Investor Presentation - Park Hotels & Resorts/media/Files/P/Park-Hotels/re… · Financial...

Investor Presentation

Waldorf Astoria Orlando Hilton Chicago Hilton Hawaiian Village Waikiki Beach Resort

Citi Global Property CEO Conference

March 2019

To be the preeminent lodging REIT,focused on consistently delivering superior,

risk-adjusted returns for stockholders throughactive asset management and a thoughtful external

growth strategy, while maintaining a strongand flexible balance sheet

Mission

2 |

3 |

⚫ Preserve a strong and flexible balance sheet, with a targeted leverage ratio of 3x to 5x

⚫ Maintain strong liquidity across lodging cycle and access to multiple types of financing

⚫ Aspire to achieve investment grade rating

Strong and Flexible Balance Sheet

⚫ Continually improve property level operating performance

⚫ Consistently implement revenue management initiatives to optimize market pricing /

segment mix

⚫ Allocate capital effectively by leveraging scale, liquidity and M&A expertise to create value

throughout all phases of the lodging cycle

⚫ Employ an active capital recycling program—expanding our presence in target markets with

a focus on brand and operator diversification, while reducing exposure to slower growth

assets/markets

⚫ Target value enhancement projects with strong unlevered ROI yields

Pillars of our Corporate Strategy

Aggressive Asset Management

Prudent Capital Allocation

Hilton Chicago

Hilton Waikoloa Village

Juniper Hotel Cupertino, Curio Collection

4 |

Corporate Strategy: Delivering Results

✓ Asset Sales: 13 non-core assets for $519M at a blended 13x 2017 EBITDA multiple; International exposure decreased to just 1% of EBITDA

✓ Buyback: Bought back 14M shares at a significant discount to NAV ($24.85/share) for $348M

✓ Leverage: Net leverage of just 3.7x

✓ Liquidity: $1.2B of liquidity

✓ Debt: 5.6 years maturity; 4.1% average debt cost

✓ Performance: Outperformed hotel REITs(3) by 1,380bps and S&P 500 by 390bps

✓ Dividends: $2.74/share (~$555M+ paid out); recently increased dividend by 4.6%

Strategic Pillars 2018 Scorecard

Casa Marina, a Waldorf Astoria Resort

Hilton New York Midtown


✓ RevPAR: +2.9% → 65bps above peers

✓ Margins(1): +60bps→ 60bps above peers

✓ Grouping Up: +80bps to 32% for Pro forma Comp Top 25 hotels(2)

Operational Excellence

Capital Allocation

Strong Balance Sheet

Results

Note: Peers include all publicly-traded, full-service hotel REITs with a market cap over $1 billion(1) See Appendix for our definitions and for reconciliations to comparable U.S. GAAP measures. Our definition of Hotel Adjusted EBITDA margin may not

be comparable to similarly titled measures of our peers. Based on most recently available / restated financial statements from their respective quarterly earnings releases.

(2) Pro forma to exclude Hilton Chicago O’Hare, which is no longer part of Park’s portfolio due to the expiration of its ground lease on 12/31/18(3) Includes all publicly-traded hotel REITs with a market cap over $1 billion

5 |

Park’s Investment Thesis: Well Positioned in 2019

Note: Peers include all publicly-traded, full-service hotel REITs with a market cap over $1 billion(1) Represents 2018 Adjusted EBITDA

Sector Leading

Fundamentals

✓ 2019E RevPAR growth of 2% to 4% → 120bps above peers

✓ 2019 Group pace for consolidated portfolio → 10%+

✓ 2019 Group pace for HI, SF, Chicago and NYC → 14%+

✓ 2020 Group pace → 9%

✓ Park has developed a near-term track record of success:

✓ Generated sector-leading total returns for share-holders since spin (+2,670bps vs all hotel REIT peers);

✓ While narrowing the valuation gap with peers

✓ Our Comp Top 25 RevPAR (90% of EBITDA(1)) in ‘18 was $188—5% above peers

✓ 2018 RevPAR growth of 2.9%→ 65bps above peers

✓ 2.3% weighted average supply exposure through 2020 →80bps below peers

✓ Despite rising cost pressures, margins estimated to increase 30bps (midpoint) or 50bps+ above peer group average

High Quality Portfolio

Margins to Improve in ‘19

Track Record of Success

Financial Flexibility

✓ At 3.7x net leverage and $1.2B of liquidity, ample liquidity to execute on our strategic initiatives with a long-term targeted leverage ratio of 3x to 5x

Signia Hilton Bonnet Creek

Waldorf Astoria Orlando Golf Club

Parc 55 San Francisco - a Hilton Hotel

6 |

Park Team

Chairman, President

& CEO

Tom Baltimore

EVP, GC

Tom Morey

EVP, HR

Jill Olander

EVP, CIO

Matt Sparks

EVP, Asset Management

Rob Tanenbaum

EVP, CFO & Treasurer

Sean Dell’Orto

➢ 25 years average experience among senior leadership

➢ Total of ~90 employees at Park Headquarters

Park Management

SVP, CAO

Darren Robb

SVP, FP&A

Diem Larsen

SVP, Strategy

Ian Weissman

SVP, Tax

Scott Winer

Executive Management

Senior Management

Board of Directors

➢ Best-in-class board including former CEOs and CFOs of Fortune 500 Companies

➢ Significant REIT experience across industries

EVP, D&C

Carl Mayfield

7 |

2018 Accomplishments

6.5%AFFO/Shr

Growth

2.9%

Comp RevPAR

60bps 80bps to 32.0%Pro forma Comp Top

25 Group Revenue Mix(1)

Comp Hotel Adj EBITDA

Margin

13# of Hotels

Sold(2)

$519MAsset Sale

Proceeds(2)

$1.4BHNA

Secondary Offering

$348M14M Shares

Bought Back at Discount to NAV

1,380bps-0.5% 7.7% 9.3%2018 Total

Return(3)

PK’s Relative Outperformance

vs. Peers (4)

2018 PK Dividend

Yield (3)

Annual Increase in PK Dividend

Operating Results:

Capital Allocation:

Shareholder Returns:

Since early 2017, Park has returned nearly $1.9B of capital to shareholders(5)

