pk-ex992_12.htm

EX-99.2 3 pk-ex992_12.htm EX-99.2 pk-ex992_12.htm

Exhibit 99.2

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 Resort


	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. 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, 2018, 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 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 before interest expense, taxes and depreciation and amortization (“EBITDA”), Adjusted EBITDA, Hotel Adjusted EBITDA, Comparable 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.


2 \|



		Table of Contents




		1. Financial Statements		4
		2. Supplementary Financial Information		7
		3. Guidance		17
		4. Portfolio and Operating Metrics		21
		5. Properties Acquired & Sold		32
		6. Debt Summary		35
		7. Definitions		37

Waldorf Astoria Orlando lemeridien san Francisco new York Hilton midtown

Waldorf Astoria Orlando Le Meridien San Francisco New York Hilton Midtown


3 \|



		Financial Statements

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


4 \|


	Financial Statements

	Consolidated Balance Sheets

	December 31,
	2019			2018
ASSETS
Property and equipment, net	$	9,594		$	7,975
Assets held for sale, net		71			—
Investments in affiliates		35			50
Goodwill		607			607
Intangibles, net		46			27
Cash and cash equivalents		346			410
Restricted cash		40			15
Accounts receivable, net of allowance for doubtful accounts of $2 and $1		180			153
Prepaid expenses		83			82
Other assets		40			44
Operating lease right-of-use assets		248			—
TOTAL ASSETS (variable interest entities - $242 and $242)	$	11,290		$	9,363
LIABILITIES AND EQUITY
Liabilities
Debt	$	3,871		$	2,948
Accounts payable and accrued expenses		217			183
Due to hotel managers		159			137
Due to Hilton Grand Vacations		—			135
Deferred income tax liabilities		50			42
Other liabilities		282			332
Operating lease liabilities		260			—
Total liabilities (variable interest entities - $219 and $217)		4,839			3,777

Stockholders' Equity
Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 239,589,639 shares issued and 239,386,877 shares outstanding as of December 31, 2019 and 201,290,458 shares issued and 201,198,381 shares outstanding as of December 31, 2018		2			2
Additional paid-in capital		4,575			3,589
Retained earnings		1,922			2,047
Accumulated other comprehensive loss		(3	)		(6	)
Total stockholders' equity		6,496			5,632
Noncontrolling interests		(45	)		(46	)
Total equity		6,451			5,586
TOTAL LIABILITIES AND EQUITY	$	11,290		$	9,363


5 \|


	Financial Statements (continued)

	Consolidated Statements of Operations

upplementary financial information juniper hotel, curio collection hotel adagio, autograph collection the reach, a waldorf Astoria resort

(in millions, except per share data)


	Three Months Ended December 31,						Year Ended December 31,
	2019			2018			2019			2018
Revenues
Rooms	$	500		$	418		$	1,771		$	1,716
Food and beverage		209			181			743			713
Ancillary hotel		83			68			253			236
Other		18			19			77			72
Total revenues		810			686			2,844			2,737

Operating expenses
Rooms		133			112			467			449
Food and beverage		147			127			518			495
Other departmental and support		185			158			638			627
Other property-level		67			50			219			207
Management fees		38			34			139			137
Casualty (gain) loss and impairment loss, net		(26	)		—			(18	)		(1	)
Depreciation and amortization		80			69			264			277
Corporate general and administrative		15			18			62			65
Acquisition costs		5			—			70			—
Other		17			19			78			73
Total expenses		661			587			2,437			2,329

(Loss) gain on sales of assets, net		(1	)		(2	)		19			96

Operating income		148			97			426			504

Interest income		1			2			6			6
Interest expense		(42	)		(33	)		(140	)		(127	)
Equity in earnings from investments in affiliates		(4	)		2			14			18
Loss on foreign currency transactions		1			1			(1	)		(3	)
Other gain (loss), net		45			(4	)		46			102

Income before income taxes		149			65			351			500
Income tax expense		(23	)		(10	)		(35	)		(23	)
Net income		126			55			316			477
Net income attributable to noncontrolling interests		(3	)		(1	)		(10	)		(5	)
Net income attributable to stockholders	$	123		$	54		$	306		$	472

Earnings per share:
Earnings per share - Basic	$	0.51	$	0.27	$	1.44	$	2.32
Earnings per share - Diluted	$	0.51	$	0.27	$	1.44	$	2.31

Weighted average shares outstanding - Basic		239		200		212		203
Weighted average shares outstanding - Diluted		240		201		213		204


6 \|




		Supplementary Financial Information


7 \|


	Supplementary Financial Information

	EBITDA and Adjusted EBITDA

(unaudited, in millions)	Three Months Ended December 31,						Year Ended December 31,
	2019			2018			2019			2018
Net income	$	126		$	55		$	316		$	477
Depreciation and amortization expense		80			69			264			277
Interest income		(1	)		(2	)		(6	)		(6	)
Interest expense		42			33			140			127
Income tax expense		23			10			35			23
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates		4			6			23			26
EBITDA		274			171			772			924
Loss (gain) on sales of assets, net		1			2			(19	)		(96	)
Gain on sale of investments in affiliates⁽¹⁾		(44	)		—			(44	)		(107	)
(Gain) loss on foreign currency transactions		(1	)		(1	)		1			3
Transition expense		—			—			—			3
Acquisition costs		5			—			70			—
Severance expense		—			—			2			2
Share-based compensation expense		4			4			16			16
Casualty (gain) loss and impairment loss, net		(26	)		—			(18	)		(1	)
Other items		10			8			6			10
Adjusted EBITDA	$	223		$	184		$	786		$	754

__________________________________

⁽¹⁾

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


8 \|


	Supplementary Financial Information (continued)

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

	Three Months Ended						Year Ended
(unaudited, dollars in millions)	December 31,						December 31,
	2019			2018			2019			2018
Adjusted EBITDA⁽²⁾	$	223		$	184		$	786		$	754
Less: Adjusted EBITDA from investments in affiliates		6			9			37			45
Less: All other⁽³⁾		(12	)		(13	)		(53	)		(52	)
Hotel Adjusted EBITDA⁽²⁾		229			188			802			761
Add: Adjusted EBITDA from hotels acquired⁽¹⁾		—			41			129			181
Less: Adjusted EBITDA from hotels disposed of		2			13			21			54
Less: Adjusted EBITDA from other non-comparable hotels		16			6			15			11
Pro-forma Comparable Hotel Adjusted EBITDA⁽¹⁾	$	211		$	210		$	895		$	877

	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018
Total Revenues	$	810		$	686		$	2,844		$	2,737
Less: Other revenue		18			19			77			72
Add: Revenue from hotels acquired⁽¹⁾		—			134			406			561
Less: Revenues from hotels disposed of		13			56			92			255
Less: Revenues from other non-comparable hotels⁽⁴⁾		32			13			56			32
Pro-forma Comparable Hotel Revenues⁽¹⁾	$	747		$	732		$	3,025		$	2,939

	Three Months Ended									Year Ended
	December 31,									December 31,
	2019			2018			Change⁽⁵⁾			2019			2018			Change⁽⁵⁾
Pro-forma Comparable Hotel Revenues⁽¹⁾	$	747		$	732			2.1	%	$	3,025		$	2,939			3.0	%
Pro-forma Comparable Hotel Adjusted EBITDA⁽¹⁾	$	211		$	210			0.7	%	$	895		$	877			2.1	%
Pro-forma Comparable Hotel Adjusted EBITDA margin⁽¹⁾		28.3	%		28.7	%		(40	) bps		29.6	%		29.9	%		(30	) bps

⁽¹⁾

Assumes hotels were acquired on January 1, 2018.

⁽²⁾

Includes EBITDA of $34 million and $42 million for the three and twelve months ended December 31, 2019, respectively, for the period of ownership of the 18 hotels acquired in the Chesapeake merger.

⁽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 consolidated statements of operations.

⁽⁴⁾

Includes revenues from Park's non-comparable hotels and rental revenues from office space and antenna rent leases located at its hotels.

⁽⁵⁾

Percentages are calculated based on unrounded numbers.


9 \|


	Supplementary Financial Information (continued)

	Nareit FFO and Adjusted FFO

(unaudited, in millions, except per share data)	Three Months Ended December 31,						Year Ended December 31,
	2019			2018			2019			2018
Net income attributable to stockholders	$	123		$	54		$	306		$	472
Depreciation and amortization expense		80			69			264			277
Depreciation and amortization expense attributable to noncontrolling interests		(1	)		(1	)		(4	)		(4	)
Loss (gain) on sales of assets, net		1			2			(19	)		(96	)
Gain on sale of investments in affiliates⁽¹⁾		(44	)		—			(44	)		(107	)
Equity investment adjustments:
Equity in earnings from investments in affiliates		4			(2	)		(14	)		(18	)
Pro rata FFO of investments in affiliates		4			6			31			34
Nareit FFO attributable to stockholders		167			128			520			558
Loss on foreign currency transactions		(1	)		(1	)		1			3
Casualty gain, net		(26	)		—			(18	)		(1	)
Transition expense		—			—			—			3
Acquisition costs		5			—			70			—
Severance expense		—			—			2			2
Share-based compensation expense		4			4			16			16
Other items⁽²⁾		24			16			22			22
Adjusted FFO attributable to stockholders	$	173		$	147		$	613		$	603

Nareit FFO per share - Diluted⁽³⁾	$	0.70		$	0.63		$	2.44		$	2.73
Adjusted FFO per share - Diluted⁽³⁾	$	0.72		$	0.73		$	2.88		$	2.96
Weighted average shares outstanding - Diluted		240			201			213			204

__________________________________

⁽¹⁾

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

⁽²⁾

For 2019, includes $15 million of income tax expense associated with the sales of hotels in 2019. For 2018, includes $13 million of income tax expense, primarily attributable to an additional built-in gain deferred tax liability as a result of the enactment of the Tax Cuts and Jobs Act, which prohibits the sale of ancillary hotel furniture, fixtures and equipment in a like-kind exchange.

