Park Hotels & Resorts Inc. · NYSE:PK
Park Hotels & Resorts — Q4 2023 Earnings Presentation
27 slides from Park Hotels & Resorts's earnings presentation, Feb 28, 2024
Slide 1: Investor Presentation
Investor Presentation MARCH 2024
Slide 2: Park Hotels & Resorts
Park Hotels & Resorts Mission Investment Strategy Guiding Principles To be the preeminent lodging Upper-Upscale & Luxury Aggressive REIT, focused on consistently Full-Service Asset Management delivering superior, risk- adjusted returns for Premier Urban and Resort Prudent stockholders through active
Slide 3: Park at a Glance
Park at a Glance 43 Hotels 26K Rooms $6.5B Enterprise Value(1) 9.8x EBITDA Multiple(1) Waldorf Astoria Orlando Hilton Waikoloa Village Top 10 Markets 2019(2) 2023(3) 1) Hawaii 26% 1) Hawaii 36% Signia Hilton Bonnet Creek 2) San Fran 16% 2) Orlando 12% Hilton Denver City Center 3) Orlando 10% 3) Sout
Slide 4: Park: A Compelling Investment Story
Park: A Compelling Investment Story Undervalued Growth in 2024 Financial Flexibility Iconic portfolio trading at Significant upside potential Ample liquidity following wide discount(1) 2023 Hotel Adjusted EBITDA for Comparable return of capital urban portfolio still $46M below 2019 Over $1.3B of cur
Slide 5: Experienced Management Team with Track Record of Success
Experienced Management Team with Track Record of Success President, Chairman & CEO Thomas J. Baltimore, Jr. Executive Management EVP, CFO & EVP, Design & EVP, Asset EVP & EVP & CIO EVP, HR General Counsel Treasurer Construction Management Tom Morey Jill Olander Joe Piantedosi Nancy Vu Sean M. Dell’O
Slide 6: Iconic Portfolio: Urban and Resort Destinations
Iconic Portfolio: Urban and Resort Destinations Hilton Hawaiian Village Waikiki Beach Resort Hyatt Regency Boston Royal Palm South Beach Miami Hilton Denver City Center Hilton Waikoloa Village Waldorf Astoria Orlando Signia Orlando Bonnet Creek Hilton New Orleans Riverside Hilton Santa Barbara Beach
Slide 7: 2024 Guidance: Growth Potential
2024 Guidance: Growth Potential FY 2024 Guidance 2024 Operational Update FY 2024 Outlook as of February 27, 2024 Comparable Metrics Metrics Low High Month Occ (%) ADR RevPAR Comparable RevPAR $185 $188 January 2024 65.0% $243 Q2 $158 ‘22F Y/Y Growth 3.5% 5.5% Y/Y Growth 5.3% 4.1% 13.4% Adjusted EBIT
Slide 8: Building Blocks for Growth
Building Blocks for Growth Hilton Waikoloa Village 8|
Slide 9: Building Blocks for Growth in 2024
Building Blocks for Growth in 2024 Improving Group Trends + ROI Benefit Provide Tailwinds to Growth in 2024 and Beyond • 2024 Group Revenue Pace is 13% above 2023 driven by Key West (+42%), Bonnet Creek complex (+33%), Hawaii (+21%), Denver (+15%), Boston (+14%), and Chicago (+9%) Improving Group /
Slide 10: Recovery Still Taking Shape: Enhanced Growth Profile in 2024
Recovery Still Taking Shape: Enhanced Growth Profile in 2024 si de 2023 vs. 2019 Comparable Hotel Adjusted EBITDA Up al $727M 4 7M nti ~$100M Below 2019 Comparable Hotel Adjusted EBITDA $ ote +52M P +17% 2023 ROIs $680M Casa Bonnet Urban Airport Suburban Marina Creek ($5M)/ Resort(1) ($17M)/ ($15M)/
Slide 11: Group: Positive Trends to Continue into 2025
Group: Positive Trends to Continue into 2025 Group Trends Expected to Accelerate Well into 2025 Group trends expected to accelerate well into 2024 2024 Comparable Group Revenue Pace 2024 Market Highlights 21.0% 17.7% 10.6% 13.3% 13.4% Chicago: Group Revenue Pace ahead of 2023 by 9%; citywide room ni
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 By the Numbers: PK’s Hawaii Hotels • Consistently Ranked Among Top Resort Markets in US: Over the last 20 years, Oahu’s RevPAR growth has outpaced the US by nearly 200 bps, while exceeding other major resor
Slide 13: Casa Marina: Full Scale Renovation Incremental to 2024
