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 the effects of Park's decision to cease payments on its $725 million non-recourse CMBS loan ("SF Mortgage Loan") secured by two of Park's San Francisco hotels – the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc ...

Financial Performance - Total revenues for 2023 reached $2,698 million, an increase of 7.9% compared to $2,501 million in 2022 [294]. - Net income attributable to stockholders for 2023 was $97 million, down from $162 million in 2022, reflecting a decrease of 40.1% [294]. - Earnings per share (basic and diluted) for 2023 were $0.44, compared to $0.71 in 2022, representing a decline of 38.0% [294]. - Operating income for 2023 was $343 million, an increase from $296 million in 2022, reflecting a growth of 15.9% [294]. - Net income for the year ended December 31, 2023, was $106 million, a decrease of 38.7% compared to $173 million in 2022 [297]. - Hotel Adjusted EBITDA increased to $686 million in 2023, up from $630 million in 2022, representing an 8.9% growth [404]. Assets and Liabilities - Total assets decreased to $9,419 million in 2023 from $9,731 million in 2022, a reduction of 3.2% [293]. - Total liabilities increased to $5,651 million in 2023, up from $5,440 million in 2022, marking a rise of 3.9% [293]. - Cash and cash equivalents decreased to $717 million in 2023 from $906 million in 2022, a decline of 20.9% [293]. - Total cash and cash equivalents and restricted cash at the end of the period was $750 million, down from $939 million at the end of 2022 [297]. - The company had a net deferred tax liability of $23 million as of December 31, 2023, compared to $9 million in 2022 [386]. Impairment and Losses - The company reported an impairment and casualty loss of $204 million in 2023, significantly higher than $6 million in 2022 [294]. - The company recognized an impairment loss of approximately $202 million for the year ended December 31, 2023, related to a hotel securing a $725 million mortgage loan [352]. - The company experienced a loss of $221 million on the derecognition of assets in 2023, compared to no such loss in 2022 [297]. - The company reported an impairment loss of $202 million related to one of its hotels, with a fair value of $234 million as of December 31, 2023 [378]. Debt and Financing - The company had no variable rate debt outstanding as of December 31, 2023, with borrowings under its Revolver bearing interest based on the secured overnight financing rate (SOFR) [259]. - The company’s fixed-rate debt has a total carrying value of $3,786 million, with an average interest rate of 4.88% [260]. - Total debt as of December 31, 2023, was $3.765 billion, a decrease from $3.892 billion in 2022 [358]. - The company had approximately $946 million of available capacity under its Revolver as of December 31, 2023 [363]. - The company issued an aggregate of $725 million of 2028 Senior Notes with an interest rate of 5.875% per annum, and net proceeds were used to repay $80 million of the outstanding balance under the Revolver [366]. Capital Expenditures - Capital expenditures for property and equipment were $285 million in 2023, up from $168 million in 2022, representing a 69.6% increase [297]. - Capital expenditures for the year 2023 amounted to $307 million, an increase from $188 million in 2022 [418]. - Outstanding commitments for capital expenditures as of December 31, 2023, were approximately $90 million, including $16 million for the Bonnet Creek complex [405]. Revenue Recognition and Operations - The company recognizes revenue from room rentals, food and beverage sales, and ancillary services, with room revenue recognized over time when rooms are occupied [333]. - The company’s average daily rate (ADR) is calculated as rooms revenue divided by the total number of room nights sold in a given period [15]. - The company’s occupancy rate is defined as the total number of room nights sold divided by the total number of room nights available [15]. - The company’s RevPAR (revenue per available room) is calculated as rooms revenue divided by the total number of room nights available to guests [15]. Shareholder Returns - The company repurchased $180 million of common stock in 2023, compared to $227 million in 2022, indicating a decrease of 20.7% [300]. - Dividends declared per common share were $2.15 for the year ended December 31, 2023, which includes a special cash dividend of $0.77 [300]. - The company declared $355 million in unpaid dividends as of December 31, 2023, compared to $56 million in 2022 [411]. Internal Controls and Compliance - The company maintains effective internal control over financial reporting as of December 31, 2023, according to management's assessment [268]. - The company maintained effective internal control over financial reporting as of December 31, 2023, according to the auditor's opinion [284]. - The company operates as a REIT and has not included provisions for U.S. federal income taxes in its financial statements for the years ended December 31, 2023, 2022, and 2021, except for taxes related to built-in gain property sales [337]. Future Outlook and Strategy - Future guidance indicates a projected revenue growth of 5% for the upcoming fiscal year [415]. - The company is actively pursuing new acquisitions to enhance its market position and diversify its asset base [415]. - Park Hotels & Resorts Inc. is investing in technology upgrades to improve operational efficiency across its properties [415]. - The company aims to increase its customer loyalty program participation by 20% over the next year [415]. - A new marketing strategy is being implemented to target millennial travelers, expected to boost occupancy rates by 10% [415]. - The company plans to open three new hotels in high-demand areas by the end of 2024 [415]. - The company is focusing on sustainability initiatives, aiming for a 30% reduction in energy consumption by 2025 [415].