⁽³⁾

Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented.


10 \|


	Supplementary Financial Information (continued)

	Historical Pro-forma Comparable Hotel Metrics

The financial information below is for the 54 comparable hotels owned as of December 31, 2019⁽¹⁾.

	Three Months Ended												Full Year
(unaudited)	March 31,			June 30,			September 30,			December 31,			December 31,
	2019			2019			2019			2019			2019
Pro-forma Comparable RevPAR	$	179.25		$	196.47		$	189.30		$	178.39		$	185.86
Pro-forma Comparable Occupancy		79.1	%		87.2	%		85.0	%		80.9	%		83.1	%
Pro-forma Comparable ADR	$	226.50		$	225.40		$	222.73		$	220.54		$	223.78

Pro-forma Comparable Hotel Revenues (in millions)	$	731		$	801		$	746		$	747		$	3,025
Pro-forma Comparable Hotel Adjusted EBITDA (in millions)	$	209		$	258		$	217		$	211		$	895
Pro-forma Comparable Hotel Adjusted EBITDA margin		28.6	%		32.2	%		29.0	%		28.3	%		29.6	%



	Three Months Ended												Full Year
(unaudited)	March 31,			June 30,			September 30,			December 31,			December 31,
	2018			2018			2018			2018			2018
Pro-forma Comparable RevPAR	$	172.01		$	195.39		$	187.32		$	177.21		$	183.01
Pro-forma Comparable Occupancy		79.2	%		86.5	%		85.1	%		80.1	%		82.8	%
Pro-forma Comparable ADR	$	217.18		$	225.88		$	220.19		$	221.27		$	221.23

Pro-forma Comparable Hotel Revenues (in millions)	$	696		$	793		$	718		$	732		$	2,939
Pro-forma Comparable Hotel Adjusted EBITDA (in millions)	$	194		$	263		$	210		$	210		$	877
Pro-forma Comparable Hotel Adjusted EBITDA margin		27.8	%		33.1	%		29.3	%		28.7	%		29.9	%

__________________________________

⁽¹⁾

Assumes hotels were acquired on January 1, 2018.


11 \|


	Supplementary Financial Information (continued)

	Historical Pro-forma Comparable Hotel Adjusted EBITDA – 2019

The financial information below is for the 54 comparable hotels owned as of December 31, 2019.

	Three Months Ended												Full Year
(unaudited, in millions)	March 31,			June 30,			September 30,			December 31,			December 31,
	2019			2019			2019			2019			2019
Net income	$	97		$	84		$	9		$	126		$	316
Depreciation and amortization expense		62			61			61			80			264
Interest income		(1	)		(2	)		(2	)		(1	)		(6	)
Interest expense		32			33			33			42			140
Income tax expense		7			5			—			23			35
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates		5			7			7			4			23
EBITDA		202			188			108			274			772
(Gain) loss on sales of assets, net		(31	)		12			(1	)		1			(19	)
Gain on sale of investments in affiliates⁽¹⁾		—			—			—			(44	)		(44	)
Loss (gain) on foreign currency transactions		—			—			2			(1	)		1
Acquisition costs		—			6			59			5			70
Severance expense		1			1			—			—			2
Share-based compensation expense		4			4			4			4			16
Casualty and impairment loss, net		—			—			8			(26	)		(18	)
Other items		—			(4	)		—			10			6
Adjusted EBITDA		176			207			180			223			786
Add: Adjusted EBITDA from hotels acquired⁽²⁾		37			53			39			—			129
Less: Adjusted EBITDA from hotels disposed of		10			8			1			2			21
Less: Adjusted EBITDA from investments in affiliates disposed		—			1			1			—			2
Pro-forma Adjusted EBITDA⁽²⁾		203			251			217			221			892
Less: Adjusted EBITDA from investments in affiliates		10			11			8			6			35
Less: All other⁽³⁾		(15	)		(14	)		(12	)		(12	)		(53	)
Pro-forma Hotel Adjusted EBITDA⁽²⁾		208			254			221			227			910
Less: Adjusted EBITDA from other non-comparable hotels		(1	)		(4	)		4			16			15
Pro-forma Comparable Hotel Adjusted EBITDA⁽²⁾	$	209		$	258		$	217		$	211		$	895

__________________________________

⁽¹⁾

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

⁽²⁾

Assumes hotels were acquired on January 1, 2018.

⁽³⁾


12 \|


	Supplementary Financial Information (continued)

	Historical Pro-forma Comparable Hotel Adjusted EBITDA – 2018

The financial information below is for the 54 comparable hotels owned as of December 31, 2019.

	Three Months Ended												Full Year
(unaudited, in millions)	March 31,			June 30,			September 30,			December 31,			December 31,
	2018			2018			2018			2018			2018
Net income	$	149		$	218		$	55		$	55		$	477
Depreciation and amortization expense		70			69			69			69			277
Interest income		(1	)		(1	)		(2	)		(2	)		(6	)
Interest expense		31			31			32			33			127
Income tax (benefit) expense		—			13			—			10			23
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates		7			5			8			6			26
EBITDA		256			335			162			171			924
Gain on sales of assets, net		(89	)		(7	)		(2	)		2			(96	)
(Gain) loss on sale of investments in affiliates⁽¹⁾		—			(108	)		1			—			(107	)
(Gain) loss on foreign currency transactions		(1	)		4			1			(1	)		3
Transition expense		2			—			1			—			3
Severance expense		—			1			1			—			2
Share-based compensation expense		4			4			4			4			16
Casualty (gain) loss and impairment loss, net		—			—			(1	)		—			(1	)
Other items		2			(1	)		1			8			10
Adjusted EBITDA		174			228			168			184			754
Add: Adjusted EBITDA from hotels acquired⁽²⁾		36			55			49			41			181
Less: Adjusted EBITDA from hotels disposed of		16			17			10			11			54
Less: Adjusted EBITDA from investments in affiliates disposed of		1			1			1			—			3
Pro-forma Adjusted EBITDA⁽²⁾		193			265			206			214			878
Less: Adjusted EBITDA from investments in affiliates		11			11			9			11			42
Less: All other⁽³⁾		(12	)		(14	)		(13	)		(13	)		(52	)
Pro-forma Hotel Adjusted EBITDA⁽²⁾		194			268			210			216			888
Less: Adjusted EBITDA from other non-comparable hotels		—			5			—			6			11
Pro-forma Comparable Hotel Adjusted EBITDA⁽²⁾	$	194		$	263		$	210		$	210		$	877

__________________________________

⁽¹⁾

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

⁽²⁾

Assumes hotels were acquired on January 1, 2018.

⁽³⁾


13 \|


	Supplementary Financial Information (continued)

	Historical Pro-forma Comparable Hotel Revenues – 2019 and 2018

The financial information below is for the 54 comparable hotels owned as of December 31, 2019.

	Three Months Ended								Full Year
(unaudited, in millions)	March 31,		June 30,		September		December 31,		December 31,
	2019		2019		2019		2019		2019
Total Revenues	$	659	$	703	$	672	$	810	$	2,844
Less: Other revenue		18		19		22		18		77
Add: Revenues from hotels acquired⁽¹⁾		130		151		125		—		406
Less: Revenues from hotels disposed of		37		29		13		13		92
Less: Revenues from non-comparable hotels⁽²⁾		3		5		16		32		56
Pro-forma Comparable Hotel Revenues⁽¹⁾	$	731	$	801	$	746	$	747	$	3,025

	Three Months Ended								Full Year
(unaudited, dollars in millions)	March 31,		June 30,		September 30,		December 31,		December 31,
	2018		2018		2018		2018		2018
Total Revenues	$	668	$	731	$	652	$	686	$	2,737
Less: Other revenue		17		17		19		19		72
Add: Revenues from hotels acquired⁽¹⁾		127		152		148		134		561
Less: Revenues from hotels disposed of		79		65		55		56		255
Less: Revenues from non-comparable hotels⁽²⁾		3		8		8		13		32
Pro-forma Comparable Hotel Revenues⁽¹⁾	$	696	$	793	$	718	$	732	$	2,939

__________________________________

⁽¹⁾

Assumes hotels were acquired on January 1, 2018.

⁽²⁾

Includes revenues from Park's non-comparable hotels and rental revenues from office space and antenna rent leases located at its hotels.