(1) Pro forma to exclude Hilton Chicago O’Hare, which is no longer part of Park’s portfolio due to the expiration of its ground lease on 12/31/18(2) In February 2019, Park sold the Pointe Hilton Squaw Peak Resort for $51M, bringing total assets sold to 14 for total proceeds of $570M(3) As of 12/31/18(4) As of 12/31/18; peers include all publicly-traded, full-service hotel REITs with a market cap over $1 billion(5) Return of capital includes both dividends and stock repurchase

8 |

Park Continues to Outperform

Total Return Performance Since Spin: 1/4/17

Total Return Performance: YTD 2019

+2,670bps vs. Hotel REIT Peers

+230bps vs. Hotel REIT Peers

Source: FactSet; data as of 2/26/19(1) Peers include all publicly traded hotel REITs with a market cap over $1 billion

36.5%

28.4%

11.4% 11.1%9.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

PK S&P 500 HST RMZ Hotel REITs(1)

Tota

l Re

turn

s

20.7%

18.4% 18.2%

12.9%11.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

PK Hotel REITs(1) HST RMZ S&P 500

Tota

l Re

turn

s

9 |

4Q18 Performance and 2019 Outlook

2019 Outlook

4Q18 Operating Results

3.6%Comp

RevPAR

40bpsComp Hotel Adj EBITDA

Margin

3.8% 23%Increase in

‘Other Hotels Revenues’(1)

GroupRevenues

Metric Guidance

Comp RevPAR Growth: +2.0% to +4.0%

Comp EBITDA Margins: +0bps to +60bps

Adjusted EBITDA: $745M to $775MNote: Guidance as of 2/27/19. Not being updated or reconfirmed via this presentation.

(1) Ancillary hotel revenues for our comparable hotels

10 |

Company Highlights

Park Hotels & Resorts is a leading lodging real estate investment trust with a diverse portfolio of iconic and

market-leading hotels and resorts with significant underlying real estate value in top U.S. markets

Leading Properties(1)

52 premium-branded hotels and iconic resorts with nearly 31,000 well-maintained rooms

85%+ of rooms in luxury and upper-upscale segments

26 properties with 25k+ sq. ft. of meeting space and 9 properties with 125k+ sq. ft. of

meeting space

2018Performance(2)

82%Total

Occupancy

$212Total ADR

$174Room RevPAR

$208Avg. Room

RevPARof Top 10 Assets(3)

(1) As of 2/27/19(2) Total consolidated Hotel Occupancy, ADR and RevPAR; excludes unconsolidated joint ventures and non-comparable hotels, unless otherwise noted(3) Top 10 TTM RevPAR includes Hilton Waikoloa Village, which is non-comparable in 2018

DoubleTree Hotel Washington DC – Crystal City

Hilton Miami Airport Hilton Boston Logan Airport

Waldorf Astoria Orlando

11 |

$1.3$1.6

$2.3 $2.5 $2.5$3.0

$3.4$3.9

$4.8$5.2

$5.6

$6.7

$7.5

$9.1

$17.7

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

BHR CLDT INN CHSP HT DRH XHR SHO AHT APLE RLJ RHP PEB PK HST

En

terp

rise

Va

lue

(B)

Full Service

Mixed & Limited Service

Park is the second largest publicly traded Lodging REIT

Size and Scale: Park Twice the Size of Most Lodging REITs(1)

Source: Public company filings as of 12/31/18 and S&P Global. Market data as of 2/26/19(1) Assumption excludes HST from calculation

12 |

New York Hilton Midtown

1,878 rooms

Hilton San Francisco Union Square

1,921 rooms

Hilton Chicago

1,544 rooms

Hilton New Orleans Riverside

1,622 rooms

Hilton Hawaiian Village Waikiki Beach

Resort

2,860 rooms


1,110 rooms(1)

Casa Marina, a Waldorf Astoria Resort

311 rooms

Waldorf Astoria Orlando/

Hilton Orlando Bonnet Creek

1,511 rooms

DoubleTree Hotel Washington DC –

Crystal City

627 Rooms

Hilton Boston Logan Airport

599 rooms

Hilton Miami Airport

508 rooms

Hilton McLean Tysons Corner

458 rooms

Diversified Asset Types & Markets

High Barrier to Entry Urban

and Convention Hotels Landmark ResortsSelect Suburban and

Strategic Airport Hotels

Note: room count as of 12/31/18(1) Includes approximately 470 rooms that became part of HGV as part of the spin-off and that we reserved exclusive rights to occupy and operate.

At the end of December 2019, we are required to release these rooms back to HGV for its renovation and use

13 |

Portfolio Diversification(1)

Location Type(2):

(1) Calculated using results for the year ended 12/31/18 for the hotels we currently own or have an ownership interest in; pro forma to exclude YTD 2019 dispositions as well as removal of Hilton Chicago O’Hare, which is no longer part of Park’s portfolio due to the expiration of its ground lease on 12/31/18

(2) Calculated using total Hotel Adjusted EBITDA, which includes pro rata share of EBITDA from JVs as well as EBITDA from non-comparable hotels. See Appendix for definitions and reconciliations of these measures to comparable U.S. GAAP measures

Revenue Segmentation:

⚫ Over 80% Urban / Resort

exposure

⚫ Continuing to reduce Airport /

Suburban exposure via capital

recycling initiatives

⚫ 45% exposure to Hawaii, San Francisco, DC and Key

West – all with less than 2% projected supply

growth over next 2 years

⚫ 13% exposure to San Francisco, which is projected to

see a 78% increase in convention center room

nights in 2019, totaling over 1.2M room nights

⚫ Target markets include DC, Boston, Miami and SoCal

⚫ International exposure at just 1%, down from 5%

prior to 2018 dispositions

Markets(2):

