Park Hotels & Resorts Inc. - FORM 8-K - EX-99.2

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EX-99.1 - EX-99.1 - Park Hotels & Resorts Inc.	pk-ex991_7.htm
8-K - 8-K - Park Hotels & Resorts Inc.	pk-8k_20201105.htm


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Fourth Quarter and Year End 2019 Supplemental Data December 31, 2019 Royal Palm South Beach Miami, a Tribute Portfolio Resort Parc 55 San Francisco, a Hilton Hotel Hilton Hawaiian Village Waikiki Beach Reso


	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 60 premium-branded hotels and resorts with over 33,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information. Forward-Looking Statements This supplement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements related to Park’s current expectations regarding the performance of its business, financial results, liquidity and capital resources, the effects of competition and the effects of future legislation or regulations, the expected completion of anticipated dispositions, the declaration and payment of future dividends, and other non-historical statements. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as the words “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could materially affect its results of operations, financial condition, cash flows, performance or future achievements or events. Currently, one of the most significant factors is the potential adverse effect of COVID-19, including possible resurgences, on the Company’s financial condition, results of operations, cash flows and performance, its hotel management companies and its hotels’ tenants, and the global economy and financial markets. The extent to which COVID-19 impacts the Company, its hotel managers, tenants and guests at the Company’s hotels will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its effect, additional closures that may be mandated or advisable even after the reopening of certain of the Company’s hotels on a limited basis, whether due to an increased number of COVID-19 cases or otherwise, and the direct and indirect economic effects of the pandemic and containment measures, among others. Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements and Park urges investors to carefully review the disclosures Park makes concerning risk and uncertainties in Item 1A: “Risk Factors” in Park’s Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, as such factors may be updated from time to time in Park’s filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Except as required by law, Park undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Supplemental Financial Information Park refers to certain non-generally accepted accounting principles (“GAAP”) financial measures in this presentation, including Funds from (used in) Operations (“FFO”) calculated in accordance with the guidelines of the National Association of Real Estate Investment Trusts (“Nareit”), Adjusted FFO, FFO per share, Adjusted FFO per share, Earnings (loss) before interest expense, taxes and depreciation and amortization (“EBITDA”), Adjusted EBITDA, Hotel Adjusted EBITDA, Hotel Adjusted EBITDA margin, Net debt and Net debt to Adjusted EBITDA ratio. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of its operating performance. Please see the schedules included in this presentation including the “Definitions” section for additional information and reconciliations of such non-GAAP financial measures.


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		Table of Contents




		1. Financial Statements		4
		2. Supplementary Financial Information		7
		3. Portfolio and Operating Metrics		17
		4. Properties Acquired & Sold		28
		5. Liquidity and Capital Structure		31
		6. Definitions		35

Waldorf Astoria Orlando Hilton midtown

Waldorf Astoria Orlando Le Meridien San Francisco New York Hilton Midtown


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		Financial Statements


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	Financial Statements

	Condensed Consolidated Balance Sheets

(in millions, except share and per share data)

	September 30, 2020			December 31, 2019
	(unaudited)
ASSETS
Property and equipment, net	$	9,255		$	9,594
Assets held for sale, net		—			71
Investments in affiliates		17			35
Goodwill		—			607
Intangibles, net		45			46
Cash and cash equivalents		1,134			346
Restricted cash		35			40
Accounts receivable, net of allowance for doubtful accounts of $4 and $2		36			180
Prepaid expenses		43			83
Other assets		53			40
Operating lease right-of-use assets		235			248
TOTAL ASSETS (variable interest entities - $234 and $242)	$	10,853		$	11,290
LIABILITIES AND EQUITY
Liabilities
Debt	$	5,121		$	3,871
Accounts payable and accrued expenses		168			217
Due to hotel managers		102			159
Deferred income tax liabilities		34			50
Other liabilities		124			282
Operating lease liabilities		249			260
Total liabilities (variable interest entities - $217 and $219)		5,798			4,839

Stockholders' Equity
Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 235,914,952 shares issued and 235,613,445 shares outstanding as of September 30, 2020 and 239,589,639 shares issued and 239,386,877 shares outstanding as of December 31, 2019		2			2
Additional paid-in capital		4,512			4,575
Retained earnings		595			1,922
Accumulated other comprehensive loss		(5	)		(3	)
Total stockholders' equity		5,104			6,496
Noncontrolling interests		(49	)		(45	)
Total equity		5,055			6,451
TOTAL LIABILITIES AND EQUITY	$	10,853		$	11,290


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	Financial Statements (continued)

	Condensed Consolidated Statements of Operations

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(unaudited, in millions, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Revenues
Rooms	$	70		$	430		$	453		$	1,267
Food and beverage		10			156			174			534
Ancillary hotel		15			64			87			174
Other		3			22			25			59
Total revenues		98			672			739			2,034

Operating expenses
Rooms		30			114			162			334
Food and beverage		18			117			155			371
Other departmental and support		64			153			296			453
Other property-level		84			54			200			152
Management fees		2			32			27			101
Impairment and casualty loss, net		2			8			696			8
Depreciation and amortization		75			61			225			184
Corporate general and administrative		13			14			42			47
Acquisition costs		9			59			10			65
Other		6			23			31			61
Total expenses		303			635			1,844			1,776

(Loss) gain on sales of assets, net		(1	)		1			62			20

Operating (loss) income		(206	)		38			(1,043	)		278

Interest income		—			2			2			5
Interest expense		(59	)		(33	)		(149	)		(98	)
Equity in (losses) earnings from investments in affiliates		(7	)		3			(16	)		18
Other loss, net		(3	)		(1	)		(6	)		(1	)

(Loss) income before income taxes		(275	)		9			(1,212	)		202
Income tax expense		(1	)		—			(14	)		(12	)
Net (loss) income⁽¹⁾		(276	)		9			(1,226	)		190
Net loss (income) attributable to noncontrolling interests		—			(4	)		3			(7	)
Net (loss) income attributable to stockholders⁽¹⁾	$	(276	)	$	5		$	(1,223	)	$	183

(Loss) Earnings per share:
(Loss) Earnings per share - Basic	$	(1.17	)	$	0.02	$	(5.19	)	$	0.90
(Loss) Earnings per share - Diluted	$	(1.17	)	$	0.02	$	(5.19	)	$	0.90

Weighted average shares outstanding - Basic		235			206		236			203
Weighted average shares outstanding - Diluted		235			207		236			204

____________________________

(1)

The nine months ended September 30, 2020 includes $607 million and $90 million of impairment losses related to goodwill and long-lived assets, respectively.


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Supplementary Financial Information


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	Supplementary Financial Information

	EBITDA and Adjusted EBITDA

(unaudited, in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Net (loss) income	$	(276	)	$	9		$	(1,226	)	$	190
Depreciation and amortization expense		75			61			225			184
Interest income		—			(2	)		(2	)		(5	)
Interest expense		59			33			149			98
Income tax expense		1			—			14			12
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates		2			7			11			19
EBITDA		(139	)		108			(829	)		498
Loss (gain) on sales of assets, net		1			(1	)		(62	)		(20	)
Acquisition costs		9			59			10			65
Severance expense		24			—			26			2
Share-based compensation expense		4			4			10			12
Impairment and casualty loss, net		2			8			696			8
Other items		10			2			20			(2	)
Adjusted EBITDA	$	(89	)	$	180		$	(129	)	$	563


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	Supplementary Financial Information (continued)

	Pro-forma Hotel Adjusted EBITDA and Pro-forma Hotel Adjusted EBITDA Margin⁽¹⁾

(unaudited, dollars in millions)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Adjusted EBITDA⁽²⁾	$	(89	)	180			$	(129	)	$	563
Less: Adjusted EBITDA from investments in affiliates		2			(9	)		2			(31	)
Add: All other⁽³⁾		11			12			34			41
Hotel Adjusted EBITDA		(76	)		183			(93	)		573
Add: Adjusted EBITDA from hotels acquired⁽¹⁾		—			39			—			129
Less: Adjusted EBITDA from hotels disposed of		—			(5	)		(2	)		(31	)
Pro-forma Hotel Adjusted EBITDA⁽¹⁾	$	(76	)	$	217		$	(95	)	$	671

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Total Revenues	$	98		$	672		$	739		$	2,034
Less: Other revenue		(3	)		(22	)		(25	)		(59	)
Add: Revenues from hotels acquired⁽¹⁾		—			125			—			405
Less: Revenues from hotels disposed of		—			(25	)		(6	)		(116	)
Pro-forma Hotel Revenues⁽¹⁾	$	95		$	750		$	708		$	2,264

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
	2020			2019			Change⁽⁴⁾				2020			2019					Change⁽⁴⁾
Pro-forma Hotel Revenues⁽¹⁾	$	95		$	750			(87.5	)%		$	708		$	2,264					(68.8		)%
Pro-forma Hotel Adjusted EBITDA⁽¹⁾	$	(76	)	$	217		NM⁽⁵⁾				$	(95	)			$	671				NM⁽⁵⁾
Pro-forma Hotel Adjusted EBITDA margin⁽¹⁾⁽⁴⁾		(81.2	)%		28.9	%	NM⁽⁵⁾					(13.4	)%				29.6	%			NM⁽⁵⁾

___________________________________________
⁽¹⁾ Assumes hotels were acquired on January 1, 2019.
⁽²⁾ Includes EBITDA of $8 million for both the three and nine months ended September 30, 2019, for the period of ownership of the Chesapeake hotels between September 18, 2019 and September 30, 2019.
⁽³⁾Includes other revenues and other expenses, non-income taxes on TRS leases included in other property-level expenses and corporate general and administrative expenses in the condensed consolidated statements of operations.
⁽⁴⁾ Percentages are calculated based on unrounded numbers.
⁽⁵⁾ Percentage change is not meaningful.


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	Supplementary Financial Information (continued)

	Nareit FFO and Adjusted FFO

(unaudited, in millions, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019

Net (loss) income attributable to stockholders	$	(276	)	$	5		$	(1,223	)	$	183
Depreciation and amortization expense		75			61			225			184
Depreciation and amortization expense attributable to noncontrolling interests		(1	)		(1	)		(3	)		(3	)
Loss (gain) on sales of assets, net		1			(1	)		(62	)		(20	)
Gain on sale of investments in affiliates⁽¹⁾		—			—			(1	)		—
Impairment loss		2			—			697			—
Equity investment adjustments:
Equity in losses (earnings) from investments in affiliates		7			(3	)		16			(18	)
Pro rata FFO of investments in affiliates		(5	)		6			(9	)		27
Nareit FFO attributable to stockholders		(197	)		67			(360	)		353
Casualty loss (gain), net		—			7			(1	)		7
Acquisition costs		9			59			10			65
Severance expense		24			—			26			2
Share-based compensation expense		4			4			10			12
Other items⁽²⁾		11			3			48			1
Adjusted FFO attributable to stockholders	$	(149	)	$	140		$	(267	)	$	440
Nareit FFO per share - Diluted⁽³⁾	$	(0.84	)	$	0.33		$	(1.53	)	$	1.73
Adjusted FFO per share - Diluted⁽³⁾	$	(0.63	)	$	0.68		$	(1.13	)	$	2.16
Weighted average shares outstanding - Diluted		235			207			236			204

_________________________________

⁽¹⁾

Included in other loss, net in the condensed consolidated statements of operations.

