EX-99.2 3 pk-ex99_2.htm EX-99.2 EX-99.2

 

Exhibit 99.2

 

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PARK HOTELS & RESORTS First Quarter 2021 Supplemental Data MARCH Royal Palm South Beach Miami, a Tribute Portfolio Resort Parc 55 San Francisco, a Hilton Hotel Hilton Hawaiian Village Waikiki Beach Resor

 

 

 

 

\\

 

"

 

 

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 47 premium-branded hotels and resorts with approximately 30,000 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, including expected dates that its hotels will break even or achieve positive Hotel Adjusted EBITDA, the impact to the Company's business and financial condition and that of its hotel management companies, measures being taken in response to COVID-19, the impact from macroeconomic factors (including inflation, increases in interest rates, potential economic slowdown or a recession and geopolitical conflicts), 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,” “hopes” 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.

 

Forward-looking statements are based on current expectations of management and therefore involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to 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, 2021, 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

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1. Financial Statements

4

 

 

 

2. Supplementary Financial Information

7

 

 

 

3. Outlook

18

 

 

 

4. Portfolio and Operating Metrics

22

 

 

 

5. Properties Acquired and Sold

41

 

 

 

6. Capital Structure

44

 

 

 

7. Definitions

46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 |

 

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Financial Statements

 

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Casa Marina, a Waldorf Astoria Resort Hilton Chicago Hyatt Regency Mission Bay Spa and Marina

 

4 |

 

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Financial Statements

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

(in millions, except share and per share data)

 

 

September 30, 2022

 

 

December 31, 2021

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Property and equipment, net

 

$

8,292

 

 

$

8,511

 

Investments in affiliates

 

 

4

 

 

 

15

 

Intangibles, net

 

 

43

 

 

 

44

 

Cash and cash equivalents

 

 

971

 

 

 

688

 

Restricted cash

 

 

29

 

 

 

75

 

Accounts receivable, net of allowance for doubtful accounts of $2 and $2

 

 

144

 

 

 

96

 

Prepaid expenses

 

 

40

 

 

 

35

 

Other assets

 

 

39

 

 

 

69

 

Operating lease right-of-use assets

 

 

224

 

 

 

210

 

TOTAL ASSETS (variable interest entities - $240 and $237)

 

$

9,786

 

 

$

9,743

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Debt

 

$

4,670

 

 

$

4,672

 

Accounts payable and accrued expenses

 

 

254

 

 

 

156

 

Due to hotel managers

 

 

123

 

 

 

111

 

Other liabilities

 

 

177

 

 

 

174

 

Operating lease liabilities

 

 

243

 

 

 

227

 

Total liabilities (variable interest entities - $220 and $219)

 

 

5,467

 

 

 

5,340

 

Stockholders' Equity

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share, 6,000,000,000 shares

   authorized, 225,354,874 shares issued and 224,842,791 shares outstanding

   as of September 30, 2022 and 236,888,804 shares issued and 236,483,990

   shares outstanding as of December 31, 2021

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

4,325

 

 

 

4,533

 

Retained earnings (accumulated deficit)

 

 

38

 

 

 

(83

)

Total stockholders' equity

 

 

4,365

 

 

 

4,452

 

Noncontrolling interests

 

 

(46

)

 

 

(49

)

Total equity

 

 

4,319

 

 

 

4,403

 

TOTAL LIABILITIES AND EQUITY

 

$

9,786

 

 

$

9,743

 

 

 

 

 

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Financial Statements (continued)

 

 

 

 

 

Condensed Consolidated Statements of Operations

 

 

 

 

 

(unaudited, in millions, except per share data)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2019

 

 

2022

 

 

2021

 

 

2019

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

$

428

 

 

$

274

 

 

$

430

 

 

$

1,153

 

 

$

587

 

 

$

1,267

 

Food and beverage

 

 

148

 

 

 

76

 

 

 

156

 

 

 

431

 

 

 

152

 

 

 

534

 

Ancillary hotel

 

 

67

 

 

 

58

 

 

 

64

 

 

 

198

 

 

 

137

 

 

 

174

 

Other

 

 

19

 

 

 

15

 

 

 

22

 

 

 

54

 

 

 

35

 

 

 

59

 

Total revenues

 

 

662

 

 

 

423

 

 

 

672

 

 

 

1,836

 

 

 

911

 

 

 

2,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

 

115

 

 

 

76

 

 

 

114

 

 

 

298

 

 

 

170

 

 

 

334

 

Food and beverage

 

 

115

 

 

 

63

 

 

 

117

 

 

 

321

 

 

 

126

 

 

 

371

 

Other departmental and support

 

 

162

 

 

 

119

 

 

 

153

 

 

 

453

 

 

 

298

 

 

 

453

 

Other property-level

 

 

58

 

 

 

51

 

 

 

54

 

 

 

173

 

 

 

151

 

 

 

152

 

Management fees

 

 

30

 

 

 

19

 

 

 

32

 

 

 

84

 

 

 

40

 

 

 

101

 

Casualty and impairment loss, net

 

 

3

 

 

 

2

 

 

 

8

 

 

 

4

 

 

 

7

 

 

 

8

 

Depreciation and amortization

 

 

67

 

 

 

68

 

 

 

61

 

 

 

204

 

 

 

213

 

 

 

184

 

Corporate general and administrative

 

 

16

 

 

 

14

 

 

 

14

 

 

 

48

 

 

 

48

 

 

 

47

 

Acquisition costs

 

 

—

 

 

 

—

 

 

 

59

 

 

 

—

 

 

 

—

 

 

 

65

 

Other

 

 

18

 

 

 

14

 

 

 

23

 

 

 

52

 

 

 

34

 

 

 

61

 

Total expenses

 

 

584

 

 

 

426

 

 

