Company Quick10K Filing
Park Hotels & Resorts
Price24.80 EPS1
Shares239 P/E24
MCap5,937 P/FCF17
Net Debt3,754 EBIT355
TEV9,691 TEV/EBIT27
TTM 2019-09-30, in MM, except price, ratios
10-Q 2021-03-31 Filed 2021-05-07
10-K 2020-12-31 Filed 2021-02-26
10-Q 2020-09-30 Filed 2020-11-06
10-Q 2020-06-30 Filed 2020-08-06
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-02-27
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-01
10-Q 2019-03-31 Filed 2019-05-06
10-K 2018-12-31 Filed 2019-02-28
10-Q 2018-09-30 Filed 2018-11-02
10-Q 2018-06-30 Filed 2018-08-02
10-Q 2018-03-31 Filed 2018-05-04
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-03
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-03-02
8-K 2020-11-07
8-K 2020-11-05
8-K 2020-10-23
8-K 2020-09-18
8-K 2020-09-15
8-K 2020-09-14
8-K 2020-08-05
8-K 2020-05-29
8-K 2020-05-27
8-K 2020-05-19
8-K 2020-05-18
8-K 2020-05-11
8-K 2020-05-08
8-K 2020-04-24
8-K 2020-03-20
8-K 2020-03-16
8-K 2020-02-26
8-K 2020-02-20
8-K 2020-01-27
8-K 2020-01-15
8-K 2019-11-06
8-K 2019-09-13
8-K 2019-09-02
8-K 2019-08-28
8-K 2019-07-31
8-K 2019-05-06
8-K 2019-05-05
8-K 2019-04-26
8-K 2019-02-27
8-K 2019-02-22
8-K 2019-01-25
8-K 2018-11-01
8-K 2018-06-30
8-K 2018-04-27
8-K 2018-03-31
8-K 2018-03-06
8-K 2018-03-05
8-K 2017-12-31

PK 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements.
Note 1: Organization and Recent Events
Note 2: Basis of Presentation and Summary of Significant Accounting Policies
Note 3: Dispositions
Note 4: Property and Equipment
Note 5: Consolidated Variable Interest Entities ("VIES") and Investments in Affiliates
Note 6: Goodwill
Note 7: Debt
Note 8: Fair Value Measurements
Note 9: Income Taxes
Note 10: Share - Based Compensation
Note 11: Earnings per Share
Note 12: Business Segment Information
Note 13: Commitments and Contingencies
Note 14: Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits
EX-31.1 pk-ex311_13.htm
EX-31.2 pk-ex312_12.htm
EX-32.1 pk-ex321_11.htm
EX-32.2 pk-ex322_10.htm

Park Hotels & Resorts Earnings 2021-03-31

Balance SheetIncome StatementCash Flow
151296302017201820192020
Assets, Equity
2.41.91.41.00.50.02017201820192020
Rev, G Profit, Net Income
0.80.40.1-0.3-0.6-1.02017201820192020
Ops, Inv, Fin

