second quarter 2018 supplemental data - park hotels & resorts/media/files/p/... · waldorf...

Waldorf Astoria Orlando Parc 55 San Francisco, a Hilton Hotel Hilton Hawaiian Village Waikiki Beach Resort

JUNE 30, 2018

Second Quarter 2018Supplemental Data

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About Park and Safe Harbor Disclosure

About Park Hotels & Resorts Inc.Park (NYSE: PK) is a leading lodging real estate company with a diverse portfolio of market-leading hotels and resorts with significant underlying realestate value. Park’s portfolio consists of 54 premium-branded hotels and resorts with over 32,000 rooms, a majority of which are located in primeU.S. markets with high barriers to entry. Visit www.pkhotelsandresorts.com for more information.

Forward-Looking StatementsThis presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements related to Park’scurrent expectations regarding the performance of its business, financial results, liquidity and capital resources, the effects of competition and theeffects of future legislation or regulations, the expected completion of anticipated acquisitions and dispositions, the declaration and payment of futuredividends 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” or the negative version of these words or othercomparable words. Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from thoseexpressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements in this presentation and Parkurges investors to carefully review the disclosures Park makes concerning risk and uncertainties in Item 1A: “Risk Factors” in Park’s Annual Reporton Form 10-K for the year ended December 31, 2017, as such factors may be updated from time to time in Park’s periodic 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 publiclyany forward-looking statements, whether as a result of new information, future events or otherwise.

Supplemental Financial InformationPark refers to certain non-generally accepted accounting principles (“GAAP”) financial measures in this presentation, including Funds fromOperations (“FFO”) calculated in accordance with the guidelines of the National Association of Real Estate Investment Trusts (“NAREIT”), AdjustedFFO, FFO per share, Adjusted FFO per share, Earnings before interest expense, taxes and depreciation and amortization (“EBITDA”), AdjustedEBITDA, Hotel Adjusted EBITDA, Hotel Adjusted EBITDA margin, Net debt and Net debt to Adjusted EBITDA ratio. These non-GAAP financialmeasures should be considered along with, but not as alternatives to, net income (loss) as a measure of its operating performance. Please see theschedules included in this presentation including the “Definitions” section for additional information and reconciliations of such non-GAAP financialmeasures.

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1. Financial Statements

2. Non-GAAP Financial Measures

3. Guidance

4. Portfolio and Operating Metrics

5. Acquisitions and Dispositions

6. Debt Summary

7. Definitions

Table of Contents4

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32

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36

New York Hilton Midtown

Hilton Waikoloa Village

Waldorf Astoria Orlando

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Financial Statements

Casa Marina, a Waldorf Astoria Resort

Hilton Chicago

Parc 55 San Francisco – a Hilton Hotel

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Financial Statements

Condensed Consolidated Balance Sheets

(in millions, except share and per share data) December 31, 2017 December 31, 2016 ASSETS Property and equipment, net $8,311 $8,541 Assets held for sale, net 37 — Investments in affiliates 84 81 Goodwill 606 604 Intangibles, net 41 44 Cash and cash equivalents 364 337 Restricted cash 15 13 Accounts receivable, net 125 130 Prepaid expenses 48 58 Other assets 83 26 TOTAL ASSETS $9,714 $9,834 LIABILITIES AND EQUITY Liabilities Debt $2,961 $3,012 Accounts payable and accrued expenses 215 167 Due to hotel manager 141 91 Due to Hilton Grand Vacations 138 210 Deferred income tax liabilities 65 2,437 Other liabilities 232 94 Total liabilities 3,752 6,011 Stockholders' Equity "Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 214,873,778 shares issued and 214,845,244 shares outstanding as of December 31, 2017" 2 — Additional paid-in capital 3,825 — Retained earnings 2,229 — Accumulated other comprehensive loss (45) (67) Net Parent investment —3,939 Total stockholders' equity 6,011 3,872 Noncontrolling interests (49) (49) Total equity 5,962 3,823 TOTAL LIABILITIES AND EQUITY $9,714 $9,834

(unaudited, in millions, except share and per share data) March 31, 2018 December 31, 2017 ASSETS Property and equipment, net $8,051 $8,311 Assets held for sale, net — 37 Investments in affiliates 87 84 Goodwill 607 606 Intangibles, net 28 41 Cash and cash equivalents 172 364 Restricted cash 108 15 Accounts receivable, net 138 125 Prepaid expenses 54 48 Other assets 91 83 TOTAL ASSETS $9,336 $9,714 LIABILITIES AND EQUITY Liabilities Debt $2,946 $2,961 Accounts payable and accrued expenses 172 215 Due to hotel manager 108 141 Due to Hilton Grand Vacations 138 138 Deferred income tax liabilities 46 65 Other liabilities 211 232 Total liabilities 3,621 3,752 Stockholders' Equity "Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 201,168,293 shares issued and 201,095,915 shares outstanding as of March 31, 2018 and 214,873,778 shares issued and 214,845,244 shares outstanding as of December 31, 2017" 2 2 Additional paid-in capital 3,578 3,825 Retained earnings 2,193 2,229 Accumulated other comprehensive loss (8) (45)Total stockholders' equity 5,765 6,011 Noncontrolling interests (50) (49) Total equity 5,715 5,962 TOTAL LIABILITIES AND EQUITY $9,336 $9,714

(unaudited, in millions, except share and per share data)June 30, 2018 December 31, 2017

ASSETSProperty and equipment, net 7,999$ 8,311$ Assets held for sale, net — 37Investments in affiliates 56 84Goodwill 607 606Intangibles, net 27 41Cash and cash equivalents 421 364Restricted cash 17 15Accounts receivable, net 180 125Prepaid expenses 46 48Other assets 98 83

TOTAL ASSETS 9,451$ 9,714$ LIABILITIES AND EQUITY

LiabilitiesDebt 2,947$ 2,961$ Accounts payable and accrued expenses 181 215Due to hotel manager 107 141Due to Hilton Grand Vacations 138 138Deferred income tax liabilities 36 65Other liabilities 285 232

Total liabilities 3,694 3,752Stockholders' Equity

Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 201,253,015 shares issued and 201,178,717 shares outstanding as of June 30, 2018 and 214,873,778 shares issued and 214,845,244 shares outstanding as of December 31, 2017 2 2Additional paid-in capital 3,581 3,825Retained earnings 2,231 2,229Accumulated other comprehensive loss (8) (45)

Total stockholders' equity 5,806 6,011Noncontrolling interests (49) (49)

Total equity 5,757 5,962TOTAL LIABILITIES AND EQUITY 9,451$ 9,714$

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Financial Statements (cont’d)

Three Months Ended Twelve Months Ended (unaudited, in millions, except per share data) December 31, December 31, 2017 2016 2017 2016 Revenues Rooms $433 $434 $1,794 $1,795 Food and beverage 187 183 739 719 Ancillary hotel 49 47 194 190 Other 17 6 64 23 Total revenues 686 670 2,791 2,727 Operating expenses Rooms 115 114 466 464 Food and beverage 128 128 511 503 Other departmental and support 164 167 671 665 Other property-level 43 46 187 181 Management and franchise fees 34 18 141 91 Casualty and impairment loss, net 26 — 26 15 Depreciation and amortization 71 80 288 300 Corporate general and administrative 23 26 68 71 Other 18 4 63 19 Total expenses 622 583 2,421 2,309 Gain on sale of assets, net 1 — 1 1 Operating income 65 87 371 419 Interest income — 1 2 2 Interest expense (31) (40) (124) (181) Equity in earnings from investments in affiliates 22 (13) 40 3 Gain (loss) on foreign currency transactions — 3 (4) 3 Other gain (loss), net 3 (18) — (25) Income before income taxes 59 20 285 221 Income tax benefit (expense) 2 (3) 2,346 (82) Net income 61 17 2,631 139 Net income attributable to noncontrolling interests (1) — (6) (6) Net income attributable to stockholders $60 $17 $2,625 $133 Earnings per share: Earnings per share - Basic $0.28 $0.09 $12.38 $0.67 Earnings per share - Diluted $0.28 $0.09 $12.21 $0.67 Weighted average shares outstanding - Basic 214 198 211 198 Weighted average shares outstanding - Diluted 215 198 214 198

Condensed Consolidated Statements of Operations

(unaudited, in millions, except per share data)2018 2017 2018 2017

RevenuesRooms 451$ 469$ 869$ 901$ Food and beverage 205 200 388 392Ancillary hotel 58 48 108 95Other 17 16 34 29

Total revenues 731 733 1,399 1,417

Operating expensesRooms 112 118 224 231Food and beverage 131 132 257 263Other departmental and support 155 166 311 330Other property-level 50 51 103 102Management and franchise fees 39 39 72 73Depreciation and amortization 69 73 139 143Corporate general and administrative 15 16 31 30Other 18 15 35 28

Total expenses 589 610 1,172 1,200

Gain on sales of assets, net 7 — 96 —

Operating income 149 123 323 217

Interest income 1 1 2 1Interest expense (31) (31) (62) (61)Equity in earnings from investments in affiliates 8 8 12 12Loss on foreign currency transactions (4) (4) (3) (3)Other gain (loss), net 108 (1) 108 (1)

Income before income taxes 231 96 380 165Income tax (expense) benefit (13) 19 (13) 2,300

Net income 218 115 367 2,465Net income attributable to noncontrolling interests (2) (3) (1) (3)Net income attributable to stockholders 216$ 112$ 366$ 2,462$

Earnings per share:Earnings per share - Basic 1.07$ 0.52$ 1.77$ 11.79$ Earnings per share - Diluted 1.07$ 0.52$ 1.77$ 11.48$ Weighted average shares outstanding - Basic 200 214 205 208Weighted average shares outstanding - Diluted 201 215 206 214 Dividends declared per common share 0.88$ 0.43$ 1.31$ 0.86$

June 30, June 30,Three Months Ended Six Months Ended

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Non-GAAP Financial Measures

Juniper Hotel Cupertino, Curio Collection

Hilton Boston Logan Airport

The Reach, a Waldorf Astoria Resort

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Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA

8 | Non-GAAP Financial Measures EBITDA and Adjusted EBITDA (unaudited, in millions) 2018 2017 Net income $ 149 $ 2,350 Depreciation and amortization expense 70 70 Interest income (1) — Interest expense 31 30 Income tax benefit — (2,281) Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates 7 5 EBITDA 256 174 Gain on sales of assets, net (89) — Gain on foreign currency transactions (1) (1) Transition expense 2 1 Share-based compensation expense 4 3 Other items 2 — Adjusted EBITDA $ 174 $ 177 March 31, Three Months Ended

(1) Included in other gain (loss), net.

