Investor Presentation

Transcription

1 Investor Presentation Citi Global Property CEO Conference March 2019 Waldorf Astoria Orlando Hilton Chicago Hilton Hawaiian Village Waikiki Beach Resort

2 Mission To be the preeminent lodging REIT, focused on consistently delivering superior, risk-adjusted returns for stockholders through active asset management and a thoughtful external growth strategy, while maintaining a strong and flexible balance sheet 2

3 Pillars of our Corporate Strategy Aggressive Asset Management Continually improve property level operating performance Consistently implement revenue management initiatives to optimize market pricing / segment mix Hilton Chicago Prudent Capital Allocation 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 Hilton Waikoloa Village Strong and Flexible Balance Sheet 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 Juniper Hotel Cupertino, Curio Collection 3

4 Corporate Strategy: Delivering Results Strategic Pillars 2018 Scorecard RevPAR: +2.9% 65bps above peers Operational Excellence Margins (1) : +60bps 60bps above peers Grouping Up: +80bps to 32% for Pro forma Comp Top 25 hotels (2) Hilton New York Midtown Capital Allocation 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 Strong Balance Sheet Leverage: Net leverage of just 3.7x Liquidity: $1.2B of liquidity Debt: 5.6 years maturity; 4.1% average debt cost Hilton Waikoloa Village Results 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% Casa Marina, a Waldorf Astoria Resort 4 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 High Quality Portfolio 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 bps below peers Sector Leading Fundamentals 2019E RevPAR growth of 2% to 4% 120bps above peers 2019 Group pace for consolidated portfolio 10% Group pace for HI, SF, Chicago and NYC 14% Group pace 9% Signia Hilton Bonnet Creek Margins to Improve in 19 Despite rising cost pressures, margins estimated to increase 30bps (midpoint) or 50bps+ above peer group average 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 Waldorf Astoria Orlando Golf Club Park has developed a near-term track record of success: Track Record of Success Generated sector-leading total returns for shareholders since spin (+2,670bps vs all hotel REIT peers); While narrowing the valuation gap with peers Parc 55 San Francisco - a Hilton Hotel 5 Note: Peers include all publicly-traded, full-service hotel REITs with a market cap over $1 billion (1) Represents 2018 Adjusted EBITDA

6 Park Team Chairman, President & CEO Tom Baltimore Executive Management EVP, CFO & Treasurer Sean Dell Orto EVP, D&C Carl Mayfield EVP, GC Tom Morey EVP, HR Jill Olander EVP, CIO Matt Sparks EVP, Asset Management Rob Tanenbaum Senior Management SVP, FP&A SVP, CAO SVP, Strategy SVP, Tax Diem Larsen Darren Robb Ian Weissman Scott Winer Park Management 25 years average experience among senior leadership Total of ~90 employees at Park Headquarters Board of Directors Best-in-class board including former CEOs and CFOs of Fortune 500 Companies Significant REIT experience across industries 6

7 2018 Accomplishments Operating Results: 6.5% AFFO/Shr Growth 2.9% Comp RevPAR Capital Allocation: 13 $519M # of Hotels Asset Sale Sold (2) Proceeds (2) Shareholder Returns: 60bps 80bps to 32.0% Comp Hotel Adj EBITDA Margin $1.4B HNA Secondary Offering Pro forma Comp Top 25 Group Revenue Mix (1) $348M 14M Shares Bought Back at Discount to NAV -0.5% 1,380bps 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 Since early 2017, Park has returned nearly $1.9B of capital to shareholders (5) 7 (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 Total Returns Total Returns Park Continues to Outperform Total Return Performance Since Spin: 1/4/ % 36.5% 35.0% 30.0% 25.0% 20.0% 28.4% +2,670bps vs. Hotel REIT Peers 15.0% 10.0% 5.0% 11.4% 11.1% 9.8% 0.0% PK S&P 500 HST RMZ Hotel REITs(1) Total Return Performance: YTD % 20.0% 15.0% 10.0% 20.7% 18.4% 18.2% 12.9% 11.8% +230bps vs. Hotel REIT Peers 5.0% 8 0.0% PK Hotel REITs(1) HST RMZ S&P 500 Source: FactSet; data as of 2/26/19 (1) Peers include all publicly traded hotel REITs with a market cap over $1 billion