pk-10q_20210331.htm
false 2021 Q1 0001617406 --12-31 1 2022-08-31 2023-12-31 2021-12-31 P3Y 0 P4Y 1 0.20 0.50 0.0416 2021 0.0265 0.0300 2021 2021 2026 2023 2022 0001617406 2021-01-01 2021-03-31 xbrli:shares 0001617406 2021-04-30 iso4217:USD 0001617406 2021-03-31 0001617406 2020-12-31 0001617406 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-03-31 0001617406 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-12-31 iso4217:USD xbrli:shares 0001617406 us-gaap:OccupancyMember 2021-01-01 2021-03-31 0001617406 us-gaap:OccupancyMember 2020-01-01 2020-03-31 0001617406 us-gaap:FoodAndBeverageMember 2021-01-01 2021-03-31 0001617406 us-gaap:FoodAndBeverageMember 2020-01-01 2020-03-31 0001617406 pk:AncillaryHotelMember 2021-01-01 2021-03-31 0001617406 pk:AncillaryHotelMember 2020-01-01 2020-03-31 0001617406 us-gaap:HotelOtherMember 2021-01-01 2021-03-31 0001617406 us-gaap:HotelOtherMember 2020-01-01 2020-03-31 0001617406 2020-01-01 2020-03-31 0001617406 pk:OtherDepartmentalAndSupportMember 2021-01-01 2021-03-31 0001617406 pk:OtherDepartmentalAndSupportMember 2020-01-01 2020-03-31 0001617406 2019-12-31 0001617406 2020-03-31 0001617406 us-gaap:CommonStockMember 2020-12-31 0001617406 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001617406 us-gaap:RetainedEarningsMember 2020-12-31 0001617406 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001617406 us-gaap:NoncontrollingInterestMember 2020-12-31 0001617406 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001617406 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001617406 us-gaap:NoncontrollingInterestMember 2021-01-01 2021-03-31 0001617406 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001617406 us-gaap:CommonStockMember 2021-03-31 0001617406 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001617406 us-gaap:RetainedEarningsMember 2021-03-31 0001617406 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001617406 us-gaap:NoncontrollingInterestMember 2021-03-31 0001617406 us-gaap:CommonStockMember 2019-12-31 0001617406 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001617406 us-gaap:RetainedEarningsMember 2019-12-31 0001617406 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001617406 us-gaap:NoncontrollingInterestMember 2019-12-31 0001617406 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001617406 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001617406 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0001617406 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001617406 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001617406 us-gaap:CommonStockMember 2020-03-31 0001617406 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001617406 us-gaap:RetainedEarningsMember 2020-03-31 0001617406 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001617406 us-gaap:NoncontrollingInterestMember 2020-03-31 0001617406 pk:ChesapeakeLodgingTrustMember 2019-05-05 xbrli:pure 0001617406 pk:ParkIntermediateHoldingsLimitedLiabilityCompanyMember 2017-01-03 0001617406 pk:CovidNineteenMember 2020-12-31 0001617406 pk:CovidNineteenMember srt:ScenarioForecastMember 2021-01-01 2021-12-31 pk:BondOffering 0001617406 pk:CovidNineteenMember 2020-01-01 2020-12-31 pk:Hotel 0001617406 pk:CovidNineteenMember 2021-03-31 0001617406 pk:HiltonSaoPauloMorumbiMember 2020-01-01 2020-03-31 pk:Entity 0001617406 pk:HiltonSanDiegoBayfrontMember 2021-03-31 0001617406 pk:HiltonSanDiegoBayfrontMember 2020-12-31 0001617406 pk:AllOthersSixHotelsMember 2021-03-31 0001617406 pk:AllOthersSixHotelsMember 2020-12-31 0001617406 pk:AllOthersSixHotelsMember srt:MinimumMember 2021-03-31 0001617406 pk:AllOthersSixHotelsMember srt:MaximumMember 2021-03-31 0001617406 pk:SanFranciscoCommercialMortgagedBackedSecuritiesLoanMember 2021-03-31 0001617406 pk:SanFranciscoCommercialMortgagedBackedSecuritiesLoanMember 2020-12-31 0001617406 pk:HiltonHawaiianVillageCommercialMortgagedBackedSecuritiesLoanMember 2021-03-31 0001617406 pk:HiltonHawaiianVillageCommercialMortgagedBackedSecuritiesLoanMember 2020-12-31 0001617406 us-gaap:MortgagesMember 2021-03-31 0001617406 us-gaap:MortgagesMember 2020-12-31 0001617406 pk:TwoThousandNineteenTermFacilityMember 