14 \|


	Supplementary Financial Information (continued)

	General and Administrative Expenses

(unaudited, in millions)	Three Months Ended				Year Ended
	December 31,				December 31,
	2019		2018		2019		2018
Corporate general and administrative expenses	$	15	$	18	$	62	$	65
Less:
Share-based compensation expense		4		4		16		16
Transition expense		—		—		—		3
Disposition costs		1		2		2		2
Severance expense		—		—		1		1
G&A, excluding expenses not included in Adjusted EBITDA	$	10	$	12	$	43	$	43


15 \|


	Supplementary Financial Information (continued)

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

(unaudited, in millions)	December 31, 2019		December 31, 2018
Debt⁽¹⁾	$	3,871	$	4,098
Add: unamortized deferred financing costs and discount⁽²⁾		18		22
Less: unamortized premium		3		—
Long-term debt, including current maturities and excluding unamortized deferred financing cost, premiums and discounts		3,886		4,120
Add: Park's share of unconsolidated affiliates debt, excluding unamortized deferred financing costs		225		233
Less: cash and cash equivalents⁽³⁾		346		376
Less: restricted cash⁽⁴⁾		40		47
Pro-forma Net debt	$	3,725	$	3,930
Pro-forma Adjusted EBITDA⁽⁵⁾	$	892	$	878
Pro-forma Net debt to Pro-forma Adjusted EBITDA ratio	4.2x		4.5x

__________________________________

⁽¹⁾

Debt as of December 31, 2018 includes $312 million of assumed Chesapeake mortgage loans and $850 million term facility borrowings, less $12 million of related unamortized deferred financing costs.

⁽²⁾

Unamortized deferred financing costs as of December 31, 2018 includes $12 million of unamortized deferred financing costs associated with the assumed Chesapeake mortgage loans and term facility entered into in September 2019.

⁽³⁾

Cash and cash equivalents as of December 31, 2018 includes Chesapeake's cash and cash equivalents of $71 million, less $105 million of costs associated with the acquisition.

⁽⁴⁾

Restricted cash as of December 31, 2018 includes Chesapeake’s restricted cash of $32 million.

⁽⁵⁾

See slides 12 and 13 for Pro-forma Adjusted EBITDA at December 31, 2019 and 2018.


16 \|



		Guidance

Guidance hyatt centric fisherman’s wharf Hilton Waikoloa village san Francisco union square


17 \|


	Guidance

	2020 Guidance and Assumptions

(unaudited, dollars in millions, except per share amounts and\ Comparable RevPAR)

	2020 Outlook
	as of February 26, 2020
Metric	Low				High

Comparable RevPAR Growth		(1.0	)%			1.0	%
Comparable RevPAR	$	184			$	188

Net income	$	279			$	308
Net income attributable to stockholders	$	268			$	297
Diluted earnings per share⁽¹⁾	$	1.12			$	1.24

Adjusted EBITDA	$	800			$	830
Comparable Hotel Adjusted EBITDA margin change		(175	)	bps		(100	)	bps
Adjusted FFO per share - Diluted⁽¹⁾	$	2.55			$	2.67

__________________________________

⁽¹⁾ Per share amounts are calculated based on unrounded numbers.

Full-year 2020 guidance is based in part on the following assumptions:

•

The Chesapeake portfolio was held for the full-year 2019 when calculating Comparable RevPAR Growth and Comparable Hotel Adjusted EBITDA margin change;

•

Includes $0 of Adjusted EBITDA form the Caribe Hilton (versus the $8 million of Adjusted EITDA the hotel generated pre-hurricane) as the hotel continues to ramp up full operations and absorb increased insurance premiums from the hurricane;

•

RevPAR growth disruption of 50 bps and Adjusted EBITDA disruption of $12 million related to the meeting space ROI projects at the Hilton Orlando Bonnet Creek and Waldorf Astoria Orlando;

•

General and administrative expenses are projected to be $43 million, excluding $14 million of non-cash share-based compensation expense;

•

Fully diluted weighted average shares are expected to be 240 million; and

•

Does not take into account potential future acquisitions and dispositions, including those currently under contract, which could result in a material change to Park’s outlook.


18 \|


	Guidance (continued)

	EBITDA and Adjusted EBITDA

	Year Ending
(unaudited, in millions)	December 31, 2020
	Low Case			High Case
Net income	$	279		$	308
Depreciation and amortization expense		309			309
Interest income		(5	)		(5	)
Interest expense		159			159
Income tax expense		13			14
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates		19			19
EBITDA		774			804
Severance expense		1			1
Share-based compensation expense		14			14
Other items		11			11
Adjusted EBITDA	$	800		$	830


19 \|


	Guidance (continued)

	Nareit FFO and Adjusted FFO

	Year Ending
(unaudited, in millions except per share data)	December 31, 2020
	Low Case			High Case
Net income attributable to stockholders	$	268		$	297
Depreciation and amortization expense		309			309
Depreciation and amortization expense attributable to noncontrolling interests		(4	)		(4	)
Equity investment adjustments:
Equity in earnings from investments in affiliates		(15	)		(15	)
Pro rata FFO of equity investments		29			29
Nareit FFO attributable to stockholders		587			616
Severance expense		1			1
Share-based compensation expense		14			14
Other items		11			11
Adjusted FFO attributable to stockholders	$	613		$	642
Adjusted FFO per share - Diluted⁽¹⁾	$	2.55		$	2.67
Weighted average diluted shares outstanding		240.0			240.0

__________________________________

⁽¹⁾

Per share amounts are calculated based on unrounded numbers.


20 \|



		Portfolio and Operating Metrics

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


21 \|


	Portfolio and Operating Metrics

	Hotel Portfolio as of February 26, 2020

Hotel Name	Rooms		Market	Meeting Space (square feet)		Ownership	Equity Ownership	Debt (in millions)
Consolidated Portfolio

Hilton Hawaiian Village Waikiki Beach Resort		2,860	Hawaii		150,000	Fee Simple	100%	$	1,275
Hilton San Francisco Union Square		1,921	San Francisco		130,000	Fee Simple	100%	$	725	⁽¹⁾
New York Hilton Midtown		1,878	New York		151,000	Fee Simple	100%		—
Hilton New Orleans Riverside		1,622	New Orleans		130,000	Fee Simple	100%		—
Hilton Chicago		1,544	Chicago		234,000	Fee Simple	100%		—
Parc 55 San Francisco - a Hilton Hotel		1,024	San Francisco		30,000	Fee Simple	100%		—	⁽¹⁾
Hilton Orlando Bonnet Creek		1,009	Orlando		132,000	Fee Simple	100%		—
DoubleTree Hotel Seattle Airport		850	Seattle		34,000	Leasehold	100%		—
Hilton Orlando Lake Buena Vista		814	Orlando		78,000	Leasehold	100%		—
Caribe Hilton⁽²⁾		652	Other U.S.		65,000	Fee Simple	100%		—
Hilton Waikoloa Village		644	Hawaii		235,000	Fee Simple	100%		—
DoubleTree Hotel Washington DC – Crystal City		627	Washington, D.C.		31,000	Fee Simple	100%		—
Hilton Denver City Center		613	Denver		50,000	Fee Simple	100%	$	61
Hilton Boston Logan Airport		604	Boston		30,000	Leasehold	100%		—
W Chicago - Lakeshore		520	Chicago		21,000	Fee Simple	100%		—
Hilton Miami Airport		508	Miami		32,000	Fee Simple	100%		—
DoubleTree Hotel San Jose		505	Other U.S.		48,000	Fee Simple	100%		—
Hyatt Regency Boston		502	Boston		30,000	Fee Simple	100%	$	142
Waldorf Astoria Orlando		502	Orlando		42,000	Fee Simple	100%		—
Hilton Salt Lake City Center		499	Other U.S.		24,000	Leasehold	100%		—
DoubleTree Hotel Ontario Airport		482	Southern California		27,000	Fee Simple	67%	$	30
Hilton McLean Tysons Corner		458	Washington, D.C.		27,000	Fee Simple	100%		—
Hyatt Regency Mission Bay Spa and Marina		438	Southern California		24,000	Leasehold	100%		—
Boston Marriott Newton		430	Boston		34,000	Fee Simple	100%		—
W Chicago - City Center		403	Chicago		13,000	Fee Simple	100%	$	78
Hilton Seattle Airport & Conference Center		396	Seattle		40,000	Leasehold	100%		—
Royal Palm South Beach Miami, a Tribute Portfolio Resort		393	Miami		10,000	Fee Simple	100%		—
DoubleTree Hotel Spokane City Center		375	Other U.S.		21,000	Fee Simple	10%	$	12
Hilton Santa Barbara Beachfront Resort		360	Southern California		40,000	Fee Simple	50%	$	165
Hilton Oakland Airport		360	Other U.S.		16,000	Leasehold	100%		—
Le Meridien San Francisco		360	San Francisco		13,000	Fee Simple	100%		—
JW Marriott San Francisco Union Square		344	San Francisco		12,000	Leasehold	100%		—
Hyatt Centric Fisherman's Wharf		316	San Francisco		19,000	Fee Simple	100%		—
Hilton Short Hills		314	Other U.S.		14,000	Fee Simple	100%		—
Casa Marina, A Waldorf Astoria Resort		311	Key West		23,000	Fee Simple	100%		—
DoubleTree Hotel San Diego – Mission Valley		300	Southern California		24,000	Leasehold	100%		—

⁽¹⁾

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

⁽²⁾

Classified as a non-comparable hotel in 2020.