⚫ Park’s “Grouping Up” strategy targets

400 bps shift in Group demand

among Top 25 hotels

⚫ Removing Chicago O’Hare, Comp 2018

Top 25 group mix was 32%, or 80bps

comparable improvement over 2017

⚫ Transient strategy of 50/50 split

between Leisure and Corporate

demand

Resort

44%

Urban

38%

Airport

13%

Suburban

5%

Honolulu, 20%

Orlando, 13%

San Francisco,

13%

New Orleans,

7%

New York, 7%

Waikoloa, 4%

Chicago, 4%

DC Metro, 4%

Key West, 4%

San Diego, 3% Int'l, 1%

Group

31%

Transient

62%

Contract

5%

Other

2%

14 |

7.3% 7.3% 6.7%5.6% 4.9%

4.1% 3.9% 3.8% 3.7% 3.1% 2.7% 2.2% 2.2% 2.0% 1.9% 1.7% 1.6%0.5%

0.0%

5.0%

10.0%

15.0%

20.0%

Supply Growth PK 2018 Adjusted EBITDA (%) National Supply Growth

4.7%

3.2% 3.1% 3.0% 2.9% 2.8% 2.7% 2.6%2.3%

RHP CHSP DRH PEB HST XHR SHO BHR PK

We

igh

ted

Av

g S

up

ply

G

row

th '1

9 -

'20

Full-service REIT Supply Exposure –STR Top 25 Markets

Park Portfolio: Well Insulated from Supply⚫Against a backdrop of increased US supply

growth in Top 25 Markets, Park is well positioned relative to its peers

⚫With outsized exposure to Oahu, San Francisco and Orlando, Park anticipates just 2.3% average annual supply growth through 2020, or 80bps lower than its peer group average

Favorable Supply Picture for Park through 2020(1)

Note: Charts presented above based on CBRE and Park estimates (1) Supply Growth data from CBRE’s Mar - May 2019 Hotel Horizons forecasts for Upper Priced hotels; represents average of 2019 and 2020 supply

forecasts. Park’s Adjusted EBITDA represents 2018 data and includes pro rata share of unconsolidated JVs; pro forma for Park’s current portfolio

National Supply Growth Average: 1.9%

Peer Avg. 3.1%

2

Park Portfolio: Well Insulated from Supply

Supply Growth Exposure for Lodging REITs(1)~2.3% Supply Growth for Park

15 |

10.4% 8.8%

23.4%

17.2%

7.9% 6.4%3.0% 2.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

PK Comp. PK Comp. No SF Hawaii San Fran Chicago New York New Orleans Orlando

20

19

Gro

up

Pa

ceGrouping Up Strategy

2018 vs. Peak Group Mix Group Up to 35%

• Strategic goal is to drive group mix higher by another 400bps to an optimal mix of ~35% for Park’s Top 25 hotels

• Why Group Up:

1) Build a base in large, big box hotels to effectively shrink the hotels for less rooms to sell each night

2) Drive overall ADRs by yielding up on transient rates

3) Benefit from highly profitable catering/F&B from higher rated groups

4) Drive margins higher* Denotes prior annual peak group revenue mix from 2005 – 2018; Current Group Mix represents

pro forma comparable 2018 Hotels 11-25 and Top 25 portfolio (excludes Hilton Chicago O’Hare)

35%

23%

32%

40%

30%

38%

20%

25%

30%

35%

40%

45%

Top 10 Portfolio Hotels 11-25 Top 25 Hotels

Gro

up

Mix

Current Group Mix Peak Group Mix*

2019 Group Pace(1): Park’s Portfolio + Primary Park Markets

(1) Group pace as of 12/31/18

2019 Convention Calendar: 2% 78% 35% 33% 5%20%

16 |

60 bps

-2 bps

30 bps

-19 bps

-40 bps

-20 bps

bps

20 bps

40 bps

60 bps

80 bps

100 bps

Park Peers(2)

Y/Y

Ch

an

ge

in

Ho

tel A

dj.

EB

ITD

A M

arg

in

2018A 2019E(1)

Closing the Margin Gap: 60bps in 2018; Est’d 50bps in 2019

• In 2018, Park’s Comparable Hotel Adjusted EBITDA margin improved 60bps to 28.8% vs. a 2bps drop for our full-service Hotel REIT peers. In 2019, we are forecasting another 30bps improvement in our margins (at the mid-point of guidance) vs. a 19bps decline for the peer set average, at the midpoint of their guidance. In aggregate, that would amount to ~110bps+ of relative improvement over a two-year period

• For every 50bps of margin improvement, EBITDA increases by ~$14 million, accounting for approximately $170 million of value creation(3)

Comp. Hotel Adj. EBITDA Margins(1): 2018 + 2019E Change

(1) See Appendix for our definitions and for reconciliations to comparable U.S. GAAP measures. Our definition of Hotel Adjusted EBITDA margin may not be comparable to similarly titled measures of our peers. Based on most recently available / restated financial statements from their respective quarterly earnings releases

(2) Peers include HST, SHO, CHSP, DRH (did not provide ‘19 margin guidance), PEB, XHR and RHP (did not provide ‘19 margin guidance)(3) Assumes a 12.0x valuation multiple

110bps+ of Relative Improvement

17 |

30.2%

32.0%

29.0%

29.5%

30.0%

30.5%

31.0%

31.5%

32.0%

32.5%

PK Pro forma PK Top 25

2018 Group Mix(2)

$667,000

$754,000

$500,000

$550,000

$600,000

$650,000

$700,000

$750,000

$800,000

Pro forma PK Top 25 PK

2018 Adjusted EBITDA ($000)

$174

$190

$150

$155

$160

$165

$170

$175

$180

$185

$190

$195


2018 RevPAR(2)

In Focus: Top 25 Portfolio (~90% of Adj. EBITDA)

Top 25 hotels(1) drive overall quality and performance of portfolio

(1) Top 25 hotels pro forma to exclude Hilton Chicago O’Hare, , which is no longer part of Park’s portfolio due to the expiration of its ground lease on 12/31/18

(2) Represents comparable 2018 operating statistics for Park’s portfolio as of 12/31/18

$24,900

$31,600

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000


2018 Hotel Adjusted EBITDA/key

18 |

Market Spotlights: 2019 Momentum

Florida

⚫ Nearly 4,000 rooms & 385,000SF of

meeting space across two hotels

⚫ Strong ramp-up in performance

projected for 2019 in Waikoloa as the

island’s visitation normalizes

following 2018’s disruption from the

volcano

⚫ Southwest Airlines expected to

begin service to Oahu first half of

2019; additional routes to other

Hawaiian islands to follow

⚫ Oahu supply growth of just 0.5%

projected for next 2 years(1)


meeting space across two hotels

⚫ Group pace projected to be ~17% in

2019, building off strong uptick in

group throughout 2018 (started the

year at 7% group pace, finished at

16%)

