Core Viewpoint - Park Hotels & Resorts Inc. (NYSE: PK) is rated as a Hold for income-focused investors interested in real estate investment trusts (REITs), highlighting an attractive dividend yield but cautioning that the long-term risks may outweigh the benefits [1]. Summary by Relevant Sections - **Investment Perspective** - The company offers a very attractive dividend yield, appealing to income-focused investors [1]. - However, the long-term risks associated with owning this REIT may not justify the investment [1]. - **Analyst Background** - The analysis is provided by David A. Johnson, founder and principal of Endurance Capital Management, who has over 30 years of investment experience and holds advanced degrees in finance and business administration [1].

Financial Performance - Total revenues for the year ended December 31, 2024, were $2,599 million, a decrease of 3.7% compared to $2,698 million in 2023 [294]. - Net income attributable to stockholders for 2024 was $212 million, significantly up from $97 million in 2023, representing a 118.6% increase [294]. - Earnings per share (EPS) for 2024 were $1.02 (basic) and $1.01 (diluted), compared to $0.44 for both in 2023, marking a 131.8% increase in basic EPS [294]. - Operating income increased to $391 million in 2024, up from $343 million in 2023, reflecting a 14.0% growth [294]. - Net income for the year ended December 31, 2023, was $226 million, an increase from $106 million in 2022, representing a growth of approximately 113.2% [299]. - The company reported a net income of $196.3 million, representing a 1.9% increase from the previous year [408]. Assets and Liabilities - Total assets as of December 31, 2024, were $9,161 million, a decrease from $9,419 million in 2023 [292]. - Total liabilities decreased to $5,567 million in 2024 from $5,651 million in 2023, a reduction of 1.5% [292]. - Cash and cash equivalents at the end of 2024 were $402 million, down from $717 million in 2023, indicating a decrease of 44.0% [292]. - The company had total assets of $9,161 million as of December 31, 2024, down from $9,419 million in 2023 [397]. - The aggregate cost of real estate for U.S. federal income tax purposes was approximately $5,807 billion as of December 31, 2024 [412]. Debt and Financing - The Company has fixed-rate debt with a carrying value of $3,665 million and an average interest rate of 5.11% [258]. - Variable-rate debt amounts to $200 million, with an average interest rate of 6.21% [258]. - As of December 31, 2024, total debt amounted to $3.841 billion, an increase from $3.765 billion in 2023 [350]. - The HHV Mortgage Loan has a principal balance of $1.275 billion with an interest rate of 4.20% and matures in November 2026 [351]. - The 2024 Term Loan of $200 million bears an all-in interest rate of 6.21% and matures on May 14, 2027 [355]. - The contractual maturities of debt as of December 31, 2024, include $60 million due in 2025 and $1.55 billion due in 2026 [365]. Capital Expenditures and Investments - Capital expenditures for property and equipment in 2024 were $227 million, compared to $285 million in 2023, a decrease of 20.4% [296]. - The company had outstanding commitments of approximately $95 million for capital expenditures as of December 31, 2024 [397]. - The company acquired two parcels of land for approximately $18 million during the year ended December 31, 2023 [337]. Dividends and Shareholder Returns - Dividends paid in 2024 totaled $512 million, significantly higher than $152 million in 2023, reflecting a 236.8% increase [296]. - Dividends declared per common share were $1.40 for 2024, $2.15 for 2023, and $0.28 for 2022, indicating a significant increase in dividend payouts [299]. - The company repurchased 8 million shares of common stock for $116 million in 2023, compared to 15 million shares for $180 million in 2022 [299]. - Ordinary dividends per share for 2024 were $1.285731, with capital gain distributions of $0.114269 [379]. Impairment and Depreciation - The Company reported property and equipment, net of $7,398 million as of December 31, 2024, with an impairment loss of approximately $12 million recognized during the year [276]. - The company recognized impairment losses of approximately $12 million related to two hotels in 2024 and $202 million for one hotel in 2023 [345][346]. - Depreciation of property and equipment was $256 million in 2024, compared to $286 million in 2023 [344]. - Accumulated depreciation at the end of 2024 was $2,771 million, up from $2,620 million in 2023 [412]. Revenue Recognition and Operations - The company recognizes revenue primarily from room rentals, food and beverage sales, and ancillary services, with a focus on timely revenue recognition [326]. - Hotel Adjusted EBITDA for 2024 was $683 million, slightly down from $686 million in 2023, but up from $630 million in 2022 [395]. - The company achieved an occupancy rate of 80.2%, which is a 3.4% increase compared to the previous year [408]. Strategic Initiatives and Future Outlook - The company plans to continue operating as a Real Estate Investment Trust (REIT) to maintain tax advantages and optimize capital structure [302]. - Future guidance indicates an expected revenue growth of 5% to 7% for the next fiscal year, driven by increased travel demand [408]. - The company is investing in new technology to enhance guest experience, with a budget allocation of $50 million for the upcoming fiscal year [408]. - Park Hotels & Resorts Inc. plans to expand its portfolio by acquiring additional properties, targeting a growth of 10% in total assets over the next two years [408]. - The company is focusing on sustainability initiatives, aiming to reduce energy consumption by 15% over the next three years [408].