22 \|

Portfolio and Operating Metrics (continued)

Hotel Portfolio as of February 26, 2020

Hotel Name	Rooms		Market	Meeting Space (square feet)		Ownership	Equity Ownership	Debt⁽¹⁾ (in millions)
Consolidated Portfolio (continued)

Embassy Suites Kansas City Plaza		266	Other U.S.		11,000	Leasehold	100%		—
Embassy Suites Austin Downtown South Congress		262	Other U.S.		2,000	Leasehold	100%		—
DoubleTree Hotel Sonoma Wine Country		245	Other U.S.		50,000	Leasehold	100%		—
Juniper Hotel Cupertino, Curio Collection		224	Other U.S.		5,000	Fee Simple	100%		—
Hilton Chicago/Oak Brook Suites		211	Chicago		3,000	Fee Simple	100%		—
Hotel Indigo San Diego Gaslamp Quarter		210	Southern California		6,000	Fee Simple	100%		—
Courtyard Washington Capitol Hill/Navy Yard		204	Washington, D.C.		2,000	Fee Simple	100%		—
Homewood Suites by Hilton Seattle Convention Center Pike Street		195	Seattle		1,000	Fee Simple	100%		—
Hilton Checkers Los Angeles		193	Southern California		3,000	Fee Simple	100%	$	28
Embassy Suites Phoenix Airport		182	Other U.S.		5,000	Leasehold	100%		—
Hotel Adagio, Autograph Collection		171	San Francisco		4,000	Fee Simple	100%		—
Hilton Garden Inn LAX/El Segundo		162	Southern California		3,000	Fee Simple	100%		—
DoubleTree Hotel Durango		159	Other U.S.		6,000	Leasehold	100%		—
The Reach Key West, Curio Collection		150	Key West		22,000	Fee Simple	100%		—
Hampton Inn & Suites Memphis – Shady Grove		131	Other U.S.		1,000	Fee Simple	100%		—
Hilton Garden Inn Chicago/Oak Brook Terrace		128	Chicago		2,000	Fee Simple	100%		—
W New Orleans - French Quarter		97	New Orleans		1,000	Fee Simple	100%
Total Consolidated Portfolio (53 Hotels)		28,928			2,161,000			$	2,516

Unconsolidated Joint Venture Portfolio

Hilton Orlando		1,424	Orlando		236,000	Fee Simple	20%	$	95
Hilton San Diego Bayfront		1,190	San Diego		165,000	Leasehold	25%	$	55
Capital Hilton		550	Washington, D.C.		30,000	Fee Simple	25%	$	25
Hilton La Jolla Torrey Pines		394	Other U.S.		41,000	Leasehold	25%	$	24
Embassy Suites Alexandria Old Town		288	Washington, D.C.		7,000	Fee Simple	50%	$	26
Embassy Suites Secaucus Meadowlands		261	Other U.S.		1,000	Leasehold	50%		—
DoubleTree Hotel Las Vegas Airport		190	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)		33,225			2,644,000			$	2,741

⁽¹⁾Debt related to unconsolidated joint ventures is presented on a pro-rata basis.


23 \|


Portfolio and Operating Metrics (continued)

Pro-forma Comparable Hotels by Market: Q4 2019 vs. Q4 2018

(unaudited)					Pro-forma Comparable ADR⁽¹⁾							Pro-forma Comparable Occupancy⁽¹⁾										Pro-forma Comparable RevPAR⁽¹⁾							Pro-forma Comparable Total RevPAR⁽¹⁾
	Hotels		Rooms		4Q19		4Q18⁽²⁾		Change⁽³⁾			4Q19			4Q18			Change				4Q19		4Q18⁽²⁾		Change⁽³⁾			4Q19		4Q18⁽²⁾		Change⁽³⁾
Hawaii		2		3,504	$	259.77	$	245.70		5.7	%		86.7	%		84.3	%		2.4	%	pts	$	225.31	$	207.19		8.7	%	$	378.40	$	351.64		7.6	%
San Francisco		6		4,136		275.06		264.71		3.9			88.1			88.7			(0.6	)			242.31		234.71		3.2			316.43		305.28		3.7
Orlando		3		2,325		201.76		196.09		2.9			83.2			81.1			2.1				167.89		159.13		5.5			317.26		308.37		2.9
New Orleans		2		1,719		190.05		195.74		(2.9	)		67.8			70.5			(2.7	)			128.86		138.06		(6.7	)		222.14		232.22		(4.3	)
Boston		3		1,536		218.77		234.23		(6.6	)		82.5			81.1			1.4				180.46		189.95		(5.0	)		257.23		258.84		(0.6	)
New York		1		1,878		322.09		339.98		(5.3	)		94.3			93.8			0.5				303.70		318.72		(4.7	)		496.97		506.96		(2.0	)
Southern California		7		2,145		171.46		177.18		(3.2	)		81.6			80.7			0.9				139.85		142.96		(2.2	)		226.23		222.10		1.9
Chicago		5		2,806		194.91		205.81		(5.3	)		72.0			70.2			1.8				140.40		144.64		(2.9	)		219.83		223.95		(1.8	)
Key West		2		461		392.44		360.85		8.8			62.1			77.7			(15.6	)			243.62		280.31		(13.1	)		439.35		417.31		5.3
Denver		1		613		165.88		176.49		(6.0	)		82.9			71.0			11.9				137.60		125.35		9.8			208.17		185.50		12.2
Miami		2		901		173.58		178.11		(2.5	)		87.0			88.3			(1.3	)			151.02		157.35		(4.0	)		215.98		217.65		(0.8	)
Washington, D.C.		4		1,486		182.15		174.34		4.5			71.8			73.0			(1.2	)			130.70		127.24		2.7			187.33		188.96		(0.9	)
Seattle		3		1,441		129.90		138.22		(6.0	)		77.7			79.4			(1.7	)			100.96		109.84		(8.1	)		146.14		152.40		(4.1	)
Other		12		3,522		174.39		178.19		(2.1	)		76.3			72.9			3.4				133.11		130.02		2.4			184.51		178.55		3.3
Total Domestic		53		28,473	$	221.39	$	222.16		(0.3	)%		81.0	%		80.2	%		0.8	%	pts	$	179.39	$	178.20		0.7	%	$	277.29	$	271.66		2.1	%

Total International		1		503	$	166.32	$	164.98		0.8	%		72.7	%		72.9	%		(0.2	)%	pts	$	120.89	$	120.30		0.5	%	$	180.08	$	177.11		1.7	%
All Markets		54		28,976	$	220.54	$	221.27		(0.3	)%		80.9	%		80.1	%		0.8	%	pts	$	178.39	$	177.21		0.7	%	$	275.63	$	270.04		2.1	%

⁽¹⁾

Assumes hotels were acquired on January 1, 2018.

⁽²⁾

Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates).

⁽³⁾

Calculated based on unrounded numbers.


24 \|


	Portfolio and Operating Metrics (continued)

	Pro-forma Comparable Hotels by Market: Q4 2019 vs. Q4 2018

(unaudited, dollars in millions)					Pro-forma Comparable Hotel Adjusted EBITDA⁽¹⁾							Pro-forma Comparable Hotel Revenue⁽¹⁾							Pro-forma Comparable Hotel Adjusted EBITDA Margin⁽¹⁾
	Hotels		Rooms		4Q19		4Q18⁽²⁾		Change⁽³⁾			4Q19		4Q18⁽²⁾		Change⁽³⁾			4Q19			4Q18⁽²⁾			Change
Hawaii		2		3,504	$	49	$	44		11.3	%	$	138	$	128		7.6	%		35.2	%		34.0	%		120		bps
San Francisco		6		4,136		30		31		(1.5	)		120		116		3.7			25.2			26.5			(130	)
Orlando		3		2,325		22		22		(1.2	)		68		66		2.9			31.8			33.1			(130	)
New Orleans		2		1,719		12		12		(3.2	)		35		37		(4.3	)		33.7			33.3			40
Boston		3		1,536		12		12		(4.8	)		36		36		(0.3	)		31.6			33.1			(150	)
New York		1		1,878		22		24		(7.5	)		86		88		(2.0	)		25.8			27.3			(150	)
Southern California		7		2,145		13		13		0.8			45		44		2.3			28.6			29.0			(40	)
Chicago		5		2,806		11		11		(2.8	)		57		58		(1.8	)		18.5			18.7			(20	)
Key West		2		461		7		6		15.0			19		18		5.3			38.3			35.1			320
Denver		1		613		4		4		10.2			12		10		12.2			37.2			37.9			(70	)
Miami		2		901		6		7		(4.2	)		18		18		(0.8	)		34.2			35.4			(120	)
Washington, D.C.		4		1,486		7		7		(3.4	)		26		26		(0.9	)		25.5			26.2			(70	)
Seattle		3		1,441		2		3		(37.2	)		19		20		(4.1	)		11.1			16.9			(580	)
Other		12		3,522		12		12		4.4			60		58		3.4			21.8			21.6			20
Total Domestic		53		28,473	$	209	$	208		0.7	%	$	739	$	723		2.1	%		28.3	%		28.7	%		(40	)	bps

Total International		1		503	$	2	$	2		4.6	%	$	8	$	9		(9.4	)%		30.9	%		30.0	%		90		bps
All Markets		54		28,976	$	211	$	210		0.7	%	$	747	$	732		2.1	%		28.3	%		28.7	%		(40	)	bps

⁽¹⁾

Assumes hotels were acquired on January 1, 2018.