9 4Q18 Performance and 2019 Outlook 4Q18 Operating Results 3.6% Comp RevPAR 2019 Outlook 40bps Comp Hotel Adj EBITDA Margin 3.8% 23% Group Revenues Increase in Other Hotels Revenues (1) Metric Guidance Comp RevPAR Growth: +2.0% to +4.0% Comp EBITDA Margins: +0bps to +60bps Adjusted EBITDA: $745M to $775M Note: Guidance as of 2/27/19. Not being updated or reconfirmed via this presentation. 9 (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 2018 Performance (2) 82% Total Occupancy $212 Total ADR DoubleTree Hotel Washington DC Crystal City Waldorf Astoria Orlando $174 Room RevPAR $208 Avg. Room RevPAR of Top 10 Assets (3) Hilton Miami Airport Hilton Boston Logan Airport (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 10 (3) Top 10 TTM RevPAR includes Hilton Waikoloa Village, which is non-comparable in 2018

11 Enterprise Value (B) Size and Scale: Park Twice the Size of Most Lodging REITs (1) Park is the second largest publicly traded Lodging REIT $20.0 $18.0 $16.0 Full Service Mixed & Limited Service $17.7 $14.0 $12.0 $10.0 $9.1 $8.0 $6.7 $7.5 $6.0 $4.8 $5.2 $5.6 $4.0 $2.0 $1.3 $1.6 $2.3 $2.5 $2.5 $3.0 $3.4 $3.9 $0.0 BHR CLDT INN CHSP HT DRH XHR SHO AHT APLE RLJ RHP PEB PK HST 11 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 Diversified Asset Types & Markets High Barrier to Entry Urban and Convention Hotels Landmark Resorts Select Suburban and Strategic Airport Hotels New York Hilton Midtown 1,878 rooms Hilton San Francisco Union Square 1,921 rooms Hilton Hawaiian Village Waikiki Beach Resort 2,860 rooms Hilton Waikoloa Village 1,110 rooms (1) DoubleTree Hotel Washington DC Crystal City 627 Rooms Hilton Boston Logan Airport 599 rooms Hilton Chicago 1,544 rooms Hilton New Orleans Riverside 1,622 rooms Casa Marina, a Waldorf Astoria Resort 311 rooms Waldorf Astoria Orlando/ Hilton Orlando Bonnet Creek 1,511 rooms Hilton Miami Airport 508 rooms Hilton McLean Tysons Corner 458 rooms 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. 12 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) : Markets (2) : Revenue Segmentation: Suburban 5% San Diego, 3% Int'l, 1% Key West, 4% Contract 5% Other 2% DC Metro, 4% Airport 13% Resort 44% Chicago, 4% Waikoloa, 4% Honolulu, 20% Group 31% New York, 7% Urban 38% Orlando, 13% Transient 62% New Orleans, 7% San Francisco, 13% 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 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 (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 13 (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

14 Weighted Avg Supply Growth '19 - '20 Park Portfolio: Well Insulated from Supply 2 Park Portfolio: Well Insulated from Supply ~2.3% Supply Growth for Park 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 4.7% Favorable Supply Picture for Park through 2020 (1) Supply Growth Exposure for Lodging REITs (1) 3.2% Full-service REIT Supply Exposure STR Top 25 Markets 3.1% 3.0% 2.9% 2.8% 2.7% 2.6% Peer Avg. 3.1% RHP CHSP DRH PEB HST XHR SHO BHR PK 2.3% 20.0% National Supply Growth Average: 1.9% 15.0% 10.0% 5.0% 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% 0.0% 0.5% Supply Growth PK 2018 Adjusted EBITDA (%) National Supply Growth 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 14 forecasts. Park s Adjusted EBITDA represents 2018 data and includes pro rata share of unconsolidated JVs; pro forma for Park s current portfolio

15 2019 Group Pace Group Mix Grouping Up Strategy 2018 vs. Peak Group Mix Group Up to 35% 45% 40% 35% 30% 25% 20% 35% 40% * Denotes prior annual peak group revenue mix from ; Current Group Mix represents pro forma comparable 2018 Hotels and Top 25 portfolio (excludes Hilton Chicago O Hare) 23% 30% 32% 38% Top 10 Portfolio Hotels Top 25 Hotels Current Group Mix Peak Group Mix* 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 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2019 Group Pace (1) : Park s Portfolio + Primary Park Markets 23.4% 17.2% 10.4% 8.8% 7.9% 6.4% 3.0% 2.2% PK Comp. PK Comp. No SF Hawaii San Fran Chicago New York New Orleans Orlando 2019 Convention Calendar: 2% 78% 35% 33% 20% 5% 15 (1) Group pace as of 12/31/18