(unaudited, in millions)

2018 2017 2018 2017Net income 218$ 115$ 367$ 2,465$

Depreciation and amortization expense 69 73 139 143Interest income (1) (1) (2) (1)Interest expense 31 31 62 61Income tax expense (benefit) 13 (19) 13 (2,300)Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates 5 7 12 12

EBITDA 335 206 591 380Gain on sales of assets, net (7) — (96) —Gain on sale of investments in affiliates(1) (108) — (108) —Loss on foreign currency transactions 4 4 3 3Transition expense — 1 2 2Severance expense 1 — 1 —Share-based compensation expense 4 4 8 7Other items (1) 2 1 2

Adjusted EBITDA 228$ 217$ 402$ 394$


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Non-GAAP Financial Measures (cont’d)

Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin

9 | Non-GAAP Financial Measures (cont’d) Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin (unaudited, dollars in millions) 2018 2017 Adjusted EBITDA $ 174 $ 177 Less: Adjusted EBITDA from investments in affiliates 12 9 Less: All other(1) (12) (12) Hotel Adjusted EBITDA 174 180 Less: Adjusted EBITDA from non-comparable hotels 15 21 Comparable Hotel Adjusted EBITDA $ 159 $ 159 2018 2017 Total Revenues $ 668 $ 684 Less: Other revenue 17 13 Less: Revenues from non-comparable hotels(1) 61 83 Comparable Hotel Revenues $ 590 $ 588 (1) Includes revenues f rom Park's non-comparable hotels and rental revenues f rom of f ice space and antenna rent leases. 2018 2017 Comparable Hotel Revenues $ 590 $ 588 Comparable Hotel Adjusted EBITDA $ 159 $ 159 Comparable Hotel Adjusted EBITDA margin 26.9% 27.0% March 31, March 31, Three Months Ended Three Months Ended March 31, Three Months Ended (1) Includes other revenue and other expense, non-income taxes on REIT leases and corporate general and administrative expense.

(unaudited, dollars in millions)

2018 2017 2018 2017Adjusted EBITDA 228$ 217$ 402$ 394$

Less: Adjusted EBITDA from investments in affiliates 14 15 26 24Less: All other(1) (14) (11) (26) (23)

Hotel Adjusted EBITDA 228 213 402 393Less: Adjusted EBITDA from non-comparable hotels 13 20 28 41

Comparable Hotel Adjusted EBITDA 215$ 193$ 374$ 352$

2018 2017 2018 2017Total Revenues 731$ 733$ 1,399$ 1,417$

Less: Other revenue 17 16 34 29Less: Revenues from non-comparable hotels(1) 41 83 100 166

Comparable Hotel Revenues 673$ 634$ 1,265$ 1,222$

(1) Includes revenues from Park's non-comparable hotels and rental revenues from off ice space and antenna rent leases located at our hotels.

June 30, June 30,

Three Months Ended Six Months EndedJune 30, June 30,

Three Months Ended Six Months Ended

(1) Includes other revenue and other expense, non-income taxes on REIT leases included in other property-level expense and corporate general and administrative expense.

2018 2017 Change 2018 2017 ChangeComparable Hotel Revenues 673$ 634$ 6.2% 1,265$ 1,222$ 3.5%Comparable Hotel Adjusted EBITDA 215$ 193$ 11.4% 374$ 352$ 6.3%Comparable Hotel Adjusted EBITDA margin 31.9% 30.4% 150 bps 29.6% 28.8% 80 bps

Three Months EndedJune 30,

Six Months EndedJune 30,

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NAREIT FFO and Adjusted FFO

(1) Included in other gain (loss), net.(2) The three and six months ended June 30, 2017 includes the income tax benefits from the derecognition of deferred tax liabilities of $24 million and $2,312 million, respectively, associated

with Park’s intent to elect REIT status.(3) Per share amounts are calculated based on unrounded numbers.


10 | NAREIT FFO and Adjusted FFO (1) The three months ended March 31, 2017 includes an income tax benefit from the derecognition of deferred tax liabilities of $2,288 million associated with Park’s intent to elect REIT status. (2) Per share amounts are calculated based on unrounded numbers. Non-GAAP Financial Measures (cont’d) Adjusted FFO per share - Diluted(3)(4) $0.68 $0.72 $2.78 $2.97 Weighted average shares outstanding - Diluted 215 198 214 198 (unaudited, in millions, except per share data) 2018 2016 Net income attributable to stockholders $ 150 $ 2,350 Depreciation and amortization expense 70 70 Depreciation and amortization expense attributable to noncontrolling interests (1) (1) Gain on sales of assets, net (89) — Equity investment adjustments: Equity in earnings from investments in affiliates (4) (4) Pro rata FFO of investments in affiliates 10 8 NAREIT FFO attributable to stockholders 136 2,423 Gain on foreign currency transactions (1) (1) Transition expense 2 1 Share-based compensation expense 4 3 Other items(1) (4) (2,288) Adjusted FFO attributable to stockholders $ 137 $ 138 NAREIT FFO per share - Diluted(2) $ 0.64 $ 11.36 Adjusted FFO per share - Diluted(2) $ 0.65 $ 0.64 Weighted average shares outstanding - Diluted 212 213 March 31, Three Months Ended

(unaudited, in millions, except per share data)

2018 2017 2018 2017Net income attributable to stockholders 216$ 112$ 366$ 2,462$

Depreciation and amortization expense 69 73 139 143Depreciation and amortization expense attributable to noncontrolling interests (1) (1) (2) (2)Gain on sales of assets, net (7) — (96) —Gain on sale of investments in affiliates(1) (108) — (108) —Equity investment adjustments: —

Equity in earnings from investments in affiliates (8) (8) (12) (12)Pro rata FFO of investments in affiliates 10 10 20 18

NAREIT FFO attributable to stockholders 171 186 307 2,609Loss on foreign currency transactions 4 4 3 3Transition expense — 1 2 2Severance expense 1 — 1 —Share-based compensation expense 4 4 8 7Other items(2) 7 (22) 3 (2,310)

Adjusted FFO attributable to stockholders 187$ 173$ 324$ 311$

NAREIT FFO per share - Diluted(3) 0.85$ 0.87$ 1.49$ 12.19$ Adjusted FFO per share - Diluted(3) 0.93$ 0.81$ 1.57$ 1.45$ Weighted average shares outstanding - Diluted 201 215 206 214


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Historical Comparable Hotel Metrics



The financial information below is for the 44 comparable hotels owned as of June 30, 2018.

TTM (1) Full Year(unaudited) September 30, December 31, March 31, June 30, June 30, December 31,

2017 2017 2018 2018 2018 2017Comparable RevPAR $170.97 $164.61 $165.57 $185.58 $171.68 $169.33Comparable Occupancy 83.6% 79.1% 78.5% 86.1% 81.8% 81.6%Comparable ADR $204.47 $208.11 $210.83 $215.58 $209.77 $207.54

Comparable Hotel Revenues (in millions) $592 $604 $590 $673 $2,459 $2,415Comparable Hotel Adjusted EBITDA (in millions) $162 $166 $159 $215 $702 $681Comparable Hotel Adjusted EBITDA margin 27.4% 27.5% 26.9% 31.9% 28.5% 28.2%

Three months ended

(1) Trailing Twelve Months (“TTM”).

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Historical Comparable Hotel Adjusted EBITDA




(1) Included in other gain (loss), net.(2) Includes other revenue and other expense, non-income taxes on REIT leases included in other property-level expense and corporate general and administrative expense.

TTM Full Year(unaudited, dollars in millions) September 30, December 31, March 31, June 30, June 30, December 31,

2017 2017 2018 2018 2018 2017Net income 105$ 61$ 149$ 218$ 533$ 2,631$

Depreciation & Amortization 74 71 70 69 284 288Interest income (1) — (1) (1) (3) (2)Interest expense 32 31 31 31 125 124Income tax benefit (44) (2) — 13 (33) (2,346)Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates 6 6 7 5 24 24

EBITDA 172 167 256 335 930 719 Gain on sales of assets, net — (1) (89) (7) (97) (1)Gain on sale of investments in affiliates(1) — — — (108) (108) —Gain on foreign currency transactions 1 — (1) 4 4 4 Transition expenses 3 4 2 — 9 9 Transaction expenses — 2 — — 2 2Severance costs — 1 — 1 2 1Share-based compensation expense 3 4 4 4 15 14 Casualty and impairment loss 2 24 — — 26 26 Other items 2 (21) 2 (1) (18) (17)

Adjusted EBITDA 183 180 174 228 765 757 Less: EBITDA from hotels disposed of 11 9 2 — 22 33Less: Adjusted EBITDA from investments in affiliates 11 10 12 14 47 45Less: All other(2) (10) (12) (12) (14) (48) (46)

Hotel Adjusted EBITDA 171 173 172 228 744 725Less: Adjusted EBITDA from non-comparable hotels 9 7 13 13 42 44

Comparable Hotel Adjusted EBITDA 162$ 166$ 159$ 215$ 702$ 681$

Three Months Ended

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Historical Comparable Hotel Adjusted EBITDA Margin




(1) Includes revenues from Park's non-comparable hotels and rental revenues from office space and antenna rent leases located at our hotels.

