Park Hotels & Resorts Inc. Reports Fourth Quarter and Full Year 2022 Results

Park Hotels & Resorts Inc.

TYSONS, Va., Feb. 22, 2023 (GLOBE NEWSWIRE) -- Park Hotels & Resorts Inc. (“Park” or the “Company”) (NYSE: PK) today announced results for the fourth quarter and full year ended December 31, 2022 and provided an operational update.

Selected Statistical and Financial Information

(unaudited, amounts in millions, except RevPAR, ADR, Total RevPAR and per share data)

		Three Months Ended December 31,												Year Ended December 31,
		2022				2021				Change(1)				2022				2021				Change(1)
Comparable RevPAR		$	162.81			$	111.02				46.7	%		$	156.38			$	84.54				85.0	%
Comparable Occupancy			67.7	%			52.1	%			15.6	%	pts		65.5	%			42.7	%			22.8	%	pts
Comparable ADR		$	240.57			$	213.37				12.7	%		$	238.79			$	197.91				20.7	%
Comparable Total RevPAR		$	258.41			$	171.66				50.5	%		$	243.87			$	128.57				89.7	%
Net income (loss)		$	35			$	(65	)			153.8	%		$	173			$	(452	)			138.3	%
Net income (loss) attributable to stockholders		$	34			$	(67	)			150.7	%		$	162			$	(459	)			135.3	%
Operating income (loss)		$	84			$	2				3,238.1	%		$	296			$	(179	)			265.6	%
Operating income (loss) margin			12.6	%			0.6	%			1,200 bps				11.8	%			(13.1	)%			2,490 bps
Comparable Hotel Adjusted EBITDA		$	166			$	85				98.4	%		$	626			$	175				258.8	%
Comparable Hotel Adjusted EBITDA margin			25.8	%			19.6	%			620 bps				26.0	%			13.7	%			1,230 bps
Adjusted EBITDA		$	159			$	81				96.3	%		$	606			$	142				326.8	%
Adjusted FFO attributable to stockholders		$	101			$	10				910.0	%		$	352			$	(136	)			358.8	%
Earnings (loss) per share – Diluted(1)		$	0.15			$	(0.28	)			153.6	%		$	0.71			$	(1.95	)			136.4	%
Adjusted FFO per share – Diluted(1)		$	0.45			$	0.05				800.0	%		$	1.54			$	(0.57	)			370.2	%
Weighted average shares outstanding – Diluted			224				236				(12	)			228				236				(8	)

(1	)	Amounts are calculated based on unrounded numbers.

Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, “I am extremely pleased by our fourth quarter results, which exceeded our expectations and guidance that we provided mid-December, and am encouraged by the positive trends continuing into early 2023. Group business continued to accelerate in the fourth quarter, with group revenue approximately 83% of the fourth quarter of 2019. Business transient demand continues to grow, and despite some seasonal moderation, leisure demand continued to improve at our urban markets. During the fourth quarter, average rates at our resort and airport hotels exceeded 2019 levels by 21% and 8%, respectively, while rate at our urban and suburban hotels exceeded 2019 levels by approximately 2%. Additionally, Park executed on its capital allocation priorities over the past year by completing $435 million of non-core asset sales and recycling this capital into repurchases of nearly $260 million of our common stock and repayments of over $100 million of debt, while also amending and extending our Revolver, further improving the Company's financial flexibility. Looking ahead into 2023, I am excited by the continued positive momentum across our portfolio, with improving city-wide calendars and the return of international travel. We currently do not see recession concerns making a significant impact on our business, and we remain well positioned with approximately $1.9 billion of liquidity to ramp up our dividend distributions and ROI capex spend this year while prudently making opportunistic investments, whether it be additional share repurchases or acquisitions."