Casa Marina: Full Scale Renovation Incremental to 2024 Rebrand/Redevelopment: $80M investment Property Photos Scope: Rebrand/Rooms/Public Space • Transformative public space and guestrooms • Create new ocean facing restaurant • Complete restoration of both pools and Façade Investment • Cost: $80M •
Slide 14: Bonnet Creek Complex Expansion to Support Solid Group Trends in 2024 and Beyond
Bonnet Creek Complex Expansion to Support Solid Group Trends in 2024 and Beyond $220M meeting space expansion and comprehensive renovation to enhance iconic complex Ballroom Expansion Projects • Signia by Hilton: Added 90,000 sf multi-functional ballroom • Waldorf Astoria Orlando: Added 17,000 sf mu
Slide 15: Embedded Opportunities to Potentially Enhance Value
Embedded Opportunities to Potentially Enhance Value Rebrand/ Alt. Use/Land Over half of the hotels in Park’s Core Date Completed Reposition Expansion Development portfolio possess potential value Signia by Hilton Orlando enhancement opportunities ( ) which Bonnet Creek January 2024 Completed Complet
Slide 16: Appendix
Appendix Hilton Waikoloa Village 16 |
Slide 17: Value Enhancing ROIs: Track Record of Success
Value Enhancing ROIs: Track Record of Success Rebrand / Reposition Hilton Santa Barbara Beachfront Resort The Reach Key West, Curio Collection by Hilton Rebranded from DoubleTree by Hilton Rebranded from Waldorf Astoria • $14M renovation completed Q2 2018 • $13M renovation completed Q4 2019 • 2023 R
Slide 18: Fortified Balance Sheet with Ample Liquidity
Fortified Balance Sheet with Ample Liquidity Following over $350M of dividends paid in January, Park's balance sheet remains in great shape with ample liquidity and improved financial flexibility for growth while providing protection during economic uncertainty Debt Metrics Over Time Commentary 4Q21
Slide 19: Strong Corporate Governance
Strong Corporate Governance EPA’s ENERGY STAR Certification for 2023 3 Dedicated Subcommittees under Signatory of Formal Executive AHLA’s 5-Star Committee: Promise p • Green Park Park’s 2023 Committee Signatory of Corporate CEO Action for Diversity and Responsibility Inclusion™ Report Alignment with
Slide 20: 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 21: 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 22: 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 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Comparable Hotel Adjusted EBITDA Full-Year (unaudited, in millions) December 31, 2023 2019 Net income $ 106 $ 316 Depreciation and amortization expense 287 264 Interest income (38) (6) Interest expense 207 110 Interest expense on the SF Mortgage Loan 45 30 Income tax expe
Slide 24: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) Net Debt to Comparable Adjusted EBITDA (unaudited, in millions) Comparable December 31, 2023 Debt $ 3,765 Add: unamortized deferred financing costs and discount 22 Less: unamortized premium (1) Debt, excluding unamortized deferred financing cost, 3,786 premium
Slide 25: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) Hotel Adjusted EBITDA Margin Guidance Year Ending December 31, 2024 Low Case High Case Net income $ 146 $ 186 Depreciation and amortization expense 258 258 Interest income (17) (17) Interest expense 209 209 Interest expense associated with hotels in receiversh
Slide 26: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) AFFO Guidance Year Ending December 31, 2024 Low Case High Case Net income attributable to stockholders $ 134 $ 174 Depreciation and amortization expense 258 258 Depreciation and amortization expense attributable to noncontrolling interests (5) (5) Gain on dere
Slide 27: About Park and Safe Harbor Disclosure
About Park and Safe Harbor Disclosure About Park Hotels & Resorts Inc. Park (NYSE: PK) is one of the largest publicly-traded lodging real estate investment trusts ("REIT") with a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. Park's p
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