⁽²⁾

Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates).

⁽³⁾

Calculated based on unrounded numbers.


25 \|


	Portfolio and Operating Metrics (continued)

	Pro-forma Comparable Hotels by Market: Full Year 2019 vs. Full Year 2018

(unaudited)					Pro-forma Comparable ADR⁽¹⁾							Pro-forma Comparable Occupancy⁽¹⁾										Pro-forma Comparable RevPAR⁽¹⁾							Pro-forma Comparable Total RevPAR⁽¹⁾
	Hotels		Rooms		2019		2018⁽²⁾		Change⁽³⁾			2019			2018			Change				2019		2018⁽²⁾		Change⁽³⁾			2019		2018⁽²⁾		Change⁽³⁾
Hawaii		2		3,504	$	259.62	$	252.17		3.0	%		89.7	%		87.5	%		2.2	%	pts	$	232.89	$	220.73		5.5	%	$	397.10	$	365.02		8.8	%
San Francisco		6		4,136		289.34		275.21		5.1			90.8			89.8			1.0				262.64		247.02		6.3			335.91		318.21		5.6
Orlando		3		2,325		199.68		197.84		0.9			79.3			79.4			(0.1	)			158.43		157.14		0.8			320.62		318.59		0.6
New Orleans		2		1,719		193.52		192.20		0.7			73.2			74.8			(1.6	)			141.74		143.81		(1.4	)		242.39		241.38		0.4
Boston		3		1,536		230.29		231.00		(0.3	)		85.0			85.9			(0.9	)			195.76		198.33		(1.3	)		263.89		263.11		0.3
New York		1		1,878		280.82		293.08		(4.2	)		90.9			88.7			2.2				255.22		259.93		(1.8	)		413.98		417.90		(0.9	)
Southern California		7		2,145		186.91		184.28		1.4			85.6			85.2			0.4				160.00		156.97		1.9			242.87		232.43		4.5
Chicago		5		2,806		194.41		201.05		(3.3	)		74.2			74.6			(0.4	)			144.22		150.01		(3.9	)		222.23		223.47		(0.6	)
Key West		2		461		385.09		367.65		4.7			73.9			79.7			(5.8	)			284.39		292.91		(2.9	)		442.44		436.22		1.4
Denver		1		613		176.01		180.58		(2.5	)		85.3			75.8			9.5				150.15		136.97		9.6			223.84		201.58		11.0
Miami		2		901		176.61		181.89		(2.9	)		88.2			90.4			(2.2	)			155.73		164.41		(5.3	)		220.52		227.51		(3.1	)
Washington, D.C.		4		1,486		184.49		180.27		2.3			77.2			77.5			(0.3	)			142.35		139.60		2.0			195.93		194.20		0.9
Seattle		3		1,441		155.94		160.75		(3.0	)		80.5			84.7			(4.2	)			125.56		136.15		(7.8	)		169.95		178.64		(4.9	)
Other		12		3,522		180.74		180.77		(0.0	)		79.2			78.2			1.0				143.13		141.30		1.3			189.88		187.39		1.3
Total Domestic		53		28,473	$	224.48	$	222.11		1.1	%		83.3	%		82.9	%		0.4	%	pts	$	186.97	$	184.18		1.5	%	$	283.36	$	275.49		2.9	%

Total International		1		503	$	175.16	$	162.03		8.1	%		69.5	%		71.4	%		(1.9	)%	pts	$	121.78	$	115.68		5.3	%	$	177.89	$	168.32		5.7	%
All Markets		54		28,976	$	223.78	$	221.23		1.2	%		83.1	%		82.8	%		0.3	%	pts	$	185.86	$	183.01		1.6	%	$	281.55	$	273.66		2.9	%

⁽¹⁾

Assumes hotels were acquired on January 1, 2018.

⁽²⁾

Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates).

⁽³⁾

Calculated based on unrounded numbers.


26 \|


	Portfolio and Operating Metrics (continued)

	Pro-forma Comparable Hotels by Market: Full Year 2019 vs. Full Year 2018

(unaudited, dollars in millions)					Pro-forma Comparable Hotel Adjusted EBITDA⁽¹⁾							Pro-forma Comparable Hotel Revenue⁽¹⁾							Pro-forma Comparable Hotel Adjusted EBITDA Margin⁽¹⁾
	Hotels		Rooms		2019		2018⁽²⁾		Change⁽³⁾			2019		2018⁽²⁾		Change⁽³⁾			2019			2018⁽²⁾			Change
Hawaii		2		3,504	$	213	$	192		11.1	%	$	575	$	529		8.8	%		37.0	%		36.2	%		80		bps
San Francisco		6		4,136		154		145		5.6			507		480		5.6			30.3			30.3			—
Orlando		3		2,325		87		91		(3.9	)		272		270		0.6			32.0			33.5			(150	)
New Orleans		2		1,719		56		54		2.3			152		151		0.4			36.7			36.0			70
Boston		3		1,536		48		49		(2.1	)		148		147		0.6			32.7			33.6			(90	)
New York		1		1,878		47		53		(11.2	)		284		287		(1.0	)		16.5			18.4			(190	)
Southern California		7		2,145		60		55		9.6			190		181		4.9			31.5			30.1			140
Chicago		5		2,806		45		46		(2.2	)		228		229		(0.6	)		19.8			20.1			(30	)
Key West		2		461		28		29		(3.1	)		74		73		1.4			37.2			38.9			(170	)
Denver		1		613		20		17		12.1			50		45		11.0			39.2			38.8			40
Miami		2		901		25		29		(12.8	)		73		75		(3.1	)		34.6			38.5			(390	)
Washington, D.C.		4		1,486		28		28		2.0			106		105		0.9			26.7			26.4			30
Seattle		3		1,441		18		23		(19.5	)		89		94		(4.9	)		20.6			24.4			(380	)
Other		12		3,522		56		56		(0.0	)		244		242		1.5			23.3			23.7			(40	)
Total Domestic		53		28,473	$	885	$	867		2.1	%	$	2,992	$	2,908		2.9	%		29.6	%		29.8	%		(20	)	bps

Total International		1		503	$	10	$	10		4.1	%	$	33	$	31		5.7	%		30.3	%		30.8	%		(50	)	bps
All Markets		54		28,976	$	895	$	877		2.1	%	$	3,025	$	2,939		3.0	%		29.6	%		29.9	%		(30	)	bps

⁽¹⁾

Assumes hotels were acquired on January 1, 2018.

⁽²⁾

Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates).

⁽³⁾

Calculated based on unrounded numbers.


27 \|


	Portfolio and Operating Metrics (continued)