Additional Highlights

• Reopened all previously suspended hotels by May 2022;

• Moody’s Investors Service upgraded Park’s outlook to Stable from Negative;

• Reinstated Park's quarterly dividend in the first quarter of 2022, declaring a total of $0.28 per share to stockholders for the year, including a dividend of $0.25 per share declared for the fourth quarter of 2022 to common stockholders of record as of December 30, 2022, which was paid on January 17, 2023;

• Converted the Casa Marina Key West from a Waldorf Astoria Resort to a Curio in March 2022;

• During 2022, repurchased a total of 12.7 million shares at an average price of $17.82 per share, or $227 million, with an additional 2.5 million shares repurchased in January 2023 at an average price of $11.64 per share, or $30 million;

• Exited the covenant relief period under Park's credit and term loan facilities in July 2022, one quarter earlier than the scheduled end of the waiver period;

• Amended and restated Park's revolving credit facility ("Revolver") in December 2022, which increased total capacity from $901 million to $950 million, extended the maturity date by three years to December 2026 and released all collateral securing the Revolver and Park's senior notes consisting of pledges of equity interests in Park-affiliated entities owning certain unencumbered properties;

• In December 2022, fully repaid (i) the remaining $78 million balance on the unsecured delayed draw term loan facility ("2019 Term Facility") using $50 million of the Revolver and available cash on hand as well as (ii) the $26 million mortgage loan secured by the Hilton Checkers;

• Opened the newly constructed 13,000 square foot ballroom at the Waldorf Astoria Bonnet Creek in Orlando in December 2022;

• During 2022, Park has sold its interests in seven non-core hotels for total gross proceeds of approximately $317 million, or 14.0x the hotels’ combined 2019 Adjusted EBITDA (or 12.9x when excluding anticipated capital expenditures), and at an average capitalization rate of 6.2% on the hotels’ combined 2019 net operating income (or 6.7% excluding anticipated maintenance capital expenditures); and

• In February 2023, sold the 508-room Hilton Miami Airport for gross proceeds of $118.25 million, or $233,000 per key, 14.0x the hotel's 2019 Adjusted EBITDA (or 11.1x when excluding anticipated capital expenditures), and at a capitalization rate of 6.2% on the hotel's 2019 net operating income (or 7.9% excluding anticipated capital expenditures). Park utilized $50 million of the net proceeds to fully repay the outstanding balance on the Revolver.

Operational Update

Changes in Park's 2022 Comparable ADR, Occupancy and RevPAR compared to the same periods in 2021 and 2019, and 2022 Comparable Occupancy were as follows:

	Change in Comparable ADR								Change in Comparable Occupancy								Change in Comparable RevPAR									2022 Comparable
	2022 vs. 2021				2022 vs. 2019				2022 vs. 2021				2022 vs. 2019				2022 vs. 2021				2022 vs. 2019					Occupancy
Q1 2022		43.7	%			0.8	%			25.3	%	pts		(26.0	)%	pts		183.4	%			(33.1	)%				51.4	%
Q2 2022		29.0				8.5				29.3				(14.7	)			120.0				(10.1	)				70.9
Q3 2022		14.6				7.2				20.9				(12.5	)			61.7				(8.8	)				71.7
Oct 2022		20.2				4.0				23.7				(11.2	)			77.5				(9.7	)				73.4
Nov 2022		14.4				7.7				15.5				(14.0	)			48.9				(10.9	)				67.1
Dec 2022		5.6				14.5				7.7				(13.5	)			20.5				(5.8	)				62.5
Q4 2022		12.7				8.4				15.6				(12.9	)			46.7				(8.9	)				67.7
	2023 vs. 2022				2023 vs. 2019				2023 vs. 2022				2023 vs. 2019				2023 vs. 2022				2023 vs. 2019					2023 Comparable Occupancy
Jan 2023		17.8				5.9				19.8				(12.7	)			76.7				(12.9	)				59.3

Changes in Park's 2022 Comparable ADR, Occupancy and RevPAR for the three months and year ended December 31, 2022 compared to the same periods in 2021 and 2019, and 2022 Comparable Occupancy for the three months and year ended December 31, 2022 by hotel type were as follows:

		Three Months Ended December 31,
		Change in Comparable ADR								Change in Comparable Occupancy								Change in Comparable RevPAR									2022 Comparable
		2022 vs. 2021				2022 vs. 2019				2022 vs. 2021				2022 vs. 2019				2022 vs. 2021				2022 vs. 2019					Occupancy
Resort			3.7	%			21.0	%			11.3	%	pts		(8.9	)%	pts		22.4	%			8.2	%				74.3	%
Urban			19.1				1.5				19.9				(16.7	)			73.3				(19.6	)				63.6
Airport			20.0				7.9				9.3				(9.2	)			38.4				(4.5	)				70.5
Suburban			31.3				2.3				19.0				(11.2	)			88.6				(13.3	)				62.5
All Types			12.7				8.4				15.6				(12.9	)			46.7				(8.9	)				67.7

For the fourth quarter of 2022 as compared to the fourth quarter of 2019, excluding Park's San Francisco hotels, Comparable Occupancy was 69.9%, or 90% of 2019 levels, with an increase in Comparable rate of 14.1% and Comparable RevPAR at 2019 levels. Additionally, for the fourth quarter of 2022, Comparable Occupancy at Park's urban hotels, excluding its San Francisco hotels, was 67.5%, or 90% of 2019 levels, with an increase in Comparable rate of 12.0% and Comparable RevPAR at approximately 98% of 2019 levels.

		Year Ended December 31,
		Change in Comparable ADR								Change in Comparable Occupancy								Change in Comparable RevPAR									2022 Comparable
		2022 vs. 2021				2022 vs. 2019				2022 vs. 2021				2022 vs. 2019				2022 vs. 2021				2022 vs. 2019					Occupancy
Resort			11.1	%			22.9	%			18.4	%	pts		(9.9	)%	pts		47.2	%			8.6	%				75.0	%
Urban			37.0				(1.4	)			26.7				(22.2	)			151.8				(28.6	)				58.5
Airport			22.0				(1.7	)			19.7				(10.3	)			68.0				(14.0	)				71.9
Suburban			34.2				(1.8	)			21.3				(17.8	)			109.2				(24.5	)				59.4
All Types			20.7				6.5				22.8				(16.5	)			85.0				(14.9	)				65.5

Domestic leisure transient demand continues to grow compared to 2021 as a result of the easing of domestic restrictions; however, some restrictions on international travel remain in place. The Comparable Rooms Revenue mix for the three months and years ended December 31, 2022, 2021, 2020 and 2019 were as follows:

		Three Months Ended December 31,
		2022				2021				2020				2019
Group			26.9	%			19.5	%			10.9	%			28.9	%
Transient			66.1				73.7				73.2				63.7
Contract			4.7				4.8				14.0				5.4
Other			2.3				2.0				1.9				2.0
		Year Ended December 31,
		2022				2021				2020				2019
Group			25.9	%			13.3	%			26.7	%			30.9	%
Transient			67.4				79.0				61.5				61.7
Contract			4.5				5.8				9.6				5.3
Other			2.2				1.9				2.2				2.1

Park saw an improvement in demand beginning in mid-February 2022 as restrictions declined across the country, business travel accelerated and group demand began to return to its urban hotels. Park continues to see group business materialize, and during the fourth quarter of 2022, recognized $13 million of additional group revenue for business booked during the quarter. As of the end of December 2022, group bookings for 2023 continued to increase with the addition of approximately 200,000 room nights as compared to the end of September 2022. As of the end of December 2022, group bookings for 2023 were 74% of what 2019 group bookings were as of the end of December 2018, an increase of 180 basis points from the end of September 2022, with average group rates exceeding 2019 average group rates by over 5% for the same time period. In addition, Group Revenue Pace for 2023, as of the end of December 2022, was 78% as compared to 2019 as of the end of December 2018.

Results for Park's Comparable hotels in each of the Company’s key markets are as follows:

(unaudited)								Comparable ADR										Comparable Occupancy											Comparable RevPAR
		Hotels		Rooms				4Q22			4Q21			Change(1)				4Q22			4Q21			Change					4Q22			4Q21			Change(1)
Hawaii		2			3,507			$	305.20		$	265.86			14.8	%			80.3	%		63.5	%		16.8	%	pts		$	245.04		$	168.86			45.1	%
San Francisco		4			3,605				213.30			181.81			17.3				53.5			29.9			23.6					114.05			54.29			110.1
Orlando		3			2,325				243.50			238.18			2.2				68.3			57.4			10.9					166.26			136.75			21.6
New Orleans		1			1,622				211.44			182.02			16.2				68.3			52.0			16.3					144.48			94.65			52.6
Boston		3			1,536				224.09			188.87			18.6				77.9			65.9			12.0					174.54			124.44			40.3
New York		1			1,878				363.73			323.05			12.6				84.7			46.6			38.1					307.95			150.32			104.9
Southern California		5			1,773				215.37			207.95			3.6				71.7			65.5			6.2					154.46			136.20			13.4
Chicago		3			2,467				223.89			191.24			17.1				53.5			31.5			22.0					119.85			60.35			98.6
Key West		2			461				454.01			557.29			(18.5	)			69.7			77.0			(7.3	)				316.54			429.47			(26.3	)
Denver		1			613				177.32			136.41			30.0				63.8			63.2			0.6					113.21			86.34			31.1
Miami		2			901				208.13			194.69			6.9				83.3			78.3			5.0					173.33			152.37			13.8
Washington, D.C.		2			1,085				174.32			130.69			33.4				66.8			45.0			21.8					116.52			58.86			98.0
Seattle		2			1,246				157.98			122.62			28.8				59.7			51.5			8.2					94.32			63.17			49.3
Other		12			4,043				188.41			159.74			18.0				63.4			54.3			9.1					119.48			86.66			37.9
All Markets		43			27,062			$	240.57		$	213.37			12.7	%			67.7	%		52.1	%		15.6	%	pts		$	162.81		$	111.02			46.7	%

(1	)	Calculated based on unrounded numbers

Balance Sheet and Liquidity

Park’s Net Debt as of December 31, 2022 was $3.9 billion. In December 2022, Park amended and restated the Revolver, which extended its maturity date to December 2026 and increased aggregate commitments from $901 million to $950 million, of which $50 million, together with cash on hand, was used to fully repay the remaining $78 million outstanding on its sole remaining corporate term loan. The amended agreement adjusted certain financial covenants to revised levels through the end of the first quarter of 2024, allows Park to conduct share repurchases, subject to compliance with the financial covenants, and released all collateral securing the credit facility and senior notes. It also placed restrictions on the Company, including Park’s ability to grant liens on certain properties, mergers, affiliate transactions, asset sales and the payment of dividends and distributions (except to the extent required to maintain REIT status and certain other agreed exceptions).

In addition, Park fully repaid the $26 million mortgage loan secured by the Hilton Checkers Los Angeles in December 2022 and expects to fully repay the $75 million mortgage loan secured by the W Chicago – City Center (due in August 2023) in May 2023 with available cash on hand. In February 2023, Park fully repaid the $50 million outstanding under the Revolver with a portion of the net proceeds from the sale of the Hilton Miami Airport.

Park has no significant maturities until the fourth quarter of 2023. Park is currently exploring various financing options for the $725 million mortgage loan secured by the Hilton San Francisco Union Square and Parc 55 Hotel San Francisco due in November 2023, and expects to have the matter addressed before the third quarter of 2023. As of December 31, 2022, the weighted average maturity of Park's consolidated debt is 3.8 years. Park's current liquidity is approximately $1.9 billion, including approximately $950 million of available capacity under the Company's Revolver.

Park had the following debt outstanding as of December 31, 2022:

(unaudited, dollars in millions)
Debt		Collateral		Interest Rate			Maturity Date		As of December 31, 2022
Fixed Rate Debt
Mortgage loan		Hilton Denver City Center		4.90	%		June 2023(1)		$	56
Mortgage loan		W Chicago – City Center		4.25	%		August 2023			75
Mortgage loan		Hilton San Francisco Union Square, Parc 55 San Francisco – a Hilton Hotel		4.11	%		November 2023			725
Mortgage loan		Hyatt Regency Boston		4.25	%		July 2026			132
Mortgage loan		DoubleTree Hotel Spokane City Center		3.62	%		July 2026			14
Mortgage loan		Hilton Hawaiian Village Beach Resort		4.20	%		November 2026			1,275
Mortgage loan		Hilton Santa Barbara Beachfront Resort		4.17	%		December 2026			162
Mortgage loan		DoubleTree Hotel Ontario Airport		5.37	%		May 2027			30
2025 Senior Notes				7.50	%		June 2025			650
2028 Senior Notes				5.88	%		October 2028			725
2029 Senior Notes				4.88	%		May 2029			750
Total Fixed Rate Debt				5.04%(2)						4,594
Variable Rate Debt
Revolver(3)		Unsecured		SOFR + 2.10%			December 2026			50
Total Variable Rate Debt				6.22%(2)						50
Add: unamortized premium										3
Less: unamortized deferred financing costs and discount										(30	)
Total Debt(4)				5.06%(2)					$	4,617