2021-03-31 0001617406 pk:TwoThousandNineteenTermFacilityMember 2020-12-31 0001617406 us-gaap:RevolvingCreditFacilityMember 2021-03-31 0001617406 us-gaap:RevolvingCreditFacilityMember 2020-12-31 0001617406 pk:TwoThousandAndTwentyFiveSeniorSecuredNotesMember 2021-03-31 0001617406 pk:TwoThousandAndTwentyFiveSeniorSecuredNotesMember 2020-12-31 0001617406 pk:TwoThousandAndTwentyEightSeniorSecuredNotesMember 2021-03-31 0001617406 pk:TwoThousandAndTwentyEightSeniorSecuredNotesMember 2020-12-31 0001617406 pk:TwoThousandNineteenTermFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-01-01 2021-03-31 0001617406 us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-01-01 2021-03-31 0001617406 us-gaap:CapitalLeaseObligationsMember 2021-03-31 0001617406 pk:SanFranciscoCommercialMortgagedBackedSecuritiesLoanMember 2021-01-01 2021-03-31 0001617406 pk:HiltonHawaiianVillageCommercialMortgagedBackedSecuritiesLoanMember 2021-01-01 2021-03-31 0001617406 us-gaap:MortgagesMember 2021-01-01 2021-03-31 0001617406 pk:TwoThousandNineteenTermFacilityMember 2021-01-01 2021-03-31 0001617406 us-gaap:RevolvingCreditFacilityMember 2021-01-01 2021-03-31 0001617406 pk:TwoThousandAndTwentyFiveSeniorSecuredNotesMember 2021-01-01 2021-03-31 0001617406 pk:TwoThousandAndTwentyEightSeniorSecuredNotesMember 2021-01-01 2021-03-31 0001617406 us-gaap:CapitalLeaseObligationsMember 2021-01-01 2021-03-31 0001617406 pk:SanFranciscoCommercialMortgagedBackedSecuritiesLoanMember 2016-10-31 0001617406 pk:HiltonHawaiianVillageCommercialMortgagedBackedSecuritiesLoanMember 2016-10-31 0001617406 pk:HiltonDenverCityCenterMortgageLoanMember 2021-01-01 2021-03-31 0001617406 pk:DoubletreeSpokaneJVMortgageLoanMember 2020-12-31 0001617406 pk:DoubletreeSpokaneJVMortgageLoanMember 2020-01-01 2020-12-31 0001617406 pk:DoubletreeSpokaneJVMortgageLoanMember us-gaap:SubsequentEventMember 2021-04-01 2021-04-01 0001617406 pk:WChicagoCityCentreMember 2021-01-01 2021-03-31 0001617406 2020-05-01 2020-05-31 0001617406 us-gaap:RevolvingCreditFacilityMember pk:DebtAmendmentMember 2020-09-30 0001617406 us-gaap:RevolvingCreditFacilityMember pk:DebtAmendmentMember 2020-09-01 2020-09-30 0001617406 pk:TwoThousandAndTwentyFiveSeniorSecuredNotesMember pk:PKDomesticAndPKFinanceCoIssuerIncMember 2020-05-31 0001617406 pk:TwoThousandAndTwentyFiveSeniorSecuredNotesMember pk:PKDomesticAndPKFinanceCoIssuerIncMember 2020-09-30 0001617406 pk:TwoThousandAndTwentyEightSeniorSecuredNotesMember pk:PKDomesticAndPKFinanceCoIssuerIncMember 2020-05-31 0001617406 pk:TwoThousandAndTwentyEightSeniorSecuredNotesMember pk:PKDomesticAndPKFinanceCoIssuerIncMember 2020-09-30 0001617406 pk:CommercialMortgagedBackedSecuritiesLoansAndMortgageLoansMember 2021-03-31 0001617406 pk:CommercialMortgagedBackedSecuritiesLoansAndMortgageLoansMember 2020-12-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:SanFranciscoCommercialMortgagedBackedSecuritiesLoanMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:SanFranciscoCommercialMortgagedBackedSecuritiesLoanMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:SanFranciscoCommercialMortgagedBackedSecuritiesLoanMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:SanFranciscoCommercialMortgagedBackedSecuritiesLoanMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:HiltonHawaiianVillageCommercialMortgagedBackedSecuritiesLoanMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:HiltonHawaiianVillageCommercialMortgagedBackedSecuritiesLoanMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:HiltonHawaiianVillageCommercialMortgagedBackedSecuritiesLoanMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:HiltonHawaiianVillageCommercialMortgagedBackedSecuritiesLoanMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:TwoThousandNineteenTermFacilityMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:TwoThousandNineteenTermFacilityMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:TwoThousandNineteenTermFacilityMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:TwoThousandNineteenTermFacilityMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:RevolverMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:RevolverMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:RevolverMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:RevolverMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:TwoThousandTwentyFiveSeniorSecuredNotesMember