⚫ Moscone Center projected to see a

78% increase in convention room

nights in 2019, totaling over 1.2M

room nights

⚫ San Francisco supply growth of 1.6%

projected for next 2 years (1)


meeting space across six hotels

⚫ Diversified exposure to the state

across three markets (Orlando, Key

West and Miami)

⚫ Bonnet Creek complex’s meeting

space expansion expected to begin

in Q4, adding ~70,000SF of meeting

space by 2021. Rebrand of Hilton

Bonnet to Signia Hilton should help to

drive additional group demand

⚫ Orlando supply growth of 2.2%

projected for next 2 years, while Key

West has little to no supply growth (1)

San FranciscoHawaii

Over 50% of Park’s 2018 Adjusted EBITDA generated from 3 markets that are expected to solid performance in 2019

(1) Supply Growth data from CBRE’s Mar - May 2019 Hotel Horizons forecasts for Upper Priced hotels; represents average of 2019 and 2020 supply forecasts

2018 Financials

RevPAR $221

Hotel Adjusted EBITDA $191.5M

% Adjusted EBITDA 25%

2019 Park Hawaii

Group Pace23%

2018 Financials

RevPAR $235



2019 Park San Francisco

Group Pace17%

2018 Financials

RevPAR $173



2019 Park Florida

Group Pace3%

19 |

Amazon to Concentrate Around Park’s DoubleTree

The Amazon Effect:

• Seattle CBD Tract RevPAR recorded 7.6% CAGR from 2010 – 2017, coinciding with development of Amazon’s headquarters campus

• The Arlington, VA Tract RevPAR CAGR during same time period was just 0.8%

DoubleTree Crystal City located directly across the street from 4.1M SF Amazon cluster

$80

$100

$120

$140

$160

$180

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20

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02

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20

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Seattle CBD Arlington

Name

DoubleTree Hotel Washington

DC - Crystal City

Keys 627

Open Date Jun-73

Meeting Space (SF) 31,000

YTD Sep '18 RevPAR $124

RevPAR Index 104.1%

Annual RevPAR(1)

(1) Tract data provided by STR

627-room DoubleTree

4.1M SF of Amazon Development Rights

As part of its HQ2 expansion into Crystal City (Arlington, VA), Amazon purchased 4.1M SF of development rights from JBG, directly adjacent to our Doubletree Crystal City hotel.

20 |

ROI Projects

How We Evaluate ROI Projects• Asset management teams work with property management and Design & Construction to identify

opportunities

• Projects underwritten based on expected risk adjusted returns that range from a minimum of 15-20% IRRs for larger projects and expected paybacks within 1-2 years for smaller projects

• Consultants may be engaged for larger projects ahead of approving the project

Near Term ProjectsCompleted/Committed

HLT Santa BarbaraConverted and repositioned from

DoubleTree (completed April 2018)

WA/HLT Bonnet CreekAddition of ~70k sq. ft. of meeting

space

Mid Term ProjectsUnder Review

Asset Repositions

HLT Bonnet Creek RepositioningUp-brand to Signia Hilton

WA Reach Resort ConversionRenovate and reposition to a Curio

DT San Jose Conversion Renovate and reposition as a Hilton

Longer Term ProjectsIn Planning/Concepting

HLT Hawaiian VillageMaster planning (branding; retail;

amenities) including development of ½-acre Ala Moana parcel

HLT New OrleansDevelopment and/or sale of 7-acre

‘Whale’ lot and other parcel and 2-acre surface lot parking area

Other smaller projects evaluated within the portfolio over time:

• Energy Initiatives: Co-generation plants; LED lighting

• Labor / Productivity: Union buyouts; labor management systems; digital key

• F&B: Installation of Grab ‘N Go market concepts

21 |

Completed ROI Project: Hilton Santa Barbara Beachfront Resort

Conversion from a DoubleTree to a Hilton

⚫ 360-room beachfront resort on 24 acres in Santa Barbara, CA

⚫ Prime location in Santa Ynez wine country with in-house winery

⚫ Upbranding to a Hilton expected to attract higher-rated group business andbetter yield transient business

⚫ $14M renovation cost(1) ($38,000/key) completed in April 2018

⚫ 4Q18 RevPAR increased +25.9%; projected 2019 RevPAR growth in mid- to

high teens

Old lobby: Renovated lobby:

(1) Park owns a 50% interest in the Hilton Santa Barbara Beachfront Resort; as such its pro-rata investment in the renovation was $7M

Scope

⚫ Guestrooms: case goods; soft goods

⚫ Guest bathrooms: conversion of 160 bathtubs to walk-in showers; case goods, softgoods

⚫ Public space: lobby; meeting space (mainly soft goods); and repositioning of F&B toinclude new Grab ‘N Go

22 |

Future ROI Project: Bonnet Creek Meeting Space Addition

⚫ Group meeting business is a key demand source for the 1,009-room Hilton and 502-room WA Bonnet Creek, although both properties offer less meeting space per guestroom than their key competitors

Opportunity: Additional Meeting Space

⚫ Current plans call for the construction of ~70,000 sq. ft. of meeting space across 2 new meeting space platforms including:

⚫ ~35,000 sq. ft. ballroom adjacent to existing Hilton meeting space complex

⚫ ~9,000 sq. ft. ballroom adjacent to the Waldorf Astoria

⚫ Approximately $70M investment in 2019-2021 expected to generate

approximately $13.5M of additional EBITDA/year once stabilized,

yielding a 5-yr unlevered IRR of 20%+

⚫ Upbrand the Hilton Bonnet Creek to newly-announced Signia Hilton brand

Proposed Hilton Ballroom and meeting space

Proposed Waldorf Ballroom

Bonnet Creek: Development Rights

23 |

Capital Recycling Efforts Improve Portfolio Quality

2017Phase I Asset

Sales2018

Phase II Asset Sales (YTD)

2019E(2)

Hotels 67 13 54 1 52

Rooms ~35,300 ~3,200 ~32,000 ~560 ~30,000

RevPAR(3) $163 $108 $174 $118 $179-183

EBITDA/key(4)$25,100 $14,100 $27,800 $10,100 —

Phase I Asset Sales: 2018

• In 2018, Park sold 13 non-core hotels ($40M of EBITDA in

2017) for nearly $520M, or 13x 2017 EBITDA

• Improvement to portfolio quality: Pro-forma 2017(1)