TTM Full YearSeptember 30, December 31, March 31, June 30, June 30, December 31,

2017 2017 2018 2018 2018 2017Total Revenues 688$ 686$ 668$ 731$ 2,773$ 2,791$

Less: Other revenue 17 17 17 17 68 64Less: Revenue from hotels disposed of 35 34 17 — 86 131Less: Revenues from non-comparable hotels(1) 44 31 44 41 160 181

Comparable Hotel Revenues 592$ 604$ 590$ 673$ 2,459$ 2,415$

TTM Full YearSeptember 30, December 31, March 31, June 30, June 30, December 31,

2017 2017 2018 2018 2018 2017Comparable Hotel Revenues (in millions) 592$ 604$ 590$ 673$ 2,459$ 2,415$ Comparable Hotel Adjusted EBITDA (in millions) 162$ 166$ 159$ 215$ 702$ 681$ Comparable Hotel Adjusted EBITDA margin 27.4% 27.5% 26.9% 31.9% 28.5% 28.2%

Three Months Ended

Three Months Ended

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General and Administrative Expenses


11 | General and Administrative Expenses Non-GAAP Financial Measures (cont’d) (unaudited, in millions) (unaudited, in millions) 2018 2017 Corporate general and administrative expenses $ 16 $ 14 Less: Share-based compensation expense 4 3 Transition expense 2 1 G&A, excluding expenses not included in Adjusted EBITDA $ 10 $ 10 Three Months Ended March 31,


2018 2017 2018 2017Corporate general and administrative expenses 15$ 16$ 31$ 30$ Less:

Share-based compensation expense 4 4 8 7Transition expense — 1 2 2Severance expense 1 — 1 —

G&A, excluding expenses not included in Adjusted EBITDA 10$ 11$ 20$ 21$

Three Months Ended

June 30,

Six Months Ended

June 30,

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Net Debt and Net Debt to Pro-forma Adjusted EBITDA Ratio

12 | Non-GAAP Financial Measures (cont’d) Net Debt and Net Debt to Adjusted EBITDA Ratio (unaudited, in millions) (unaudited, in millions) Debt $ 2,946 $ 2,961 Add: unamortized deferred financing costs 11 12 Long-term debt, including current maturities and excluding unamortized deferred financing costs 2,957 2,973 Add: Park's share of unconsolidated affiliates debt, excluding unamortized deferred financing costs 236 236 Less: cash and cash equivalents (172) (364) Less: restricted cash (108) (15) Debt, net $ 2,913 $ 2,830 Adjusted EBITDA(1) $ 754 $ 757 Net debt to Adjusted EBITDA ratio 3.9x 3.7x March 31, 2018 December 31, 2017 (1) Adjusted EBITDA at March 31, 2018 is presented on a trailing twelve months (“TTM”) basis (see slide 13).

(1) Pro-forma adjusted EBITDA at June 30, 2018 is presented on a TTM basis (see slide 16). Pro-forma adjusted EBITDA excludes results from the 13 hotels disposed of in 2018.


Debt 2,947$ 2,961$ Add: unamortized deferred financing costs 11 12

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 234 236Less: cash and cash equivalents (421) (364)Less: restricted cash (17) (15)

Debt, net 2,754$ 2,830$ Pro-forma Adjusted EBITDA(1) 737$ 717$ Net debt to Pro-forma Adjusted EBITDA ratio 3.7x 3.9x

June 30, 2018 December 31, 2017

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Pro-forma TTM Adjusted EBITDA

13 | Non-GAAP Financial Measures (cont’d) TTM Adjusted EBITDA (unaudited, in millions) (1) TTM March 31, 2018 is calculated as year ended December 31, 2017 plus the three months ended March 31, 2018 less the three months ended March 31, 2017. Year Ended TTM(1) (unaudited, in millions) December 31, March 31, 2017 2018 2017 2018 Net income $ 2,631 $ 149 $ 2,350 430 Depreciation and amortization expense 288 70 70 288 Interest income (2) (1) — (3) Interest expense 124 31 30 125 Income tax benefit (2,346) — (2,281) (65) Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates 24 7 5 26 EBITDA 719 256 174 801 Gain on sales of assets, net (1) (89) — (90) Loss (gain) on foreign currency transactions 4 (1) (1) 4 Transition expense 9 2 1 10 Transaction expense 2 — — 2 Severance expense 1 — — 1 Share-based compensation expense 14 4 3 15 Casualty and impairment loss, net 26 — — 26 Other items (17) 2 — (15) Adjusted EBITDA $ 757 $ 174 $ 177 $ 754 Three Months Ended March 31,

(1) TTM June 30, 2018 is calculated as year ended December 31, 2017 plus the six months ended June 30, 2018 less the six months ended June 30, 2017.(2) Included in other gain (loss), net.

Year Ended TTM (1)

(unaudited, in millions) December 31, June 30,2017 2018 2017 2018

Net income 2,631$ 367$ 2,465$ 533$ Depreciation and amortization expense 288 139 143 284Interest income (2) (2) (1) (3)Interest expense 124 62 61 125Income tax expense (benefit) (2,346) 13 (2,300) (33)Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates 24 12 12 24

EBITDA 719 591 380 930Gain on sales of assets, net (1) (96) — (97)Gain on sale of investments in affiliates(2) — (108) — (108)Loss on foreign currency transactions 4 3 3 4Transition expense 9 2 2 9Transaction expense 2 — — 2Severance expense 1 1 — 2Share-based compensation expense 14 8 7 15Casualty and impairment loss, net 26 — — 26Other items (17) 1 2 (18)

Adjusted EBITDA 757 402 394 765Less: Adjusted EBITDA from hotels disposed of 33 2 13 22Less: Adjusted EBITDA from investments in affiliates disposed of 7 2 3 6

Pro-forma Adjusted EBITDA 717$ 398$ 378$ 737$

Six Months EndedJune 30,

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Guidance

Hilton San Francisco Union Square

Hilton Waikoloa Village

Hilton Chicago

18 |

Guidance

2018 Guidance and Assumptions

18| (unaudited, dollars in millions, except per share amounts)

"2018 Outlook as of May 3, 2018" "2018 Outlook as of August 1, 2018" Change at Midpoint Metric Low High Low High Comparable RevPAR Growth 0.5% 2.5% 2.0% 3.0% 1.0%

Net income $336 $369 $465 $493 $127 Net income attributable to stockholders $331 $364 $461 $486 $126 Diluted earnings per share $1.62 $1.78 $2.26 $2.38 $0.62

Adjusted EBITDA $710 $750 $730 $760 $15 Comparable Hotel Adjusted EBITDA margin change (70) bps 30 bps 0 bps 60 bps 50 bpsAdjusted FFO per share - Diluted $2.76 $2.92 $2.84 $2.96 $0.06

• General and administrative expenses are projected to be $44 million, excluding $16 million of non-cash share-based compensation expense, $4 million of transition expense and $1 million of severance expense;

• Fully diluted weighted average shares are expected to be 203.8 million;• Includes $8 million of Adjusted EBITDA from the Caribe Hilton representing a full year of operations, of which $5 million

was recognized during the second quarter, for which Park expects to be covered by business interruption insurance resulting from the hotel being closed for most of 2018 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.

Change at Midpoint

Metric High HighComparable RevPAR Growth 2.0% 3.0% 0.5% 2.5% 1.0%

Net income 465$ 493$ 336$ 369$ 127$ Net income attributable to stockholders 461$ 486$ 331$ 364$ 126$ Diluted earnings per share 2.26$ 2.38$ 1.62$ 1.78$ 0.62$

Adjusted EBITDA 730$ 760$ 710$ 750$ 15$ Comparable Hotel Adjusted EBITDA margin change 0 bps 60 bps (70) bps 30 bps 50 bpsAdjusted FFO per share - Diluted 2.84$ 2.96$ 2.76$ 2.92$ 0.06$

(unaudited, dollars in millions, except per share amounts)

Low Low

2018 Outlook as of August 1, 2018

2018 Outlook as of May 3, 2018

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Guidance (cont’d)

EBITDA and Adjusted EBITDA

19 Year Ending (unaudited, in millions) December 31, 2018

Low Case High CaseNet income $465 $493 Depreciation and amortization expense 285 285 Interest income (5) (5)Interest expense 126 127 Income tax expense 14 15 "Interest expense, income tax and depreciation and amortization included in equity

in earnings from investments in affiliates" 24 24 EBITDA 909 939 Transition expense 4 4 Severance expense 1 1 Share-based compensation expense 16 16 Gain on sale of assets, net (96) (96)Gain on sale of investments in affiliates (108) (108)Other items (1) 4 4 Adjusted EBITDA $730 $760

(unaudited, in millions)Low Case High Case

Net income 465$ 493$ Depreciation and amortization expense 285 285Interest income (5) (5)Interest expense 126 127Income tax expense 14 15Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates 24 24

EBITDA 909 939Transition expense 4 4Severance expense 1 1Share-based compensation expense 16 16Gain on sale of assets, net (96) (96)Gain on sale of investments in affiliates (108) (108)Other items (1) 4 4

Adjusted EBITDA 730$ 760$

December 31, 2018Year Ending

(1) Includes loss on foreign currency transactions of $3 million.

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Guidance (cont’d)

NAREIT FFO and Adjusted FFO

(1) Includes loss on foreign currency transactions of $3 million.(2) Per share amounts are calculated based on unrounded numbers.

