0% 5.0% 1.3% 1.2% 1.1% 1.0% 1.0% 1.0% 0.9% 0.8% 0.7% 0.5% 0.3% 0.3% 0.2% 11 0.0% Sa Lo O N Sa O Se N D Ch B W M ew os ew rla ah en ia as n s n at ic m to A u
Slide 12: 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 13: Core vs. Non-Core
CORE VS. NON-CORE HIGHER QUALITY, MORE PROFITABLE, BETTER GROWTH 20 core consolidated hotels have significantly outperformed Park’s non-core hotels since 2017 PARK’S CORE STRATEGY FY 2024 CORE PORTFOLIO1 Dispose of ALL non-core hotels to Core hotels account for nearly 90% of the company’s value2 enh
Slide 14: 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 14 Potential ROI CASA MARINA KEY WEST HILTON SANTA BARBARA HILTON NEW YORK MIDTOWN Pipeline • Bonnet Creek Renovation & • Royal Palm South
Slide 15: Value Enhancing ROIs: Track Record of Success
VALUE ENHANCING ROIs: TRACK RECORD OF SUCCESS Hotels that completed major ROI projects generating an additional +50M of EBITDA1 upon stabilization HILTON SANTA THE REACH KEY WEST, CASA MARINA KEY WEST, SIGNIA BY HILTON BARBARA BEACHFRONT CURIO COLLECTION CURIO COLLECTION ORLANDO BONNET CREEK & RESOR
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; renovation of 393 guestrooms; addition of 11 guestrooms $103M Q2
Slide 17: Royal Palm South Beach Repositioning
ROYAL PALM SOUTH BEACH REPOSITIONING $103M transformative renovation of oceanfront hotel PROJECT SUMMARY RATIONALE & EXPECTED ROI DRIVERS • Comprehensive renovation of all 393 17 • Position hotel as an upper upscale alternative to rooms, addition of 11 new rooms existing (and soon-to-open) luxury ac
Slide 18: Hilton Hawaiian Village: Ala Moana Tower Expected Development
HILTON HAWAIIAN VILLAGE ALA MOANA TOWER EXPECTED 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 reta
Slide 19: Hilton Waikoloa Village Expected Development
HILTON WAIKOLOA VILLAGE EXPECTED DEVELOPMENT PROJECT SUMMARY • Utilize existing density to develop up to 213 additional keys (hotel or timeshare) on existing parking and tennis court area • Park could develop additional hotel keys or pursue alternative use or monetization strategy for excess land (e
Slide 20: Hilton Santa Barbara Expected Development
HILTON SANTA BARBARA1 EXPECTED 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 & EXPECTED ROI DRIVERS
Slide 21: Casa Marina Outparcel Planned Development
CASA MARINA OUTPARCEL PLANNED 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 tran
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: 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 24 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 25: 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 • $634 Q1 2025 RevPAR, up 12% to last year • $415 2024 RevPAR , up 110% to same time last year; lapped renovation disr
Slide 26: 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 27: 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 28: 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 29: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Comparable Adjusted EBITDA and Hotel Adjusted EBITDA (unaudited, in millions) TTM Three Months Ended Year Ended March 31, 2025 March 31, 2025 March 31, 2024 December 31, 2024 Net income (loss) $ 140 $ (57) $ 29 $ 226 Depreciation and amortization expense 261 69 65 257 Int
Slide 30: Non-GAAP Financial Measures: Net Debt to Comparable Adjusted EBITDA
NON-GAAP FINANCIAL MEASURES (continued) Net Debt to Comparable Adjusted EBITDA (unaudited, in millions) March 31, 2025 March 31, 2024 Debt $ 3,841 $ 3,764 Add: unamortized deferred financing costs and discount 22 22 Less: unamortized premium — (1) Debt, excluding unamortized deferred financing cost,
Slide 31: Non-GAAP Financial Measures: Outlook EBITDA
NON-GAAP FINANCIAL MEASURES (continued) Outlook - Comparable Hotel Adjusted EBITDA, Comparable Hotel Revenues and Comparable Hotel Adjusted EBITDA Margin Year Ending December 31, 2025 Low Case High Case Net (loss) income $ (10) $ 50 Depreciation and amortization expense 272 272 Interest income (8) (
Slide 32: Non-GAAP Financial Measures: Outlook FFO
NON-GAAP FINANCIAL MEASURES (continued) Outlook - Nareit FFO Attributable to Stockholders and Adjusted FFO Attributable to Stockholders Year Ending December 31, 2025 Low Case High Case Net (loss) income attributable to stockholders $ (18) $ 42 Depreciation and amortization expense 272 272 Depreciati
Slide 33: About Park and Safe Harbor Disclosure
ABOUT PARK AND SAFE HARBOR DISCLOSURE ABOUT PARK HOTELS & RESORTS INC. All such forward-looking statements are based on current expectations of Park (NYSE: PK) is one of the largest publicly-traded lodging real estate management and therefore involve estimates and assumptions that are investment tru
Park Hotels & Resorts — Q1 2025 Earnings Presentation on 6ix