16 Y/Y Change in Hotel Adj. EBITDA Margin Closing the Margin Gap: 60bps in 2018; Est d 50bps in 2019 Comp. Hotel Adj. EBITDA Margins (1) : E Change 100 bps 80 bps 60 bps 30 bps 110bps+ of Relative Improvement 40 bps 20 bps 60 bps -2 bps bps -20 bps -19 bps -40 bps Park Peers(2) 2018A 2019E(1) In 2018, Park s Comparable Hotel Adjusted EBITDA margin improved 60bps to 28.8% vs. a 2bps drop for our fullservice 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) 16 (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

17 In Focus: Top 25 Portfolio (~90% of Adj. EBITDA) Top 25 hotels (1) drive overall quality and performance of portfolio 2018 RevPAR (2) 2018 Adjusted EBITDA ($000) $195 $190 $185 $180 $175 $170 $165 $160 $155 $150 $190 $174 PK Pro forma PK Top 25 $800,000 $750,000 $700,000 $650,000 $600,000 $550,000 $500,000 $667,000 Pro forma PK Top 25 $754,000 PK 2018 Group Mix (2) 2018 Hotel Adjusted EBITDA/key 32.5% 32.0% 31.5% 31.0% 32.0% $35,000 $30,000 $25,000 $24,900 $31, % 30.0% 29.5% 30.2% $20,000 $15, % PK Pro forma PK Top 25 $10,000 PK Pro forma PK Top (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

18 Market Spotlights: 2019 Momentum Over 50% of Park s 2018 Adjusted EBITDA generated from 3 markets that are expected to solid performance in 2019 Hawaii 2018 Financials RevPAR $221 Hotel Adjusted EBITDA $191.5M % Adjusted EBITDA 25% San Francisco 2018 Financials RevPAR $235 Hotel Adjusted EBITDA $99.3M % Adjusted EBITDA 13% Florida 2018 Financials RevPAR $173 Hotel Adjusted EBITDA $130.6M % Adjusted EBITDA 17% 2019 Park Hawaii Group Pace 23% 2019 Park San Francisco Group Pace 17% 2019 Park Florida Group Pace 3% 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) Nearly 3,000 rooms & 160,000SF of 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) Nearly 3,300 rooms & 322,000SF of 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 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) 18 (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

19 Amazon to Concentrate Around Park s DoubleTree DoubleTree Crystal City located directly across the street from 4.1M SF Amazon cluster 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. 627-room DoubleTree DoubleTree Hotel Washington Name DC - Crystal City Keys 627 Open Date Jun-73 Meeting Space (SF) 31,000 YTD Sep '18 RevPAR $124 RevPAR Index 104.1% The Amazon Effect: Seattle CBD Tract RevPAR recorded 7.6% CAGR from , coinciding with development of Amazon s headquarters campus The Arlington, VA Tract RevPAR CAGR during same time period was just 0.8% $180 $160 Annual RevPAR (1) $ M SF of Amazon Development Rights $120 $100 $80 Seattle CBD Arlington 19 (1) Tract data provided by STR

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 Projects Completed/Committed HLT Santa Barbara Converted and repositioned from DoubleTree (completed April 2018) WA/HLT Bonnet Creek Addition of ~70k sq. ft. of meeting space Mid Term Projects Under Review Asset Repositions HLT Bonnet Creek Repositioning Up-brand to Signia Hilton WA Reach Resort Conversion Renovate and reposition to a Curio DT San Jose Conversion Renovate and reposition as a Hilton Longer Term Projects In Planning/Concepting HLT Hawaiian Village Master planning (branding; retail; amenities) including development of ½-acre Ala Moana parcel HLT New Orleans Development 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 20

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 and better yield transient business $14M renovation cost (1) ($38,000/key) completed in April Q18 RevPAR increased +25.9%; projected 2019 RevPAR growth in mid- to high teens Scope Guestrooms: case goods; soft goods Guest bathrooms: conversion of 160 bathtubs to walk-in showers; case goods, soft goods Public space: lobby; meeting space (mainly soft goods); and repositioning of F&B to include new Grab N Go Old lobby: Renovated lobby: 21 (1) Park owns a 50% interest in the Hilton Santa Barbara Beachfront Resort; as such its pro-rata investment in the renovation was $7M