Park (NYSE: PK) is one of the largest publicly-traded lodging real estate investment trusts ("REIT") with a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. Park's portfolio currently consists of 40 premium-branded hotels and resorts with approximately 25,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information. Forward-Looking Statements This supplement contains forward-lookin ...

Financial Data and Key Metrics Changes - In Q4 2024, RevPAR was $179, a decline of 1.4%, but increased by 3.1% when excluding the impact of strike activity [31][32] - Occupancy for the quarter was 69.9%, and ADR was $256 [32] - Q4 hotel revenue was $600 million, with hotel adjusted EBITDA of $147 million, resulting in an adjusted EBITDA margin of 24.6% [32] - For the full year, adjusted EBITDA was $652 million, with adjusted FFO per share at $2.06 [33] Business Line Data and Key Metrics Changes - The Waldorf Astoria Bonnet Creek reported an 85% surge in transient revenues and a 40% increase in ancillary revenues [19] - Casa Marina in Key West saw a 77% increase in RevPAR during Q4, with a RevPAR index of 126, marking the highest quarterly performance since 2019 [20] - The Hilton Chicago experienced nearly 15% RevPAR growth, contributing to a 53 basis point improvement in EBITDA margin [22] Market Data and Key Metrics Changes - In Hawaii, the Hilton Hawaiian Village was negatively impacted by a 45-day labor strike, accounting for a nearly 540 basis point headwind to total portfolio RevPAR [22] - The company anticipates a solid rebound for the resort in 2025, driven by increased domestic travel and convention activity [23] - January 2025 RevPAR finished 2.7% lower than the prior year, but performance is expected to improve throughout the quarter [40] Company Strategy and Development Direction - The company plans to divest $300 to $400 million of non-core assets to improve portfolio quality and pay down debt [11][12] - A $100 million investment is planned for the Royal Palm Resort in South Beach, aimed at significantly elevating the property's quality [15][16] - The company is focused on capital allocation to maximize shareholder returns, including reinvestment into core portfolio hotels [12][29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, expecting RevPAR growth of 0% to 3% due to a slower first quarter and planned renovations [28][38] - The US economy is described as being on firm footing, supported by healthy employment and strong corporate profit growth [25] - Management noted that the first quarter of 2025 is expected to be soft, with a stronger second half anticipated [26][40] Other Important Information - The company declared a first-quarter cash dividend of $0.25 per share, translating to a yield of 7.5% to 8% at current trading levels [41] - The company has a robust ROI pipeline exceeding $1 billion, with an estimated incremental value creation potential of over $300 million [17] Q&A Session Summary Question: Disposition target and capital deployment - Management confirmed the target of $300 million to $400 million for non-core asset sales and emphasized the focus on reinvesting in core projects and paying down debt [45][49] Question: CMBS debt refinancing strategy - Management discussed the $1.4 billion CMBS debt maturing in 2026 and indicated that they are exploring various strategies for refinancing [50][52] Question: Hawaii market expectations - Management expects a soft first quarter for Hawaii but anticipates significant growth in Q3 and Q4, with low to mid-single digit RevPAR growth by year-end [66][67] Question: Royal Palm positioning in Miami - Management highlighted the Royal Palm's potential to double EBITDA post-renovation and its strategic location among high-end competitors [78][84] Question: Bonnet Creek asset performance - Management expressed bullish sentiment regarding Bonnet Creek's performance, with expectations for continued growth driven by group bookings and market demand [90][92] Question: Chicago hotel brand changes - Management noted that the brand switch to Tribute is expected to enhance operational efficiency and provide more flexibility for future asset sales [95][102]