RevPAR increased +$6 (to $169), while international

exposure decreased to 1.5% (from 5.5%)

Phase II Asset Sales: 2019• Sold Pointe Hilton Squaw Peak Resort for $51M

• Currently marketing an additional 5 to 8 assets for sale

• Average RevPAR is 30% below portfolio average

• Projected capex savings of $90 - $100M

Portfolio Transformation with Capital Recycling Initiatives

(1) Pro-forma 2017 represents portfolio metrics without Phase I Assets (2) 2019E represents portfolio as of 2/27/19 and guidance provided 2/27/19; 860-room Hilton Chicago O’Hare Airport ground lease expired 12/31/18(3) 2017, 2018 and 2019E represent consolidated comparable RevPAR; 2019E based on guidance provided 2/27/19. RevPAR for Phase I Asset Sales

represents 2017 RevPAR, while RevPAR for Phase II Asset Sales (YTD) represents 2018 RevPAR(4) Represents EBITDA/key for the respective consolidated comparable portfolio

24 |

Strong and Flexible Balance Sheet

Debt Capital Structure Overview(1)

⚫ $236 million of unconsolidated JV debt (pro rata)

Debt Maturity Schedule(1)

Liquidity Profile Fixed vs. Floating Net Debt to Adjusted EBITDA(3)

Fixed, 74%

Floating26%

Debt$

Amount

% of

Total

Weighted Avg.

Cost of Debt

CMBS (secured) $2,000 68% 4.2%

Term Loan A (Unsecured) (2) 750 25% 4.0%

Consolidated JV Debt

(secured)

207 7% 4.2%

Revolver(2) 0 0 4.0%

Total Debt $2,957 100% 4.1%

Source: FactSet

⚫ Ample liquidity with $410 million(4) of cash

available as of 12/31/18

⚫ 42 unencumbered hotels, or 63% of AdjustedEBITDA(5)

⚫ In addition to cash, Park has access to an

undrawn $1 billion revolving credit facility

(1) As of 12/31/18. Figures exclude pro rata share of Unconsolidated JVs, unamortized deferred financing costs, discounts and capital lease obligations(2) Term Loan A (L + 1.45%) and Revolver (L + 1.50%) as of 12/31/18(3) Calculations based upon the latest Consensus estimates. See Appendix for definitions and reconciliations of these measures to comparable U.S. GAAP measures (4) When factoring in the 4Q18 dividend payment of $1.00/share, our pro-forma cash balance would be approximately $210 million(5) For the year ended 12/31/18; 40 hotels and 63% of EBITDA as of 2/26/19

7.2x

5.1x 4.7x

3.8x 3.7x 3.5x 2.9x

1.8x 1.2x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

BHR RHP PEB CHSP PK XHR DRH HST SHON

et D

ebt t

o E

BIT

DA

25 |

Attractive, Well Covered Dividend

(1) 4Q 2017 dividend includes a $0.12 per share ‘top-off’, which translated into an AFFO payout ratio of 67.5%. 4Q 2018 dividend includes a $0.27 per share ‘top-off’ amount and a $0.30 per share component related to additional gains from 2018 asset sales, which translated into an AFFO payout ratio of 67.2%. Yield excludes both the $0.45 per share special dividend announced on 5/18/18 and the $0.30 per share component included in the 4Q 2018 dividend

(2) Based on 2/26/19 closing prices; For PK, the 5.7% yield assumes a quarterly dividend run-rate of $0.45/share, or $1.80 on an annualized basis, while the 6.3% yield includes the 4Q 2019 incremental top-off dividend of $0.65/share at the midpoint of our guidance range, or $1.99/share on an annualized basis

Park’s Quarterly Dividends and Respective Yield(1)

⚫ Park paid a fourth quarter 2018 cash dividend of $1.00/share on January 15th to stockholders of record as of December 31,

2018. Of this, $0.70/share represents the fourth quarter payment based on results of operations, and $0.30/share represents gainsfrom the sale of Park’s assets during 2018

⚫ On February 22nd, Park declared a quarterly cash dividend of $0.45/share to be paid on April 15th to stockholders of record as of

March 29th, an increase of 4.6% in the quarterly “regular way” dividend

Dividend and Payout Ratio Analysis

Peer REITs: Current Dividend Yield(2)

Source: FactSet Source: FactSet

Park has paid a total of $7.37/share in cash + stock dividends in its first two years, totaling $1.5B

5.7%

5.5% 5.4%

5.1%

4.6% 4.7% 4.6%

4.1% 4.1%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

PK XHR CHSP BHR SHO DRH PEB HST RHP

An

nu

ali

zed

Div

ide

nd

Yie

ld

6.3%

$0.43 $0.43 $0.43 $0.43 $0.43 $0.43 $0.43 $0.43 $0.45

$0.12

$0.27

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19E

Div

iden

d Y

ield

Qu

art

erly

Div

iden

d

26 |

Brand Strategy Maximizes Revenue and Profitability

Brands Matter: Park will focus on owning hotels and resorts in the luxury and upper upscale segments

Benefits of Partnering with Brands

Consistent quality through a branded product shouldallow Park to achieve higher RevPAR and margins as aresult of:

⚫ Recognizable product compared to independent hotelsstruggling to differentiate their offerings

⚫ Worldwide reservation systems

⚫ Loyalty programs help to drive recurring sales, whilelowering new customer acquisition costs

⚫ Hilton (~85M members) and Marriott, including

Starwood (~120M members), have over 50%of sales stemming from customers withinloyalty programs

⚫ Ability to achieve increased direct-to-consumer salesminimizing OTA / wholesale commissions andincreasing revenue to Park

⚫ Significantly lower distribution costs for OTA businessgiven negotiating power of brands

⚫ More effective competition against Airbnb, particularlywith respect to frequent travelers who appreciate thereliability and security of branded hotels