(1	)	The loan matures in August 2042 but is callable by the lender with six months of notice. As of December 31, 2022, Park had not received notice from the lender.
(2	)	Calculated on a weighted average basis.
(3	)	In February 2023, Park fully repaid the outstanding balance under the Revolver. Park has approximately $950 million of available capacity under the Revolver.
(4	)	Excludes $169 million of Park’s share of debt of its unconsolidated joint ventures.

Capital Investments

During 2022, Park spent $168 million on capital improvements at its hotels, of which $64 million was spent during the fourth quarter of 2022. Park expects to invest approximately $300 million to $325 million in capital improvements during 2023, consisting of $108 million to $117 million on return on investment projects and $192 million to $208 million on maintenance projects. Key current and upcoming projects are summarized below:

• Hilton Hawaiian Village Waikiki Beach Resort (Guestroom): $85 million for three phases of guestroom renovations in the 1,020-room Tapa Tower, of which $52 million has been incurred to date with $16 million incurred in the fourth quarter of 2022. Phase one was completed in 2021, phase two completed at the end of 2022 and phase three is expected to be completed by the end of 2023;

• Waldorf Astoria Orlando and Signia by Hilton Orlando Bonnet Creek Complex:

  • Meeting space expansion: $110 million expansion to add more than 100,000 square feet of meeting and event space, of which $14 million was incurred during the fourth quarter of 2022, bringing the total invested to date to $67 million since the project began in the fourth quarter of 2019, before being put on hold in 2020. The expansion at the Waldorf Astoria Orlando was completed during the fourth quarter of 2022 and the Signia by Hilton Orlando Bonnet Creek is expected to be completed by early 2024;

  • Guestroom, existing meeting space & lobby: $20 million for existing meeting space and lobby renovations at the Signia by Hilton Orlando Bonnet Creek was substantially completed during the fourth quarter of 2022, of which $16 million has been incurred to date, with $2 million incurred during the fourth quarter of 2022. In addition, approximately $25 million was incurred on guestroom renovations at the Signia by Hilton Orlando Bonnet Creek in 2019 and 2020. Approximately $50 million for guestroom, existing meeting space, lobby and other public space renovations at the Waldorf Astoria Orlando, of which $11 million has been incurred to date, with $9 million incurred during the fourth quarter of 2022, to be completed by the fourth quarter of 2023;

  • Golf course renovation: $9 million for two phases of golf course renovations, of which $2 million has been incurred since the project began during the second quarter of 2022. Phase one was completed in the fourth quarter of 2022 and phase two is expected to be completed by the fourth quarter of 2023; and

  • Recreational amenities: $6 million for additional amenities, primarily at the pool, of which $1 million was incurred during the fourth quarter of 2022;

• Casa Marina Key West, Curio Collection: $70 million for a complete renovation of all 311 guestrooms, public spaces and hotel infrastructure, of which $6 million has been incurred to date with $5 million incurred in the fourth quarter of 2022, to be completed by the fourth quarter of 2023;

• Hilton New Orleans Riverside (Guestroom): $11 million for two phases of guestroom renovations in the 455-room Riverside building of which $2 million has been incurred to date since the project began in the third quarter of 2019 before being put on hold in 2020. The project is expected to be completed by the third quarter of 2023; and

• New York Hilton Midtown (Ballroom): $5 million for ballroom renovations that will begin and be completed during the third quarter of 2023.

Dividends and Share Repurchases

Park declared a fourth quarter 2022 cash dividend of $0.25 per share to stockholders of record as of December 30, 2022. The fourth quarter 2022 cash dividend was paid on January 17, 2023.