20 Year Ending (unaudited, in millions except per share data) December 31, 2018

Low Case High CaseNet income attributable to stockholders $461 $486 Depreciation and amortization expense 285 285 "Depreciation and amortization expense attributable to

noncontrolling interests" (4) (4)Gain on sale of assets, net (96) (96)Gain on sale of investments in affiliates (108) (108)Equity investment adjustments: Equity in earnings from investments in affiliates (21) (21)Pro rata FFO of equity investments 36 36 NAREIT FFO attributable to stockholders 553 578 Transition expense 4 4 Severance expense 1 1 Share-based compensation expense 16 16 Other items (1) 4 4 Adjusted FFO attributable to stockholders $578 $603 Adjusted FFO per share - Diluted(2) $2.84 $2.96 Weighted average diluted shares outstanding 203.8 203.8

(unaudited, in millions except per share data)

Low Case High CaseNet income attributable to stockholders 461$ 486$

Depreciation and amortization expense 285 285Depreciation and amortization expense attributable to noncontrolling interests (4) (4)Gain on sale of assets, net (96) (96)Gain on sale of investments in affiliates (108) (108)Equity investment adjustments:

Equity in earnings from investments in affiliates (21) (21)Pro rata FFO of equity investments 36 36

NAREIT FFO attributable to stockholders 553 578Transition expense 4 4Severance expense 1 1Share-based compensation expense 16 16Other items (1) 4 4

Adjusted FFO attributable to stockholders 578$ 603$ Adjusted FFO per share - Diluted(2) 2.84$ 2.96$ Weighted average diluted shares outstanding 203.8 203.8

December 31, 2018Year Ending

21 |

Portfolio and Operating Metrics

Hilton New Orleans Riverside

Hilton New Orleans AirportHilton Santa Barbara Beachfront Resort

22 |

Portfolio and Operating Metrics

Hotel Portfolio as of June 30, 2018

(1) Single $725 million CMBS loan secured by Hilton San Francisco Union Square and Parc 55 Hotel San Francisco.(2) Classified as a non-comparable hotel.

Hotel NameRoomsMarketMeeting SpaceOwnershipEquity Ownership"Debt(in millions)"Consolidated Domestic Portfolio Hilton Hawaiian Village Waikiki Beach Resort2,860Hawaii150,000Fee Simple100%$1,275 New York Hilton Midtown1,878New York151,000Fee Simple100% — Hilton San Francisco Union Square 1,921Northern CA130,000Fee Simple100%$725(2) Hilton New Orleans Riverside 1,622New Orleans130,000Fee Simple100% — Hilton Chicago 1,544Chicago234,000Fee Simple100% — Hilton Waikoloa Village 1,110Hawaii235,000Fee Simple100% — Parc 55 San Francisco - a Hilton Hotel1,024Northern CA30,000Fee Simple100% — (2) Hilton Orlando Bonnet Creek 1,009Florida132,000Fee Simple100% — Hilton Chicago O’Hare Airport 860Chicago37,000Leasehold100% — DoubleTree Hotel Seattle Airport 850Other U.S.34,000Leasehold100% — Hilton Orlando Lake Buena Vista 814Florida78,000Leasehold100% — Caribe Hilton 748Other U.S.130,000Fee Simple100% — DoubleTree Hotel Washington DC – Crystal City627Washington, D.C.31,000Fee Simple100% — Hilton Boston Logan Airport 599Other U.S.30,000Leasehold100% — Pointe Hilton Squaw Peak Resort 563Other U.S.49,000Fee Simple100% — Hilton Miami Airport 508Florida32,000Fee Simple100% — Hilton Atlanta Airport 507Other U.S.34,000Fee Simple100% — DoubleTree Hotel San Jose 505Northern CA48,000Fee Simple100% — Hilton Salt Lake City Center499Other U.S.24,000Leasehold100% — Waldorf Astoria Orlando 502Florida42,000Fee Simple100% — DoubleTree Hotel Ontario Airport 482Southern CA27,000Fee Simple67%$30 Hilton McLean Tysons Corner 458Washington, D.C.27,000Fee Simple100% — Hilton Seattle Airport & Conference Center 396Other U.S.40,000Leasehold100% — DoubleTree Hotel Spokane City Center375Other U.S.21,000Fee Simple10%$12 Hilton Santa Barbara Beachfront Resort360Southern CA40,000Fee Simple50%$165 Hilton Oakland Airport 360Northern CA16,000Leasehold100% — Hilton New Orleans Airport 319New Orleans21,000Fee Simple100% — Casa Marina, A Waldorf Astoria Resort311Florida23,000Fee Simple100% — Hilton Short Hills 305Other U.S.16,000Fee Simple100% — DoubleTree Hotel San Diego – Mission Valley 300Southern CA24,000Leasehold100% — Embassy Suites Parsippany 274Other U.S.8,000Fee Simple100% — Embassy Suites Kansas City Plaza 266Other U.S.11,000Leasehold100% — Embassy Suites Austin Downtown Town Lake259Other U.S.2,000Leasehold100% —

DoubleTree Hotel Sonoma Wine Country 245Northern CA50,000Leasehold100% — Juniper Hotel Cupertino, Curio Collection224Northern CA5,000Fee Simple100% — Hilton Chicago/Oak Brook Suites211Chicago3,000Fee Simple100% — Embassy Suites Washington DC Georgetown197Washington, D.C.1,000Fee Simple100% — Embassy Suites Phoenix Airport182Other U.S.5,000Leasehold100% — Hilton Garden Inn LAX/El Segundo 162Southern CA3,000Fee Simple100% — DoubleTree Hotel Durango 159Other U.S.6,000Leasehold100% — The Reach, A Waldorf Astoria Resort150Florida15,000Fee Simple100% — Hampton Inn & Suites Memphis – Shady Grove 130Other U.S.1,000Fee Simple100% — Hilton Garden Inn Chicago/Oak Brook Terrace128Chicago2,000Fee Simple100% — Total Consolidated Domestic Portfolio26,8032,128,000$2,207

Hotel Name Rooms Market Meeting Space Ownership Equity OwnershipConsolidated Domestic Portfolio

Hilton Hawaiian Village Waikiki Beach Resort 2,860 Hawaii 150,000 Fee Simple 100% $1,275 New York Hilton Midtown 1,878 New York 151,000 Fee Simple 100% — Hilton San Francisco Union Square 1,921 Northern CA 130,000 Fee Simple 100% $725 (1)

Hilton New Orleans Riverside 1,622 New Orleans 130,000 Fee Simple 100% — Hilton Chicago 1,544 Chicago 234,000 Fee Simple 100% — Hilton Waikoloa Village(2) 1,110 Hawaii 235,000 Fee Simple 100% — Parc 55 San Francisco - a Hilton Hotel 1,024 Northern CA 30,000 Fee Simple 100% — (1)

Hilton Orlando Bonnet Creek 1,009 Florida 132,000 Fee Simple 100% — Hilton Chicago O’Hare Airport 860 Chicago 37,000 Leasehold 100% — DoubleTree Hotel Seattle Airport 850 Other U.S. 34,000 Leasehold 100% — Hilton Orlando Lake Buena Vista 814 Florida 78,000 Leasehold 100% — Caribe Hilton(2) 748 Other U.S. 130,000 Fee Simple 100% — DoubleTree Hotel Washington DC – Crystal City 627 Washington, D.C. 31,000 Fee Simple 100% — Hilton Boston Logan Airport 599 Other U.S. 30,000 Leasehold 100% — Pointe Hilton Squaw Peak Resort 563 Other U.S. 49,000 Fee Simple 100% — Hilton Miami Airport 508 Florida 32,000 Fee Simple 100% — Hilton Atlanta Airport 507 Other U.S. 35,000 Fee Simple 100% — DoubleTree Hotel San Jose 505 Northern CA 48,000 Fee Simple 100% — Hilton Salt Lake City Center 499 Other U.S. 24,000 Leasehold 100% — Waldorf Astoria Orlando 502 Florida 42,000 Fee Simple 100% — DoubleTree Hotel Ontario Airport 482 Southern CA 27,000 Fee Simple 67% $30 Hilton McLean Tysons Corner 458 Washington, D.C. 27,000 Fee Simple 100% — Hilton Seattle Airport & Conference Center 396 Other U.S. 40,000 Leasehold 100% — DoubleTree Hotel Spokane City Center 375 Other U.S. 21,000 Fee Simple 10% $12 Hilton Santa Barbara Beachfront Resort 360 Southern CA 40,000 Fee Simple 50% $165 Hilton Oakland Airport 360 Northern CA 16,000 Leasehold 100% — Hilton New Orleans Airport 317 New Orleans 21,000 Fee Simple 100% — Casa Marina, A Waldorf Astoria Resort 311 Florida 23,000 Fee Simple 100% — Hilton Short Hills 314 Other U.S. 14,000 Fee Simple 100% — DoubleTree Hotel San Diego – Mission Valley 300 Southern CA 24,000 Leasehold 100% — Embassy Suites Parsippany 274 Other U.S. 8,000 Fee Simple 100% — Embassy Suites Kansas City Plaza 266 Other U.S. 11,000 Leasehold 100% — Embassy Suites Austin Downtown Town Lake 259 Other U.S. 2,000 Leasehold 100% — DoubleTree Hotel Sonoma Wine Country 245 Northern CA 50,000 Leasehold 100% — Juniper Hotel Cupertino, Curio Collection 224 Northern CA 5,000 Fee Simple 100% — Hilton Chicago/Oak Brook Suites 211 Chicago 3,000 Fee Simple 100% — Embassy Suites Washington DC Georgetown 197 Washington, D.C. 1,000 Fee Simple 100% — Embassy Suites Phoenix Airport 182 Other U.S. 5,000 Leasehold 100% — Hilton Garden Inn LAX/El Segundo 162 Southern CA 3,000 Fee Simple 100% — DoubleTree Hotel Durango 159 Other U.S. 6,000 Leasehold 100% — The Reach, A Waldorf Astoria Resort 150 Florida 15,000 Fee Simple 100% — Hampton Inn & Suites Memphis – Shady Grove 130 Other U.S. 1,000 Fee Simple 100% — Hilton Garden Inn Chicago/Oak Brook Terrace 128 Chicago 2,000 Fee Simple 100% —Total Consolidated Domestic Portfolio 26,810 2,127,000 $2,207

Debt(in millions)

23 |

Portfolio and Operating Metrics (cont’d)

Hotel Portfolio as of June 30, 2018

(1) Debt related to unconsolidated joint ventures is presented on a pro-rata basis.

