Third Quarter 2021 Earnings Press Release

Investor Contact	1775 Tysons Boulevard, 7th Floor
Ian Weissman	Tysons, VA 22102
+ 1 571 302 5591	www.pkhotelsandresorts.com
	Park Hotels & Resorts Inc. Reports Third Quarter 2021 Results

TYSONS, VA (November 3, 2021) - Park Hotels & Resorts Inc. ("Park" or the "Company") (NYSE: PK) today announced results for the third quarter ended September 30, 2021 and provided an operational update on COVID-19.

Third quarter financial highlights include:

• Pro-formaRevPAR was $105.48, an increase of 301.6% from the same period in 2020 and a decrease of 43.4% from the same period in 2019;
• Pro-formaoccupancy for Park's 45 consolidated hotels open during the entirety of the third quarter was 58.0%;
• Net loss and net loss attributable to stockholders were $(82) million and $(86) million, respectively;
• Adjusted EBITDA was $77 million, an increase of 141% compared to the second quarter of 2021;
• Pro-formaHotel Adjusted EBITDA was $83 million, an improvement of 96.5% compared to the second quarter of 2021;
• Adjusted FFO attributable to stockholders was $5 million, an improvement of 112.2% compared to the second quarter of 2021;
• Diluted loss per share was $(0.36); and
• Diluted Adjusted FFO per share was $0.02.

Additional highlights for the third quarter include:

• Reopened the New York Hilton Midtown in October 2021, increasing to 96% of total room count and leaving just two hotels in the portfolio suspended - Parc 55 San Francisco - a Hilton Hotel and Hilton Short Hills;
• Generated positive Hotel Adjusted EBITDA, with 38 of 45 of Park's open consolidated hotels exceeding break-even levels;
• Completed the sales of the Hotel Adagio, Autograph Collection, and the Le Meridien San Francisco for total gross proceeds of approximately $304 million; and
• Repaid $419 million of the term loan entered into in August 2019 ("2019 Term Facility") and fully repaid the remaining $13 million outstanding under the revolving credit facility ("Revolver"). Year-to-date 2021, the Company partially repaid $592 million of the 2019 Term Facility, leaving just $78 million outstanding.

Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, "I am extremely proud of our continued progress toward our strategic priorities for 2021. We reached break-even at the corporate level for the third quarter - the first time since the pandemic began - and celebrated the reopening of the New York Hilton Midtown in early October. In addition, with the completion of five hotel sales in 2021 totaling $477 million in gross proceeds, we exceeded our stated asset sales target of $300-$400 million and used the proceeds to de-leverage the balance sheet. Additionally, we extended maturities for over $2 billion of debt since the start of the pandemic and with current liquidity of $1.8 billion, Park is well-positioned for future growth opportunities. Despite the near-term impact of the Delta variant on our industry, we remain encouraged by the overall progression of the lodging industry's recovery and expect increasing demand trends across all segments into 2022 across our portfolio, including group business where bookings for 2022 increased for the fifth consecutive quarter."

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Selected Statistical and Financial Information

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

			Three Months Ended September 30,			Nine Months Ended September 30,
			2021				2020		Change(1)				2021				2020		Change(1)
Pro-forma RevPAR		$	105.48			$	26.26		301.6%		$	75.32			$	56.14		34.2%
Pro-forma Occupancy			51.3%			19.1%	32.2% pts			40.1%			28.9%	11.2% pts
Pro-forma ADR	$	205.56	$	137.06	50.0%	$	187.71	$	194.25	(3.4)%
Pro-forma Total RevPAR	$	157.52	$	35.69	341.4%	$	112.86	$	89.27	26.4%
Net loss	$	(82)	$	(276)	NM(2)	$	(387)	$	(1,226)	NM(2)
Net loss attributable to stockholders	$	(86)	$	(276)	NM(2)	$	(392)	$	(1,223)	NM(2)
Adjusted EBITDA	$	77		$	(89)	NM(2)	$	61		$	(129)	NM(2)
Pro-forma Hotel Adjusted EBITDA	$	83		$	(72)	NM(2)	$	94		$	(93)	NM(2)
Pro-forma Hotel Adjusted EBITDA
margin			20.6%			(79.1)%	NM(2)			10.9%			(13.6)%	NM(2)
Adjusted FFO attributable to stockholders	$	5	$	(147)	NM(2)	$	(146)	$	(264)	NM(2)
Loss per share - Diluted(1)	$	(0.36)	$	(1.17)	NM(2)	$	(1.66)	$	(5.19)	NM(2)
Adjusted FFO per share - Diluted(1)	$	0.02	$	(0.62)	NM(2)	$	(0.62)	$	(1.12)	NM(2)
Weighted average shares outstanding -
Diluted			236				235		1				236				236		-

1. Amounts are calculated based on unrounded numbers.

(2) Percentage change is not meaningful.