Park plans to declare its first quarter 2023 cash dividend in March 2023, which is currently expected to be $0.15 per share, subject to approval by its Board of Directors ("Board").

During 2022, Park repurchased 12.7 million shares at an average price of $17.82 per share, or $227 million, with an additional 2.5 million shares repurchased in January 2023 at an average price of $11.64 per share, or $30 million.

On February 17, 2023, Park's Board terminated its stock repurchase program authorized in February 2022, which was set to expire in February 2024. The Board authorized and approved a new stock repurchase program allowing Park to repurchase up to $300 million of its common stock over a two-year period, starting on February 21, 2023 and ending on February 21, 2025, subject to any applicable limitations or restrictions set forth in Park's credit facility and indentures related to its senior notes. Stock repurchases may be made through open market purchases, including through Rule 10b5-1 trading programs, in privately negotiated transactions, or in such other manner that would comply with applicable securities laws. The timing of any future stock repurchases and the number of shares to be repurchased will depend upon prevailing market conditions and other factors, and Park may suspend the repurchase program at any time. No stock repurchases have been made to date under the new program.

Q1 2023 and Full-Year 2023 Outlook

Park expects first quarter and full-year 2023 operating results to be as follows:

(unaudited, dollars in millions, except per share amounts and RevPAR)
		Q1 2023 Outlook								Full-Year 2023 Outlook
		as of February 22, 2023								as of February 22, 2023
Metric		Low				High				Low				High
RevPAR		$	156			$	162			$	167			$	179
RevPAR change vs. 2022			34	%			40	%			7	%			14	%
Net income		$	12			$	28			$	92			$	180
Net income attributable to stockholders		$	11			$	27			$	78			$	166
Earnings per share – Diluted(1)		$	0.05			$	0.12			$	0.35			$	0.75
Operating income		$	63			$	79			$	316			$	396
Operating income margin			10.6	%			12.2	%			12.7	%			14.5	%
Adjusted EBITDA		$	124			$	140			$	610			$	690
Hotel Adjusted EBITDA margin			22.8	%			23.4	%			26.7	%			27.3	%
Hotel Adjusted EBITDA margin change vs. 2022			400 bps				460 bps				80 bps				140 bps
Adjusted FFO per share – Diluted(1)		$	0.30			$	0.37			$	1.60			$	1.99

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

Park's outlook is based in part on the following assumptions:

• Fully diluted weighted average shares are expected to be 222 million for both Q1 2023 and full-year 2023;

• The repayment of the $75 million mortgage loan secured by the W Chicago – City Center in May 2023;

• An increase in interest expense during the second half of 2023 upon extending the maturity date of the $725 million mortgage loan secured by the Hilton San Francisco Union Square and Parc 55 Hotel San Francisco;

• The mortgage loan secured by the Hilton Denver City Center is not called by the lender during 2023;

• The removal of $4 million and $12 million, respectively, of Hotel Adjusted EBITDA for Q1 and full-year related to the sale of the Hilton Miami Airport;

• Includes $14 million of Hotel Adjusted EBITDA disruption from a full-scale renovation at the Casa Marina Key West, Curio Collection, which is expected to be completed in the fourth quarter of 2023; and

• Current portfolio as of February 22, 2023 and does not take into account potential future acquisitions and dispositions, which could result in a material change to Park’s outlook.

Park's first quarter and full-year 2023 outlook are based on a number of factors, many of which are outside the Company's control, including uncertainty surrounding macro-economic factors, including inflation, increases in interest rates, supply chain disruptions and the possibility of an economic recession or slowdown, as well as the assumptions set forth above, all of which are subject to change.

Supplemental Disclosures

In conjunction with this release, Park has furnished a financial supplement with additional disclosures on its website. Visit www.pkhotelsandresorts.com for more information. Park has no obligation to update any of the information provided to conform to actual results or changes in Park’s portfolio, capital structure or future expectations.