⁽²⁾

For the nine months ended September 30, 2020, includes $30 million of tax expense recognized from hotels sold during the period.

⁽³⁾

Per share amounts are calculated based on unrounded numbers.


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	Supplementary Financial Information (continued)

	Historical Pro-forma Hotel Metrics

The financial information below is for the 53 consolidated hotels owned as of September 30, 2020⁽¹⁾.

	Three Months Ended												TTM			Full Year
(unaudited)	December 31,			March 31,			June 30,			September 30,			September 30,			December 31,
	2019			2020			2020			2020			2020			2019
Pro-forma RevPAR	$	177.84		$	136.27		$	7.85		$	26.14		$	87.47		$	183.69
Pro-forma Occupancy		80.8	%		61.7	%		6.1	%		19.1	%		42.1	%		82.3	%
Pro-forma ADR	$	220.20		$	220.90		$	127.65		$	137.10		$	207.69		$	223.28

Pro-forma Hotel Revenues (in millions)	$	766		$	574		$	39		$	95		$	1,474		$	3,030
Pro-forma Hotel Adjusted EBITDA (in millions)	$	223		$	90		$	(108	)	$	(76	)	$	129		$	894
Pro-forma Hotel Adjusted EBITDA margin⁽²⁾		29.2	%		15.6	%		(283.1	)%		(81.2	)%		8.8	%		29.5	%



	Three Months Ended												TTM			Full Year
(unaudited)	December 31,			March 31,			June 30,			September 30,			September 30,			December 31,
	2018			2019			2019			2019			2019			2018
Pro-forma RevPAR	$	173.18		$	175.97		$	192.94		$	187.93		$	182.50		$	179.14
Pro-forma Occupancy		78.2	%		77.7	%		85.9	%		84.7	%		81.6	%		81.0	%
Pro-forma ADR	$	221.59		$	226.46		$	224.59		$	222.04		$	223.64		$	221.46

Pro-forma Hotel Revenues (in millions)	$	732		$	723		$	791		$	750		$	2,996		$	2,922
Pro-forma Hotel Adjusted EBITDA (in millions)	$	212		$	206		$	248		$	217		$	883		$	870
Pro-forma Hotel Adjusted EBITDA margin⁽²⁾		29.0	%		28.4	%		31.4	%		28.9	%		29.5	%		29.8	%

_________________________________

⁽¹⁾

Assumes hotels were acquired on January 1, 2018.

⁽²⁾

Percentages are calculated based on unrounded numbers.


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	Supplementary Financial Information (continued)

	Historical Pro-forma Hotel Adjusted EBITDA – 2020 TTM

The financial information below is for the 53 consolidated hotels owned as of September 30, 2020.

	Three Months Ended												TTM			Full Year
(unaudited, in millions)	December 31,			March 31,			June 30,			September 30,			September 30,			December 31,
	2019			2020			2020			2020			2020			2019
Net income (loss)	$	126		$	(689	)	$	(261	)	$	(276	)	$	(1,100	)	$	316
Depreciation and amortization expense		80			75			75			75			305			264
Interest income		(1	)		(1	)		(1	)		—			(3	)		(6	)
Interest expense		42			40			50			59			191			140
Income tax expense		23			10			3			1			37			35
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates		4			5			4			2			15			23
EBITDA		274			(560	)		(130	)		(139	)		(555	)		772
Loss (gain) on sales of assets, net		1			(62	)		(1	)		1			(61	)		(19	)
Gain on sale of investments in affiliates⁽¹⁾		(44	)		—			—			—			(44	)		(44	)
Acquisition costs		5			1			—			9			15			70
Severance expense		—			2			—			24			26			2
Share-based compensation expense		4			2			4			4			14			16
Casualty (gain) loss and impairment loss, net		(26	)		694			—			2			670			(18	)
Other items		9			5			5			10			29			7
Adjusted EBITDA		223			82			(122	)		(89	)		94			786
Add: Adjusted EBITDA from hotels acquired⁽²⁾		—			—			—			—			—			129
Less: Adjusted EBITDA from hotels disposed of		(6	)		(1	)		—			—			(7	)		(37	)
Less: Adjusted EBITDA from investments in affiliates disposed of		—			—			—			—			—			(2	)
Pro-forma Adjusted EBITDA⁽²⁾		217			81			(122	)		(89	)		87			876
Less: Adjusted EBITDA from investments in affiliates		(6	)		(4	)		4			2			(4	)		(35	)
Add: All other⁽³⁾		12			13			10			11			46			53
Pro-forma Hotel Adjusted EBITDA⁽²⁾	$	223		$	90		$	(108	)	$	(76	)	$	129		$	894

__________________________________

⁽¹⁾

Included in other gain (loss), net in the consolidated statement of operations.

⁽²⁾

Assumes hotels were acquired on January 1, 2018.

⁽³⁾

Includes other revenues and other expenses, non-income taxes on TRS leases included in other property-level expenses and corporate general and administrative expenses in the condensed consolidated statement of operations.


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	Supplementary Financial Information (continued)

	Historical Pro-forma Hotel Adjusted EBITDA – 2019 TTM

The financial information below is for the 53 consolidated hotels owned as of September 30, 2020.

	Three Months Ended												TTM			Full Year
(unaudited, in millions)	December 31,			March 31,			June 30,			September 30,			September 30,			December 31,
	2018			2019			2019			2019			2019			2018
Net income	$	55		$	97		$	84		$	9		$	245		$	477
Depreciation and amortization expense		69			62			61			61			253			277
Interest income		(2	)		(1	)		(2	)		(2	)		(7	)		(6	)
Interest expense		33			32			33			33			131			127
Income tax expense		10			7			5			—			22			23
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates		6			5			7			7			25			26
EBITDA		171			202			188			108			669			924
Loss (gain) on sales of assets, net		2			(31	)		12			(1	)		(18	)		(96	)
Gain on sale of investments in affiliates⁽¹⁾		—			—			—			—			—			(107	)
Acquisition costs		—			—			6			59			65			—
Transition expense		—			—			—			—			—			3
Severance expense		—			1			1			—			2			2
Share-based compensation expense		4			4			4			4			16			16
Casualty loss (gain) and impairment loss, net		—			—			—			8			8			(1	)
Other items		7			—			(4	)		2			5			13
Adjusted EBITDA		184			176			207			180			747			754
Add: Adjusted EBITDA from hotels acquired⁽²⁾		41			37			53			39			170			181
Less: Adjusted EBITDA from hotels disposed of		(15	)		(12	)		(14	)		(5	)		(46	)		(70	)
Less: Adjusted EBITDA from investments in affiliates disposed of		—			—			(1	)		(1	)		(2	)		(5	)
Pro-forma Adjusted EBITDA⁽²⁾		210			201			245			213			869			860
Less: Adjusted EBITDA from investments in affiliates		(11	)		(10	)		(11	)		(8	)		(40	)		(42	)
Add: All other⁽³⁾		13			15			14			12			54			52
Pro-forma Hotel Adjusted EBITDA⁽²⁾	$	212		$	206		$	248		$	217		$	883		$	870

__________________________________

⁽¹⁾

Included in other gain (loss), net in the consolidated statement of operations.

⁽²⁾

Assumes hotels were acquired on January 1, 2018.

⁽³⁾


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	Supplementary Financial Information (continued)

	Historical Pro-forma Hotel Revenues – 2020 and 2019 TTM

The financial information below is for the 53 consolidated hotels owned as of September 30, 2020.

	Three Months Ended												TTM				Full Year
(unaudited, in millions)	December 31,			March 31,			June 30,			September 30,				September 30,				December 31,
	2019			2020			2020			2020				2020				2019
Total Revenues	$	810		$	599		$	42		$	98			$	1,549			$	2,844
Less: Other revenue		(18	)		(19	)		(3	)		(3	)			(43	)			(77	)
Add: Revenues from hotels acquired⁽¹⁾		—			—			—			—				—				406
Less: Revenues from hotels disposed of		(26	)		(6	)		—			—				(32	)			(143	)
Pro-forma Hotel Revenues⁽¹⁾	$	766		$	574		$	39		$	95			$	1,474			$	3,030

	Three Months Ended												TTM			Full Year
	December 31,			March 31,			June 30,			September 30,			September 30,			December 31,
	2018			2019			2019			2019			2019			2018
Total Revenues	$	686		$	659		$	703		$	672		$	2,720		$	2,737
Less: Other revenue		(19	)		(18	)		(19	)		(22	)		(78	)		(72	)
Add: Revenues from hotels acquired⁽¹⁾		134			130			151			125			540			561
Less: Revenues from hotels disposed of		(69	)		(48	)		(44	)		(25	)		(186	)		(304	)
Pro-forma Hotel Revenues⁽¹⁾	$	732		$	723		$	791		$	750		$	2,996		$	2,922

__________________________________

⁽¹⁾

Assumes hotels were acquired on January 1, 2018.


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	Supplementary Financial Information (continued)

	General and Administrative Expenses

(unaudited, in millions)	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Corporate general and administrative expenses	$	13	$	14	$	42	$	47
Less:
Share-based compensation expense		4		4		10		12
Disposition costs		—		—		1		1
Severance expense		—		—		2		1
G&A, excluding expenses not included in Adjusted EBITDA	$	9	$	10	$	29	$	33


15 \|


	Supplementary Financial Information (continued)

	Net Debt and Net Debt to Pro-forma Adjusted EBITDA Ratio

(unaudited, in millions)
	September 30, 2020			December 31, 2019
Debt	$	5,121		$	3,871
Add: unamortized deferred financing costs and discount		40			18
Less: unamortized premium		(4	)		(3	)
Long-term debt, including current maturities and excluding unamortized deferred financing cost, premiums and discounts		5,157			3,886
Add: Park's share of unconsolidated affiliates debt, excluding unamortized deferred financing costs		225			225
Less: cash and cash equivalents		(1,134	)		(346	)
Less: restricted cash		(35	)		(40	)
Net debt	$	4,213		$	3,725
Pro-forma Adjusted EBITDA⁽¹⁾	$	87		$	876
Net debt to Pro-forma Adjusted EBITDA ratio	NM⁽²⁾			4.3x

________________________________

⁽¹⁾

See slide 12 for Pro-forma Adjusted EBITDA at September 30, 2020 and December 31, 2019. Pro-forma Adjusted EBITDA excludes results from disposed hotels.