22 Future ROI Project: Bonnet Creek Meeting Space Addition Bonnet Creek: Development Rights 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 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 22

23 Capital Recycling Efforts Improve Portfolio Quality 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 2017 Phase I Asset Sales 2018 Phase II Asset Sales (YTD) 2019E (2) Hotels Rooms ~35,300 ~3,200 ~32,000 ~560 ~30,000 RevPAR (3) $163 $108 $174 $118 $ EBITDA/key (4) $25,100 $14,100 $27,800 $10,100 (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 23 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 Net Debt to EBITDA Strong and Flexible Balance Sheet Debt Capital Structure Overview (1) Debt Maturity Schedule (1) Debt $ Amount % of Total Weighted Avg. Cost of Debt CMBS (secured) $2,000 68% 4.2% Term Loan A (Unsecured) (2) % 4.0% Consolidated JV Debt (secured) 207 7% 4.2% Revolver (2) % $236 million of unconsolidated JV debt (pro rata) Total Debt $2, % 4.1% Liquidity Profile Fixed vs. Floating Net Debt to Adjusted EBITDA (3) Ample liquidity with $410 million (4) of cash available as of 12/31/18 42 unencumbered hotels, or 63% of Adjusted EBITDA (5) In addition to cash, Park has access to an undrawn $1 billion revolving credit facility Floating 26% Fixed, 74% 8.0x 7.0x 6.0x 5.0x 4.0x 3.0x 2.0x 1.0x 0.0x 7.2x 5.1x 4.7x 3.8x 3.7x 3.5x 2.9x 1.8x 1.2x BHR RHP PEB CHSP PK XHR DRH HST SHO Source: FactSet 24 (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 %) and Revolver (L %) 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

25 Quarterly Dividend Dividend Yield Annualized Dividend Yield Attractive, Well Covered Dividend Park s Quarterly Dividends and Respective Yield (1) Peer REITs: Current Dividend Yield (2) $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.27 $0.12 $0.43 $0.43 $0.43 $0.43 $0.43 $0.43 $0.43 $0.43 $ % 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 6.3% 5.7% 5.5% 5.4% 5.1% 4.6% 4.7% 4.6% 4.1% 4.1% $0.00 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19E 0.0% 2.0% PK XHR CHSP BHR SHO DRH PEB HST RHP Source: FactSet Dividend and Payout Ratio Analysis Source: FactSet Park paid a fourth quarter 2018 cash dividend of $1.00/share on January 15 th to stockholders of record as of December 31, Of this, $0.70/share represents the fourth quarter payment based on results of operations, and $0.30/share represents gains from the sale of Park s assets during 2018 On February 22 nd, Park declared a quarterly cash dividend of $0.45/share to be paid on April 15 th to stockholders of record as of March 29 th, an increase of 4.6% in the quarterly regular way dividend Park has paid a total of $7.37/share in cash + stock dividends in its first two years, totaling $1.5B (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 25

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 should allow Park to achieve higher RevPAR and margins as a result of: Recognizable product compared to independent hotels struggling to differentiate their offerings Worldwide Group Sales Worldwide reservation systems Loyalty programs help to drive recurring sales, while lowering new customer acquisition costs 26 Hilton (~85M members) and Marriott, including Starwood (~120M members), have over 50% of sales stemming from customers within loyalty programs Ability to achieve increased direct-to-consumer sales minimizing OTA / wholesale commissions and increasing revenue to Park Significantly lower distribution costs for OTA business given negotiating power ofbrands More effective competition against Airbnb, particularly with respect to frequent travelers who appreciate the reliability and security of branded hotels RevPAR Premiums Effective Brand Segmentation Strong Loyalty Programs Worldwide Reservation Systems

27 Appendix Hilton Sao Paulo 27

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 FY 2017 Performance Highlights (1) : Hotel Portfolio: 4.46 Greenhouse Gas Emission Intensity (kg/sf) Energy Intensity (kw hrs/sf) 100% Portfolio ISO 14001, 9001 and Certified Information made publicly available to ensure more accurate representation of Park s ESG initiatives to third party ratings agencies like ISS, MSCI and Sustainalytics ~$445k Cost Savings from Energy Efficiency Projects 84% Waste Diversion Rate ~$35k Cost Savings from Water Efficiency Projects New Publications 2018 Annual Corporate Responsibility Report Environmental Policy Human Rights Policy Corporate HQ: $270k Charitable Contributions (2) 90% Associate Satisfaction (2) 400+ Volunteer hours (2) Vendor Code of Conduct 28 (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