us-gaap:FairValueInputsLevel1Member 2021-03-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:TwoThousandTwentyFiveSeniorSecuredNotesMember us-gaap:FairValueInputsLevel1Member 2021-03-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:TwoThousandTwentyFiveSeniorSecuredNotesMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:TwoThousandTwentyFiveSeniorSecuredNotesMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:TwoThousandTwentyEightSeniorSecuredNotesMember us-gaap:FairValueInputsLevel1Member 2021-03-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:TwoThousandTwentyEightSeniorSecuredNotesMember us-gaap:FairValueInputsLevel1Member 2021-03-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember pk:TwoThousandTwentyEightSeniorSecuredNotesMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember pk:TwoThousandTwentyEightSeniorSecuredNotesMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:MortgagesMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgagesMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001617406 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:MortgagesMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001617406 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgagesMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001617406 us-gaap:DomesticCountryMember pk:RealEstateInvestmentTrustMember 2021-01-01 2021-03-31 0001617406 us-gaap:DomesticCountryMember pk:RealEstateInvestmentTrustMember 2020-01-01 2020-03-31 0001617406 2019-01-01 2019-12-31 0001617406 2020-01-01 2020-12-31 0001617406 us-gaap:EmployeeStockOptionMember srt:MaximumMember 2021-03-31 0001617406 us-gaap:EmployeeStockOptionMember 2021-03-31 0001617406 pk:NonEmployeeStockOptionMember srt:MaximumMember 2021-03-31 0001617406 pk:NonEmployeeStockOptionMember 2021-03-31 0001617406 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-03-31 0001617406 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-03-31 0001617406 us-gaap:RestrictedStockMember 2020-12-31 0001617406 us-gaap:RestrictedStockMember 2021-01-01 2021-03-31 0001617406 us-gaap:RestrictedStockMember 2021-03-31 0001617406 us-gaap:PerformanceSharesMember 2021-01-01 2021-03-31 0001617406 us-gaap:PerformanceSharesMember 2021-03-31 0001617406 pk:AnnualGrantsMember srt:MinimumMember us-gaap:PerformanceSharesMember 2021-01-01 2021-03-31 0001617406 pk:SpecialAwardsMember srt:MaximumMember us-gaap:PerformanceSharesMember 2021-01-01 2021-03-31 pk:Tradingday 0001617406 pk:SpecialAwardsMember pk:EightSharePriceTargetsMember us-gaap:PerformanceSharesMember 2020-11-01 2020-11-30 0001617406 pk:SpecialAwardsMember us-gaap:PerformanceSharesMember srt:MinimumMember 2020-11-01 2020-11-30 0001617406 pk:SpecialAwardsMember us-gaap:PerformanceSharesMember srt:MaximumMember 2020-11-01 2020-11-30 pk:Target 0001617406 pk:SpecialAwardsMember pk:EightSharePriceTargetsMember us-gaap:PerformanceSharesMember 2021-01-01 2021-03-31 0001617406 us-gaap:PerformanceSharesMember 2020-12-31 pk:Segment 0001617406 pk:ConsolidatedHotelsSegmentMember 2021-01-01 2021-03-31 0001617406 pk:ConsolidatedHotelsSegmentMember 2020-01-01 2020-03-31 0001617406 us-gaap:AllOtherSegmentsMember 2021-01-01 2021-03-31 0001617406 us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001617406 pk:ConsolidatedHotelsSegmentMember 2021-03-31 0001617406 pk:ConsolidatedHotelsSegmentMember 2020-12-31 0001617406 us-gaap:AllOtherSegmentsMember 2021-03-31 0001617406 us-gaap:AllOtherSegmentsMember 2020-12-31 0001617406 pk:SpinOffAgreementsMember pk:HiltonSydneyMember 2021-03-31 0001617406 pk:HiltonSydneyMember 2021-02-01 2021-02-28 0001617406 us-gaap:SubsequentEventMember pk:WNewOrleansMember 2021-04-01 2021-04-30 0001617406 pk:AmendmentAndRestatementOfTwoThousandAndSeventeenDirectorPlanMember srt:MaximumMember us-gaap:SubsequentEventMember 2021-04-29 0001617406 pk:AmendmentAndRestatementOfTwoThousandAndSeventeenDirectorPlanMember srt:MaximumMember us-gaap:SubsequentEventMember 2021-04-30