⁽²⁾

The Net debt to Pro-forma Adjusted EBITDA ratio as of September 30, 2020 is not meaningful.


16 \|



		Portfolio and Operating Metrics

Portfolio and Operating Metrics Hilton Santa Barbara Beachfront Resort Hilton New Orleans Riverside Waldorf Astoria Orlando GolfClub


17 \|


	Portfolio and Operating Metrics

	Hotel Portfolio as of November 5, 2020

Hotel Name	Total Rooms		Operating Status	Reopening Date⁽¹⁾	Market	Meeting Space (square feet)		Ownership	Equity Ownership	Debt (in millions)
Consolidated Portfolio

Hilton Hawaiian Village Waikiki Beach Resort		2,860	Suspended	12/15/2020	Hawaii		150,000	Fee Simple	100%	$	1,275
Hilton San Francisco Union Square		1,921	Suspended	Q1 2021	San Francisco		130,000	Fee Simple	100%	$	725	⁽²⁾
New York Hilton Midtown		1,878	Suspended	Q1 2021	New York		151,000	Fee Simple	100%		—
Hilton New Orleans Riverside		1,622	Reopened	7/9/2020	New Orleans		130,000	Fee Simple	100%		—
Hilton Chicago		1,544	Suspended	Q1 2021	Chicago		234,000	Fee Simple	100%		—
Parc 55 San Francisco - a Hilton Hotel		1,024	Suspended	Q1 2021	San Francisco		30,000	Fee Simple	100%		—	⁽²⁾
Hilton Orlando Bonnet Creek		1,009	Reopened	7/1/2020	Orlando		122,000	Fee Simple	100%		—
DoubleTree Hotel Seattle Airport		850	Suspended	Q1 2021	Seattle		34,000	Leasehold	100%		—
Hilton Orlando Lake Buena Vista		814	Reopened	11/2/2020	Orlando		78,000	Leasehold	100%		—
Caribe Hilton		652	Reopened	10/8/2020	Other U.S.		65,000	Fee Simple	100%		—
Hilton Waikoloa Village		647	Suspended	11/13/2020	Hawaii		235,000	Fee Simple	100%		—
DoubleTree Hotel Washington DC – Crystal City		627	Open		Washington, D.C.		31,000	Fee Simple	100%		—
Hilton Denver City Center		613	Reopened	7/1/2020	Denver		50,000	Fee Simple	100%	$	60
Hilton Boston Logan Airport		604	Open		Boston		30,000	Leasehold	100%		—
W Chicago - Lakeshore		520	Open		Chicago		21,000	Fee Simple	100%		—
Hilton Miami Airport		508	Reopened	6/4/2020	Miami		32,000	Fee Simple	100%		—
DoubleTree Hotel San Jose		505	Open		Other U.S.		48,000	Fee Simple	100%		—
Hyatt Regency Boston		502	Reopened	6/21/2020	Boston		30,000	Fee Simple	100%	$	140
Waldorf Astoria Orlando		502	Reopened	7/1/2020	Orlando		52,000	Fee Simple	100%		—
Hilton Salt Lake City Center		499	Open		Other U.S.		24,000	Leasehold	100%		—
DoubleTree Hotel Ontario Airport		482	Open		Southern California		27,000	Fee Simple	67%	$	30
Hilton McLean Tysons Corner		458	Open		Washington, D.C.		27,000	Fee Simple	100%		—
Hyatt Regency Mission Bay Spa and Marina		438	Reopened	6/25/2020	Southern California		24,000	Leasehold	100%		—
Boston Marriott Newton		430	Open		Boston		34,000	Fee Simple	100%		—
W Chicago - City Center		403	Suspended	Q1 2021	Chicago		13,000	Fee Simple	100%	$	76
Hilton Seattle Airport & Conference Center		396	Open		Seattle		40,000	Leasehold	100%		—
Royal Palm South Beach Miami, a Tribute Portfolio Resort		393	Reopened	6/1/2020	Miami		11,000	Fee Simple	100%		—
DoubleTree Hotel Spokane City Center		375	Open		Other U.S.		21,000	Fee Simple	10%	$	12
Hilton Santa Barbara Beachfront Resort		360	Open		Southern California		40,000	Fee Simple	50%	$	165
Hilton Oakland Airport		360	Open		Other U.S.		16,000	Leasehold	100%		—
Le Meridien San Francisco		360	Suspended	Q1 2021	San Francisco		13,000	Fee Simple	100%		—
JW Marriott San Francisco Union Square		344	Open		San Francisco		12,000	Leasehold	100%		—
Hyatt Centric Fisherman's Wharf		316	Open		San Francisco		19,000	Fee Simple	100%		—
Hilton Short Hills		314	Suspended	Q1 2021	Other U.S.		14,000	Fee Simple	100%		—
Casa Marina, A Waldorf Astoria Resort		311	Reopened	6/1/2020	Key West		23,000	Fee Simple	100%		—
DoubleTree Hotel San Diego – Mission Valley		300	Reopened	9/14/2020	Southern California		24,000	Leasehold	100%		—

⁽¹⁾ For hotels that are suspended as of November 5, 2020, the current projected reopening dates are estimated.

⁽²⁾ Single $725 million CMBS loan secured by Hilton San Francisco Union Square and Parc 55 San Francisco – a Hilton Hotel.


18 \|


	Portfolio and Operating Metrics (continued)

	Hotel Portfolio as of November 5, 2020

Hotel Name	Total Rooms		Operating Status	Reopening Date⁽¹⁾	Market	Meeting Space (square feet)		Ownership	Equity Ownership	Debt⁽²⁾ (in millions)
Consolidated Portfolio (continued)

Embassy Suites Kansas City Plaza		266	Reopened	7/16/2020	Other U.S.		11,000	Leasehold	100%		—
Embassy Suites Austin Downtown South Congress		262	Reopened	7/1/2020	Other U.S.		2,000	Leasehold	100%		—
DoubleTree Hotel Sonoma Wine Country		245	Reopened	6/4/2020	Other U.S.		50,000	Leasehold	100%		—
Juniper Hotel Cupertino, Curio Collection		224	Reopened	7/9/2020	Other U.S.		5,000	Fee Simple	100%		—
Hilton Chicago/Oak Brook Suites		211	Open		Chicago		3,000	Fee Simple	100%		—
Hotel Indigo San Diego Gaslamp Quarter		210	Reopened	6/26/2020	Southern California		6,000	Fee Simple	100%		—
Courtyard Washington Capitol Hill/Navy Yard		204	Open		Washington, D.C.		2,000	Fee Simple	100%		—
Homewood Suites by Hilton Seattle Convention Center Pike Street		195	Open		Seattle		1,000	Fee Simple	100%		—
Hilton Checkers Los Angeles		193	Reopened	7/20/2020	Southern California		3,000	Fee Simple	100%	$	27
Embassy Suites Phoenix Airport		182	Reopened	6/12/2020	Other U.S.		5,000	Leasehold	100%		—
Hotel Adagio, Autograph Collection		171	Suspended	Q1 2021	San Francisco		4,000	Fee Simple	100%		—
Hilton Garden Inn LAX/El Segundo		162	Reopened	7/1/2020	Southern California		3,000	Fee Simple	100%		—
DoubleTree Hotel Durango		159	Reopened	6/1/2020	Other U.S.		6,000	Leasehold	100%		—
The Reach Key West, Curio Collection		150	Reopened	6/1/2020	Key West		22,000	Fee Simple	100%		—
Hampton Inn & Suites Memphis – Shady Grove		131	Open		Other U.S.		1,000	Fee Simple	100%		—
Hilton Garden Inn Chicago/Oak Brook Terrace		128	Suspended	Q1/2021	Chicago		2,000	Fee Simple	100%		—
W New Orleans - French Quarter		97	Reopened	9/2/2020	New Orleans		1,000	Fee Simple	100%		—
Total Consolidated Portfolio (53 Hotels)		28,931					2,162,000			$	2,510

Unconsolidated Joint Venture Portfolio

Hilton Orlando		1,424	Open		Orlando		236,000	Fee Simple	20%	$	95
Hilton San Diego Bayfront		1,190	Reopened	8/15/2020	San Diego		165,000	Leasehold	25%	$	55
Capital Hilton		550	Reopened	8/20/2020	Washington, D.C.		30,000	Fee Simple	25%	$	25
Hilton La Jolla Torrey Pines		394	Open		Other U.S.		41,000	Leasehold	25%	$	24
Embassy Suites Alexandria Old Town		288	Reopened	7/1/2020	Washington, D.C.		7,000	Fee Simple	50%	$	26
Embassy Suites Secaucus Meadowlands		261	Open		Other U.S.		1,000	Leasehold	50%		—
DoubleTree Hotel Las Vegas Airport		190	Open		Other U.S.		3,000	Fee Simple	50%		—
Total Unconsolidated Joint Venture Portfolio		4,297					483,000			$	225

TOTAL PARK HOTELS & RESORTS PORTFOLIO (60 Hotels)		33,228					2,645,000			$	2,735

⁽¹⁾For hotels that are suspended as of November 5, 2020, the current projected reopening dates are estimated.

⁽²⁾Debt related to unconsolidated joint ventures is presented on a pro-rata basis.