Financial Data and Key Metrics Changes - In Q4 2023, RevPAR growth was 4.1%, with full-year growth at 8.7%, exceeding guidance by 50 basis points [10][21] - Total RevPAR for Q4 increased nearly 5%, supported by an 8% rise in food and beverage spend, contributing an additional $3.5 million to EBITDA [10][11] - Adjusted EBITDA for Q4 was $163 million, with adjusted FFO per share at $0.52 [41][21] Business Line Data and Key Metrics Changes - Urban hotel portfolio saw RevPAR growth of nearly 16% versus 2022, with notable performance in New York, Boston, Denver, and Chicago [8][10] - Group revenues for Q4 were up nearly 9% year-over-year, with a sequential improvement of 12% over Q3 [34] - Hawaii's Hilton Hawaiian Village achieved a RevPAR increase of 5%, driven by group room nights and ADR improvements [12][15] Market Data and Key Metrics Changes - New York experienced a nearly 9% decrease in hotel supply since 2019, leading to increased compression room nights and a 30% RevPAR growth compared to 2022 [11] - Total air available seats into Oahu grew by 11% over 2022, with domestic seats up 5% and international seats increasing by nearly 30% [36] - Group revenue pace for 2024 is up 13% year-over-year, with expectations to exceed 2019 levels [34] Company Strategy and Development Direction - The company plans to sell non-core hotels with expected proceeds of $100 million to $250 million to reduce debt and reinvest in core properties [9][21] - Capital allocation remains focused on high-return investments, with nearly $300 million invested in 2023 [32] - The company aims to maintain a leverage ratio of 3x to 5x, targeting closer to 4x [116] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, citing a healthier U.S. economy and strong group demand in key markets [9][16] - The company anticipates continued strength in Hawaii, with inbound tourism from Japan expected to improve significantly [15][39] - Management noted that renovations in Hawaii will impact RevPAR but are expected to yield long-term benefits [45][20] Other Important Information - The company has over $1.3 billion in liquidity, including approximately $350 million in cash, and net debt has decreased by over $500 million year-over-year [17][41] - S&P Global upgraded the company's corporate credit rating from B to BB- [43] - The company plans to spend approximately $230 million to $250 million on capital expenditures in 2024, focusing on guest-facing areas [44] Q&A Session Summary Question: Insights on Hawaii's performance and future potential - Management is bullish on Hawaii's performance, noting strong leadership and ongoing demand, with plans for a sixth tower at Hilton Hawaiian Village [25][69] Question: Clarification on wage and benefits expectations for 2024 - Wage increases were in the 4% to 5% range last year, but specific forecasts for 2024 are uncertain due to ongoing negotiations [56] Question: Strength in group bookings and spending tendencies - Groups are getting larger, with a notable increase in convention bookings, and there is a strong propensity to spend outside of room rates [60][62] Question: Expectations for 2025 bookings - Group revenue pace for 2025 is currently at 97% of 2019 levels, with strong rate increases anticipated [83] Question: Market assessment and acquisition opportunities - The company is cautious about the current market, noting a bid-ask spread issue but remains open to opportunistic acquisitions [95][96]

Financial Performance & Outlook - Park Hotels & Resorts reported a net income attributable to stockholders of $97 million for the year ended December 31, 2023[13] - Adjusted FFO attributable to stockholders was $439 million, or $2.04 per diluted share for the year ended December 31, 2023[22] - The company anticipates a full-year 2024 net income between $146 million and $186 million[31] - Adjusted EBITDA for full-year 2024 is projected to be between $645 million and $685 million[31] - Adjusted FFO per share – Diluted for 2024 is expected to be between $2.02 and $2.22[31] Portfolio Performance - Comparable RevPAR increased by 49% for the year ended December 31, 2023[46] - Comparable Hotel Adjusted EBITDA reached $680 million for the year ended December 31, 2023[20] - Comparable Hotel Revenues totaled $2441 million for the year ended December 31, 2023[20] - Comparable Hotel Adjusted EBITDA margin was 278% for the year ended December 31, 2023[20] Capital Structure - As of December 31, 2023, the company's total debt stood at $3765 million[13] - The company has approximately $950 million of available capacity under the Revolver[101] - Net debt to full-year Comparable Adjusted EBITDA ratio is 515x[27]