 

635

 

 

 

1,637

 

 

 

1,087

 

 

 

1,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on sales of assets, net

 

 

14

 

 

 

(11

)

 

 

1

 

 

 

13

 

 

 

(5

)

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

92

 

 

 

(14

)

 

 

38

 

 

 

212

 

 

 

(181

)

 

 

278

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

4

 

 

 

—

 

 

 

2

 

 

 

5

 

 

 

—

 

 

 

5

 

Interest expense

 

 

(61

)

 

 

(66

)

 

 

(33

)

 

 

(185

)

 

 

(195

)

 

 

(98

)

Equity in earnings (losses) from investments in affiliates

 

 

1

 

 

 

—

 

 

 

3

 

 

 

6

 

 

 

(6

)

 

 

18

 

Other gain (loss), net

 

 

1

 

 

 

(5

)

 

 

(1

)

 

 

98

 

 

 

(7

)

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

37

 

 

 

(85

)

 

 

9

 

 

 

136

 

 

 

(389

)

 

 

202

 

Income tax benefit (expense)

 

 

3

 

 

 

3

 

 

 

—

 

 

 

2

 

 

 

2

 

 

 

(12

)

Net income (loss)

 

 

40

 

 

 

(82

)

 

 

9

 

 

 

138

 

 

 

(387

)

 

 

190

 

Net income attributable to noncontrolling interests

 

 

(5

)

 

 

(4

)

 

 

(4

)

 

 

(10

)

 

 

(5

)

 

 

(7

)

Net income (loss) attributable to stockholders

 

$

35

 

 

$

(86

)

 

$

5

 

 

$

128

 

 

$

(392

)

 

$

183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share – Basic

 

$

0.15

 

 

$

(0.36

)

 

$

0.02

 

 

$

0.55

 

 

$

(1.66

)

 

$

0.90

 

Earnings (loss) per share – Diluted

 

$

0.15

 

 

$

(0.36

)

 

$

0.02

 

 

$

0.55

 

 

$

(1.66

)

 

$

0.90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – Basic

 

 

224

 

 

 

236

 

 

 

206

 

 

 

229

 

 

 

236

 

 

 

203

 

Weighted average shares outstanding – Diluted

 

 

224

 

 

 

236

 

 

 

207

 

 

 

229

 

 

 

236

 

 

 

204

 

 

 

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Supplementary Financial Information

 

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Juniper Hotel Cupertino, Curio Collection Hotel Adagio, Autograph Collection The Reach Key West, Curio Collection

 

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Supplementary Financial Information

 

 

 

 

 

EBITDA and Adjusted EBITDA

 

 

 

 

 

 

(unaudited, in millions)

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2019

 

 

2022

 

 

2021

 

 

2019

 

Net income (loss)

 

$

40

 

 

$

(82

)

 

$

9

 

 

$

138

 

 

$

(387

)

 

$

190

 

Depreciation and amortization expense

 

 

67

 

 

 

68

 

 

 

61

 

 

 

204

 

 

 

213

 

 

 

184

 

Interest income

 

 

(4

)

 

 

—

 

 

 

(2

)

 

 

(5

)

 

 

—

 

 

 

(5

)

Interest expense

 

 

61

 

 

 

66

 

 

 

33

 

 

 

185

 

 

 

195

 

 

 

98

 

Income tax (benefit) expense

 

 

(3

)

 

 

(3

)

 

 

—

 

 

 

(2

)

 

 

(2

)

 

 

12

 

Interest expense, income tax and depreciation and

     amortization included in equity in earnings from

     investments in affiliates

 

 

2

 

 

 

3

 

 

 

7

 

 

 

7

 

 

 

8

 

 

 

19

 

EBITDA

 

 

163

 

 

 

52

 

 

 

108

 

 

 

527

 

 

 

27

 

 

 

498

 

(Gain) loss on sales of assets, net

 

 

(14

)

 

 

11

 

 

 

(1

)

 

 

(13

)

 

 

5

 

 

 

(20

)

Gain on sale of investments in affiliates(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(92

)

 

 

—

 

 

 

—

 

Acquisition costs

 

 

—

 

 

 

—

 

 

 

59

 

 

 

—

 

 

 

—

 

 

 

65

 

Severance expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

Share-based compensation expense

 

 

4

 

 

 

5

 

 

 

4

 

 

 

13

 

 

 

15

 

 

 

12

 

Casualty and impairment loss, net

 

 

3

 

 

 

2

 

 

 

8

 

 

 

4

 

 

 

7

 

 

 

8

 

Other items

 

 

2

 

 

 

7

 

 

 

2

 

 

 

8

 

 

 

7

 

 

 

(2

)

Adjusted EBITDA

 

$

158

 

 

$

77

 

 

$

180

 

 

$

447

 

 

$

61

 

 

$

563

 

 

 

(1) Included in other gain (loss), net in the condensed consolidated statements of operations.

 

 

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Supplementary Financial Information (continued)

 

 

 

 

 

Pro-forma Hotel Adjusted EBITDA and Pro-forma Hotel Adjusted EBITDA Margin

 

 

 

 

 

 

 

(unaudited, dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2019

 

 

2022

 

 

2021

 

 

2019

 

Adjusted EBITDA(1)

 

$

158

 

 

$

77

 

 

$

180

 

 

$

447

 

 

$

61

 

 

$

563

 

Less: Adjusted EBITDA from investments in affiliates

 

 

(4

)

 

 

(4

)

 

 

(9

)

 

 

(20

)

 

 

(4

)

 

 

(31

)

Add: All other(2)

 

 

13

 

 

 

11

 

 

 

12

 

 

 

37

 

 

 

33

 

 

 

41

 

Hotel Adjusted EBITDA

 

 

167

 

 

 

84

 

 

 

183