19 \|


	Portfolio and Operating Metrics (continued)

	Pro-forma Hotels by Market: Q3 2020 vs. Q3 2019

(unaudited)					Pro-forma ADR⁽¹⁾							Pro-forma Occupancy⁽¹⁾										Pro-forma RevPAR⁽¹⁾							Pro-forma Total RevPAR⁽¹⁾
	Hotels		Rooms		3Q20		3Q19		Change⁽²⁾			3Q20			3Q19			Change				3Q20		3Q19		Change⁽²⁾			3Q20		3Q19		Change⁽²⁾
Hawaii		2		3,507	$	—	$	274.08		(100.0	)%		—	%		92.6	%		(92.6	)%	pts	$	—	$	253.90		(100.0	)%	$	5.27	$	431.34		(98.8	)%
San Francisco		6		4,136		176.47		279.99		(37.0	)		4.5			93.6			(89.1	)			7.88		261.97		(97.0	)		11.64		323.42		(96.4	)
Orlando		3		2,325		146.89		161.62		(9.1	)		21.5			67.0			(45.5	)			31.61		108.29		(70.8	)		50.18		222.66		(77.5	)
New Orleans		2		1,719		64.58		169.21		(61.8	)		40.4			67.9			(27.5	)			26.08		114.87		(77.3	)		33.85		200.30		(83.1	)
Boston		3		1,536		132.59		251.34		(47.2	)		33.9			89.9			(56.0	)			44.93		226.01		(80.1	)		50.74		286.64		(82.3	)
New York		1		1,878		—		270.97		(100.0	)		—			95.4			(95.4	)			—		258.62		(100.0	)		2.81		380.64		(99.3	)
Southern California		7		2,145		193.99		205.44		(5.6	)		39.8			91.0			(51.2	)			77.12		186.84		(58.7	)		105.81		269.12		(60.7	)
Chicago		5		2,806		133.44		205.58		(35.1	)		6.8			83.8			(77.0	)			9.07		172.23		(94.7	)		10.99		256.94		(95.7	)
Key West		2		461		269.62		287.78		(6.3	)		57.3			58.4			(1.1	)			154.39		167.92		(8.1	)		237.76		253.08		(6.1	)
Denver		1		613		103.87		183.39		(43.4	)		30.5			94.7			(64.2	)			31.65		173.59		(81.8	)		35.89		248.71		(85.6	)
Miami		2		901		111.09		131.87		(15.8	)		28.4			84.5			(56.1	)			31.53		111.45		(71.7	)		47.56		161.10		(70.5	)
Washington, D.C.		3		1,289		113.57		166.45		(31.8	)		22.2			77.3			(55.1	)			25.17		128.61		(80.4	)		30.20		175.73		(82.8	)
Seattle		3		1,441		117.31		184.15		(36.3	)		24.1			87.0			(62.9	)			28.25		160.11		(82.4	)		33.98		201.80		(83.2	)
Other		13		4,174		125.08		179.04		(30.1	)		24.1			79.0			(54.9	)			36.96		140.29		(73.7	)		42.68		196.09		(78.2	)
All Markets		53		28,931	$	137.10	$	222.04		(38.3	)%		19.1	%		84.7	%		(65.6	)%	pts	$	26.14	$	187.93		(86.1	)%	$	35.36	$	277.40		(87.3	)%

⁽¹⁾

Assumes hotels were acquired on January 1, 2019.

⁽²⁾

Calculated based on unrounded numbers.


20 \|


	Portfolio and Operating Metrics (continued)

	Pro-forma Hotels by Market: Q3 2020 vs. Q3 2019

(unaudited, dollars in millions)					Pro-forma Hotel Adjusted EBITDA⁽¹⁾						Pro-forma Hotel Revenue⁽¹⁾							Pro-forma Hotel Adjusted EBITDA Margin⁽¹⁾
	Hotels		Rooms		3Q20			3Q19		Change⁽²⁾	3Q20		3Q19		Change⁽³⁾			3Q20			3Q19			Change⁽²⁾
Hawaii		2		3,507	$	(16	)	$	62	NM	$	2	$	158		(98.9	)%		(930.4	)%		39.5	%	NM
San Francisco		6		4,136		(18	)		37	NM		4		123		(96.4	)		(402.8	)		29.7		NM
Orlando		3		2,325		(4	)		8	NM		11		47		(77.5	)		(39.4	)		17.4		NM
New Orleans		2		1,719		(1	)		10	NM		5		32		(83.1	)		(27.7	)		32.0		NM
Boston		3		1,536		(2	)		15	NM		7		41		(82.3	)		(31.8	)		36.0		NM
New York		1		1,878		(17	)		9	NM		—		66		(99.3	)		(3,456.8	)		13.3		NM
Southern California		7		2,145		4			19	NM		21		53		(60.7	)		16.9			35.9		NM
Chicago		5		2,806		(9	)		17	NM		3		66		(95.7	)		(305.1	)		25.2		NM
Key West		2		461		2			2	NM		10		11		(6.1	)		15.4			14.3		NM
Denver		1		613		(1	)		5	NM		2		14		(85.6	)		(33.7	)		39.2		NM
Miami		2		901		(1	)		2	NM		4		13		(70.5	)		(26.3	)		18.3		NM
Washington, D.C.		3		1,289		(2	)		4	NM		4		21		(82.8	)		(66.3	)		20.7		NM
Seattle		3		1,441		(3	)		8	NM		5		27		(83.2	)		(57.3	)		28.9		NM
Other		13		4,174		(8	)		19	NM		17		78		(79.2	)		(66.3	)		25.0		NM
All Markets		53		28,931	$	(76	)	$	217	NM	$	95	$	750		(87.5	)%		(81.2	)%		28.9	%	NM

⁽¹⁾

Assumes hotels were acquired on January 1, 2019.

⁽²⁾

Percentage change is not meaningful.

⁽³⁾

Calculated based on unrounded numbers.


21 \|


	Portfolio and Operating Metrics (continued)

	Pro-forma Hotels by Market: YTD Q3 2020 vs. YTD Q3 2019

(unaudited)					Pro-forma ADR⁽¹⁾							Pro-forma Occupancy⁽¹⁾										Pro-forma RevPAR⁽¹⁾							Pro-forma Total RevPAR⁽¹⁾
	Hotels		Rooms		2020		2019		Change⁽²⁾			2020			2019			Change				2020		2019		Change⁽²⁾			2020		2019		Change⁽²⁾
Hawaii		2		3,507	$	260.34	$	258.75		0.6	%		25.8	%		90.7	%		(64.9	)%	pts	$	67.12	$	234.70		(71.4	)%	$	122.06	$	403.40		(69.7	)%
San Francisco		6		4,136		298.65		293.40		1.8			22.9			91.7			(68.8	)			68.32		268.99		(74.6	)		95.69		342.47		(72.1	)
Orlando		3		2,325		219.00		198.13		10.5			28.5			78.0			(49.5	)			62.47		154.62		(59.6	)		130.11		321.75		(59.6	)
New Orleans		2		1,719		150.98		194.09		(22.2	)		31.7			75.1			(43.4	)			47.84		145.72		(67.2	)		82.14		249.22		(67.0	)
Boston		3		1,536		150.54		232.59		(35.3	)		36.0			85.8			(49.8	)			54.25		199.69		(72.8	)		72.55		265.66		(72.7	)
New York		1		1,878		206.31		264.74		(22.1	)		20.3			89.7			(69.4	)			41.88		237.56		(82.4	)		78.92		386.01		(79.6	)
Southern California		7		2,145		180.11		191.49		(5.9	)		39.5			87.0			(47.5	)			71.16		166.52		(57.3	)		105.85		248.42		(57.4	)
Chicago		5		2,806		139.57		193.90		(28.0	)		16.2			74.9			(58.7	)			22.63		145.24		(84.4	)		37.34		223.04		(83.3	)
Key West		2		461		379.26		383.11		(1.0	)		49.1			77.8			(28.7	)			186.35		298.13		(37.5	)		277.72		443.48		(37.4	)
Denver		1		613		138.47		178.48		(22.4	)		30.6			86.1			(55.5	)			42.32		153.67		(72.5	)		61.29		229.12		(73.2	)
Miami		2		901		198.82		177.47		12.0			37.7			88.6			(50.9	)			74.99		157.19		(52.3	)		103.94		222.06		(53.2	)
Washington, D.C.		3		1,289		135.81		175.38		(22.6	)		32.9			77.9			(45.0	)			44.74		136.77		(67.3	)		60.95		191.57		(68.2	)
Seattle		3		1,441		123.74		163.47		(24.3	)		34.9			81.4			(46.5	)			43.25		133.16		(67.5	)		60.23		177.98		(66.2	)
Other		13		4,174		154.88		181.37		(14.6	)		31.7			71.3			(39.6	)			51.68		130.27		(60.3	)		70.71		164.70		(57.1	)
All Markets		53		28,931	$	195.78	$	224.29		(12.7	)%		28.9	%		82.7	%		(53.8	)%	pts	$	56.64	$	185.66		(69.5	)%	$	89.14	$	282.17		(68.4	)%

⁽¹⁾

Assumes hotels were acquired on January 1, 2019.

⁽²⁾

Calculated based on unrounded numbers.


22 \|


	Portfolio and Operating Metrics (continued)

	Pro-forma Hotels by Market: YTD Q3 2020 vs. YTD Q3 2019

(unaudited, dollars in millions)					Pro-forma Hotel Adjusted EBITDA⁽¹⁾						Pro-forma Hotel Revenue⁽¹⁾							Pro-forma Hotel Adjusted EBITDA Margin⁽¹⁾
	Hotels		Rooms		2020			2019		Change⁽²⁾	2020		2019		Change⁽³⁾			2020			2019			Change⁽²⁾
Hawaii		2		3,507	$	3		$	164	NM	$	117	$	437		(73.2	)%		2.2	%		37.5	%	NM
San Francisco		6		4,136		(16	)		123	NM		108		387		(72.0	)		(14.9	)		31.9		NM
Orlando		3		2,325		10			66	NM		83		204		(59.4	)		12.0			32.1		NM
New Orleans		2		1,719		4			44	NM		39		117		(66.9	)		10.8			37.5		NM
Boston		3		1,536		(6	)		37	NM		31		111		(72.6	)		(20.3	)		33.1		NM
New York		1		1,878		(47	)		25	NM		41		198		(79.5	)		(115.7	)		12.5		NM
Southern California		7		2,145		5			47	NM		62		145		(57.2	)		8.5			32.4		NM
Chicago		5		2,806		(30	)		34	NM		29		171		(83.2	)		(105.4	)		20.2		NM
Key West		2		461		8			21	NM		35		56		(37.1	)		23.2			36.8		NM
Denver		1		613		(1	)		15	NM		10		38		(73.2	)		(8.4	)		39.8		NM
Miami		2		901		5			19	NM		26		55		(53.0	)		18.5			34.7		NM
Washington, D.C.		3		1,289		(6	)		17	NM		22		67		(68.1	)		(26.9	)		24.8		NM
Seattle		3		1,441		(6	)		16	NM		24		70		(66.0	)		(23.2	)		23.2		NM
Other		13		4,174		(18	)		43	NM		81		208		(61.0	)		(21.9	)		20.6		NM
All Markets		53		28,931	$	(95	)	$	671	NM	$	708	$	2,264		(68.8	)%		(13.4	)%		29.6	%	NM

⁽¹⁾

Assumes hotels were acquired on January 1, 2019.

⁽²⁾

Percentage change is not meaningful.

⁽³⁾

Calculated based on unrounded numbers.