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to           

Commission File Number 001-37795

 

Park Hotels & Resorts Inc.

(Exact name of Registrant as specified in its Charter)

 

 Delaware

 

36-2058176

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S Employer

Identification No.)

 

1775 Tysons Boulevard., 7th Floor, Tysons, VA

 

22102

(Address of principal executive offices)

 

(Zip Code)

(Registrant’s telephone number, including area code): (571) 302-5757

 

 

Securities registered pursuant to Section 12(b) of the Act.

 

Title of each class

Trading Symbol

Name of exchange on which registered

Common Stock, $0.01 par value per share

PK

New York Stock Exchange

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.      

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 

The number of shares of common stock outstanding on April 30, 2021 was 236,490,512.

 

 

 

 


 

 

Table of Contents

 

PART I. FINANCIAL INFORMATION

 

Page

 

 

 

 

Item 1.

Financial Statements (unaudited)

 

2

 

Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020

 

2

 

Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2021 and 2020

 

3

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020

 

4

 

Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2021 and 2020  

 

5

 

Notes to Condensed Consolidated Financial Statements

 

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

15

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

25

Item 4.

Controls and Procedures

 

25

 

 

 

 

PART II. OTHER INFORMATION

 

 

Item 1.

Legal Proceedings

 

26

Item 1A.

Risk Factors

 

26

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

26

Item 3.

Defaults Upon Senior Securities

 

26

Item 4.

Mine Safety Disclosures

 

26

Item 5.

Other Information

 

26

Item 6.

Exhibits

 

27

 

Signatures

 

28

 

 

 

1


 

 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

PARK HOTELS & RESORTS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)

 

 

 

March 31, 2021

 

 

December 31, 2020

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Property and equipment, net

 

$

9,125

 

 

 

9,193

 

Investments in affiliates

 

 

14

 

 

 

14

 

Intangibles, net

 

 

44

 

 

 

45

 

Cash and cash equivalents

 

 

868

 

 

 

951

 

Restricted cash

 

 

32

 

 

 

30

 

Accounts receivable, net of allowance for doubtful accounts of $2 and $3

 

 

38

 

 

 

26

 

Prepaid expenses

 

 

35

 

 

 

39

 

Other assets

 

 

53

 

 

 

60

 

Operating lease right-of-use assets

 

 

225

 

 

 

229

 

TOTAL ASSETS (variable interest entities - $228 and $229)

 

$

10,434

 

 

$

10,587

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Debt

 

$

5,121

 

 

 

5,121

 

Accounts payable and accrued expenses

 

 

196

 

 

 

147

 

Due to hotel managers

 

 

80

 

 

 

88

 

Deferred income tax liabilities

 

 

10

 

 

 

10

 

Other liabilities

 

 

134

 

 

 

134

 

Operating lease liabilities

 

 

240

 

 

 

244

 

Total liabilities (variable interest entities - $215 and $213)

 

 

5,781

 

 

 

5,744

 

Commitments and contingencies - refer to Note 13

 

 

 

 

 

 

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share, 6,000,000,000 shares

   authorized, 236,832,708 shares issued and 236,435,153 shares outstanding

   as of March 31, 2021 and 236,217,344 shares issued and 235,915,749

   shares outstanding as of December 31, 2020

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

4,520

 

 

 

4,519

 

Retained earnings

 

 

185

 

 

 

376

 

Accumulated other comprehensive loss

 

 

(3

)

 

 

(4

)

Total stockholders' equity

 

 

4,704

 

 

 

4,893

 

Noncontrolling interests

 

 

(51

)

 

 

(50

)

Total equity

 

 

4,653

 

 

 

4,843

 

TOTAL LIABILITIES AND EQUITY

 

$

10,434

 

 

$

10,587

 

 

Refer to the notes to the unaudited condensed consolidated financial statements.