Operational Update

Park reopened one hotel in October 2021, increasing total rooms by 1,878 rooms. The timing of reopening Park's remaining two suspended hotels will depend primarily on demand recovery in their respective markets.

The current status of Park's hotels as of November 3, 2021 is as follows (for a list of status by hotel please see Park's financial supplement):

Status			Number of Hotels	Total Rooms
Consolidated Open			46				26,551
Consolidated Suspended	2			1,338
Total Consolidated			48			27,889
Unconsolidated Open(1)			6			4,036
Total Hotels			54			31,925

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1. The ground lease for the Embassy Suites Secaucus Meadowlands expired on October 31, 2021 and the property was turned over to the ground lessor on that date.

Changes in Pro-forma ADR, Occupancy and RevPAR compared to the same periods in 2020 and 2019 and Pro-forma Occupancy for Park's 48 consolidated hotels were as follows:

	Change in Pro-forma ADR	Change in Pro-forma Occupancy	Change in Pro-forma RevPAR	2021
	2021 vs. 2020	2021 vs. 2019	2021 vs. 2020	2021 vs. 2019	2021 vs. 2020	2021 vs. 2019	Pro-forma
Q1 2021		)%			)%		)% pts		)% pts		)%			)%		Occupancy
(28.9		(30.6	(35.0	(50.7	(69.3		(76.2		26.6%
Q2 2021	44.8		(16.7)	36.1	(43.4)	897.0		(58.9)		42.2
July 2021	45.3		-	42.1	(29.0)	462.2		(33.7)		56.8
August 2021	52.0		(5.7)	29.3	(35.8)	269.4		(45.1)		49.7
September 2021	45.6			(16.6)	24.8	(34.4)	206.6		(51.8)		47.2
Q3 2021	50.0			(7.0)		32.2		(33.0)		301.6			(43.4)			51.3
Preliminary					(13.8)	26.9	(34.3)	226.2		(48.8)		50.3
October 2021	51.8

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Changes in Pro-forma ADR, Occupancy and RevPAR for certain periods in 2021 compared to the same periods in 2020 and 2019 and Pro-forma Occupancy for 2021 for only the consolidated hotels open during the entirety of each period were as follows:

	Number of	Change in Pro-forma ADR	Change in Pro-forma Occupancy	Change in Pro-forma RevPAR	2021
	Consolidated	2021 vs. 2020	2021 vs. 2019	2021 vs. 2020	2021 vs. 2019	2021 vs. 2020	2021 vs. 2019	Pro-forma
	Hotels Open													Occupancy
Q1 2021	40	(28.3)%	(28.8)%	(27.2)% pts	(41.1)% pts	(58.5)%	(66.1)%	37.2%
Q2 2021	41	45.9	(11.1)	47.6		(28.5)	891.5	(41.1)	55.8
July 2021	45	45.3	2.0	47.6		(20.8)	462.0	(22.9)	64.2
August 2021	45	52.0	(3.6)	33.1		(28.1)	269.5	(35.7)	56.2
September 2021	45	45.4	(12.4)	28.0		(26.8)	206.2	(41.7)	53.4
Q3 2021	45	49.9		(4.1	)	36.3		(25.2	)	301.5		(33.2	)	58.0
Preliminary
October 2021	45	49.7	(11.3)	28.7		(28.2)	212.1	(41.3)	55.2

For the third quarter of 2021, Park's portfolio generated positive Hotel Adjusted EBITDA with 38 of 45 of Park's open consolidated hotels exceeding break-even levels.

Domestic leisure transient demand experienced some disruption from the Delta variant beginning late August 2021 coupled with customary seasonal decline after significant growth during the summer as COVID-19 vaccinations rates increased, domestic restrictions eased and restrictions on international travel continued. The Pro-forma Rooms Revenue mix for each of the three and nine months ended September 30, 2021, 2020 and 2019 for the 45 consolidated hotels open during the entirety of the third quarter of 2021 or 40 consolidated hotels open during the entirety of the first nine months of 2021 were as follows:

		Three Months Ended September 30,			Nine Months Ended September 30,
Group	2021			2020			2019		2021		2020			2019
	13.1%	13.4%		26.2%	9.6%	26.5%		27.9%
Transient	80.0	69.8		66.3	82.7	63.2		66.3
Contract	5.0	14.9		5.4	5.9	8.1		3.8
Other	1.9	1.9		2.1	1.8	2.2		2.0

The change in Pro-forma Rooms Revenue for the three and nine months ended September 30, 2021 compared to the same periods in 2019 for the 45 consolidated hotels open during the entirety of the third quarter of 2021 or 40 consolidated hotels open during the entirety of the first nine months of 2021 were as follows:

	Three Months Ended September 30,	Nine Months Ended September 30,
Group	2021 vs. 2019		2021 vs. 2019
(67.1)%	(80.7)%
Transient	(20.8)	(30.4)
Contract	(40.1)	(14.0)
Other	(39.7)	(52.3)

Group demand was tempered in the third quarter by the increase in COVID-19 cases related to the Delta variant, and certain markets have experienced attrition related to group cancellations. Park expects to see a return of group demand beginning in the second quarter of 2022 in select markets as groups continued to push out meetings originally scheduled for the third and fourth quarters of 2021 into 2022. Group bookings for 2022 have increased each of the past five quarters, growing by nearly 260,000 room nights, or nearly 31%, since September 30, 2020 with acceleration following the approval of COVID-19 vaccines for emergency use in November 2020. As of September 30, 2021, 2022 group bookings are approximately 66% of what 2019 group bookings were as of September 30, 2018, a slight decrease from last quarter due to cancellations in Q1 2022 and a slowdown in bookings as a result of concerns over the Delta variant. Despite this setback, 2022 average group rates on the books remain strong, exceeding 2019 average group rates on the books at September 30, 2018.

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Highlights for Park's consolidated hotels owned as of November 3, 2021 in each of the Company's key markets, segmented between leisure and other markets, are as follows:

Leisure Markets

• Hawaii: Both Hawaii hotels continued to benefit from domestic leisure demand, generating positive Hotel Adjusted EBITDA during the third quarter of 2021. Hilton Waikoloa Village and Hilton Hawaiian Village achieved peak occupancy of 92% and 91% in July 2021, respectively, and occupancy of 77% and 76%, respectively, for the quarter. Rate increased by 25% at the Hilton Waikoloa Village compared to the third quarter of 2019;
• Orlando: Park's Orlando hotels continued to benefit from strong leisure demand in July, resulting in peak combined occupancy of 72% in July 2021 and combined occupancy of 49% for the quarter, while still achieving a 15% increase in rate compared to the third quarter of 2019;
• New Orleans: The Hilton New Orleans Riverside benefited from an increase in leisure demand and also experienced an increase in occupancy to 74% in September from housing first responders, displaced residents and others following Hurricane Ida in late August. The hotel achieved occupancy of 50% for the quarter;
• Southern California: Park's hotels in Southern California benefited from an increase in leisure demand during the summer, resulting in peak occupancy of 81% in July 2021 and 74% for the quarter, an increase of 7 percentage points from the second quarter of 2021. Compared to the third quarter of 2019, rate increased by 22%;
• Key West: Casa Marina, A Waldorf Astoria Resort, and The Reach Key West, Curio Collection, continued to benefit from leisure transient demand with peak combined occupancy of 87% in July 2021 and 69% for the quarter. Compared to the third quarter of 2019, occupancy increased by 10 percentage points and rate increased by 60%; and
• Miami: Park's Miami hotels benefited from strong leisure transient demand in July. The hotels achieved peak combined occupancy of 76% in July 2021 and 67% for the quarter. Rate increased by 32% compared to the third quarter of 2019.

Other Markets

• San Francisco: Three of Park's four hotels in the San Francisco market are open and achieved a combined occupancy of 41% for the quarter. The JW Marriott San Francisco Union Square and Hyatt Centric Fisherman's Wharf, both of which remained open throughout the pandemic and benefited from strong transient demand throughout the summer, achieved peak occupancy of 68% and 90% in July 2021, respectively, and 67% and 84% for the quarter, respectively, an increase of approximately 21 and 24 percentage points, respectively, from the second quarter of 2021;
• Boston: Park's Boston hotels benefited from demand from airline crews coupled with strong leisure demand, achieving peak combined occupancy of 72% in August 2021 and 69% for the quarter, an increase of 24 percentage points from the second quarter of 2021;
• New York: The New York Hilton Midtown reopened in October 2021 and preliminary results were strong, with preliminary rate that was 96% of October 2019 and better than expected local group and catering revenue, including a 1,300-person event;
• Chicago: Park's five hotels in Chicago achieved a combined occupancy of 39% for the quarter and a combined average rate that was just 8% below the combined average rate achieved for the third quarter 2019. In particular, the Hilton Chicago Downtown saw only a 1% decrease in rate versus the third quarter of 2019, mostly due to strong group and leisure demand in July;
• Denver: The Hilton Denver benefited from a sporting-related group event in July, which resulted in occupancy of 77% in July 2021. Occupancy for the quarter was 68%, an increase of 18 percentage points from the second quarter of 2021, and rate declined by just 4% versus the same period in 2019;
• Washington, D.C.: Park's hotels in the Washington, D.C. market benefited primarily from leisure demand, with peak combined occupancy of 46% for August 2021 and 43% for the quarter, an increase of 13 percentage points from the second quarter of 2021; and
• Seattle: Park's Seattle hotels benefited from demand from airline crews and strong summer leisure travel with peak combined occupancy of 66% in July 2021 and 61% for the quarter, an increase of 10 percentage points from the second quarter of 2021.