23 \|


	Portfolio and Operating Metrics (continued)

	Core Hotels: Q3 2020 vs. Q3 2019

	(unaudited)	ADR							Occupancy										RevPAR							Total RevPAR
		3Q20		3Q19		Change⁽¹⁾			3Q20			3Q19			Change				3Q20		3Q19		Change⁽¹⁾			3Q20		3Q19		Change⁽¹⁾
	Core Hotels
1	Hilton Hawaiian Village Waikiki Beach Resort	$	—	$	280.09		(100.0	)%		—	%		95.6	%		(95.6	)%	pts	$	—	$	267.85		(100.0	)%	$	1.95	$	419.26		(99.5	)%
2	Hilton Waikoloa Village		—		256.63		(100.0	)		—			84.9			(84.9	)			—		217.95		(100.0	)		19.96		462.45		(95.7	)
3	Hilton San Francisco Union Square		—		269.14		(100.0	)		—			92.7			(92.7	)			—		249.44		(100.0	)		5.04		338.65		(98.5	)
4	Parc 55 San Francisco - a Hilton Hotel		—		272.95		(100.0	)		—			92.6			(92.6	)			—		252.65		(100.0	)		1.56		278.06		(99.4	)
5	Le Meridien San Francisco		—		302.58		(100.0	)		—			97.9			(97.9	)			—		296.11		(100.0	)		0.81		335.25		(99.8	)
6	JW Marriott San Francisco Union Square		162.57		338.49		(52.0	)		28.9			95.6			(66.7	)			47.02		323.57		(85.5	)		53.64		373.99		(85.7	)
7	Hyatt Centric Fisherman's Wharf		161.32		271.91		(40.7	)		26.9			96.8			(69.9	)			43.43		263.38		(83.5	)		56.55		329.54		(82.8	)
8	Hotel Adagio, Autograph Collection		—		288.10		(100.0	)		—			90.3			(90.3	)			—		260.10		(100.0	)		1.50		286.06		(99.5	)
9	Hilton Orlando Bonnet Creek		136.01		148.31		(8.3	)		14.0			65.3			(51.3	)			19.00		96.81		(80.4	)		46.29		221.92		(79.1	)
10	Waldorf Astoria Orlando		151.23		228.46		(33.8	)		71.6			71.0			0.6				108.28		162.27		(33.3	)		138.95		306.81		(54.7	)
11	Hilton Orlando Lake Buena Vista		—		133.84		(100.0	)		—			66.7			(66.7	)			—		89.22		(100.0	)		0.25		171.68		(99.9	)
12	Hilton New Orleans Riverside		63.60		167.90		(62.1	)		42.4			66.9			(24.5	)			26.99		112.37		(76.0	)		35.08		198.52		(82.3	)
13	Hyatt Regency Boston		118.88		281.77		(57.8	)		43.7			96.6			(52.9	)			52.01		272.28		(80.9	)		55.43		333.89		(83.4	)
14	Hilton Boston Logan Airport		148.74		260.55		(42.9	)		37.9			91.8			(53.9	)			56.43		239.36		(76.4	)		66.17		291.19		(77.3	)
15	Boston Marriott Newton		122.97		193.11		(36.3	)		16.7			79.4			(62.7	)			20.51		153.25		(86.6	)		23.60		225.09		(89.5	)
16	New York Hilton Midtown		—		270.97		(100.0	)		—			95.4			(95.4	)			—		258.62		(100.0	)		2.81		380.64		(99.3	)
17	Hilton Santa Barbara Beachfront Resort		329.24		323.88		1.7			63.3			93.0			(29.7	)			208.53		301.45		(30.8	)		267.91		450.12		(40.5	)
18	Hyatt Regency Mission Bay Spa and Marina		211.83		209.30		1.2			34.3			89.2			(54.9	)			72.73		186.75		(61.1	)		132.00		324.80		(59.4	)
19	Hotel Indigo San Diego Gaslamp Quarter		149.03		214.27		(30.4	)		53.8			92.2			(38.4	)			80.15		197.59		(59.4	)		92.34		233.21		(60.4	)
20	Hilton Checkers Los Angeles		143.08		217.56		(34.2	)		16.4			90.2			(73.8	)			23.42		196.28		(88.1	)		27.21		227.01		(88.0	)
21	Hilton Chicago		—		203.52		(100.0	)		—			84.2			(84.2	)			—		171.31		(100.0	)		0.50		284.86		(99.8	)
22	W Chicago - City Center		—		258.43		(100.0	)		—			82.8			(82.8	)			—		214.06		(100.0	)		—		262.12		(100.0	)
23	W Chicago - Lakeshore		148.09		228.39		(35.2	)		24.9			82.9			(58.0	)			36.82		189.31		(80.6	)		41.86		258.29		(83.8	)
24	Casa Marina, A Waldorf Astoria Resort		287.48		290.17		(0.9	)		55.6			73.9			(18.3	)			159.73		214.37		(25.5	)		242.39		328.98		(26.3	)
25	The Reach Key West, Curio Collection		235.76		273.76		(13.9	)		60.8			26.2			34.6				143.32		71.61		100.1			228.14		95.70		138.4
26	Hilton Denver City Center		103.87		183.39		(43.4	)		30.5			94.7			(64.2	)			31.65		173.59		(81.8	)		35.89		248.71		(85.6	)
27	Royal Palm South Beach Miami		122.96		147.40		(16.6	)		34.4			90.2			(55.8	)			42.29		132.88		(68.2	)		66.82		197.17		(66.1	)
28	DoubleTree Hotel Washington DC – Crystal City		118.56		153.60		(22.8	)		20.5			73.9			(53.4	)			24.26		113.38		(78.6	)		29.55		155.68		(81.0	)
29	DoubleTree Hotel San Jose		137.70		220.54		(37.6	)		33.5			84.5			(51.0	)			46.11		186.37		(75.3	)		54.16		257.96		(79.0	)
30	Juniper Hotel Cupertino, Curio Collection		103.65		242.05		(57.2	)		33.2			83.8			(50.6	)			34.40		202.91		(83.0	)		36.67		240.17		(84.7	)
	Sub-total Core Hotels	$	147.99	$	240.59		(38.5	)%		16.3	%		85.6	%		(69.3	)%	pts	$	24.12	$	206.03		(88.3	)%	$	34.28	$	307.41		(88.9	)%

	All Other Hotels	$	118.14	$	164.63		(28.2	)%		27.1	%		81.7	%		(54.6	)%	pts	$	31.96	$	134.47		(76.2	)%	$	38.50	$	188.78		(79.6	)%
	Total Consolidated Portfolio⁽²⁾	$	137.10	$	222.04		(38.3	)%		19.1	%		84.7	%		(65.6	)%	pts	$	26.14	$	187.93		(86.1	)%	$	35.36	$	277.40		(87.3	)%

⁽¹⁾

Calculated based on unrounded numbers.

⁽²⁾

Assumes hotels were acquired on January 1, 2019.


24 \|


	Portfolio and Operating Metrics (continued)

	Core Hotels: Q3 2020 vs. Q3 2019

	(unaudited, dollars in millions)	Hotel Adjusted EBITDA							Hotel Revenue							Hotel Adjusted EBITDA Margin
		3Q20			3Q19			Change⁽¹⁾	3Q20		3Q19		Change⁽²⁾			3Q20			3Q19			Change⁽¹⁾
	Core Hotels
1	Hilton Hawaiian Village Waikiki Beach Resort	$	(13	)	$	44		NM	$	1	$	110		(99.5	)%		(2605.1	)%		40.1	%	NM
2	Hilton Waikoloa Village		(2	)		18		NM		1	$	47		(97.5	)		(208.1	)		37.9		NM
3	Hilton San Francisco Union Square		(6	)		17		NM		1	$	60		(98.5	)		(669.8	)		28.8		NM
4	Parc 55 San Francisco - a Hilton Hotel		(4	)		8		NM		—	$	26		(99.4	)		(2,784.2	)		30.4		NM
5	Le Meridien San Francisco		(2	)		4		NM		—	$	11		(99.8	)		(8,537.6	)		35.2		NM
6	JW Marriott San Francisco Union Square		(4	)		3		NM		2	$	12		(85.7	)		(228.4	)		23.5		NM
7	Hyatt Centric Fisherman's Wharf		(1	)		3		NM		2	$	10		(82.8	)		(44.7	)		33.9		NM
8	Hotel Adagio, Autograph Collection		(1	)		1		NM		—	$	4		(99.5	)		(3,774.2	)		31.0		NM
9	Hilton Orlando Bonnet Creek		(2	)		3		NM		4	$	21		(79.1	)		(49.3	)		16.5		NM
10	Waldorf Astoria Orlando		1			3		NM		6	$	14		(54.7	)		9.5			17.6		NM
11	Hilton Orlando Lake Buena Vista		(2	)		2		NM		—	$	13		(99.9	)		(14,249.7	)		18.5		NM
12	Hilton New Orleans Riverside		(1	)		10		NM		5	$	30		(82.3	)		(18.4	)		33.7		NM
13	Hyatt Regency Boston		(1	)		7		NM		3	$	15		(83.4	)		(34.2	)		43.4		NM
14	Hilton Boston Logan Airport		(1	)		5		NM		4	$	16		(77.3	)		(17.9	)		32.6		NM
15	Boston Marriott Newton		(1	)		3		NM		1	$	9		(89.5	)		(80.0	)		29.7		NM
16	New York Hilton Midtown		(17	)		9		NM		—	$	66		(99.3	)		(3,456.8	)		13.3		NM
17	Hilton Santa Barbara Beachfront Resort		4			8		NM		9	$	15		(40.5	)		48.2			54.0		NM
18	Hyatt Regency Mission Bay Spa and Marina		—			3		NM		5	$	13		(59.4	)		5.6			25.9		NM
19	Hotel Indigo San Diego Gaslamp Quarter		—			2		NM		2	$	5		(60.4	)		10.2			40.7		NM
20	Hilton Checkers Los Angeles		(1	)		1		NM		—	$	4		(88.0	)		(146.6	)		31.8		NM
21	Hilton Chicago		(4	)		10		NM		—	$	41		(99.8	)		(6,641.5	)		23.6		NM
22	W Chicago - City Center		(2	)		3		NM		—	$	10		(100.0	)		(27,255.0	)		27.3		NM
23	W Chicago - Lakeshore		(2	)		4		NM		2	$	12		(83.8	)		(86.6	)		29.9		NM
24	Casa Marina, A Waldorf Astoria Resort		1			2		NM		7	$	9		(26.3	)		18.9			22.9		NM
25	The Reach Key West, Curio Collection		—			(1	)	NM		3	$	1		138.4			7.8			(46.9	)	NM
26	Hilton Denver City Center		(1	)		5		NM		2	$	14		(85.6	)		(33.7	)		39.2		NM
27	Royal Palm South Beach Miami		—			2		NM		2	$	7		(66.1	)		(15.8	)		22.4		NM
28	DoubleTree Hotel Washington DC – Crystal City		(1	)		2		NM		2	$	9		(81.0	)		(44.5	)		18.2		NM
29	DoubleTree Hotel San Jose		(1	)		4		NM		3	$	12		(79.0	)		(21.1	)		29.6		NM
30	Juniper Hotel Cupertino, Curio Collection		—			2		NM		1	$	5		(84.7	)		(65.9	)		34.7		NM
	Sub-total Core Hotels	$	(64	)	$	187		NM	$	68	$	621		(89.1	)%		(93.5	)%		30.0	%	NM

	All Other Hotels	$	(12	)	$	30		NM	$	27	$	129		(79.6	)%		(49.4	)%		23.5	%	NM
	Total Consolidated Portfolio⁽³⁾	$	(76	)	$	217		NM	$	95	$	750		(87.5	)%		(81.2	)%		28.9	%	NM

⁽¹⁾

Percentage change is not meaningful.