20 | Portfolio and Operating Metrics (cont’d) Hotel Portfolio(1) (1) As of May 3, 2018. (2) Debt related to unconsolidated joint ventures is presented on a pro-rata basis. (3) In April 2018, Park and the other joint ventures of the entities that own the Hilton Berlin entered into an agreement to sell the ownership interest in these entities. Hotel Name Rooms Market Meeting Space Ownership Equity Ownership Consolidated International Portfolio Hilton São Paulo Morumbi 503 International 15,000 Fee Simple 100% — Hilton Nuremberg Hotel 152 International 12,000 Leasehold 100% — Hilton Sheffield Hotel 128 International 12,000 Leasehold 100% — Total Consolidated International Portfolio 783 39,000 — Total Consolidated Portfolio 27,586 2,167,000 $2,207 Unconsolidated Joint Venture Domestic Portfolio Hilton Orlando 1,417 Florida 236,000 Fee Simple 20% $95 Hilton San Diego Bayfront 1,190 Southern CA 165,000 Leasehold 25% $55 Capital Hilton 550 Washington, D.C. 30,000 Fee Simple 25% $24 Hilton La Jolla Torrey Pines 394 Southern CA 41,000 Leasehold 25% $24 Embassy Suites Alexandria Old Town 288 Washington, D.C. 7,000 Fee Simple 50% $26 Embassy Suites Secaucus Meadowlands 261 Other U.S. 1,000 Leasehold 50% — DoubleTree Hotel Las Vegas Airport 190 Other U.S. 3,000 Fee Simple 50% — Total Unconsolidated Joint Venture Domestic Portfolio 4,290 483,000 $224 Unconsolidated Joint Venture International Portfolio Hilton Berlin(3) 601 International 14,000 Fee Simple 40% — Conrad Dublin 192 International 13,000 Fee Simple 48% $12 Total Unconsolidated Joint Venture International Portfolio 793 27,000 $12 Total Unconsolidated Joint Venture Portfolio 5,083 510,000 $236 TOTAL PARK HOTELS & RESORTS PORTFOLIO 32,669 2,677,000 $2,443 Debt(2) (in millions) PORTFOLIO32,6692,677,000$2,443

Hotel Name Rooms Market Meeting Space Ownership Equity OwnershipConsolidated International Portfolio

Hilton São Paulo Morumbi 503 International 15,000 Fee Simple 100% — Hilton Nuremberg Hotel 152 International 12,000 Leasehold 100% — Hilton Sheffield Hotel 128 International 12,000 Leasehold 100% —Total Consolidated International Portfolio 783 39,000 —

Total Consolidated Portfolio (46 Hotels) 27,593 2,166,000 $2,207

Unconsolidated Joint Venture Domestic Portfolio

Hilton Orlando 1,417 Florida 236,000 Fee Simple 20% $95 Hilton San Diego Bayfront 1,190 Southern CA 165,000 Leasehold 25% $55 Capital Hilton 550 Washington, D.C. 30,000 Fee Simple 25% $24 Hilton La Jolla Torrey Pines 394 Southern CA 41,000 Leasehold 25% $24 Embassy Suites Alexandria Old Town 288 Washington, D.C. 7,000 Fee Simple 50% $26 Embassy Suites Secaucus Meadowlands 261 Other U.S. 1,000 Leasehold 50% — DoubleTree Hotel Las Vegas Airport 190 Other U.S. 3,000 Fee Simple 50% —Total Unconsolidated Joint Venture Domestic Portfolio 4,290 483,000 $224

Unconsolidated Joint Venture International Portfolio

Conrad Dublin 192 International 13,000 Fee Simple 48% $10Total Unconsolidated Joint Venture International Portfolio 192 13,000 $10

Total Unconsolidated Joint Venture Portfolio (8 Hotels) 4,482 496,000 $234

TOTAL PARK HOTELS & RESORTS PORTFOLIO (54 Hotels) 32,075 2,662,000 $2,441

Debt(1)

(in millions)

24 |


Comparable Hotels By Market and Hotel Type: Q2 2018 vs. Q2 2017

(1) Calculated based on unrounded numbers.

21 | Portfolio and Operating Metrics (cont’d) Comparable Hotels By Market and Hotel Type: Q1 2018 vs. Q1 2017 (1) Calculated based on unrounded numbers. (unaudited) Comparable ADR Comparable Occupancy Comparable RevPAR Hotels Rooms (unaudited) Hotels Rooms 1Q18 1Q17 Change(1) 1Q18 1Q17 1Q18 1Q17 Change(1) Hawaii 1 2,860 $256.81 $253.67 1.2% 93.7% 94.0% (0.3)% pts $240.76 $238.57 0.9% Northern California 6 4,279 250.06 252.85 (1.1) 81.3 78.9 2.4 203.28 199.48 1.9 Florida 6 3,294 260.56 247.24 5.4 86.4 85.9 0.5 225.17 212.40 6.0 Other 14 5,364 162.86 161.26 1.0 76.9 77.2 (0.3) 125.16 124.50 0.5 New Orleans 2 1,941 198.55 197.35 0.6 76.3 75.0 1.3 151.41 148.04 2.3 Chicago 4 2,743 139.60 143.36 (2.6) 65.8 64.0 1.8 91.89 91.75 0.2 New York 1 1,878 243.81 240.34 1.4 75.3 77.2 (1.9) 183.69 185.56 (1.0) Southern California 4 1,304 158.03 160.12 (1.3) 77.1 81.5 (4.4) 121.88 130.57 (6.7) Washington, D.C. 3 1,282 174.80 182.02 (4.0) 66.3 73.2 (6.9) 115.93 133.30 (13.0) Total Domestic 41 24,945 $211.83 $209.79 1.0% 78.9% 79.0% (0.1)% pts $167.17 $165.67 0.9% Total International 3 783 $172.76 $163.75 5.5% 66.3% 64.3% 2.0% pts $114.56 $105.37 8.7% All Markets 44 25,728 $210.83 $208.64 1.0% 78.5% 78.5% — pts $165.57 $163.83 1.1% (unaudited) Hotels Rooms 1Q18 1Q17 Change(1) 1Q18 1Q17 1Q18 1Q17 Change(1) Resort 9 6,728 $257.83 $249.42 3.4% 86.0% 87.3% (1.3)% pts $221.62 $217.68 1.8% Urban 12 10,216 218.99 221.28 (1.0) 73.2 73.0 0.2 160.34 161.53 (0.7) Airport 13 6,357 159.81 156.54 2.1 81.3 81.0 0.3 129.99 126.83 2.5 Suburban 10 2,427 171.79 170.69 0.6 73.0 71.1 1.9 125.36 121.43 3.2 All Types 44 25,728 $210.83 $208.64 1.0% 78.5% 78.5% — pts $165.57 $163.83 1.1% Comparable ADR Comparable Occupancy Comparable RevPAR Change Comparable ADR Comparable Occupancy Comparable RevPAR Change

(unaudited)

Hotels Rooms 2Q18 2Q17 Change(1) 2Q18 2Q17 2Q18 2Q17 Change(1)

Hawaii 1 2,860 $254.09 $250.44 1.5% 94.8% 93.1% 1.7% pts $240.93 $233.22 3.3%Northern California 6 4,279 245.96 226.73 8.5 90.3 87.2 3.1 222.07 197.67 12.3 Florida 6 3,294 209.78 201.57 4.1 82.2 85.9 (3.7) 172.52 173.18 (0.4)Other 14 5,373 173.24 172.04 0.7 81.8 81.5 0.3 141.63 140.27 1.0 New Orleans 2 1,939 186.63 187.60 (0.5) 82.0 79.2 2.8 153.05 148.60 3.0 Chicago 4 2,743 204.25 195.41 4.5 84.3 80.8 3.5 172.10 157.82 9.0 New York 1 1,878 302.19 297.66 1.5 92.3 89.3 3.0 278.99 265.72 5.0 Southern California 4 1,304 170.81 173.52 (1.6) 85.0 88.9 (3.9) 145.13 154.25 (5.9)Washington, D.C. 3 1,282 202.24 201.45 0.4 89.4 89.9 (0.5) 180.78 181.19 (0.2)

Total Domestic 41 24,952 $217.13 $210.58 3.1% 86.4% 85.6% 0.9% pts $187.67 $180.15 4.2%

Total International 3 783 $158.74 $150.15 5.7% 75.1% 69.8% 5.3% pts $119.19 $104.83 13.7%All Markets 44 25,735 $215.58 $209.07 3.1% 86.1% 85.1% 1.0% pts $185.58 $177.86 4.3%

(unaudited)

Hotels Rooms 2Q18 2Q17 Change(1) 2Q18 2Q17 2Q18 2Q17 Change(1)