 

 

2


 

 

PARK HOTELS & RESORTS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited, in millions, except per share data)

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Revenues

 

 

 

 

 

 

 

 

Rooms

 

$

106

 

 

$

362

 

Food and beverage

 

 

22

 

 

 

161

 

Ancillary hotel

 

 

29

 

 

 

57

 

Other

 

 

8

 

 

 

19

 

Total revenues

 

 

165

 

 

 

599

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Rooms

 

 

35

 

 

 

112

 

Food and beverage

 

 

21

 

 

 

123

 

Other departmental and support

 

 

78

 

 

 

172

 

Other property-level

 

 

48

 

 

 

60

 

Management fees

 

 

7

 

 

 

25

 

Impairment loss and casualty gain, net

 

 

 

 

 

694

 

Depreciation and amortization

 

 

74

 

 

 

75

 

Corporate general and administrative

 

 

18

 

 

 

16

 

Other

 

 

7

 

 

 

21

 

Total expenses

 

 

288

 

 

 

1,298

 

 

 

 

 

 

 

 

 

 

Gain on sales of assets, net

 

 

 

 

 

62

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(123

)

 

 

(637

)

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

1

 

Interest expense

 

 

(63

)

 

 

(40

)

Equity in losses from investments in affiliates

 

 

(4

)

 

 

(1

)

Other loss, net

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(190

)

 

 

(679

)

Income tax expense

 

 

(1

)

 

 

(10

)

Net loss

 

 

(191

)

 

 

(689

)

Net loss attributable to noncontrolling interests

 

 

1

 

 

 

1

 

Net loss attributable to stockholders

 

$

(190

)

 

$

(688

)

 

 

 

 

 

 

 

 

 

Other comprehensive loss, net of tax expense:

 

 

 

 

 

 

 

 

Currency translation adjustment, net of tax expense of $0

 

 

 

 

 

4

 

Change in fair value of interest rate swap, net of tax expense

    of $0

 

 

1

 

 

 

(6

)

Total other comprehensive income (loss)

 

 

1

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

 

(190

)

 

 

(691

)

Comprehensive loss attributable to noncontrolling

   interests

 

 

1

 

 

 

1

 

Comprehensive loss attributable to stockholders

 

$

(189

)

 

$

(690

)

 

 

 

 

 

 

 

 

 

Loss per share:

 

 

 

 

 

 

 

 

Loss per share - Basic

 

$

(0.81

)

 

$

(2.89

)

Loss per share - Diluted

 

$

(0.81

)

 

$

(2.89

)

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - Basic

 

 

235

 

 

 

238

 

Weighted average shares outstanding - Diluted

 

 

236

 

 

 

238

 

 

Refer to the notes to the unaudited condensed consolidated financial statements.

3


 

PARK HOTELS & RESORTS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2021

 

 

2020

 

Operating Activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(191

)

 

$

(689

)

Adjustments to reconcile net loss to net cash used in operating

   activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

74

 

 

 

75

 

Gain on sales of assets, net

 

 

 

 

 

(62

)

Impairment loss and casualty gain, net

 

 

 

 

 

694

 

Equity in losses from investments in affiliates

 

 

4

 

 

 

1

 

Other loss, net

 

 

 

 

 

2

 

Share-based compensation expense

 

 

6

 

 

 

2

 

Amortization of deferred financing costs

 

 

2

 

 

 

1

 

Distributions from unconsolidated affiliates

 

 

 

 

 

4

 

Changes in operating assets and liabilities

 

 

34

 

 

 

(41

)

Net cash used in operating activities

 

 

(71

)

 

 

(13

)

Investing Activities:

 

 

 

 

 

 

 

 

Capital expenditures for property and equipment

 

 

(5

)