Worldwide Group Sales

Strong Loyalty

Programs

Worldwide Reservation

Systems

Effective Brand

Segmentation

RevPAR Premiums

27 |

Appendix

Hilton Sao Paulo

28 |

ESG: Corporate Responsibility

Public Disclosure of Materials

• Park’s “Responsibility” webpage launched Jan ’19

• Extensive new disclosure on Environmental and Social metrics and initiatives

• Approved corporate governance enhancements, including proxy access and majority voting standard in director elections

• Information made publicly available to ensure more accurate representation of Park’s ESG initiatives to third party ratings

agencies like ISS, MSCI and

Sustainalytics

New Publications

(1) Represents Park’s portfolio as of 12/31/17, which consisted of 67 hotels with over 32,000 rooms(2) FY 2018 data; represents first year to track these metrics

• 2018 Annual Corporate Responsibility Report

• Environmental Policy

• Human Rights Policy

• Vendor Code of Conduct

FY 2017 Performance Highlights(1):Hotel Portfolio:

Corporate HQ:

100%Portfolio ISO 14001, 9001 and 50001 Certified

4.46Greenhouse

Gas Emission Intensity (kg/sf)

~$35kCost Savings from Water Efficiency Projects

84%Waste

Diversion Rate

~$445kCost Savings from Energy

Efficiency Projects

13.59Energy

Intensity (kw hrs/sf)

400+Volunteer hours(2)

90%Associate

Satisfaction(2)

$270kCharitable

Contributions(2)

29 |

Case Study: Bonnet Creek Complex

Asset Management partnered with property team to further drive awareness of the resort given the unique

attributes of the 1,009-room Hilton and 502-room Waldorf Astoria (WA)

• WA Orlando Focus on Luxury: Hired 2 luxury sales managers & instituted cross-selling with Casa Marina

• Implemented lead-sharing platform with other hotels owned by Park in Orlando

• Opportunity to upbrand Hilton to Signia by Hilton, Hilton’s new upper-upscale, meetings-focused brand – similar to a JW Marriott

Revenue

Mgmt

• Created 250 “Fireworks View” room types with premium rates

Oper.

Analysis

• Created 12 additional keys – 8 at the Hilton and 4 at the Waldorf in early 2017: $400K incremental EBITDA

• Created 5 new Jr. Suites at the Hilton by splitting Parlor Rooms: $150K incremental EBITDA

• LED Lighting: estimated $600K savings per year and 40% IRR

• Laundry: estimated $150K of annual savings

• Re-bid parking contract: estimated incremental $700K annually

Sales/

Mktg

Waldorf Astoria Orlando Hilton Orlando Bonnet Creek

30 |

Future ROI Projects: New Orleans

Hilton New Orleans Riverside

⚫ 1,622 room hotel with 130,000 sq. ft. of meeting space

⚫ Adjacent to the 3 million sq. ft. New Orleans Ernest N. Morial Convention Center (NOCC) – 6th largest in the US

Opportunity: Excess Land

⚫ Whale Lot: 7-acre parking lot separates Hilton Riverside and NOCC (square yellow box)

⚫ Sale of Plot: Potential future expansion of the NOCC providing doorstep access to our hotel

⚫ Development: Land would need to be entitled, but there is a wide range of potential development opportunities on the site

with the building height set by FAR. Total buildable square footage could be well in excess of 1 million sq. ft.

⚫ WTC surface parking (rectangular yellow box): aggregate ~2 acres of developable land

WTC Garage

‘Whale’ Lot

Hilton New Orleans Riverside: Development Rights/Land Sale

31 |

Guidance

2019 Guidance and Assumptions

• Hilton Waikoloa Village will be included in Park’s comparable hotels as its room count is expected to remain consistent

throughout 2019 as compared to 2018;

• General and administrative expenses are projected to be $44 million, excluding $15 million of non-cash share-based

compensation expense;

• Fully diluted weighted average shares are expected to be 202.3 million;

• Includes $8 million of Adjusted EBITDA from the Caribe Hilton representing a partial year of operations, for which Park

expects to be covered by business interruption insurance resulting from the hotel being closed for a portion of 2019

following the damage caused by Hurricane Maria; and

• Excludes potential future acquisitions and dispositions, which could result in a material change to Park’s outlook.

Metric

Comparable RevPAR Growth 2.0% 4.0%

Comparable RevPAR 179$ 183$

Net income 294$ 323$

Net income attributable to stockholders 286$ 315$

Diluted earnings per share 1.42$ 1.56$

Adjusted EBITDA 745$ 775$

Comparable Hotel Adjusted EBITDA margin change 0 bps 60 bps

Adjusted FFO per share - Diluted 2.91$ 3.05$

(unaudited, dollars in millions, except per share amounts)

Low High

2019 Outlook

as of February 27, 2019

Guidance 2019 Guidance and Assumptions (unaudited, dollars in millions, except per share amounts) 2019 Outlook as of February 27, 2019 Metric Low High Comparable RevPAR Growth 2.0% 4.0% Comparable RevPAR $ 179 $ 183 Net income $ 294 $ 323 Net income at tributable to stockholders $ 286 $ 315 Diluted earnings per share $ 1.42 $ 1.56 Adjusted EBITDA $ 745 $ 775 Comparable Hotel Adjusted EBITDA margin change 0 bps 60 bps Adjusted FFO per share - Diluted $ 2.91 $ 3.05 Hilton Waikoloa Village will be included in Park’s comparable hotels as its room count is expected to remain consistent

throughout 2019 as compared to 2018; General and administrative expenses are projected to be $44 million, excluding $15 million of non-cash share-based compensation expense; Fully diluted weighted average shares are expected to be 202.3 million; Includes $8 million of Adjusted EBITDA from the Caribe Hilton representing a partial year of operations, for which Park expects to be covered by business interruption insurance resulting from the hotel being closed for a portion of 2019 following the damage caused by Hurricane Maria; and Excludes potential future acquisitions and dispositions, which could result in a

material change to Park’s outlook. PARK HOTELS & RESORTS 20

32 |

Guidance (continued)

EBITDA and Adjusted EBITDA

(unaudited, in millions)

Low Case High Case

Net income 294$ 323$

Depreciation and amortization expense 278 278

Interest income (8) (8)