⁽²⁾

Calculated based on unrounded numbers.

⁽³⁾

Assumes hotels were acquired on January 1, 2019.


25 \|


	Portfolio and Operating Metrics (continued)

	Core Hotels: YTD Q3 2020 vs. YTD Q3 2019

	(unaudited)	ADR							Occupancy										RevPAR							Total RevPAR
		2020		2019		Change⁽¹⁾			2020			2019			Change				2020		2019		Change⁽¹⁾			2020		2019		Change⁽¹⁾
	Core Hotels
1	Hilton Hawaiian Village Waikiki Beach Resort	$	258.88	$	266.28		(2.8	)%		25.6	%		94.1	%		(68.5	)%	pts	$	66.21	$	250.41		(73.6	)%	$	110.67	$	402.07		(72.5	)%
2	Hilton Waikoloa Village		266.53		236.54		12.7			26.7			82.1			(55.4	)			71.14		194.23		(63.4	)		172.41		406.83		(57.6	)
3	Hilton San Francisco Union Square		309.40		284.13		8.9			19.8			90.0			(70.2	)			61.39		255.86		(76.0	)		99.08		357.92		(72.3	)
4	Parc 55 San Francisco - a Hilton Hotel		290.76		283.27		2.6			20.1			90.6			(70.5	)			58.58		256.89		(77.2	)		70.32		291.06		(75.8	)
5	Le Meridien San Francisco		349.78		321.65		8.7			22.5			95.8			(73.3	)			78.56		308.08		(74.5	)		98.36		360.61		(72.7	)
6	JW Marriott San Francisco Union Square		316.56		362.92		(12.8	)		38.5			94.2			(55.7	)			121.84		341.88		(64.4	)		159.31		423.35		(62.4	)
7	Hyatt Centric Fisherman's Wharf		206.77		263.04		(21.4	)		34.3			97.2			(62.9	)			70.95		255.80		(72.3	)		92.91		323.56		(71.3	)
8	Hotel Adagio, Autograph Collection		325.39		309.33		5.2			21.6			91.9			(70.3	)			70.30		284.38		(75.3	)		80.99		310.87		(73.9	)
9	Hilton Orlando Bonnet Creek		214.27		187.86		14.1			25.5			76.9			(51.4	)			54.68		144.48		(62.1	)		139.09		342.86		(59.4	)
10	Waldorf Astoria Orlando		248.25		281.97		(12.0	)		43.7			76.2			(32.5	)			108.54		214.93		(49.5	)		190.68		417.45		(54.3	)
11	Hilton Orlando Lake Buena Vista		191.06		161.37		18.4			22.9			80.6			(57.7	)			43.70		130.01		(66.4	)		81.62		236.57		(65.5	)
12	Hilton New Orleans Riverside		146.23		191.92		(23.8	)		32.2			74.4			(42.2	)			47.12		142.76		(67.0	)		81.72		247.05		(66.9	)
13	Hyatt Regency Boston		142.50		250.63		(43.1	)		38.7			94.6			(55.9	)			55.13		237.07		(76.7	)		70.41		300.34		(76.6	)
14	Hilton Boston Logan Airport		157.28		244.31		(35.6	)		42.8			86.7			(43.9	)			67.39		211.89		(68.2	)		87.03		270.17		(67.8	)
15	Boston Marriott Newton		148.70		186.69		(20.4	)		23.4			74.4			(51.0	)			34.76		138.94		(75.0	)		54.71		218.85		(75.0	)
16	New York Hilton Midtown		206.31		264.74		(22.1	)		20.3			89.7			(69.4	)			41.88		237.56		(82.4	)		78.92		386.01		(79.6	)
17	Hilton Santa Barbara Beachfront Resort		272.92		281.62		(3.1	)		51.1			84.5			(33.4	)			139.33		237.79		(41.4	)		199.63		373.27		(46.5	)
18	Hyatt Regency Mission Bay Spa and Marina		185.06		189.75		(2.5	)		31.2			80.6			(49.4	)			57.69		152.79		(62.2	)		116.16		280.48		(58.6	)
19	Hotel Indigo San Diego Gaslamp Quarter		174.36		206.73		(15.7	)		43.2			90.2			(47.0	)			75.31		186.38		(59.6	)		89.72		221.83		(59.6	)
20	Hilton Checkers Los Angeles		213.16		224.02		(4.8	)		27.3			87.4			(60.1	)			58.16		195.69		(70.3	)		67.77		224.65		(69.8	)
21	Hilton Chicago		129.20		193.52		(33.2	)		12.3			75.8			(63.5	)			15.95		146.74		(89.1	)		36.67		255.40		(85.6	)
22	W Chicago - City Center		211.64		250.63		(15.6	)		15.1			73.4			(58.3	)			32.02		184.06		(82.6	)		40.32		230.31		(82.5	)
23	W Chicago - Lakeshore		143.69		206.11		(30.3	)		22.7			70.5			(47.8	)			32.65		145.36		(77.5	)		39.69		193.38		(79.5	)
24	Casa Marina, A Waldorf Astoria Resort		400.40		386.68		3.5			48.5			83.3			(34.8	)			194.32		322.26		(39.7	)		288.56		487.05		(40.8	)
25	The Reach Key West, Curio Collection		337.07		373.83		(9.8	)		50.4			66.4			(16.0	)			169.84		248.09		(31.5	)		255.23		353.14		(27.7	)
26	Hilton Denver City Center		138.47		178.48		(22.4	)		30.6			86.1			(55.5	)			42.32		153.67		(72.5	)		61.29		229.12		(73.2	)
27	Royal Palm South Beach Miami		229.87		204.01		12.7			42.0			93.9			(51.9	)			96.48		191.60		(49.6	)		135.08		266.16		(49.2	)
28	DoubleTree Hotel Washington DC – Crystal City		131.11		164.65		(20.4	)		29.8			74.5			(44.7	)			39.05		122.59		(68.1	)		48.23		166.94		(71.1	)
29	DoubleTree Hotel San Jose		174.74		229.78		(24.0	)		38.4			85.2			(46.8	)			67.11		195.81		(65.7	)		94.98		273.00		(65.2	)
30	Juniper Hotel Cupertino, Curio Collection		195.03		254.79		(23.5	)		30.3			83.7			(53.4	)			59.18		213.46		(72.3	)		70.79		252.17		(71.9	)
	Sub-total Core Hotels	$	219.48	$	243.17		(9.7	)%		27.1	%		84.7	%		(57.6	)%	pts	$	59.55	$	206.06		(71.1	)%	$	96.74	$	318.03		(69.6	)%

	All Other Hotels	$	141.31	$	162.92		(13.3	)%		34.1	%		77.0	%		(42.9	)%	pts	$	48.23	$	125.42		(61.5	)%	$	67.15	$	176.29		(61.9	)%
	Total Consolidated Portfolio⁽²⁾	$	195.78	$	224.29		(12.7	)%		28.9	%		82.7	%		(53.8	)%	pts	$	56.64	$	185.66		(69.5	)%	$	89.14	$	282.17		(68.4	)%

⁽¹⁾

Calculated based on unrounded numbers.

⁽²⁾

Assumes hotels were acquired on January 1, 2019.


26 \|


	Portfolio and Operating Metrics (continued)

	Core Hotels: YTD Q3 2020 vs. YTD Q3 2019

	(unaudited, dollars in millions)	Hotel Adjusted EBITDA						Hotel Revenue							Hotel Adjusted EBITDA Margin
		2020			2019		Change⁽¹⁾	2020		2019		Change⁽²⁾			2020			2019			Change⁽¹⁾
	Core Hotels
1	Hilton Hawaiian Village Waikiki Beach Resort	$	1		$	124	NM	$	87	$	314		(72.4	)%		1.7	%		39.6	%	NM
2	Hilton Waikoloa Village		1			40	NM		31		123		(75.2	)		3.7			32.3		NM
3	Hilton San Francisco Union Square		(4	)		58	NM		52		188		(72.2	)		(7.9	)		31.0		NM
4	Parc 55 San Francisco - a Hilton Hotel		(6	)		27	NM		20		81		(75.8	)		(28.4	)		32.6		NM
5	Le Meridien San Francisco		(1	)		13	NM		10		35		(72.6	)		(9.7	)		36.4		NM
6	JW Marriott San Francisco Union Square		(4	)		11	NM		15		40		(62.2	)		(24.7	)		28.0		NM
7	Hyatt Centric Fisherman's Wharf		(1	)		9	NM		8		28		(71.2	)		(15.5	)		32.0		NM
8	Hotel Adagio, Autograph Collection		(1	)		6	NM		4		15		(73.9	)		(14.3	)		37.5		NM
9	Hilton Orlando Bonnet Creek		7			33	NM		38		95		(59.3	)		17.9			35.2		NM
10	Waldorf Astoria Orlando		3			16	NM		26		57		(54.2	)		12.9			28.3		NM
11	Hilton Orlando Lake Buena Vista		—			16	NM		18		53		(65.4	)		(2.0	)		30.7		NM
12	Hilton New Orleans Riverside		5			43	NM		36		109		(66.8	)		13.5			39.0		NM
13	Hyatt Regency Boston		(3	)		17	NM		10		41		(76.5	)		(26.0	)		40.9		NM
14	Hilton Boston Logan Airport		(2	)		13	NM		14		44		(67.6	)		(16.3	)		28.5		NM
15	Boston Marriott Newton		(1	)		7	NM		6		26		(74.9	)		(20.6	)		28.5		NM
16	New York Hilton Midtown		(47	)		25	NM		41		198		(79.5	)		(115.7	)		12.5		NM
17	Hilton Santa Barbara Beachfront Resort		7			17	NM		20		37		(46.3	)		35.2			45.4		NM
18	Hyatt Regency Mission Bay Spa and Marina		(1	)		7	NM		14		33		(58.3	)		(7.7	)		21.6		NM
19	Hotel Indigo San Diego Gaslamp Quarter		1			5	NM		5		13		(59.4	)		11.6			41.8		NM
20	Hilton Checkers Los Angeles		(1	)		4	NM		4		12		(69.7	)		(22.6	)		32.3		NM
21	Hilton Chicago		(17	)		21	NM		16		108		(85.6	)		(118.0	)		19.2		NM
22	W Chicago - City Center		(4	)		6	NM		4		25		(82.4	)		(92.6	)		24.4		NM
23	W Chicago - Lakeshore		(7	)		5	NM		6		27		(79.4	)		(116.3	)		18.9		NM
24	Casa Marina, A Waldorf Astoria Resort		7			15	NM		25		41		(40.5	)		26.8			37.7		NM
25	The Reach Key West, Curio Collection		2			5	NM		10		14		(27.5	)		14.8			34.4		NM
26	Hilton Denver City Center		(1	)		15	NM		10		38		(73.2	)		(8.4	)		39.8		NM
27	Royal Palm South Beach Miami		4			11	NM		15		29		(49.1	)		26.9			37.7		NM
28	DoubleTree Hotel Washington DC – Crystal City		(3	)		6	NM		8		29		(71.0	)		(36.1	)		22.4		NM
29	DoubleTree Hotel San Jose		—			11	NM		13		38		(65.1	)		2.2			30.2		NM
30	Juniper Hotel Cupertino, Curio Collection		(1	)		6	NM		4		15		(71.8	)		(14.7	)		36.7		NM
	Sub-total Core Hotels	$	(67	)	$	592	NM	$	570	$	1,906		(70.1	)%		(11.8	)%		31.1	%	NM