Environmental, Social and Governance ("ESG")

In January 2023, Park published its 2022 Annual Corporate Responsibility Report ("CR Report") which includes Global Reporting Initiative ("GRI") and Sustainability Accounting Standards Board ("SASB") indices as well as its Task Force on Climate-Related Financial Disclosures ("TCFD") report. The 2022 CR Report details Park's energy, carbon, water and waste metrics and also highlights the Company's enhanced sustainability and corporate responsibility efforts, including the efforts related to Park's Diversity and Inclusion Steering Committee. Park also participated in the 2022 Global Real Estate Sustainability Benchmark ("GRESB") assessment, ranking in the top 35% of all GRESB participant companies, increasing its score compared to the pre-pandemic 2020 results. Compared to 2021, Park's ranking declined slightly due to drastic fluctuations in utility consumption across its portfolio from properties reopening and being utilized to a greater capacity. Additionally, in 2022, Park was recognized by Newsweek as one of America's Most Responsible Companies for the third consecutive year, ranking in the top third of all selected companies, and Park received the 2022 Nareit Leader in the Light Award for the hospitality sector. Five of Park's properties were awarded the ENERGY STAR® Certification for Superior Energy Efficiency, including Park's largest hotel, the Hilton Hawaiian Village Waikiki Beach Resort, and 85% of Park's portfolio was Google Eco-certified via Hilton's LightStay program.

Park formalized and strengthened oversight over its ESG activities by renaming two of its Board-level committees to more accurately reflect how ESG is embedded in Park's governance policies and establishing an executive-level ESG committee to develop, implement and monitor Park's ESG initiatives and policies. The executive-level ESG committee provides oversight of Park's three dedicated ESG working committees – the Green Park Committee, the Park Cares Committee, and the Diversity & Inclusion Steering Committee. ESG performance targets were also embedded into executive performance objectives and compensation.

Conference Call

Park will host a conference call for investors and other interested parties to discuss fourth quarter and full year 2022 results on February 23, 2023 beginning at 11 a.m. Eastern Time. Participants may listen to the live webcast by logging onto the Investors section of the website at www.pkhotelsandresorts.com. Alternatively, participants may listen to the live call by dialing (877) 451-6152 in the United States or (201) 389-0879 internationally and requesting Park Hotels & Resorts’ Fourth Quarter and Full Year 2022 Earnings Conference Call. Participants are encouraged to dial into the call or link to the webcast at least ten minutes prior to the scheduled start time.

A replay of the webcast will be available within 24 hours after the live event on the Investors section of Park’s website.

Annual Stockholders Meeting

Park will host its 2023 Annual Stockholders Meeting on April 26, 2023 at 8:00 am ET at 1775 Tysons Boulevard, Tysons, Virginia. Park's Board has established the close of business on March 2, 2023 as the record date for determining those stockholders that are entitled to vote at the 2023 Annual Stockholders Meeting.

Forward-Looking Statements

This press release 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, including anticipated repayment of certain of the Company's indebtedness, the completion of capital allocation priorities, the expected repurchase of the Company's stock, the impact to the Company's business and financial condition and that of its hotel management companies, the impact from macroeconomic factors (including inflation, increases in interest rates, potential economic slowdown or a recession and geopolitical conflicts), the effects of competition and the effects of future legislation or regulations, the expected completion of anticipated 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,” “hopes” or the negative version of these words or other comparable words. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could materially affect its results of operations, financial condition, cash flows, performance or future achievements or events.

Forward-looking statements are based on current expectations of management and therefore involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements 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, 2021, as such factors may be updated from time to time in Park’s 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.

Non-GAAP Financial Measures

Park presents certain non-GAAP financial measures in this press release, including Nareit FFO attributable to stockholders, Adjusted FFO attributable to stockholders, EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA, Hotel Adjusted EBITDA margin and Net debt. 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 press release including the “Definitions” section for additional information and reconciliations of such non-GAAP financial measures.

About Park

Park is the second largest publicly traded lodging REIT with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park's portfolio currently consists of 46 premium-branded hotels and resorts with over 29,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information.

PARK HOTELS & RESORTS INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share data)

		December 31,
		2022				2021
ASSETS
Property and equipment, net		$	8,301			$	8,511
Investments in affiliates			1				15
Intangibles, net			43				44
Cash and cash equivalents