 

 

(26

)

Proceeds from asset dispositions, net

 

 

 

 

 

205

 

Contributions to unconsolidated affiliates

 

 

(2

)

 

 

 

Insurance proceeds for property damage claims

 

 

4

 

 

 

1

 

Net cash (used in) provided by investing activities

 

 

(3

)

 

 

180

 

Financing Activities:

 

 

 

 

 

 

 

 

Borrowings from credit facilities

 

 

 

 

 

1,000

 

Repayments of mortgage debt

 

 

(1

)

 

 

(2

)

Dividends paid

 

 

 

 

 

(136

)

Distributions to noncontrolling interests

 

 

 

 

 

(1

)

Tax withholdings on share-based compensation

 

 

(6

)

 

 

(6

)

Repurchase of common stock

 

 

 

 

 

(66

)

Net cash (used in) provided by financing activities

 

 

(7

)

 

 

789

 

Net (decrease) increase in cash and cash equivalents and restricted cash

 

 

(81

)

 

 

956

 

Cash and cash equivalents and restricted cash, beginning of period

 

 

981

 

 

 

386

 

Cash and cash equivalents and restricted cash, end of period

 

$

900

 

 

$

1,342

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosures

 

 

 

 

 

 

 

 

Non-cash financing activities:

 

 

 

 

 

 

 

 

Dividends declared but unpaid

 

$

 

 

$

106

 

 

 

Refer to the notes to the unaudited condensed consolidated financial statements.

 

 

4


 

 

PARK HOTELS & RESORTS INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Other

 

 

Non-

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

controlling

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Interests

 

 

Total

 

Balance as of December 31, 2020

 

 

236

 

 

$

2

 

 

$

4,519

 

 

$

376

 

 

$

(4

)

 

$

(50

)

 

$

4,843

 

Share-based compensation, net

 

 

 

 

 

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(190

)

 

 

 

 

 

(1

)

 

 

(191

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

1

 

Balance as of March 31, 2021

 

 

236

 

 

$

2

 

 

$

4,520

 

 

$

185

 

 

$

(3

)

 

$

(51

)

 

$

4,653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Other

 

 

Non-

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

controlling

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Interests

 

 

Total

 

Balance as of December 31, 2019

 

 

239

 

 

$

2

 

 

$

4,575

 

 

$

1,922

 

 

$

(3

)

 

$

(45

)

 

$

6,451

 

Share-based compensation, net

 

 

 

 

 

 

 

 

(5

)

 

 

1

 

 

 

 

 

 

 

 

 

(4

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(688

)

 

 

 

 

 

(1

)

 

 

(689

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

(2

)

Dividends and dividend equivalents(1)

 

 

 

 

 

 

 

 

 

 

 

(106

)

 

 

 

 

 

 

 

 

(106

)

Distributions to noncontrolling

    interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

Repurchase of common stock

 

 

(4

)

 

 

 

 

 

(66

)

 

 

 

 

 

 

 

 

 

 

 

(66

)

Balance as of March 31, 2020

 

 

235

 

 

$

2

 

 

$

4,504

 

 

$

1,129

 

 

$

(5

)

 

$

(47

)

 

$

5,583

 

 

(1)

Dividends declared per common share were $0.45 for the three months ended March 31, 2020.

 

 

Refer to the notes to the unaudited condensed consolidated financial statements.

 

5


 

 

PARK HOTELS & RESORTS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

Note 1: Organization and Recent Events

Organization

Park Hotels & Resorts Inc. (“we,” “us,” “our” or the “Company”) is a Delaware corporation that owns a portfolio of premium-branded hotels and resorts primarily located in prime city center and resort locations. On January 3, 2017, Hilton Worldwide Holdings Inc. (“Hilton”) completed the spin-off of a portfolio of hotels and resorts that established Park Hotels & Resorts Inc. as an independent, publicly traded company.