	All Other Hotels	$	(28	)	$	79	NM	$	138	$	358		(61.8	)%		(19.9	)%		21.9	%	NM
	Total Consolidated Portfolio⁽³⁾	$	(95	)	$	671	NM	$	708	$	2,264		(68.8	)%		(13.4	)%		29.6	%	NM

⁽¹⁾

Percentage change is not meaningful.

⁽²⁾

Calculated based on unrounded numbers.

⁽³⁾

Assumes hotels were acquired on January 1, 2019.


27 \|




		Properties Acquired & Sold

Acquisitions & W New Orleans French Quarter


28 \|


	Properties Acquired and Sold

	Properties Acquired


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	502
Hyatt Regency Mission Bay Spa and Marina	San Diego, CA	438
Boston Marriott Newton	Newton, MA	430
Le Meridien New Orleans⁽²⁾	New Orleans, LA	410
W Chicago – City Center	Chicago, IL	403
Royal Palm South Beach Miami, a Tribute Portfolio Resort	Miami Beach, FL	393
Le Meridien San Francisco	San Francisco, CA	360
JW Marriott San Francisco Union Square	San Francisco, CA	344
Hyatt Centric Fisherman’s Wharf	San Francisco, CA	316
Hotel Indigo San Diego Gaslamp Quarter	San Diego, CA	210
Courtyard Washington Capitol Hill/Navy Yard	Washington, DC	204
Homewood Suites by Hilton Seattle Convention Center Pike Street	Seattle, WA	195
Hilton Checkers Los Angeles	Los Angeles, CA	193
Ace Hotel Downtown Los Angeles⁽²⁾	Los Angeles, CA	182
Hotel Adagio, Autograph Collection	San Francisco, CA	171
W New Orleans – French Quarter	New Orleans, LA	97
			5,981

(1)

Chesapeake acquisition closed in September 2019 for total consideration of approximately $2.5 billion, including acquisition costs.

(2)

Sold in December 2019.


29 \|


	Properties Acquired and Sold (continued)

	Properties Sold

Hotel	Location	Month Sold	Room Count		Gross Proceeds
					(in millions)
2018 Sales:

Hilton Rotterdam	Rotterdam, Netherlands	January 2018		254	$	62.2
Embassy Suites Portfolio - 3 Hotels	Domestic US	February 2018		676		95.8
UK Portfolio - 7 Hotels	United Kingdom	February 2018		1,334		188.5
Hilton Durban	Durban, South Africa	February 2018		328		32.5
Hilton Berlin⁽¹⁾	Berlin, Germany	May 2018		601		140.0

2018 Total				3,193	$	519.0

2019 Sales:

Pointe Hilton Squaw Peak Resort	Phoenix, Arizona	February 2019		563	$	51.4
Hilton Nuremberg	Nuremberg, Germany	March 2019		152		17.5
Hilton Atlanta Airport	Atlanta, Georgia	June 2019		507		101.0

Hilton New Orleans Airport⁽²⁾	New Orleans, Louisiana	June 2019		317		48.0
Embassy Suites Parsippany⁽²⁾	Parsippany, New Jersey	June 2019		274		17.0
				591		65.0

Conrad Dublin⁽³⁾	Dublin, Ireland	November 2019		192		61.0
Ace Hotel Downtown Los Angeles	Los Angeles, California	December 2019		182		117.0
Le Meridien New Orleans	New Orleans, Louisiana	December 2019		410		84.0

2019 Total				2,597	$	496.9

2020 Sales:

Hilton São Paulo Morumbi	São Paulo, Brazil	February 2020		503	$	117.5
Embassy Suites Washington DC Georgetown	Washington, D.C.	February 2020		197		90.4

2020 Total				700	$	207.9

Grand Total⁽⁴⁾				6,490	$	1,223.8

⁽¹⁾

The unconsolidated hotel was sold for total gross proceeds 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⁾

The unconsolidated hotel was sold for total gross proceeds of approximately $128 million, of which $61 million represents Park’s pro rata share.

⁽⁴⁾

To date, Park has sold a total of 23 hotels. In addition, in December 2019, Park terminated the ground lease on the Hilton Sheffield Hotel.


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		Liquidity and Capital Structure

Debt Summary Casa Marina, a Waldorf Astoria Resort Hilton Orlando Bonnet Creek New York Hilton Midtown


31 \|


	Liquidity and Capital Structure

	Fixed and Variable Rate Debt

(unaudited, dollars in millions)

Debt

Collateral

Interest Rate

Maturity Date

As of

September 30, 2020

Fixed Rate Debt

Mortgage loan

DoubleTree Hotel Spokane City Center

3.55%

October 2020⁽¹⁾

Mortgage loan

Hilton Denver City Center

4.90%

August 2022⁽²⁾

Mortgage loan

Hilton Checkers Los Angeles

4.11%

March 2023

Mortgage loan

W Chicago - City Center

4.25%

August 2023

Commercial mortgage-backed

securities loan

Hilton San Francisco Union Square, Parc 55 San Francisco - a Hilton Hotel

4.11%

November 2023

725

Mortgage loan

Hyatt Regency Boston

4.25%

July 2026

140

Commercial mortgage-backed

securities loan

Hilton Hawaiian Village Beach Resort

4.20%

November 2026

1,275

Mortgage loan

Hilton Santa Barbara Beachfront Resort

4.17%

December 2026

165

2025 Senior Secured Notes

7.50%

June 2025

650

2028 Senior Secured Notes

5.88%

October 2028

725

Finance lease obligations

3.07%

2021 to 2022

Total Fixed Rate Debt

5.06%⁽³⁾

3,856

Variable Rate Debt

Revolving credit facility⁽⁴⁾⁽⁵⁾

Unsecured

L + 3.00%

2021 to 2023⁽⁶⁾

601

2016 Term Loan⁽⁷⁾

Unsecured

N/A

December 2021

—

Mortgage loan

DoubleTree Hotel Ontario Airport

L + 2.25%

May 2022

2019 Term Facility⁽⁴⁾⁽⁸⁾

Unsecured

L + 2.65%

September 2024

670

Total Variable Rate Debt

3.08%⁽³⁾

1,301

Add: unamortized premium

Less: unamortized deferred financing costs and discount

(40

)

Total Debt⁽⁹⁾

4.63%⁽³⁾

5,121

⁽¹⁾

Park is actively negotiating a one-year maturity date extension to October 2021. The loan was not paid in full at its originally scheduled maturity date in October 2020 due to current market conditions. Failure to pay off the loan constitutes an event of default, however, Park has not received, nor does it expect to receive, notice of the lenders’ intent to foreclose.

⁽²⁾

The loan matures in August 2042 but is callable by the lender beginning August 2022.

⁽³⁾

Calculated on a weighted average basis.

⁽⁴⁾

In May 2020, Park amended its credit facilities which added a LIBOR floor of 25 basis points.

⁽⁵⁾

During September 2020 Park repaid $80 million of the Revolver.

⁽⁶⁾

In September 2020, Park increased its aggregate commitments under the Revolver by $75 million to $1.075 billion and extended the maturity date with respect to $901 million of the aggregate commitments for two years to December 2023, including all $75 million of the increased Revolver commitments. The maturity date for the remaining $174 million of commitments under the Revolver is December 2021.

⁽⁷⁾

In September 2020, Park fully repaid the 2016 Term Loan using the proceeds from the 2028 Senior Secured Notes.

⁽⁸⁾

In August 2019, the Company, Park Intermediate Holdings LLC and PK Domestic entered into a credit agreement with Bank of America, N.A. and certain other lenders, providing a $950 million unsecured delayed draw term loan facility (the “2019 Term Facility”), with the $850 million, five-year delayed draw term loan tranche fully drawn on September 18, 2019 to fund the merger with Chesapeake Lodging Trust. The $100 million, two-year delayed draw term loan tranche was unfunded and the commitments thereunder terminated on September 18, 2019. On December 31, 2019, Park repaid $180 million of the 2019 Term Facility.

⁽⁹⁾

Excludes $225 million of Park’s share of debt of its unconsolidated joint ventures.