Resort 9 6,728 $234.34 $229.77 2.0% 85.6% 87.5% (1.9)% pts $200.66 $201.11 (0.2)%Urban 12 10,216 237.39 227.24 4.5 86.2 83.6 2.6 204.59 189.91 7.7 Airport 13 6,355 174.40 170.31 2.4 87.3 86.1 1.2 152.24 146.57 3.9 Suburban 10 2,436 180.35 176.01 2.5 83.8 82.0 1.8 151.11 144.38 4.7 All Types 44 25,735 $215.58 $209.07 3.1% 86.1% 85.1% 1.0% pts $185.58 $177.86 4.3%

Change

Comparable ADR Comparable Occupancy Comparable RevPARChange

Comparable ADR Comparable Occupancy Comparable RevPAR

25 |


(1) Calculated based on unrounded numbers.22 | Portfolio and Operating Metrics (cont’d) (1) Calculated based on unrounded numbers. (unaudited, dollars in millions) Comparable Hotel Adjusted EBITDA Comparable Hotel Revenue "Comparable Hotel Adjusted EBITDA Margin (unaudited, dollars in millions) Hotels Rooms 1Q18 1Q17 Change(1) 1Q18 1Q17 Change(1) 1Q18 1Q17 Hawaii 1 2,860 $37 $35 4.8% $96 $94 2.1% 39.1% 38.1% 100 bps Northern California 6 4,279 30 29 (0.3) 106 107 (0.6) 27.6 27.5 10 Florida 6 3,294 49 42 17.2 118 108 8.3 41.9 38.8 310 Other 14 5,364 17 18 (5.7) 83 83 (0.3) 19.8 20.9 (110) New Orleans 2 1,941 17 18 (5.3) 44 45 (1.7) 38.8 40.3 (150) Chicago 4 2,743 — 3 (101.6) 39 43 (8.9) (0.1) 6.6 (670) New York 1 1,878 — 1 (86.8) 53 52 1.9 0.1 1.1 (100) Southern California 4 1,304 4 6 (30.9) 21 24 (9.8) 20.9 27.3 (640) Washington, D.C. 3 1,282 3 5 (35.4) 19 21 (10.8) 15.4 21.2 (580) Total Domestic 41 24,945 $157 $157 (0.0)% $579 $577 0.3% 27.1% 27.2% (10) bps Total International 3 783 $2 $2 10.3% $11 $11 4.1% 18.5% 17.5% 100 bps All Markets 44 25,728 $159 $159 —% $590 $588 0.4% 26.9% 27.0% (10) bps (unaudited, dollars in millions) Hotels Rooms 1Q18 1Q17 Change(1) 1Q18 1Q17 Change(1) 1Q18 1Q17 Resort 9 6,728 $86 $80 7.6% $222 $214 3.9% 38.6% 37.2% 140 bps Urban 12 10,216 43 50 (12.8) 225 233 (3.2) 19.2 21.3 (210) Airport 13 6,357 23 23 (2.4) 104 103 0.4 21.7 22.3 (60) Suburban 10 2,427 7 6 15.7 39 38 3.5 18.9 16.9 200 All Types 44 25,728 $159 $159 —% $590 $588 0.4% 26.9% 27.0% (10) bps Comparable Hotel Adjusted EBITDA Comparable Hotel Revenue Comparable Hotel Adjusted EBITDA Margin Change Comparable Hotel Adjusted EBITDA Comparable Hotel Revenue Comparable Hotel Adjusted EBITDA Margin Change Comparable Hotels By Market and Hotel Type: Q1 2018 vs. Q1 2017

Comparable Hotels By Market and Hotel Type: Q2 2018 vs. Q2 2017


Hotels Rooms 2Q18 2Q17 Change(1) 2Q18 2Q17 Change(1) 2Q18 2Q17Hawaii 1 2,860 $40 $37 8.4% $99 $95 4.5% 39.8% 38.4% 140 bpsNorthern California 6 4,279 37 27 36.0 118 102 15.2 31.3 26.5 480Florida 6 3,294 35 32 6.9 100 96 4.0 34.8 33.8 100Other 14 5,373 24 24 1.2 93 93 0.8 26.0 25.9 10New Orleans 2 1,939 18 17 5.7 44 44 (1.6) 42.3 39.3 300Chicago 4 2,743 20 18 14.2 68 63 7.8 29.6 28.0 160New York 1 1,878 20 17 22.0 83 73 14.8 24.4 23.0 140Southern California 4 1,304 8 9 (10.3) 26 27 (2.5) 30.3 33.0 (270)Washington, D.C. 3 1,282 10 9 7.2 30 29 1.9 34.2 32.5 170

Total Domestic 41 24,952 $212 $190 11.7% $661 $622 6.3% 32.1% 30.6% 150 bps

Total International 3 783 $3 $3 13.1% $12 $12 9.1% 20.0% 19.3% 70 bpsAll Markets 44 25,735 $215 $193 11.7% $673 $634 6.4% 31.9% 30.4% 150 bps


Hotels Rooms 2Q18 2Q17 Change(1) 2Q18 2Q17 Change(1) 2Q18 2Q17Resort 9 6,728 $77 $74 4.4% $213 $208 2.7% 36.1% 35.5% 60 bpsUrban 12 10,216 90 76 20.1 292 264 10.9 30.8 28.4 240Airport 13 6,355 36 32 11.5 122 117 4.0 29.5 27.5 200Suburban 10 2,436 12 11 4.3 46 45 3.1 25.8 25.5 30All Types 44 25,735 $215 $193 11.7% $673 $634 6.4% 31.9% 30.4% 150 bps

Comparable Hotel Adjusted EBITDA Comparable Hotel Revenue

Comparable Hotel Adjusted EBITDA Margin

Change



Change

26 |



Comparable Hotels By Market and Hotel Type: Q2 YTD 2018 vs. Q2 YTD 2017

(unaudited)

Hotels Rooms 2018 2017 2018 2017 2018 2017 Change(1)

Hawaii 1 2,860 $255.43 $252.06 1.3% 94.3% 93.6% 0.7% pts $240.84 $235.88 2.1%Northern California 6 4,279 247.89 239.07 3.7 85.8 83.1 2.7 $212.73 198.57 7.1 Florida 6 3,294 235.66 224.24 5.1 84.3 85.9 (1.6) $198.70 192.65 3.1 Other 14 5,373 168.24 166.83 0.8 79.3 79.4 (0.1) $133.44 132.43 0.8 New Orleans 2 1,939 192.34 192.32 0.0 79.1 77.1 2.0 $152.24 148.32 2.6 Chicago 4 2,743 176.07 172.54 2.0 75.1 72.4 2.7 $132.22 124.97 5.8 New York 1 1,878 276.10 271.24 1.8 83.9 83.3 0.6 $231.58 225.86 2.5 Southern California 4 1,304 164.76 167.14 (1.4) 81.1 85.2 (4.1) $133.57 142.47 (6.3)Washington, D.C. 3 1,282 190.63 192.79 (1.1) 77.9 81.6 (3.7) $148.53 157.38 (5.6)

Total Domestic 41 24,952 $214.62 $210.20 2.1% 82.7% 82.3% 0.4% pts $177.47 $172.95 2.6%

Total International 3 783 $165.28 $156.63 5.5% 70.7% 67.1% 3.6% pts $116.89 $105.10 11.2%All Markets 44 25,735 $213.33 $208.86 2.1% 82.3% 81.8% 0.5% pts $175.63 $170.89 2.8%

(unaudited)

Hotels Rooms 2018 2017 Change(1) 2018 2017 2018 2017 Change(1)

Resort 9 6,728 $246.04 $239.52 2.7% 85.8% 87.4% (1.6)% pts $211.08 $209.34 0.8%Urban 12 10,216 228.99 224.48 2.0 79.7 78.3 1.4 182.58 175.80 3.9 Airport 13 6,355 167.40 163.67 2.3 84.3 83.6 0.7 141.18 136.75 3.2 Suburban 10 2,436 176.39 173.55 1.6 78.4 76.6 1.8 138.31 132.97 4.0 All Types 44 25,735 $213.33 $208.86 2.1% 82.3% 81.8% 0.5% pts $175.63 $170.89 2.8%

Change

Change


Change(1)


27 |



Comparable Hotels By Market and Hotel Type: Q2 YTD 2018 vs. Q2 YTD 2017


Hotels Rooms 2018 2017 Change(1) 2018 2017 Change(1) 2018 2017Hawaii 1 2,860 $77 $72 6.6% $195 $189 3.3% 39.4% 38.2% 120 bpsNorthern California 6 4,279 66 57 17.1 224 209 7.1 29.5 27.0 250Florida 6 3,294 84 75 12.7 217 204 6.3 38.6 36.4 220Other 14 5,373 41 42 (1.7) 177 177 0.3 23.1 23.6 (50)New Orleans 2 1,939 35 35 0.1 88 89 (1.6) 40.5 39.8 70Chicago 4 2,743 20 20 (1.8) 107 106 1.1 18.8 19.4 (60)New York 1 1,878 20 18 18.6 137 125 9.4 15.0 13.8 120Southern California 4 1,304 13 15 (18.9) 47 50 (5.9) 26.1 30.3 (420)Washington, D.C. 3 1,282 13 14 (6.6) 49 50 (3.5) 26.9 27.8 (90)

Total Domestic 41 24,952 $369 $348 6.4% $1,241 $1,199 3.4% 29.8% 29.0% 80 bps

Total International 3 783 $5 $4 11.7% $24 $23 6.7% 19.3% 18.4% 90 bpsAll Markets 44 25,735 $374 $352 6.5% $1,265 $1,222 3.5% 29.6% 28.8% 80 bps


Hotels Rooms 2018 2017 Change(1) 2018 2017 Change(1) 2018 2017Resort 9 6,728 $163 $154 6.1% $435 $422 3.3% 37.4% 36.4% 100 bpsUrban 12 10,216 133 125 7.0 518 496 4.2 25.7 25.1 60Airport 13 6,355 59 55 5.7 227 222 2.3 25.9 25.1 80Suburban 10 2,436 19 18 8.4 85 82 3.3 22.7 21.6 110All Types 44 25,735 $374 $352 6.5% $1,265 $1,222 3.5% 29.6% 28.8% 80 bps

Change

Change





28 |


Top 10 Assets: Q2 2018 vs. Q2 2017

(1) Calculated based on unrounded numbers. (2) Classified as a non-comparable hotel.(3) Includes non-comparable hotels due to disruptions in operations (Caribe Hilton) or operations from hotels disposed of in 2018.