	Core Hotels: Q4 2019 vs. Q4 2018

	(unaudited)	ADR							Occupancy										RevPAR							Total RevPAR
		4Q19		4Q18⁽¹⁾		Change⁽²⁾			4Q19			4Q18			Change				4Q19		4Q18⁽¹⁾		Change⁽²⁾			4Q19		4Q18⁽¹⁾		Change⁽²⁾
	Core Hotels
1	Hilton Hawaiian Village Waikiki Beach Resort	$	268.73	$	251.36		6.9	%		89.9	%		92.5	%		(2.6	)%	pts	$	241.50	$	232.31		4.0	%	$	387.74	$	379.94		2.1	%
2	Hilton Waikoloa Village		233.41		224.45		4.0			78.7			63.5			15.2				183.59		142.46		28.9			354.36		278.72		27.1
3	Hilton San Francisco Union Square		266.54		260.95		2.1			86.7			86.4			0.3				231.17		225.58		2.5			330.37		320.31		3.1
4	Parc 55 San Francisco - a Hilton Hotel		269.99		255.20		5.8			88.6			90.2			(1.6	)			239.23		230.24		3.9			279.64		266.17		5.1
5	Le Meridien San Francisco		298.86		298.61		0.1			91.8			91.0			0.8				274.33		271.70		1.0			330.19		330.78		(0.2	)
6	JW Marriott San Francisco Union Square		325.28		310.50		4.8			92.5			94.1			(1.6	)			300.78		292.20		2.9			377.92		371.43		1.7
7	Hyatt Centric Fisherman's Wharf		249.25		224.67		10.9			87.5			94.1			(6.6	)			218.12		211.42		3.2			290.16		276.74		4.9
8	Hotel Adagio, Autograph Collection		289.56		272.36		6.3			84.8			78.4			6.4				245.53		213.65		14.9			276.10		236.72		16.6
9	Hilton Orlando Bonnet Creek		178.80		178.06		0.4			81.1			79.2			1.9				144.99		140.95		2.9			301.79		307.81		(2.0	)
10	Waldorf Astoria Orlando		295.64		288.77		2.4			88.5			84.2			4.3				261.50		243.10		7.6			475.79		441.45		7.8
11	Hilton Orlando Lake Buena Vista		167.71		158.88		5.6			82.6			81.7			0.9				138.53		129.87		6.7			238.68		226.99		5.1
12	Hilton New Orleans Riverside		186.26		191.89		(2.9	)		67.1			70.0			(2.9	)			124.95		134.30		(7.0	)		217.37		228.40		(4.8	)
13	Hyatt Regency Boston		232.93		241.38		(3.5	)		93.4			92.2			1.2				217.54		222.64		(2.3	)		294.47		283.83		3.7
14	Hilton Boston Logan Airport		223.57		248.63		(10.1	)		82.6			78.5			4.1				184.70		195.12		(5.3	)		244.29		248.92		(1.9	)
15	Boston Marriott Newton		188.59		201.55		(6.4	)		69.6			71.7			(2.1	)			131.22		144.57		(9.2	)		231.93		243.46		(4.7	)
16	New York Hilton Midtown		322.09		339.98		(5.3	)		94.3			93.8			0.5				303.70		318.72		(4.7	)		496.97		506.96		(2.0	)
17	Hilton Santa Barbara Beachfront Resort		257.21		253.94		1.3			78.9			73.6			5.3				202.88		186.90		8.6			359.91		311.85		15.4
18	Hyatt Regency Mission Bay Spa and Marina		162.13		164.45		(1.4	)		72.5			80.7			(8.2	)			117.60		132.77		(11.4	)		237.99		253.78		(6.2	)
19	Hotel Indigo San Diego Gaslamp Quarter		170.74		201.16		(15.1	)		86.0			84.3			1.7				146.84		169.67		(13.5	)		179.54		204.73		(12.3	)
20	Hilton Checkers Los Angeles		225.27		221.19		1.8			82.5			89.9			(7.4	)			185.95		198.88		(6.5	)		214.31		224.85		(4.7	)
21	Hilton Chicago		196.34		215.13		(8.7	)		74.0			70.2			3.8				145.27		150.97		(3.8	)		258.42		261.44		(1.2	)
22	W Chicago - City Center		260.06		259.15		0.4			67.1			66.1			1.0				174.47		171.39		1.8			227.06		224.75		1.0
23	W Chicago - Lakeshore		205.49		203.66		0.9			66.6			70.0			(3.4	)			136.88		142.48		(3.9	)		179.03		189.37		(5.5	)
24	Casa Marina, A Waldorf Astoria Resort		389.57		366.29		6.4			82.9			79.7			3.2				322.94		291.75		10.7			579.16		439.36		31.8
25	The Reach Key West, Curio Collection		418.50		348.64		20.0			18.9			73.6			(54.7	)			79.18		256.58		(69.1	)		149.47		371.61		(59.8	)
26	Hilton Denver City Center		165.88		176.49		(6.0	)		82.9			71.0			11.9				137.60		125.35		9.8			208.17		185.50		12.2
27	Royal Palm South Beach Miami		210.44		205.78		2.3			90.3			94.5			(4.2	)			190.05		194.56		(2.3	)		258.29		265.14		(2.6	)
28	DoubleTree Hotel Washington DC – Crystal City		160.72		157.27		2.2			67.4			68.2			(0.8	)			108.29		107.17		1.0			153.73		153.66		0.0
29	DoubleTree Hotel San Jose		211.95		231.40		(8.4	)		81.4			76.4			5.0				172.57		176.91		(2.5	)		274.19		257.57		6.5
30	Juniper Hotel Cupertino, Curio Collection		234.09		241.68		(3.1	)		79.7			83.7			(4.0	)			186.51		202.28		(7.8	)		228.67		243.48		(6.1	)
	Sub-total Core Hotels	$	242.23	$	242.12		0.0	%		82.0	%		81.5	%		0.5	%	pts	$	198.67	$	197.29		0.7	%	$	311.68	$	304.68		2.3	%

	All Other Hotels	$	157.81	$	156.70		0.7	%		77.0	%		70.5	%		6.5	%	pts	$	121.44	$	110.55		9.8	%	$	199.46	$	173.13		15.2	%

	Total Consolidated Portfolio⁽³⁾	$	219.22	$	215.27		1.8	%		80.6	%		77.7	%		2.9	%	pts	$	176.63	$	167.26		5.6	%	$	279.66	$	259.13		7.9	%

	Non-Comparable Hotels⁽⁴⁾	$	185.82	$	158.98		16.9	%		73.4	%		60.7	%		12.7	%	pts	$	136.39	$	96.53		41.3	%	$	371.92	$	181.62		104.8	%

	Total Pro-forma Comparable Hotels⁽³⁾	$	220.54	$	221.27		(0.3	)%		80.9	%		80.1	%		0.8	%	pts	$	178.39	$	177.21		0.7	%	$	275.63	$	270.04		2.1	%

⁽¹⁾

Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates).

⁽²⁾

Calculated based on unrounded numbers.

⁽³⁾

Assumes hotels were acquired on January 1, 2018.

⁽⁴⁾

Includes the Caribe Hilton and assets disposed of in 2018 and 2019.


28 \|


	Portfolio and Operating Metrics (continued)

	Core Hotels: Q4 2019 vs. Q4 2018

	(unaudited, dollars in millions)	Hotel Adjusted EBITDA							Hotel Revenue							Hotel Adjusted EBITDA Margin
		4Q19		4Q18⁽¹⁾		Change⁽²⁾			4Q19		4Q18⁽¹⁾		Change⁽²⁾			4Q19			4Q18⁽¹⁾			Change
	Core Hotels
1	Hilton Hawaiian Village Waikiki Beach Resort	$	39	$	38		2.2	%	$	102	$	100		2.1	%		37.9	%		37.8	%		10		bps
2	Hilton Waikoloa Village		10		6		69.5			36		28		27.1			27.7			20.8			690
3	Hilton San Francisco Union Square		14		14		(4.2	)		58		56		3.1			23.1			24.9			(180	)
4	Parc 55 San Francisco - a Hilton Hotel		7		7		6.1			26		25		5.1			28.0			27.7			30
5	Le Meridien San Francisco		3		4		(11.1	)		11		11		(0.2	)		30.0			33.7			(370	)
6	JW Marriott San Francisco Union Square		3		3		(15.3	)		12		12		1.7			21.9			26.3			(440	)
7	Hyatt Centric Fisherman's Wharf		2		2		24.9			8		8		4.9			26.9			22.6			430
8	Hotel Adagio, Autograph Collection		1		1		11.4			4		4		16.6			30.1			31.5			(140	)
9	Hilton Orlando Bonnet Creek		9		9		(8.2	)		28		29		(2.0	)		31.3			33.4			(210	)
10	Waldorf Astoria Orlando		7		7		5.1			22		20		7.8			33.9			34.8			(90	)
11	Hilton Orlando Lake Buena Vista		5		5		3.0			18		17		5.1			30.1			30.7			(60	)
12	Hilton New Orleans Riverside		11		12		(2.4	)		32		34		(4.8	)		34.7			33.8			90
13	Hyatt Regency Boston		5		5		1.6			14		13		3.7			38.9			39.7			(80	)
14	Hilton Boston Logan Airport		4		4		(3.9	)		14		14		(1.0	)		26.2			27.0			(80	)
15	Boston Marriott Newton		3		3		(16.4	)		9		10		(4.7	)		29.0			33.0			(400	)
16	New York Hilton Midtown		22		24		(7.5	)		86		88		(2.0	)		25.8			27.3			(150	)
17	Hilton Santa Barbara Beachfront Resort		6		4		22.5			12		10		15.4			46.2			43.5			270
18	Hyatt Regency Mission Bay Spa and Marina		1		2		(18.1	)		10		10		(4.3	)		13.2			15.4			(220	)
19	Hotel Indigo San Diego Gaslamp Quarter		1		2		(26.9	)		3		4		(12.3	)		33.9			40.7			(680	)
20	Hilton Checkers Los Angeles		1		1		(9.8	)		4		4		(4.7	)		30.4			32.1			(170	)
21	Hilton Chicago		7		8		(11.6	)		37		37		(1.2	)		18.9			21.1			(220	)
22	W Chicago - City Center		2		1		75.5			8		8		1.0			23.0			13.2			980
23	W Chicago - Lakeshore		1		1		(13.0	)		9		9		(5.5	)		12.6			13.7			(110	)
24	Casa Marina, A Waldorf Astoria Resort		7		4		62.1			17		13		31.8			43.7			35.5			820
25	The Reach Key West, Curio Collection		—		2		(106.2	)		2		5		(59.8	)		(5.2	)		33.9			(3,910	)
26	Hilton Denver City Center		4		4		10.2			12		10		12.2			37.2			37.9			(70	)
27	Royal Palm South Beach Miami		4		4		(2.6	)		9		10		(2.6	)		38.8			38.8			—
28	DoubleTree Hotel Washington DC – Crystal City		2		2		2.0			9		9		0.0			21.1			20.7			40
29	DoubleTree Hotel San Jose		4		3		16.0			13		12		6.5			28.8			26.4			240
30	Juniper Hotel Cupertino, Curio Collection		2		2		(36.1	)		5		5		(6.1	)		32.5			47.8			(1,530	)
	Sub-total Core Hotels	$	187	$	184		1.3	%	$	630	$	615		2.4	%		29.7	%		30.0	%		(30	)	bps

	All Other Hotels	$	42	$	44		(3.1	)%	$	161	$	186		(13.1	)%		26.3	%		23.6	%		270		bps

	Total Consolidated Portfolio⁽³⁾	$	229	$	228		0.5	%	$	791	$	801		(1.2	)%		29.0	%		28.5	%		50		bps

	Non-Comparable Hotels⁽⁴⁾	$	18	$	18		(2.3	)%	$	44	$	69		(36.5	)%		40.4	%		26.2	%		1,420		bps

	Total Pro-forma Comparable Hotels⁽³⁾	$	211	$	210		0.7	%	$	747	$	732		2.1	%		28.3	%		28.7	%		(40	)	bps

⁽¹⁾

Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates).