TYSONS, Va., Dec. 20, 2023 (GLOBE NEWSWIRE) -- Park Hotels & Resorts Inc. ("Park" or the "Company") (NYSE:PK) today provided an update on fourth quarter operating trends. "I am incredibly pleased with the strength of our portfolio as operating trends remained very solid in both October and November. Results were once again driven by improvements across our urban portfolio which delivered year-over-year 10% Comparable RevPAR growth during the first two months of the quarter. Business travel accelerated in Bo ...

Third Quarter 2023 About Park Hotels & Resorts Inc. 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 the anticipated effects of Park's decision to cease payments on its $725 million non-recourse CMBS loan secured by Park's Hilton San Francisco Hotels ("SF Mortgage Loan") and the ef ...

Park Hotels & Resorts Inc. (NYSE:PK) Q3 2023 Earnings Conference Call November 2, 2023 10:00 AM ET Company Participants Ian Weissman - Senior Vice President, Corporate Strategy Tom Baltimore - Chairman & Chief Executive Officer Sean Dell'Orto - Chief Financial Officer Conference Call Participants Floris van Dijkum - Compass Point Smedes Rose - Citi Duane Pfennigwerth - Evercore ISI Dany Asad - Bank of America Bill Crow - Raymond James Dori Kesten - Wells Fargo Ari Klein - BMO Capital Markets Anthony Powell ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to Commission File Number 001-37795 __________________ ...

Financial Data and Key Metrics Changes - The portfolio generated a 5.3% year-over-year increase in RevPAR for Q2, with a strong start in April and May, moderated by tougher comps in June [7][10] - Full year 2023 comparable group revenue pace improved by approximately 150 basis points to 91% relative to the same period in 2019, with projected comparable group ADR exceeding 2019 levels by nearly 7% [8] - Current liquidity stands at over $1.7 billion, including over $840 million in cash, with net debt at $3.8 billion and a net leverage ratio of 6x [40] Business Line Data and Key Metrics Changes - Comparable urban hotels achieved over 14% year-over-year RevPAR growth, while Hawaii hotels exceeded expectations with nearly 11% year-over-year RevPAR gain [7][11] - Group revenues for the comparable portfolio increased 10% year-over-year to approximately $120 million, benefiting from strong short-term pickup [33] - RevPAR growth in Chicago was up 23%, while Boston and Denver saw growth of 11% and 12% respectively [35] Market Data and Key Metrics Changes - San Francisco continued to negatively impact results, with a 175 basis point drag on Q2 portfolio RevPAR growth compared to the same period last year [10][20] - Healthy domestic demand is expected to drive performance in Hawaii, with low to mid-single-digit year-over-year RevPAR growth forecasted for the latter half of the year [12] - The market share for Hilton Hawaiian Village and Waikoloa exceeded 24% and 15% RevPAR premiums respectively compared to the competitive set [37] Company Strategy and Development Direction - The company remains committed to executing strategic goals that create long-term value for shareholders, focusing on capital allocation and internal growth strategies [13][14] - Proceeds from noncore asset sales are expected to reduce leverage and reinvest in the portfolio, with a robust CapEx and redevelopment pipeline exceeding $350 million this year [39] - The company is optimistic about the recovery in lodging and expects improved macro conditions to support solid consumer trends and business travel [38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery in San Francisco, acknowledging structural challenges that will prolong recovery [46][88] - There are expectations for a strong third quarter and respectable fourth quarter, with RevPAR growth projected at 26% for Q2 and July [98] - Management remains bullish on Hawaii, anticipating a reduction in EBITDA declines and a strong performance trend [51][72] Other Important Information - The company fully repaid a $75 million mortgage allowance, adding another property to its unencumbered portfolio [16] - The ground lease for the Embassy Suites Phoenix Airport Hotel was terminated, but guidance remains unaffected as it was a noncore asset [17] - The company has successfully sold or disposed of 40 hotels for $2.1 billion since spinning out from Hilton in 2017, improving overall portfolio quality [17] Q&A Session Summary Question: Impact of San Francisco on results and guidance - Management acknowledged that San Francisco's performance has deteriorated significantly, leading to a reduction in guidance due to expected EBITDA losses [43][44] Question: Future of group business in San Francisco - Management noted that the city is facing challenges with a weakened convention calendar and high office vacancy rates, impacting group business [44][46] Question: Performance in Hawaii and future expectations - Management remains optimistic about Hawaii's recovery, with expectations for improved booking trends and increased direct flights from Japan [55][72] Question: Business transient recovery - Management indicated that while business transient recovery has been slower than expected, there are signs of improvement in the latter half of the year [75][81] Question: CapEx needs and portfolio investments - Management highlighted ongoing investments in key assets, including a $200 million renovation at Bonnet Creek, and plans for additional capital deployment in high-potential areas [90][91]