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Balance Sheet and Liquidity

Park and its hotel managers have taken several proactive steps to reduce the Company's burn rate, increase liquidity and mitigate the effects of COVID-19 on its business, including reducing labor and other operating expenses and cutting forecasted expenditures for 2021 to approximately $56 million for maintenance projects. As a result of these measures, coupled with expected continued leisure demand and the continued distribution of COVID-19 vaccines, Park's portfolio generated positive Hotel Adjusted EBITDA and Park achieved break-even results at the corporate level during the third quarter.

Park's Net Debt as of September 30, 2021 was $4.1 billion. Utilizing the net proceeds from the issuance of the 2029 Senior Secured Notes and the sales of five hotels during 2021 to repay outstanding debt, the Company has just $78 million outstanding on its sole remaining corporate term loan. Park's current liquidity is over $1.8 billion, including $1.075 billion of available capacity under the Company's Revolver.

Park had the following debt outstanding as of September 30, 2021:

(unaudited, dollars in millions)							As of
Debt		Collateral		Interest Rate	Maturity Date	September 30, 2021
Fixed Rate Debt
Mortgage loan	DoubleTree Hotel Spokane City Center	3.62%	July 2026	$	14
Mortgage loan		Hilton Denver City Center	4.90%	August 2022(1)		58
Mortgage loan	Hilton Checkers Los Angeles	4.11%	March 2023		27
Mortgage loan		W Chicago - City Center	8.25%	August 2023(2)		75
Commercial mortgage-backed		Hilton San Francisco Union Square, Parc 55
securities loan		San Francisco - a Hilton Hotel	4.11%	November 2023		725
Mortgage loan	Hyatt Regency Boston	4.25%	July 2026		136
Commercial mortgage-backed		Hilton Hawaiian Village Beach Resort
securities loan			4.20%	November 2026		1,275
Mortgage loan	Hilton Santa Barbara Beachfront Resort	4.17%	December 2026		165
2025 Senior Secured Notes			7.50%	June 2025		650
2028 Senior Secured Notes			5.88%	October 2028		725
2029 Senior Secured Notes			4.88%	May 2029		750
Finance lease obligations			3.07%	2021 to 2022		-
Total Fixed Rate Debt			5.10%(3)			4,600
Variable Rate Debt
Revolving credit facility(4)(5)		Unsecured		L + 3.00%	2021 to 2023		-
Mortgage loan	DoubleTree Hotel Ontario Airport		L + 3.00%	May 2022		30
2019 Term Facility(4)(6)		Unsecured		L + 2.65%	August 2024		78
Total Variable Rate Debt			3.25%(3)			108
Add: unamortized premium							3
Less: unamortized deferred financing costs and discount					(41)
Total Debt(7)			5.08%(3)		$	4,670

1. The loan matures in August 2042 but is callable by the lender beginning August 2022.
2. In January 2021, Park ceased making debt service payments toward the $75 million mortgage loan secured by the W Chicago City Center and has received a notice of an event of default. The default interest rate on the loan is 8.25%, and the stated interest rate is 4.25%. While Park hopes to negotiate an amendment with the lender, there can be no assurances that an agreement will be reached.
3. Calculated on a weighted average basis.
4. In May 2020, Park amended its credit and term loan facilities to add a LIBOR floor of 25 basis points.
5. In September 2020, Park increased its aggregate commitments under the Revolver by $75 million to $1.075 billion and extended the maturity date with respect to $901 million of the aggregate commitments for two years to December 2023, including all $75 million of the increased Revolver commitments. The maturity date for the remaining $174 million of commitments under the Revolver is December 2021. In July 2021, Park fully repaid the outstanding balance of the Revolver with net proceeds from the sale of the Hotel Indigo San Diego Gaslamp Quarter and Courtyard Washington Capitol Hill Navy Yard.
6. Following the sales of the Hotel Indigo San Diego Gaslamp Quarter and Courtyard Washington Capitol Hill Navy Yard in June 2021, the Hotel Adagio, Autograph Collection in July 2021 and the Le Meridien San Francisco in August 2021, Park repaid $419 million of the 2019 Term Facility during the third quarter.
7. Excludes $225 million of Park's share of debt of its unconsolidated joint ventures.

Dividends

In light of the COVID-19 pandemic, Park suspended dividend payments following the payment of its first quarter 2020 dividend.

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