⁽²⁾

Calculated based on unrounded numbers.

⁽³⁾

Assumes hotels were acquired on January 1, 2018.

⁽⁴⁾

Includes the Caribe Hilton and assets disposed of in 2018 and 2019.


29 \|


	Portfolio and Operating Metrics (continued)

	Core Hotels: Full Year 2019 vs. Full Year 2018

	(unaudited)	ADR							Occupancy										RevPAR							Total RevPAR
		2019		2018⁽¹⁾		Change⁽²⁾			2019			2018			Change				2019		2018⁽¹⁾		Change⁽²⁾			2019		2018⁽¹⁾		Change⁽²⁾
	Core Hotels
1	Hilton Hawaiian Village Waikiki Beach Resort	$	267.55	$	259.17		3.2	%		93.0	%		94.0	%		(1.0	)%	pts	$	248.79	$	243.56		2.1	%	$	398.46	$	383.65		3.9	%
2	Hilton Waikoloa Village		236.25		228.27		3.5			81.2			70.9			10.3				191.94		161.92		18.5			393.60		317.00		24.2
3	Hilton San Francisco Union Square		280.40		268.52		4.4			89.2			86.5			2.7				250.15		232.24		7.7			350.97		328.72		6.8
4	Parc 55 San Francisco - a Hilton Hotel		280.62		264.72		6.0			90.2			91.0			(0.8	)			253.02		240.81		5.1			288.18		278.60		3.4
5	Le Meridien San Francisco		316.09		304.52		3.8			94.8			94.9			(0.1	)			299.57		288.97		3.7			352.94		344.54		2.4
6	JW Marriott San Francisco Union Square		353.56		332.96		6.2			93.8			93.2			0.6				331.52		310.32		6.8			411.90		388.03		6.1
7	Hyatt Centric Fisherman's Wharf		259.83		244.14		6.4			94.8			97.1			(2.3	)			246.30		237.00		3.9			315.14		297.03		6.1
8	Hotel Adagio, Autograph Collection		304.64		287.77		5.9			90.1			88.0			2.1				274.59		253.20		8.4			302.11		280.63		7.7
9	Hilton Orlando Bonnet Creek		186.00		185.82		0.1			78.0			77.3			0.7				145.01		143.56		1.0			332.51		338.43		(1.7	)
10	Waldorf Astoria Orlando		286.97		281.42		2.0			79.3			78.7			0.6				227.58		221.44		2.8			432.16		414.29		4.3
11	Hilton Orlando Lake Buena Vista		163.32		162.66		0.4			81.1			82.6			(1.5	)			132.42		134.31		(1.4	)		237.10		234.97		0.9
12	Hilton New Orleans Riverside		190.99		188.11		1.5			72.5			74.1			(1.6	)			138.56		139.49		(0.7	)		239.57		237.57		0.8
13	Hyatt Regency Boston		247.37		247.80		(0.2	)		94.3			93.5			0.8				233.24		231.56		0.7			299.95		289.02		3.8
14	Hilton Boston Logan Airport		240.93		241.59		(0.3	)		85.7			87.0			(1.3	)			206.46		210.21		(1.8	)		263.64		265.39		(0.7	)
15	Boston Marriott Newton		187.15		189.67		(1.3	)		73.2			75.4			(2.2	)			137.00		142.99		(4.2	)		222.15		229.68		(3.3	)
16	New York Hilton Midtown		280.82		293.08		(4.2	)		90.9			88.7			2.2				255.22		259.93		(1.8	)		413.98		417.90		(0.9	)
17	Hilton Santa Barbara Beachfront Resort		276.61		269.53		2.6			83.0			71.3			11.7				229.69		192.19		19.5			369.90		299.24		23.6
18	Hyatt Regency Mission Bay Spa and Marina		183.59		182.34		0.7			78.5			85.7			(7.2	)			144.13		156.25		(7.8	)		269.97		279.76		(3.5	)
19	Hotel Indigo San Diego Gaslamp Quarter		197.98		207.33		(4.5	)		89.1			89.5			(0.4	)			176.41		185.66		(5.0	)		211.17		220.77		(4.3	)
20	Hilton Checkers Los Angeles		224.32		225.74		(0.6	)		86.1			93.6			(7.5	)			193.23		211.37		(8.6	)		222.04		241.67		(8.1	)
21	Hilton Chicago		194.64		204.89		(5.0	)		75.4			74.2			1.2				146.69		152.05		(3.5	)		256.16		253.57		1.0
22	W Chicago - City Center		252.85		256.31		(1.4	)		71.8			71.5			0.3				181.65		183.43		(1.0	)		229.49		230.32		(0.4	)
23	W Chicago - Lakeshore		205.96		206.04		(0.0	)		69.5			74.8			(5.3	)			143.22		154.20		(7.1	)		189.77		199.24		(4.8	)
24	Casa Marina, A Waldorf Astoria Resort		387.40		377.47		2.6			83.2			79.2			4.0				322.43		299.15		7.8			510.27		452.70		12.7
25	The Reach Key West, Curio Collection		377.74		347.62		8.7			54.4			80.5			(26.1	)			205.51		279.98		(26.6	)		301.80		402.05		(24.9	)
26	Hilton Denver City Center		176.01		180.58		(2.5	)		85.3			75.8			9.5				150.15		136.97		9.6			223.84		201.58		11.0
27	Royal Palm South Beach Miami		205.59		212.88		(3.4	)		93.0			95.7			(2.7	)			191.21		203.75		(6.2	)		264.17		282.06		(6.3	)
28	DoubleTree Hotel Washington DC – Crystal City		163.90		161.29		1.6			72.7			74.4			(1.7	)			119.11		119.90		(0.7	)		163.61		167.23		(2.2	)
29	DoubleTree Hotel San Jose		226.42		229.13		(1.2	)		84.3			84.1			0.2				190.78		192.58		(0.9	)		273.30		269.62		1.4
30	Juniper Hotel Cupertino, Curio Collection		250.40		246.88		1.4			82.7			87.6			(4.9	)			207.19		216.32		(4.2	)		246.25		260.71		(5.5	)
	Sub-total Core Hotels	$	243.50	$	240.40		1.3	%		84.1	%		83.5	%		0.6	%	pts	$	204.67	$	200.79		1.9	%	$	316.46	$	306.35		3.3	%

	All Other Hotels	$	163.35	$	161.64		1.1	%		77.1	%		74.4	%		2.7	%	pts	$	125.90	$	120.18		4.8	%	$	183.86	$	174.61		5.3	%

	Total Consolidated Portfolio⁽³⁾	$	220.82	$	214.61		2.9	%		82.0	%		80.3	%		1.7	%	pts	$	180.97	$	172.30		5.0	%	$	276.56	$	259.78		6.5	%

	Non-Comparable Hotels⁽⁴⁾	$	164.63	$	159.38		3.3	%		65.4	%		64.4	%		1.0	%	pts	$	107.72	$	102.64		4.9	%	$	201.76	$	169.55		19.0	%

	Total Pro-forma Comparable Hotels⁽³⁾	$	223.78	$	221.23		1.2	%		83.1	%		82.8	%		0.3	%	pts	$	185.86	$	183.01		1.6	%	$	281.55	$	273.66		2.9	%

⁽¹⁾

Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates).

⁽²⁾

Calculated based on unrounded numbers.

⁽³⁾

Assumes hotels were acquired on January 1, 2018.

⁽⁴⁾

Includes the Caribe Hilton and assets disposed of in 2018 and 2019.