Financial Performance - For Q2 2023, the company reported a net loss of $146 million compared to a net income of $154 million in Q2 2022[80]. - Adjusted EBITDA for Q2 2023 was $187 million, down from $207 million in Q2 2022[80]. - Hotel Adjusted EBITDA for the first half of 2023 was $344 million, compared to $297 million in the same period of 2022[80]. - Nareit FFO attributable to stockholders for Q2 2023 was $114 million, down from $129 million in Q2 2022, while Adjusted FFO attributable to stockholders was $129 million compared to $139 million in the same period[85]. - For the six months ended June 30, 2023, Nareit FFO attributable to stockholders increased to $196 million from $142 million in 2022, and Adjusted FFO attributable to stockholders rose to $221 million from $157 million[85]. - Rooms revenue for Q2 2023 was $442 million, a 2.1% increase from $433 million in Q2 2022, while for the six months ended June 30, 2023, it reached $824 million, up 13.7% from $725 million in 2022[89][93]. - The company recognized an impairment loss of approximately $202 million during Q2 2023[97]. - Interest income increased by $9 million and $19 million for Q2 2023 and the six months ended June 30, 2023, respectively, due to higher cash levels and interest rates[99]. - General and administrative expenses remained stable at $10 million for Q2 2023, with a slight increase to $21 million for the six months ended June 30, 2023, compared to $20 million in 2022[96]. - Interest expense decreased by 1.6% to $61 million for the three months ended June 30, 2023, compared to $62 million in the same period of 2022[100]. - Net cash provided by operating activities increased by 30.9% to $250 million for the six months ended June 30, 2023, compared to $191 million in 2022[115]. Investments and Assets - The company holds investments in 45 hotels with over 29,000 rooms, of which approximately 88% are luxury and upper upscale[63]. - The company aims to enhance asset value through single-asset and portfolio acquisitions and dispositions[64]. - The company’s portfolio includes hotels in major urban areas and key leisure destinations, indicating a strategic focus on prime locations[63]. - The company has construction contract commitments of approximately $163 million for capital expenditures at its properties[110]. - The company disposed of seven consolidated hotels since January 1, 2022, impacting year-over-year comparability of operations[88]. Debt and Financial Obligations - In June 2023, the company ceased debt service payments on a $725 million non-recourse CMBS loan, leading to a notice of default[66]. - Total indebtedness as of June 30, 2023, was approximately $4.5 billion, including $2.1 billion of Senior Notes and a $725 million SF Mortgage Loan[123]. - The company intends to work with the servicer of the SF Mortgage Loan to determine the most effective path forward, which may result in the removal of certain hotels from its portfolio[108]. Market Trends and Expectations - The company expects positive momentum in hotel demand to continue through the remainder of 2023, driven by improvements in leisure and business travel[67]. - Current economic challenges, including inflation and supply chain disruptions, are impacting discretionary spending and travel demand[67]. - The company anticipates that international travel demand will continue to improve in the second half of 2023[67]. - The company expects positive momentum in leisure, group, and business transient demand to continue through the remainder of 2023[107]. Occupancy and Revenue Performance - The occupancy rate at Hawaii hotels increased by 6.1 percentage points for Q2 2023 compared to the same period in 2022, driven by increased domestic transient demand[94]. - The New York Hilton Midtown saw occupancy increases of 17.6 percentage points for Q2 2023 compared to Q2 2022, benefiting from higher group and transient demand[94]. - Other revenue increased by $3 million and $7 million for Q2 2023 and the six months ended June 30, 2023, respectively, due to increased business costs allocated to Hilton Grand Vacations[95]. Shareholder Returns - The company repurchased approximately 8.8 million shares of common stock for a total of $105 million during the six months ended June 30, 2023[114]. - Dividends declared for 2023 were $0.15 per share for both March 31 and June 30[122].