Park Hotels & Resorts (PK) Investor Presentation summary

Mission and strategy

• Aims to be a leading lodging REIT, delivering superior risk-adjusted returns through active asset management and a growth-focused strategy while maintaining a strong, flexible balance sheet.

• Focuses on upper-upscale and luxury, full-service hotels in premier urban and resort destinations, affiliated with dominant global brands.

• Principles include active asset management, prudent capital allocation, and maintaining financial flexibility.

Portfolio overview and segmentation

• Portfolio includes 35 comparable hotels (22,000 rooms) and 20 core hotels (16,000 rooms), with top markets in Hawaii, Orlando, New York, and New Orleans.

• Core hotels account for over 90% of value, with higher RevPAR ($218), EBITDA margin (30%), and EBITDA/key ($40,000) than non-core hotels.

• Revenue segmentation: core hotels generate 82% of revenue, with 80% from leisure, 30% business transient, and 39% group segments.

Investment highlights and financial performance

• Trades at a 47% discount to consensus NAV, with an attractive 9% dividend yield and $270K/key implied market value.

• Core portfolio shows above-average growth: 5-year RevPAR CAGR nearly 3%, with key markets like Orlando and Miami outperforming.

• $1.4B invested in core portfolio since 2018, with two-thirds of rooms renovated; $100M+ EBITDA growth potential as markets recover.