30 \|


	Portfolio and Operating Metrics (continued)

	Core Hotels: Full Year 2019 vs. Full Year 2018

	(unaudited, dollars in millions)	Hotel Adjusted EBITDA							Hotel Revenue							Hotel Adjusted EBITDA Margin
		2019		2018⁽¹⁾		Change⁽²⁾			2019		2018⁽¹⁾		Change⁽²⁾			2019			2018⁽¹⁾			Change
	Core Hotels
1	Hilton Hawaiian Village Waikiki Beach Resort	$	163	$	159		2.7	%	$	416	$	401		3.9	%		39.2	%		39.7	%		(50	)	bps
2	Hilton Waikoloa Village		50		33		51.8			160		128		24.2			31.3			25.6			570
3	Hilton San Francisco Union Square		72		67		8.1			246		230		6.8			29.2			28.8			40
4	Parc 55 San Francisco - a Hilton Hotel		34		33		2.9			108		104		3.4			31.5			31.7			(20	)
5	Le Meridien San Francisco		16		16		(0.3	)		46		45		2.4			34.9			35.9			(100	)
6	JW Marriott San Francisco Union Square		14		14		(0.2	)		52		49		6.1			26.6			28.3			(170	)
7	Hyatt Centric Fisherman's Wharf		11		10		18.0			36		34		6.1			30.8			27.7			310
8	Hotel Adagio, Autograph Collection		7		7		1.9			19		18		7.7			35.8			37.8			(200	)
9	Hilton Orlando Bonnet Creek		42		46		(8.0	)		122		125		(1.7	)		34.3			36.6			(230	)
10	Waldorf Astoria Orlando		24		23		4.7			79		76		4.3			29.8			29.7			10
11	Hilton Orlando Lake Buena Vista		22		22		(4.1	)		70		70		0.9			30.5			32.1			(160	)
12	Hilton New Orleans Riverside		54		52		4.2			142		141		0.8			38.0			36.8			120
13	Hyatt Regency Boston		22		21		3.1			55		53		3.8			40.2			40.5			(30	)
14	Hilton Boston Logan Airport		16		17		(4.2	)		58		58		0.0			28.0			29.2			(120	)
15	Boston Marriott Newton		10		11		(9.3	)		35		36		(3.3	)		28.6			30.5			(190	)
16	New York Hilton Midtown		47		53		(11.2	)		284		287		(1.0	)		16.5			18.4			(190	)
17	Hilton Santa Barbara Beachfront Resort		22		15		45.9			49		39		23.6			45.6			38.6			700
18	Hyatt Regency Mission Bay Spa and Marina		8		9		(9.9	)		43		44		(1.7	)		19.7			21.5			(180	)
19	Hotel Indigo San Diego Gaslamp Quarter		6		7		(9.0	)		16		17		(4.3	)		40.1			42.1			(200	)
20	Hilton Checkers Los Angeles		5		6		(16.2	)		16		17		(8.1	)		31.8			34.9			(310	)
21	Hilton Chicago		28		28		(0.6	)		144		143		1.0			19.1			19.4			(30	)
22	W Chicago - City Center		8		7		9.0			34		34		(0.4	)		24.1			22.0			210
23	W Chicago - Lakeshore		6		7		(12.7	)		36		38		(4.8	)		17.4			19.0			(160	)
24	Casa Marina, A Waldorf Astoria Resort		23		20		12.0			58		51		12.7			39.4			39.7			(30	)
25	The Reach Key West, Curio Collection		5		8		(40.6	)		17		22		(24.9	)		29.4			37.2			(780	)
26	Hilton Denver City Center		20		17		12.1			50		45		11.0			39.2			38.8			40
27	Royal Palm South Beach Miami		14		17		(17.1	)		38		40		(6.3	)		38.0			43.0			(500	)
28	DoubleTree Hotel Washington DC – Crystal City		8		9		(8.7	)		37		38		(2.2	)		22.1			23.7			(160	)
29	DoubleTree Hotel San Jose		15		15		(1.8	)		50		50		1.4			29.9			30.9			(100	)
30	Juniper Hotel Cupertino, Curio Collection		7		9		(16.3	)		20		21		(5.5	)		35.7			40.3			(460	)
	Sub-total Core Hotels	$	779	$	758		2.8	%	$	2,536	$	2,454		3.4	%		30.7	%		30.9	%		(20	)	bps

	All Other Hotels	$	152	$	184		(17.2	)%	$	634	$	765		(17.1	)%		24.0	%		24.0	%		0		bps

	Total Consolidated Portfolio⁽³⁾	$	931	$	942		(1.1	)%	$	3,170	$	3,219		(1.5	)%		29.4	%		29.3	%		10		bps

	Non-Comparable Hotels⁽⁴⁾	$	36	$	65		(45.0	)%	$	145	$	280		(48.3	)%		24.6	%		23.1	%		150		bps

	Total Pro-forma Comparable Hotels⁽³⁾	$	895	$	877		2.1	%	$	3,025	$	2,939		3.0	%		29.6	%		29.9	%		(30	)	bps

⁽¹⁾

Presented on a currency neutral basis (prior periods are reflected using the current period exchange rates).

⁽²⁾

Calculated based on unrounded numbers.

⁽³⁾

Assumes hotels were acquired on January 1, 2018.

⁽⁴⁾

Includes the Caribe Hilton and assets disposed of by Park in 2018 and 2019.


31 \|




		Properties Acquired & Sold

Acquisitions & W New Orleans French Quarter


32 \|


	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.


33 \|


	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.


34 \|




		Debt Summary

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


35 \|


	Debt Summary

	Fixed and Variable Rate Debt

(unaudited, dollars in millions)

Debt

Collateral

Interest Rate

Maturity Date

As of

December 31, 2019

Fixed Rate Debt

Mortgage loan

DoubleTree Hotel Spokane City Center

3.55%

October 2020

Mortgage loan

Hilton Denver City Center

4.90%

August 2022

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

141

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

Capital lease obligations

3.07%

2021 to 2022

Total Fixed Rate Debt

4.19%⁽¹⁾

2,486

Variable Rate Debt

Revolving credit facility⁽²⁾

Unsecured

L + 1.60%

December 2021⁽³⁾

—

2016 Term loan

Unsecured

L + 1.55%

December 2021

700

Mortgage loan

DoubleTree Hotel Ontario Airport

L + 2.25%

May 2022⁽³⁾

2019 Term Facility

Unsecured

L + 1.50%

September 2024

670

Total Variable Rate Debt

3.27%⁽¹⁾

1,400

Add: unamortized premium

Less: unamortized deferred financing costs and discount

(18

)

Total Debt⁽⁴⁾

3.86%⁽¹⁾

3,871

⁽¹⁾

Calculated on a weighted average basis.

⁽²⁾

$1 billion available.

⁽³⁾

Assumes the exercise of all extensions that are exercisable solely at Park’s option.

⁽⁴⁾

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


36 \|




		Definitions

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


37 \|


	Definitions

Pro-forma Comparable Hotels

The Company presents certain data for its consolidated hotels on a pro-forma comparable hotel basis as supplemental information for investors: Pro-forma Comparable RevPAR, Pro-forma Comparable Occupancy, Pro-forma Comparable ADR, Pro-forma Comparable Total RevPAR, Pro-forma Comparable Hotel Adjusted EBITDA and Pro-forma Comparable Hotel Adjusted EBITDA Margin. The Company presents pro-forma comparable hotel results to help the Company and its investors evaluate the ongoing operating performance of its comparable hotels. The Company includes in pro-forma comparable hotels the operating results from the 16 hotels acquired in the Chesapeake merger in September 2019 that remain in the portfolio as of December 31, 2019 as if they were owned as of the beginning of each of the periods presented. Pro-forma comparable hotels also include the operating results for Park legacy hotels that: (i) were active and operating since January 1st of the previous year, and (ii) have not sustained substantial property damage or business interruption, have not undergone large-scale capital projects and for which comparable results are not available. Due to the effects of business interruption from Hurricane Maria at the Caribe Hilton in Puerto Rico during the first half of 2019, the results from this property were excluded from pro-forma comparable hotels in 2019. Additionally, Park’s pro-forma comparable hotels also exclude the 12 consolidated hotels that were sold in January and February 2018, one consolidated hotel that was returned to the lessor after the expiration of the ground lease in December 2018, one hotel returned to the lessor upon early termination of the ground lease in December 2019, and seven consolidated hotels that were sold in 2019. Of the 55 hotels that are consolidated as of December 31, 2019, 54 hotels have been classified as pro-forma comparable hotels.

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

Earnings before interest expense, taxes and depreciation and amortization (“EBITDA”), presented herein, reflects net income excluding depreciation and amortization, interest income, interest expense, income taxes and interest expense, income tax and depreciation and amortization included in equity in earnings 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;

• Gains or losses on foreign currency transactions;

• 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 and 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, including both comparable and non-comparable 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.


38 \|


	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 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.

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:

• Gains or losses on foreign currency transactions;

• 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; 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 Pro-forma 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 Pro-forma Adjusted EBITDA Ratio

Net debt to Pro-forma 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. Pro-forma Net debt to Pro-forma 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. 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.


39 \|


	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. 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 for comparable hotels.

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. 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 for comparable hotels.

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.


40 \|


	Analyst Coverage

Analyst	Company	Phone	Email
Shaun Kelley	Bank of America	(646) 855-1005	shaun.kelley@baml.com
Anthony Powell	Barclays	(212) 526-8768	anthony.powell@barclays.com
Ari Klein	BMO Capital Markets	(212) 885-4103	ari.klein@bmo.com
Neil Malkin	Capital One Securities	(571) 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
Brian Dobson	Nomura/Instinet	(212) 310-5416	brian.dobson@instinet.com
Bill Crow	Raymond James	(727) 567-2594	bill.crow@raymondjames.com
Patrick Scholes	SunTrust	(212) 319-3915	patrick.scholes@suntrust.com
Robin Farley	UBS	(212) 713-2060	robin.farley@ubs.com
Dori Kesten	Wells Fargo	(617) 603-4262	dori.kesten@wellsfargo.com


41 \|