32 \|


	Liquidity and Capital Structure

	Credit Facility Amendments

•

Park further amended its credit facilities to:

▪

increase the commitments under the Revolver by $75 million to $1.075 billion

▪

extend the maturity date with respect to $901 million of the aggregate commitments for two years to December 2023, including all $75 million of the increased Revolver commitments

▪

extend the waiver period for the testing of the financial covenants to the date the financial statements are delivered for the quarter ended March 31, 2022

▪

extend the temporary periods for which certain financial covenants are adjusted once quarterly testing of financial covenants resumes

▪

increase the mandatory repayment carve out for equity issuances from $500 million to $1 billion, so long as proceeds from the issuances are used for capital expenditures and hotel acquisitions that become part of the unencumbered pool

▪

extend the minimum liquidity covenant through December 2022 and adjustment to include, through December 24, 2021, 50% of the Revolver commitments that mature in December 2021

▪

obtain the ability to pay a $0.01 per share per fiscal quarter dividend during the extended waiver period

▪

modify certain restrictions and covenants for the duration of the extended waiver period, including certain mandatory prepayments

•

Additional agreements:

▪

maintain the existing guarantees by certain Park-affiliated entities until repayment of the Revolver and 2019 Term Facility

▪

maintain existing pledges of equity interests in Park-affiliated entities owning certain unencumbered assets during the extended waiver period and until the ratio of net debt to EBITDA falls below 6.50x for two consecutive quarters

•

Subject to various exceptions (including those listed below), additional debt covenants during the relief period restrict:

▪

stock repurchases

▪

prepayments of other indebtedness (except for certain refinancings)

▪

capital expenditures (except for certain approved budgeted amounts, and emergency, life safety and ordinary course maintenance repairs)

▪

asset dispositions and transfers (except in the case of 1031 exchanges)

▪

investments, acquisitions or mergers (except for $200 million general investments bucket)

▪

incurrence of other indebtedness (except for certain refinancings, certain capital markets transactions and up to $350 of mortgage debt)


33 \|


	Liquidity and Capital Structure

	Cash Preservation: Estimated Burn Rate

•

Based on Park’s liquidity as of September 30, 2020 of $1.6 billion and assuming a total burn rate of roughly $50 million per month, which takes into account current operations from both open and suspended hotels and using an accrual-based methodology, Park estimates it currently has over two and a half years of liquidity available to meet its financial obligations.

•

Park continues to take proactive measures to reduce the near-term burn rate, including deferral of payments, hiring freezes and other cost reduction methods.

•

This estimate does not take into account capital expenditures (which were reduced by 75% in 2020 to approximately $4 million per month) or any possible alternative sources of revenue that may arise, any hotel property dispositions for the remainder of the year or payment of cash dividends or other distributions not already declared and paid in 2020, if any. This estimate also does not take into account the impact of the amendments to the credit facility as discussed on slide 33. The estimated burn rate has not been reduced by any amount available to Park under existing or future debt facilities, or proceeds from issuance of any additional debt, equity or equity-linked securities.


34 \|




		Definitions

Definitions Hilton Orlando Bonnet Creek Hilton Denver City Center W Chicago –City Center


35 \|


	Definitions

Pro-forma

The Company presents certain data for its consolidated hotels on a pro-forma hotel basis as supplemental information for investors: Pro-forma Hotel Revenues, Pro-forma RevPAR, Pro-forma Total RevPAR, Pro-forma Occupancy, Pro-forma ADR, Pro-forma Adjusted EBITDA, Pro-forma Hotel Adjusted EBITDA and Pro-forma Hotel Adjusted EBITDA Margin and Net debt to Pro-forma Adjusted EBITDA ratio. The Company presents pro-forma hotel results to help the Company and its investors evaluate the ongoing operating performance of its hotels. The Company’s pro-forma metrics exclude results from property dispositions and include results from property acquisitions as though such acquisitions occurred on the earliest period presented.

EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin

Earnings (loss) before interest expense, taxes and depreciation and amortization (“EBITDA”), presented herein, reflects net income (loss) excluding depreciation and amortization, interest income, interest expense, income taxes and interest expense, income tax and depreciation and amortization included in equity in earnings (losses) from investments in affiliates.

Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude:

• Gains or losses on sales of assets for both consolidated and unconsolidated investments;

• Transition expense related to the Company’s establishment as an independent, publicly-traded company;

• Costs associated with hotel acquisitions or dispositions expensed during the period;

• Severance expense;

• Share-based compensation expense;

• Casualty gains or losses;

• Impairment losses; and

• Other items that management believes are not representative of the Company’s current or future operating performance.

Hotel Adjusted EBITDA measures hotel-level results before debt service, depreciation and corporate expenses of the Company’s consolidated hotels but excluding hotels owned by unconsolidated affiliates and is a key measure of the Company’s profitability. The Company presents Hotel Adjusted EBITDA to help the Company and its investors evaluate the ongoing operating performance of the Company’s consolidated hotels.

Hotel Adjusted EBITDA margin is calculated as Hotel Adjusted EBITDA divided by total hotel revenue.


36 \|


	Definitions (continued)

EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are not recognized terms under United States (“U.S.”) GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company’s definitions of EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin may not be comparable to similarly titled measures of other companies.

The Company believes that EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin provide useful information to investors about the Company and its financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are among the measures used by the Company’s management team to make day-to-day operating decisions and evaluate its operating performance between periods and between REITs by removing the effect of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results; and (ii) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in the industry.

EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss) or other methods of analyzing the Company’s operating performance and results as reported under U.S. GAAP.

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 non-GAAP measures of the Company’s performance. The Company calculates funds from (used in) operations (“FFO”) attributable to stockholders for a given operating period in accordance with standards established by the National Association of Real Estate Investment Trusts (“Nareit”), as net income (loss) attributable to stockholders (calculated in accordance with U.S. GAAP), excluding depreciation and amortization, gains or losses on sales of assets, impairment, and the cumulative effect of changes in accounting principles, plus adjustments for unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect the Company’s pro rata share of the FFO of those entities on the same basis. As noted by Nareit in its December 2018 “Nareit Funds from Operations White Paper – 2018 Restatement,” since real estate values historically have risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For these reasons, Nareit adopted the FFO metric in order to promote an industry-wide measure of REIT operating performance. The Company believes Nareit FFO provides useful information to investors regarding its operating performance and can facilitate comparisons of operating performance between periods and between REITS. The Company’s presentation may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current Nareit definition, or that interpret the current Nareit definition differently. The Company calculates Nareit FFO per diluted share as Nareit FFO divided by the number of fully diluted shares outstanding during a given operating period.


37 \|


	Definitions (continued)

The Company also presents Adjusted FFO attributable to stockholders and Adjusted FFO per diluted share when evaluating its performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding the Company’s ongoing operating performance. Management historically has made the adjustments detailed below in evaluating its performance and in its annual budget process. Management believes that the presentation of Adjusted FFO provides useful supplemental information that is beneficial to an investor’s complete understanding of operating performance. The Company adjusts Nareit FFO attributable to stockholders for the following items, which may occur in any period, and refers to this measure as Adjusted FFO attributable to stockholders:

• Costs associated with hotel acquisitions or dispositions expensed during the period;

• Severance expense;

• Share-based compensation expense;

• Casualty gains or losses; and

• Other items that management believes are not representative of the Company’s current or future operating performance.

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 share of investments in affiliate debt, excluding unamortized deferred financing costs; reduced by (a) cash and cash equivalents; and (b) restricted cash and cash equivalents.

The Company believes Net debt provides useful information about its indebtedness to investors as it is frequently used by securities analysts, investors and other interested parties to compare the indebtedness of companies. Net debt should not be considered as a substitute to debt presented in accordance with U.S. GAAP. Net debt may not be comparable to a similarly titled measure of other companies.

Net Debt to Adjusted EBITDA Ratio

Net debt to Adjusted EBITDA ratio, presented herein, is a non-GAAP financial measure and is included as it is frequently used by securities analysts, investors and other interested parties to compare the financial condition of companies. Net debt to Adjusted EBITDA ratio should not be considered as an alternative to measures of financial condition derived in accordance with U.S. GAAP and it may not be comparable to a similarly titled measure of other companies.

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. Room nights available to guests have not been adjusted for suspended or reduced operations at certain of Park’s hotels as a result of COVID-19. Occupancy measures the utilization of the Company’s hotels’ available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable Average Daily Rate (“ADR”) levels as demand for hotel rooms increases or decreases.


38 \|


	Definitions (continued)

Average Daily Rate

ADR represents rooms revenue divided by total number of room nights sold in a given period. ADR measures average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the hotel industry, and management uses ADR to assess pricing levels that the Company is able to generate by type of customer, as changes in rates have a more pronounced effect on overall revenues and incremental profitability than changes in occupancy, as described above.

Revenue per Available Room

Revenue per Available Room (“RevPAR”) represents rooms revenue divided by total number of room nights available to guests for a given period. Room nights available to guests have not been adjusted for suspended or reduced operations at certain of Park’s hotels as a result of COVID-19. Management considers RevPAR to be a meaningful indicator of the Company’s performance as it provides a metric correlated to two primary and key factors of operations at a hotel or group of hotels: occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods.

Total RevPAR

Total RevPAR represents rooms, food and beverage and other hotel revenues divided by the total number of room nights available to guests for a given period. Room nights available to guests have not been adjusted for suspended or reduced operations at certain of Park’s hotels as a result of COVID-19. Management considers Total RevPAR to be a meaningful indicator of the Company’s performance as approximately one-third of revenues are earned from food and beverage and other hotel revenues. Total RevPAR is also a useful indicator in measuring performance over comparable periods.

References to RevPAR, Total RevPAR and ADR are presented on a currency neutral basis (prior periods are reflected using current period exchange rates), unless otherwise noted.


39 \|


	Analyst Coverage

Analyst	Company	Phone	Email
Shaun Kelley	Bank of America	(646) 855-1005	shaun.kelley@bofa.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) 633-8191	neil.malkin@capitalone.com
Smedes Rose	Citi Research	(212) 816-6243	smedes.rose@citi.com
Chris Woronka	Deutsche Bank	(212) 250-9376	chris.woronka@db.com
Richard Hightower	Evercore ISI	(212) 752-0886	rich.hightower@evercoreisi.com
Stephen Grambling	Goldman Sachs	(212) 902-7832	stephen.grambling@gs.com
Lukas Hartwich	Green Street	(949) 640-8780	lhartwich@greenst.com
David Katz	Jefferies	(212) 323-3355	dkatz@jefferies.com
Brandt Montour	JP Morgan	(212) 622-1111	brandt.a.montour@jpmorgan.com
Bill Crow	Raymond James	(727) 567-2594	bill.crow@raymondjames.com
Patrick Scholes	Truist Securities	(212) 319-3915	patrick.scholes@research.Truist.com
Robin Farley	UBS	(212) 713-2060	robin.farley@ubs.com
Dori Kesten	Wells Fargo	(617) 603-4262	dori.kesten@wellsfargo.com


40 \|

Park Hotels & Resorts Inc. - FORM 8-K - EX-99.2 - November 5, 2020

Attached files

Park Hotels & Resorts Inc. Reports