Interest expense 130 130

Income tax expense 13 14

Interest expense, income tax and depreciation and amortization included in equity

in earnings from investments in affiliates 23 23

EBITDA 730 760

Share-based compensation expense 15 15

Adjusted EBITDA 745$ 775$

December 31, 2019

Year Ending

Guidance (continued) EBITDA and Adjusted EBITDA Year Ending (unaudited, in millions) December 31, 2019 Low Case High Case Net income $ 294 $ 323 Depreciation and amortization expense 278 278 Interest income (8) (8) Interest expense 130 130 Income tax expense 13 14 Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates 23 23 EBITDA 727 757 Share-based compensation expense 15 15 Adjusted EBITDA $ 745 $ 775

(unaudited, in millions except per share data)

Low Case High Case

Net income attributable to stockholders 286$ 315$


Depreciation and amortization expense attributable to

noncontrolling interests (4) (4)

Equity in earnings from investments in affiliates (18) (18)

Pro rata FFO of equity investments 31 31

NAREIT FFO attributable to stockholders 573 602


Adjusted FFO attributable to stockholders 588$ 617$

Adjusted FFO per share - Diluted(1)2.91$ 3.05$

Weighted average diluted shares outstanding 202.3 202.3

December 31, 2019

Year Ending

NAREIT FFO and Adjusted FFO

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

33 |

Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA

(1) Included in other (loss) gain, net in the consolidated statement of operations.(2) For 2017, includes $18 million of distributions received from investments in affiliates in excess of the investment balance that were included within equity in earnings from investments in

affiliates in the consolidated statement of operations.


2018 2017 2018 2017

Net income 55$ 61$ 477$ 2,631$

Depreciation and amortization expense 69 71 277 288

Interest income (2) — (6) (2)

Interest expense 33 31 127 124

Income tax expense (benefit) 10 (2) 23 (2,346)

Interest expense, income tax and depreciation and

amortization included in equity in earnings

from investments in affiliates 6 6 26 24

EBITDA 171 167 924 719

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

Gain on sale of investments in affiliates(1)

— — (107) —

(Gain) loss on foreign currency transactions (1) — 3 4

Transition expense — 4 3 9

Transaction expense 2 2 2 2

Severance expense — 1 2 1

Share-based compensation expense 4 4 16 14

Casualty loss (gain) and impairment loss, net — 24 (1) 26

Other items(2)

6 (21) 8 (17)

Adjusted EBITDA 184$ 180$ 754$ 757$

December 31, December 31,

Three Months Ended Year Ended

34 |

Non-GAAP Financial Measures (continued)

Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin

(unaudited, dollars in millions)

2018 2017 2018 2017

Adjusted EBITDA 184$ 180$ 754$ 757$

Less: Adjusted EBITDA from investments in affiliates 9 10 45 45

Less: All other(1) (13) (12) (52) (46)

Hotel Adjusted EBITDA 188 182 761 758

Less: Adjusted EBITDA from hotels disposed of — 9 1 33

Less: Adjusted EBITDA from non-comparable hotels 12 6 44 44

Comparable Hotel Adjusted EBITDA 176$ 167$ 716$ 681$

2018 2017 2018 2017

Total Revenues 686$ 686$ 2,737$ 2,791$

Less: Other revenue 19 17 72 64

Less: Revenues from hotels disposed of — 34 17 131

Less: Revenues from non-comparable hotels(1) 41 34 161 184

Comparable Hotel Revenues 626$ 601$ 2,487$ 2,412$





(1) Includes other revenues and other expenses, non-income taxes on REIT leases included in other property-level expenses and corporate general and administrative expenses

in the consolidated statement of operations.

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

2018 2017 Change (1) 2018 2017 Change (1)

Comparable Hotel Revenues 626$ 601$ 4.2% 2,487$ 2,412$ 3.1%

Comparable Hotel Adjusted EBITDA 176$ 167$ 5.8% 716$ 681$ 5.2%

Comparable Hotel Adjusted EBITDA margin 28.2% 27.8% 40 bps 28.8% 28.2% 60 bps

(1) Percentages are calculated based on unrounded numbers.

Three Months Ended

December 31,

Year Ended

December 31,

35 |

Historical Comparable Hotel Adjusted EBITDA – 2018


The financial information below is for the 44 comparable hotels owned as of December 31, 2018.

(1) Included in other (loss) gain, net in the consolidated statement of operations.(2) Includes other revenues and other expenses, non-income taxes on REIT leases included in other property-level expenses and corporate general and administrative expenses.

Full Year Full Year

(unaudited, dollars in millions) March 31, June 30, September 30, December 31, December 31, December 31,

2018 2018 2018 2018 2018 2017

Net income 149$ 218$ 55$ 55$ 477$ 2,631$

Depreciation and amortization expense 70 69 69 69 277 288

Interest income (1) (1) (2) (2) (6) (2)

Interest expense 31 31 32 33 127 124

Income tax (benefit) expense — 13 — 10 23 (2,346)


amortization included in equity in earnings from

investments in affiliates 7 5 8 6 26 24

EBITDA 256 335 162 171 924 719

Gain on sales of assets, net (89) (7) (2) 2 (96) (1)

(Gain) loss on sale of investments in affiliates(1) — (108) 1 — (107) —

(Gain) loss on foreign currency transactions (1) 4 1 (1) 3 4

Transition expense 2 — 1 — 3 9

Transaction expense — — — 2 2 2

Severance expense — 1 1 — 2 1

Share-based compensation expense 4 4 4 4 16 14

Casualty loss (gain) and impairment loss, net — — (1) — (1) 26

Other items 2 (1) 1 6 8 (17)

Adjusted EBITDA 174 228 168 184 754 757

Less: Adjusted EBITDA from investments in affiliates 12 14 10 9 45 45

Less: All other(2) (12) (14) (13) (13) (52) (46)

Hotel Adjusted EBITDA 174 228 171 188 761 758

Less: Adjusted EBITDA from hotels disposed of 1 — — — 1 33

Less: Adjusted EBITDA from non-comparable hotels 14 13 5 12 44 44

Comparable Hotel Adjusted EBITDA 159$ 215$ 166$ 176$ 716$ 681$

Three Months Ended

36 |

Historical Comparable Hotel Revenues – 2018




Full Year Full Year


2018 2018 2018 2018 2018 2017

Total Revenues 668$ 731$ 652$ 686$ 2,737$ 2,791$

Less: Other revenue 17 17 19 19 72 64

Less: Revenues from hotels disposed of 17 — — — 17 131

Less: Revenues from non-comparable hotels(1) 44 41 35 41 161 184

Comparable Hotel Revenues 590$ 673$ 598$ 626$ 2,487$ 2,412$

Three Months Ended

37 |

Historical Comparable Hotel Adjusted EBITDA – 2017



(1) Includes adjustments for incremental fees based on the terms of the post spin-off management agreements.(2) Includes other revenues and other expenses, non-income taxes on REIT leases included in other property-level expenses and corporate general and administrative expenses in the

consolidated statement of operations.