23 | Portfolio and Operating Metrics (cont’d) Top 10 Assets: Q1 2018 vs. Q1 2017 (1) Calculated based on unrounded numbers. (2) Classified as a non-comparable hotel. (unaudited) ADR Occupancy RevPAR 4Q17 4Q16 Change(1) 4Q17 4Q16 Change 4Q17 4Q16 Change(1) Top 10 Hotels 1 Hilton Hawaiian Village Waikiki Beach (unaudited) 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 Top 10 Hotels 1 Hilton Hawaiian Village Waikiki Beach Resort $256.81 $253.67 1.2% 93.7% 94.0% (0.3)% pts $240.76 $238.57 0.9% 2 New York Hilton Midtown 243.81 240.34 1.4 75.3 77.2 (1.9) 183.69 185.56 (1.0) 3 Hilton San Francisco Union Square 276.45 282.61 (2.2) 78.2 75.7 2.5 216.06 213.82 1.0 4 Hilton Waikoloa Village(2) 244.58 231.07 5.8 87.8 84.8 3.0 214.68 196.05 9.5 5 Hilton New Orleans Riverside 210.46 210.57 (0.1) 76.7 74.3 2.4 161.43 156.43 3.2 6 Hilton Chicago 136.63 149.19 (8.4) 58.8 58.0 0.8 80.34 86.55 (7.2) 7 Hilton Orlando Bonnet Creek 222.85 207.53 7.4 82.6 85.3 (2.7) 184.16 176.94 4.1 8 Parc 55 San Francisco - a Hilton Hotel 265.58 272.73 (2.6) 85.9 86.8 (0.9) 228.16 236.60 (3.6) 9 Waldorf Astoria Orlando 349.10 320.80 8.8 80.4 78.4 2.0 280.85 251.42 11.7 10 Casa Marina, A Waldorf Astoria Resort 454.46 450.25 0.9 89.0 90.2 (1.2) 404.66 406.29 (0.4) Sub-total Top 10 Hotels $248.16 $245.79 1.0% 80.7% 80.3% 0.4% pts $200.20 $197.30 1.5% Top 11-25 Hotels $179.36 $178.51 0.5% 72.0% 78.8% (6.8)% pts $129.21 $140.66 (8.1)% Sub-total Top 25 Hotels $224.31 $221.19 1.4% 77.5% 79.7% (2.2)% pts $173.74 $176.35 (1.5)% All Other Consolidated Hotels $156.73 $152.41 2.8% 74.2% 73.0% 1.2% pts $116.25 $111.23 4.5% Total Consolidated Portfolio $208.22 $203.78 2.2% 76.6% 77.9% (1.3)% pts $159.60 $158.75 0.5% ADR Occupancy RevPAR Change Change (1) Change(1)

(unaudited)

2Q18 2Q17 Change(1) 2Q18 2Q17 2Q18 2Q17Top 10 Hotels

1 Hilton Hawaiian Village Waikiki Beach Resort $254.09 $250.44 1.5% 94.8% 93.1% 1.7% pts $240.93 $233.22 3.3%2 New York Hilton Midtown 302.19 297.66 1.5 92.3 89.3 3.0 278.99 265.72 5.0 3 Hilton San Francisco Union Square 261.12 242.36 7.7 89.3 85.6 3.7 233.24 207.56 12.4 4 Hilton Waikoloa Village(2) 226.87 209.74 8.2 69.0 69.8 (0.8) 156.49 146.33 6.9 5 Hilton New Orleans Riverside 197.22 200.31 (1.5) 81.8 78.8 3.0 161.25 157.84 2.2 6 Hilton Chicago 231.50 218.28 6.1 84.5 81.1 3.4 195.53 176.98 10.5 7 Hilton Orlando Bonnet Creek 186.87 174.98 6.8 79.4 86.8 (7.4) 148.40 151.80 (2.2)8 Parc 55 San Francisco - a Hilton Hotel 260.09 231.75 12.2 93.3 90.2 3.1 242.62 208.94 16.1 9 Waldorf Astoria Orlando 274.97 260.96 5.4 76.3 84.0 (7.7) 209.76 219.09 (4.3)

10 Casa Marina, A Waldorf Astoria Resort 377.99 366.69 3.1 79.4 83.8 (4.4) 300.09 307.44 (2.4)Sub-total Top 10 Hotels $250.76 $240.36 4.3% 86.7% 85.3% 1.4% pts $217.33 $204.97 6.0%

Top 11-25 Hotels(3) $190.20 $186.43 2.0% 77.0% 83.6% (6.6)% pts $146.41 $155.77 (6.0)%Sub-total Top 25 Hotels $229.84 $220.67 4.2% 83.1% 84.6% (1.5)% pts $190.89 $186.78 2.2%

All Other Consolidated Hotels(3) $161.66 $154.38 4.7% 83.1% 81.3% 1.8% pts $134.33 $125.54 7.0%

Total Consolidated Portfolio $215.96 $203.27 6.2% 83.1% 83.7% (0.6)% pts $179.38 $170.23 5.4%

ADR Occupancy RevPARChange Change(1)

29 |


Top 10 Assets: Q2 2018 vs. Q2 2017


24 | Portfolio and Operating Metrics (cont’d) Top 10 Assets: Q1 2018 vs. Q1 2017 (1) Calculated based on unrounded numbers. (2) Classified as a non-comparable hotel. (unaudited, dollars in millions) Hotel Adjusted EBITDA Hotel Revenue " Hotel Adjusted EBITDA Margin" (unaudited, dollars in millions) 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 Top 10 Hotels 1 Hilton Hawaiian Village Waikiki Beach Resort $37 $35 4.8% $96 $94 2.1% 39.1% 38.1% 100 bps 2 New York Hilton Midtown — 1 (86.8) 53 52 1.9 0.1 1.1 (100) 3 Hilton San Francisco Union Square 15 16 (5.5) 54 56 (3.4) 27.6 28.3 (70) 4 Hilton Waikoloa Village(2) 14 13 4.9 41 40 0.6 34.3 32.9 140 5 Hilton New Orleans Riverside 16 17 (5.6) 40 41 (1.6) 39.2 40.9 (170) 6 Hilton Chicago (2) 1 (326.6) 22 26 (17.6) (10.8) 3.9 (1,470) 7 Hilton Orlando Bonnet Creek 16 13 22.3 38 35 10.9 42.4 38.5 390 8 Parc 55 San Francisco - a Hilton Hotel 8 9 (6.7) 25 26 (4.1) 32.1 33.0 (90) 9 Waldorf Astoria Orlando 9 7 21.5 23 21 11.2 37.7 34.5 320 10 Casa Marina, A Waldorf Astoria Resort 8 7 8.0 16 16 4.2 49.0 47.3 170 Sub-total Top 10 Hotels $121 $119 1.0% $408 $407 0.4% 29.5% 29.4% 10 bps Top 11-25 Hotels $32 $38 (15.0)% $141 $156 (9.9)% 22.8% 24.2% (140) bps Sub-total Top 25 Hotels $153 $157 (2.8)% $549 $563 (2.4)% 27.8% 27.9% (10) bps All Other Consolidated Hotels $21 $23 (5.8)% $101 $110 (8.1)% 21.3% 20.8% 50 bps Total Consolidated Portfolio $174 $180 (3.2)% $650 $673 (3.4)% 26.8% 26.8% — bps Hotel Revenue Change Hotel Adjusted EBITDA Hotel Adjusted EBITDA Margin Change(1) Change(1)


2Q18 2Q17 Change(1) 2Q18 2Q17 Change(1) 2Q18 2Q17Top 10 Hotels

1 Hilton Hawaiian Village Waikiki Beach Resort $40 $37 8.4% $100 $95 4.5% 39.8% 38.4% 140 bps2 New York Hilton Midtown 21 17 22.0 84 73 14.8 24.4 23.0 1403 Hilton San Francisco Union Square 19 13 39.5 60 51 17.8 30.8 26.0 4804 Hilton Waikoloa Village(2) 8 9 (8.4) 32 34 (5.9) 26.5 27.2 (70)5 Hilton New Orleans Riverside 17 16 4.8 39 40 (2.6) 42.9 39.9 3006 Hilton Chicago 14 12 19.9 45 41 10.3 31.3 28.8 2507 Hilton Orlando Bonnet Creek 14 13 8.3 35 33 5.7 39.8 38.8 1008 Parc 55 San Francisco - a Hilton Hotel 9 6 41.4 27 23 16.7 33.0 27.2 5809 Waldorf Astoria Orlando 4 5 (11.4) 18 19 (2.5) 24.2 26.6 (240)

10 Casa Marina, A Waldorf Astoria Resort 5 5 6.1 13 13 4.2 39.4 38.7 70Sub-total Top 10 Hotels $151 $133 13.3% $453 $422 7.4% 33.2% 31.5% 170 bps

Top 11-25 Hotels(3) $53 $48 10.4% $167 $172 (3.1)% 31.8% 27.9% 390 bpsSub-total Top 25 Hotels $204 $181 12.6% $620 $594 4.3% 32.8% 30.4% 240 bps

All Other Consolidated Hotels(3) $24 $32 (21.6)% $92 $124 (25.4)% 26.6% 25.3% 130 bps