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) Sales/ Mktg 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 Oper. Analysis Created 250 Fireworks View room types with premium rates 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 Waldorf Astoria Orlando Hilton Orlando Bonnet Creek 29

30 Future ROI Projects: New Orleans Hilton New Orleans Riverside: Development Rights/Land Sale 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) 6 th 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 30

31 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 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 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 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 Guidance 2019 Guidance and Assumptions (unaudited, dollars in millions, except per share amounts) 2019 Outlook as of February 27, 2019 Metric Comparable RevPAR Growth Low 2.0% High 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 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 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. 31

32 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 Interest income (8) (8) Interest expense Income tax expense Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates EBITDA Share-based compensation expense Adjusted EBITDA $ 745 $ 775 Guidance (continued) EBITDA and Adjusted EBITDA (unaudited, in millions) Year Ending December 31, 2019 Low Case High Case Net income $ 294 $ 323 Depreciation and amortization expense Interest income (8) (8) Interest expense Income tax expense Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates EBITDA Share-based compensation expense Adjusted EBITDA $ 745 $ 775 NAREIT FFO and Adjusted FFO (unaudited, in millions except per share data) Low Case Year Ending December 31, 2019 High Case Net income attributable to stockholders $ 286 $ 315 Depreciation and amortization expense 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 NAREIT FFO attributable to stockholders Share-based compensation expense Adjusted FFO attributable to stockholders $ 588 $ 617 Adjusted FFO per share - Diluted (1) $ 2.91 $ 3.05 Weighted average diluted shares outstanding (1) Per share amounts are calculated based on unrounded numbers. 32

33 Non-GAAP Financial Measures EBITDA and Adjusted EBITDA (unaudited, in millions) Three Months Ended Year Ended December 31, December 31, Net income $ 55 $ 61 $ 477 $ 2,631 Depreciation and amortization expense Interest income (2) (6) (2) Interest expense Income tax expense (benefit) 10 (2) 23 (2,346) Interest expense, income tax and depreciation and amortization included in equity in earnings EBITDA from investments in affiliates 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 Transaction expense Severance expense Share-based compensation expense Casualty loss (gain) and impairment loss, net 24 (1) 26 Other items (2) 6 (21) 8 (17) Adjusted EBITDA $ 184 $ 180 $ 754 $ 757 (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. 33

34 Non-GAAP Financial Measures (continued) Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin (unaudited, dollars in millions) Three Months Ended Year Ended December 31, December 31, Adjusted EBITDA $ 184 $ 180 $ 754 $ 757 Less: Adjusted EBITDA from investments in affiliates Less: All other (1) (13) (12) (52) (46) Hotel Adjusted EBITDA Less: Adjusted EBITDA from hotels disposed of Less: Adjusted EBITDA from non-comparable hotels Comparable Hotel Adjusted EBITDA $ 176 $ 167 $ 716 $ 681 (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. Three Months Ended Year Ended December 31, December 31, Total Revenues $ 686 $ 686 $ 2,737 $ 2,791 Less: Other revenue Less: Revenues from hotels disposed of Less: Revenues from non-comparable hotels (1) Comparable Hotel Revenues $ 626 $ 601 $ 2,487 $ 2,412 (1) Includes revenues from Park's non-comparable hotels and rental revenues from office space and antenna rent leases located at our hotels. Three Months Ended Year Ended December 31, December 31, Change (1) Change (1) Comparable Hotel Revenues $ 626 $ % $ 2,487 $ 2, % Comparable Hotel Adjusted EBITDA $ 176 $ % $ 716 $ % 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. 34

35 Non-GAAP Financial Measures (continued) Historical Comparable Hotel Adjusted EBITDA 2018 The financial information below is for the 44 comparable hotels owned as of December 31, Three Months Ended (unaudited, dollars in millions) March 31, June 30, September 30, December 31, December 31, December 31, Net income $ 149 $ 218 $ 55 $ 55 $ 477 $ 2,631 Depreciation and amortization expense Interest income (1) (1) (2) (2) (6) (2) Interest expense Income tax (benefit) expense (2,346) Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates EBITDA 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 Transaction expense Severance expense Share-based compensation expense Casualty loss (gain) and impairment loss, net (1) (1) 26 Other items 2 (1) (17) Adjusted EBITDA Less: Adjusted EBITDA from investments in affiliates Less: All other (2) (12) (14) (13) (13) (52) (46) Hotel Adjusted EBITDA Less: Adjusted EBITDA from hotels disposed of Less: Adjusted EBITDA from non-comparable hotels Comparable Hotel Adjusted EBITDA $ 159 $ 215 $ 166 $ 176 $ 716 $ 681 Full Year Full Year (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. 35