Full Year Full Year


2017 2017 2017 2017 2017 2016

Net income 2,350$ 115$ 105$ 61$ 2,631$ 139$

Depreciation and amortization expense 70 73 74 71 288 300

Interest income — (1) (1) — (2) (2)

Interest expense 30 31 32 31 124 181

Income tax (benefit) expense (2,281) (19) (44) (2) (2,346) 82


amortization included in equity in earnings from

investments in affiliates 5 7 6 6 24 24

EBITDA 174 206 172 167 719 724

Gain on sales of assets, net — — — (1) (1) (1)

(Gain) loss on foreign currency transactions (1) 4 1 — 4 (3)

Transition expense 1 1 3 4 9 26

Transaction expense — — — 2 2 —

Severance expense — — — 1 1 —

Share-based compensation expense 3 4 3 4 14 —

Casualty loss (gain) and impairment loss, net — — 2 24 26 15

Impairment loss included in equity in earnings from

investments in affiliates — — — — — 17

Other items — 2 2 (21) (17) 36

Adjusted EBITDA 177 217 183 180 757 814

Less: Spin-off adjustments(1) — — — — — 49

Less: Adjusted EBITDA from investments in affiliates 9 15 11 10 45 44

Less: All other(2) (12) (11) (11) (12) (46) (34)

Hotel Adjusted EBITDA 180 213 183 182 758 755

Less: Adjusted EBITDA from hotels disposed of 4 9 11 9 33 1

Less: Adjusted EBITDA from non-comparable hotels 17 11 10 6 44 82

Comparable Hotel Adjusted EBITDA 159$ 193$ 162$ 167$ 681$ 672$

Three Months Ended

38 |

Historical Comparable Hotel Revenues – 2017




Full Year Full Year


2017 2017 2017 2017 2017 2016

Total Revenues 684$ 733$ 688$ 686$ 2,791$ 2,727$

Less: Other revenue 13 16 18 17 64 23

Less: Revenues from hotels disposed of 26 35 36 34 131 —

Less: Revenues from non-comparable hotels(1) 57 48 45 34 184 334

Comparable Hotel Revenues 588$ 634$ 589$ 601$ 2,412$ 2,370$

Three Months Ended

39 |


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

(1) See slide 18 for Pro-forma Adjusted EBITDA at December 31, 2018. Pro-forma Adjusted EBITDA excludes results from the 13 hotels disposed of in 2018.


Debt 2,948$ 2,961$

Add: unamortized deferred financing costs 10 12

Long-term debt, including current maturities and excluding

unamortized deferred financing costs 2,958 2,973

Add: Park's share of unconsolidated affiliates debt,

excluding unamortized deferred financing costs 233 236

Less: cash and cash equivalents 410 364

Less: restricted cash 15 15

Net debt 2,766$ 2,830$

Pro-forma Adjusted EBITDA(1)751$ 717$

Net debt to Pro-forma Adjusted EBITDA ratio 3.7x 3.9x

December 31, 2018 December 31, 2017

40 |


Pro-forma Adjusted EBITDA

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


2018 2017

Net income 477$ 2,631$


Interest income (6) (2)

Interest expense 127 124

Income tax (benefit) expense 23 (2,346)

Interest expense, income tax and depreciation and amortization

included in equity in earnings from investments in affiliates 26 24

EBITDA 924 719

Gain on sales of assets, net (96) (1)

Gain on sale of investments in affiliates(1)

(107) —

Loss on foreign currency transactions 3 4

Transition expense 3 9

Transaction expense 2 2

Severance expense 2 1


Casualty (gain) loss and impairment loss, net (1) 26

Other items 8 (17)

Adjusted EBITDA 754 757

Less: Adjusted EBITDA from hotels disposed of 1 33

Less: Adjusted EBITDA from investments in affiliates disposed of 2 7

Pro-forma Adjusted EBITDA 751$ 717$

Year Ended

December 31,

41 |

Definitions

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;

• Transaction costs associated with hotel acquisition or disposition costs expensed during the period;

• Severance expense;

• Share-based compensation expense;

• Casualty 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.

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 to 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 results as reported under U.S. GAAP.

42 |

Definitions (cont’d)

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 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. 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.

Comparable Hotels

The Company presents certain data for its consolidated hotels on a comparable hotel basis as supplemental information for investors. The

Company defines its comparable hotels as those hotels that: (i) were active and operating in the Company’s portfolio since January 1st of the

previous year; and (ii) have not sustained substantial property damage, business interruption, undergone large-scale capital projects or for which

comparable results are not available. The Company presents comparable hotel results to help the Company and its investors evaluate the ongoing

operating performance of its comparable hotels. Of the 46 hotels that are consolidated as of December 31, 2018, 44 hotels have been classified as

comparable hotels. Due to the conversion of a significant number of rooms at the Hilton Waikoloa Village to HGV timeshare units in 2017, and due

to the effects of business interruption from Hurricane Maria at the Caribe Hilton in Puerto Rico and the continued effects from business interruption,

the results from these properties were excluded from comparable hotels in 2018. The Company’s comparable hotels also exclude the 12

consolidated hotels that were sold in January and February 2018.

Pro-forma

Certain financial measures and other information have been adjusted to reflect the effects of hotels disposed of during the periods presented.

When presenting such information, the amounts are identified as “Pro-forma.”

43 |

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 52 premium-branded hotels and resorts with over 30,000 rooms, primarily located

in prime U.S. markets with high barriers to entry. Visit www.pkhotelsandresorts.com for more information.

Forward-Looking Statements

This presentation 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 acquisitions and 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 in this presentation 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 periodic 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, Hotel Adjusted EBITDA margin, Net debt and Net debt to Pro-forma 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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