Core Insights - Park Hotels & Resorts reported $625 million in revenue for Q4 2024, a year-over-year decline of 4.9% and an EPS of $0.39 compared to $0.88 a year ago, indicating a significant drop in profitability [1] - The revenue exceeded the Zacks Consensus Estimate of $602.92 million by 3.66%, while the EPS fell short of the consensus estimate of $0.40 by 2.50% [1] Financial Performance Metrics - Comparable RevPAR growth was -1.4%, better than the estimated -3.6% by analysts [4] - The occupancy rate was reported at 69.9%, slightly below the average estimate of 70.5% [4] - Room revenues reached $376 million, surpassing the average estimate of $361.10 million, but represented a year-over-year decline of 5.3% [4] - Ancillary hotel revenues were $60 million, exceeding the average estimate of $56.66 million, with a year-over-year decline of 1.6% [4] - Food and beverage revenues totaled $167 million, above the estimated $162.22 million, reflecting a year-over-year decrease of 6.2% [4] - Other revenues were reported at $22 million, slightly above the average estimate of $21.71 million, showing a year-over-year increase of 4.8% [4] - Diluted EPS was reported at $0.32, significantly higher than the average estimate of $0.07 [4] Stock Performance - Shares of Park Hotels & Resorts have returned -4.4% over the past month, contrasting with the Zacks S&P 500 composite's +2.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Performance - Park Hotels & Resorts reported quarterly funds from operations (FFO) of $0.39 per share, missing the Zacks Consensus Estimate of $0.40 per share, and down from $0.52 per share a year ago, representing an FFO surprise of -2.50% [1] - The company posted revenues of $625 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.66%, but down from $657 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Park Hotels & Resorts shares have lost about 6.5% since the beginning of the year, while the S&P 500 has gained 4.2% [3] - The current consensus FFO estimate for the coming quarter is $0.51 on revenues of $635.26 million, and for the current fiscal year, it is $2.21 on revenues of $2.65 billion [7] Industry Outlook - The REIT and Equity Trust - Other industry, to which Park Hotels & Resorts belongs, is currently in the bottom 34% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Park Hotels & Resorts may be influenced by the overall outlook for the industry, as empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions [5][8]

Exhibit 99.2 About Park and Safe Harbor Disclosure About Park Hotels & Resorts Inc. Park (NYSE: PK) is one of the largest publicly-traded lodging real estate investment trusts ("REIT") with a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. Park's portfolio currently consists of 40 premium-branded hotels and resorts with approximately 25,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for ...

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Core Insights - Albert Anthony is a markets analyst and contributor on Seeking Alpha, covering over 200 companies and providing market commentary since 2023 [1] - He has a growing fan base of over 1,000 followers and operates a home-based fund called The Future Investor Fund [1] - In 2025, he plans to publish a book titled "The Future Investor: Growing a Diversified Portfolio" aimed at educating over 1 million people globally [1] Company Profile - Albert Anthony & Company is an independent sole proprietorship registered in Travis County, Texas [1] - The company does not provide personalized financial advice but offers general market commentary based on publicly available research [1] Educational Background - Albert Anthony has completed degrees and certificates from institutions such as Drew University, Corporate Finance Institute, Microsoft, CompTIA, and UVA Darden School of Business [1] - He is a member of the Croatian Association of Economists (HDE) as of 2024 [1] Professional Experience - His experience includes working as a management and information systems analyst at large companies, including a top 10 financial firm in the US [1] - He frequently attends business, innovation, and startup conferences across the US and Europe [1]

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