36 Non-GAAP Financial Measures (continued) Historical Comparable Hotel Revenues 2018 The financial information below is for the 44 comparable hotels owned as of December 31, Three Months Ended (unaudited, dollars in millions) March 31, June 30, September 30, December 31, December 31, December 31, Total Revenues $ 668 $ 731 $ 652 $ 686 $ 2,737 $ 2,791 Less: Other revenue Less: Revenues from hotels disposed of Less: Revenues from non-comparable hotels (1) Comparable Hotel Revenues $ 590 $ 673 $ 598 $ 626 $ 2,487 $ 2,412 Full Year Full Year (1) Includes revenues from Park's non-comparable hotels and rental revenues from office space and antenna rent leases located at our hotels. 36

37 Non-GAAP Financial Measures (continued) Historical Comparable Hotel Adjusted EBITDA 2017 The financial information below is for the 44 comparable hotels owned as of December 31, Three Months Ended (unaudited, dollars in millions) March 31, June 30, September 30, December 31, December 31, December 31, Net income $ 2,350 $ 115 $ 105 $ 61 $ 2,631 $ 139 Depreciation and amortization expense Interest income (1) (1) (2) (2) Interest expense Income tax (benefit) expense (2,281) (19) (44) (2) (2,346) 82 Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates EBITDA Gain on sales of assets, net (1) (1) (1) (Gain) loss on foreign currency transactions (1) (3) Transition expense Transaction expense 2 2 Severance expense 1 1 Share-based compensation expense Casualty loss (gain) and impairment loss, net Impairment loss included in equity in earnings from investments in affiliates 17 Other items 2 2 (21) (17) 36 Adjusted EBITDA Less: Spin-off adjustments (1) 49 Less: Adjusted EBITDA from investments in affiliates Less: All other (2) (12) (11) (11) (12) (46) (34) Hotel Adjusted EBITDA Less: Adjusted EBITDA from hotels disposed of Less: Adjusted EBITDA from non-comparable hotels Comparable Hotel Adjusted EBITDA $ 159 $ 193 $ 162 $ 167 $ 681 $ 672 Full Year Full Year (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. 37

38 Non-GAAP Financial Measures (continued) Historical Comparable Hotel Revenues 2017 The financial information below is for the 44 comparable hotels owned as of December 31, Three Months Ended (unaudited, dollars in millions) March 31, June 30, September 30, December 31, December 31, December 31, Total Revenues $ 684 $ 733 $ 688 $ 686 $ 2,791 $ 2,727 Less: Other revenue Less: Revenues from hotels disposed of Less: Revenues from non-comparable hotels (1) Comparable Hotel Revenues $ 588 $ 634 $ 589 $ 601 $ 2,412 $ 2,370 Full Year Full Year (1) Includes revenues from Park's non-comparable hotels and rental revenues from office space and antenna rent leases located at our hotels. 38

39 Non-GAAP Financial Measures (continued) Net Debt and Net Debt to Pro-forma Adjusted EBITDA Ratio (unaudited, in millions) December 31, 2018 December 31, 2017 Debt $ 2,948 $ 2,961 Add: unamortized deferred financing costs 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 Less: cash and cash equivalents Less: restricted cash 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 (1) See slide 18 for Pro-forma Adjusted EBITDA at December 31, Pro-forma Adjusted EBITDA excludes results from the 13 hotels disposed of in

40 Non-GAAP Financial Measures (continued) Pro-forma Adjusted EBITDA (unaudited, in millions) Year Ended December 31, Net income $ 477 $ 2,631 Depreciation and amortization expense Interest income (6) (2) Interest expense Income tax (benefit) expense 23 (2,346) Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates EBITDA 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 Share-based compensation expense Casualty (gain) loss and impairment loss, net (1) 26 Other items 8 (17) Adjusted EBITDA 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 (1) Included in other (loss) gain, net in the consolidated statement of operations. 40

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. 41

42 Definitions (cont d) 42 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 The Company s comparable hotels also exclude the 12 consolidated hotels that were sold in January and February 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.