On May 5, 2019, the Company, PK Domestic Property LLC, an indirect subsidiary of the Company (“PK Domestic”), and PK Domestic Sub LLC, a wholly-owned subsidiary of PK Domestic (“Merger Sub”) entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with Chesapeake Lodging Trust (“Chesapeake”). On September 18, 2019, pursuant to the terms and subject to the conditions set forth in the Merger Agreement, Chesapeake merged with and into Merger Sub (the “Merger”) and each of Chesapeake’s common shares of beneficial interest, $0.01 par value per share was converted into $11.00 in cash and 0.628 of a share of our common stock. No fractional shares of our common stock were issued in the Merger.  The value of any fractional interests to which a Chesapeake shareholder would otherwise have been entitled was paid in cash.

We are a real estate investment trust (“REIT”) for United States (“U.S.”) federal income tax purposes. We have been organized and operated, and we expect to continue to be organized and operate, in a manner to qualify as a REIT. From the date of our spin-off from Hilton, Park Intermediate Holdings LLC (our “Operating Company”), directly or indirectly, has held all our assets and has conducted all of our operations. We own 100% of the interests in our Operating Company.

Recent Events

The novel strain of coronavirus and the disease it causes (“COVID-19”) have had and continue to have a significant effect on the hospitality industry and our business. The effects of COVID-19, including government restrictions such as mandated closings of non-essential businesses and travel restrictions, have severely reduced overall lodging demand.  Since the beginning of March 2020, we have experienced a significant decline in occupancy and Revenue per Available Room (“RevPAR”) associated with COVID-19 throughout our portfolio, which resulted in a decline in our operating cash flow. However, the distribution of COVID-19 vaccines that began in December 2020 and the reports of their effectiveness have resulted in an improvement in traveler and general consumer sentiment.

We and our hotel managers have taken various actions to mitigate the effects of COVID-19, including temporarily suspending operations at certain of our hotels in March 2020, limiting capacity at our open hotels, deferring approximately $150 million of capital expenditures planned for 2020, reducing budgeted capital expenditures for maintenance projects to approximately $40 million for 2021, suspending our dividend after the first quarter of 2020, and, as a precautionary measure to increase liquidity and preserve financial flexibility, drawing on our revolving credit facility (“Revolver”) and completing two corporate bond offerings totaling $1.4 billion in 2020. We have since commenced a phased reopening of all except seven of our hotels as restrictions are removed and demand returns. The timing of fully reopening these hotels and beginning to reopen our hotels that remain suspended will depend primarily on government restrictions imposed or re-imposed, recommendations of health officials and market demand.

We are committed to using our liquidity to support our hotels’ operations during the COVID-19 pandemic and subsequent recovery, while being focused on continuing to maintain and enhance our stockholders’ value.

 

Note 2: Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows, in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All significant intercompany transactions and balances within the financial statements have been eliminated.

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021

6


 

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results are not necessarily indicative of full year performance.

 

Reclassifications

Certain line items on the condensed consolidated statements of comprehensive loss and the condensed consolidated statements of cash flows for the three months ended March 31, 2020 have been reclassified to conform to the current period presentation.

Summary of Significant Accounting Policies

 

          Our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021, contains a discussion of the significant accounting policies.  There have been no significant changes to our significant accounting policies since December 31, 2020.

 

Note 3: Dispositions

During the three months ended March 31, 2020, we sold the Embassy Suites Washington DC Georgetown and our interests in the entity that owns the Hilton São Paulo Morumbi for total gross proceeds of $208 million and recognized a gain, net of selling costs, of $63 million on these hotels, which is included in gain on sales of assets, net in our condensed consolidated statements of comprehensive loss. Additionally, the net gain includes the reclassification of a currency translation adjustment of $7 million from accumulated other comprehensive loss into earnings concurrent with the sale of the Hilton São Paulo Morumbi.

Note 4: Property and Equipment

Property and equipment were:

 

 

 

March 31, 2021

 

 

December 31, 2020

 

 

 

(in millions)

 

Land

 

$

3,429

 

 

$

3,429

 

Buildings and leasehold improvements

 

 

6,960

 

 

 

6,951

 

Furniture and equipment

 

 

1,046

 

 

 

1,042

 

Construction-in-progress

 

 

44