Total Consolidated Portfolio $228 $213 7.5% $712 $718 (0.8)% 32.0% 29.5% 250 bps

Hotel RevenueChange

Hotel Adjusted EBITDA Hotel Adjusted EBITDA Margin

30 |


Top 10 Assets: Q2 YTD 2018 vs. Q2 YTD 2017



(unaudited)

2018 2017 Change(1) 2018 2017 2018 2017 Change(1)

Top 10 Hotels1 Hilton Hawaiian Village Waikiki Beach Resort $255.43 $252.06 1.3% 94.3% 93.6% 0.7% pts $240.84 $235.88 2.1%2 New York Hilton Midtown 276.10 271.24 1.8 83.9 83.3 0.6 231.58 225.86 2.5 3 Hilton San Francisco Union Square 268.23 261.13 2.7 83.8 80.7 3.1 224.70 210.67 6.7 4 Hilton Waikoloa Village(2) 236.74 221.40 6.9 78.3 77.3 1.0 185.42 171.09 8.4 5 Hilton New Orleans Riverside 203.59 205.27 (0.8) 79.2 76.6 2.6 161.34 157.14 2.7 6 Hilton Chicago 192.81 189.65 1.7 71.7 69.6 2.1 138.25 132.01 4.7 7 Hilton Orlando Bonnet Creek 205.12 190.97 7.4 81.0 86.0 (5.0) 166.18 164.25 1.2 8 Parc 55 San Francisco - a Hilton Hotel 262.71 251.73 4.4 89.6 88.5 1.1 235.43 222.69 5.7 9 Waldorf Astoria Orlando 312.81 289.57 8.0 78.4 81.2 (2.8) 245.11 235.10 4.3

10 Casa Marina, A Waldorf Astoria Resort 418.20 409.78 2.1 84.2 87.0 (2.8) 352.09 356.59 (1.3)Sub-total Top 10 Hotels $249.51 $242.97 2.7% 83.7% 82.8% 0.9% pts $208.81 $201.16 3.8%

Top 11-25 Hotels(3) $184.99 $182.61 1.3% 74.5% 81.2% (6.7)% pts $137.86 $148.26 (7.0)%Sub-total Top 25 Hotels $227.18 $220.92 2.8% 80.3% 82.2% (1.9)% pts $182.36 $181.59 0.4%

All Other Consolidated Hotels(3) $159.05 $153.46 3.6% 78.1% 77.2% 0.9% pts $124.24 $118.42 4.9%

Total Consolidated Portfolio $212.16 $203.51 4.2% 79.8% 80.8% (1.0)% pts $169.27 $164.52 2.9%

ChangeADR Occupancy RevPAR

31 |


Top 10 Assets: Q2 YTD 2018 vs. Q2 YTD 2017




2018 2017 Change(1) 2018 2017 Change(1) 2018 2017Top 10 Hotels

1 Hilton Hawaiian Village Waikiki Beach Resort $77 $72 6.6% $195 $188 3.3% 39.4% 38.2% 120 bps2 New York Hilton Midtown 20 17 18.6 137 125 9.4 15.0 13.8 1203 Hilton San Francisco Union Square 34 29 15.0 114 107 6.7 29.3 27.2 2104 Hilton Waikoloa Village(2) 22 22 (0.5) 72 74 (2.4) 30.9 30.3 605 Hilton New Orleans Riverside 33 33 (0.5) 80 81 (2.1) 41.0 40.4 606 Hilton Chicago 12 13 (8.2) 67 67 (0.7) 17.6 19.1 (150)7 Hilton Orlando Bonnet Creek 30 26 15.4 73 68 8.4 41.2 38.6 2608 Parc 55 San Francisco - a Hilton Hotel 17 15 13.5 52 49 5.6 32.6 30.3 2309 Waldorf Astoria Orlando 13 12 8.0 42 40 4.7 31.7 30.8 90

10 Casa Marina, A Waldorf Astoria Resort 13 13 7.2 30 29 4.2 Sub-total Top 10 Hotels $271 $252 7.5% $862 $828 4.0% 31.5% 30.5% 100 bps

Top 11-25 Hotels(3) $85 $87 (0.7)% $309 $327 (6.4)% 27.7% 26.1% 160 bpsSub-total Top 25 Hotels $357 $339 5.4% $1,171 $1,156 1.0% 30.5% 29.2% 130 bps

All Other Consolidated Hotels(3) $45 $55 (14.2)% $194 $233 (17.3)% 23.8% 22.1% 170 bps

Total Consolidated Portfolio $402 $394 2.7% $1,365 $1,388 (2.0)% 29.5% 28.0% 150 bps

ChangeHotel Adjusted EBITDA Hotel Revenue Hotel Adjusted EBITDA Margin

32 |

Acquisitions & Dispositions

Hilton Sao Paulo Morumbi

Caribe Hilton

Hilton Miami Airport Blue Lagoon

33 |

Acquisitions and Dispositions

Dispositions

(1) Hotels were sold as a portfolio.(2) The unconsolidated hotel was sold for a total sales price of approximately $350 million, of which $140 million represents Park’s pro rata share.

Hotel Location Month Sold Room Count Sales PriceHilton Rotterdam Rotterdam, Netherlands January 2018 254 62.2$

254 62.2Embassy Suites Portfolio(1)

Embassy Suites by Hilton Kansas City Overland Park Overland Park, Kansas February 2018 199 25.0Embassy Suites by Hilton San Rafael Marin County San Rafael, California February 2018 236 37.9Embassy Suites by Hilton Atlanta Perimeter Center Atlanta, Georgia February 2018 241 32.9

676 95.8UK Portfolio(1)

Hilton Blackpool Blackpool, United Kingdom February 2018 278 N/AHilton Belfast Belfast, United Kingdom February 2018 198 N/AHilton London Angel Islington London, United Kingdom February 2018 188 N/AHilton Edinburgh Grosvenor Edinburgh, United Kingdom February 2018 184 N/AHilton Coylumbridge Aviemore, United Kingdom February 2018 175 N/AHilton Bath City Bath, United Kingdom February 2018 173 N/AHilton Milton Keynes Milton Keynes, United Kingdom February 2018 138 N/A

1,334 188.5

Hilton Durban Durban, South Africa February 2018 328 32.5Hilton Berlin(2) Berlin, Germany May 2018 601 140.0

929 172.5

Total 3,193 519.0$

34 |

Debt Summary

Casa Marina, a Waldorf Astoria Resort

Hilton Orlando Bonnet Creek


35 |

Debt Summary

Fixed and Variable Rate Debt

(1) Calculated on a weighted average basis.(2) $1 billion available.(3) Assumes the exercise of all extensions that are exercisable solely at Park’s option.(4) Excludes $234 million of Park’s share of debt of its unconsolidated joint ventures.

28 | Debt Summary Fixed and Variable Rate Debt (1) Calculated on a weighted average basis. (2) $1 billion available. (3) Assumes the exercise of all extensions that are exercisable solely at Park’s option. (4) Excludes $236 million of Park’s share of debt of its unconsolidated joint ventures. (unaudited, dollars in millions) Debt Collateral Interest Rate(1) Maturity Date "As of December 31, 2017" Fixed Rate Debt Mortgage loan DoubleTree Hotel Spokane City Center Debt Collateral Interest Rate Maturity Date As of March 31, 2018 Fixed Rate Debt Mortgage loan DoubleTree Hotel Spokane City Center 3.55% October 2020 $ 12 Commercial mortgage-backed securities loan Hilton San Francisco Union Square, Parc 55 San Francisco - a Hilton Hotel 4.11% November 2023 725 Commercial mortgage-backed securities loan Hilton Hawaiian Village Waikiki Beach Resort 4.20% November 2026 1,275 Mortgage loan Hilton Santa Barbara Beachfront Resort 4.17% December 2026 165 Total Fixed Rate Debt 4.16%(1) 2,177 Variable Rate Debt Revolving credit facility(2) Unsecured L + 1.50% December 2021(3) — Term loan Unsecured L + 1.45% December 2021 750 Mortgage loan DoubleTree Hotel Ontario Airport L + 2.25% May 2022(3) 30 Total Variable Rate Debt 3.36%(1) 780 Less: unamortized deferred financing costs and discount (11) Total Debt(4) 3.95%(1) $ 2,946 (unaudited, dollars in millions)

Debt Collateral Interest Rate Maturity Date As of June 30, 2018Fixed Rate Debt

Mortgage loan DoubleTree Hotel Spokane City Center 3.55% October 2020 12$

Commercial mortgage-backedsecurities loan

Hilton San Francisco Union Square, Parc 55 San Francisco - a Hilton Hotel 4.11% November 2023 725

Commercial mortgage-backedsecurities loan

Hilton Hawaiian Village Waikiki Beach Resort 4.20% November 2026 1,275

Mortgage loan Hilton Santa Barbara Beachfront Resort 4.17% December 2026 165

Capital lease obligations 3.07% 2021 to 2022 1 Total Fixed Rate Debt 4.16%(1) 2,178

Variable Rate DebtRevolving credit facility(2) Unsecured L + 1.60% December 2021(3) —Term loan Unsecured L + 1.55% December 2021 750Mortgage loan DoubleTree Hotel Ontario Airport L + 2.25% May 2022(3) 30

Total Variable Rate Debt 3.67%(1) 780

Less: unamortized deferred financing costs and discount (11)Total Debt(4) 4.03%(1) 2,947$


36 |

Definitions

Hilton Orlando Bonnet Creek Hilton Hawaiian Village Waikiki Beach Resort


37 |

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 inaffiliates.

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 expense associated with the potential disposition of hotels or acquisition of a business;• 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 bothcomparable and non-comparable hotels but excluding hotels owned by unconsolidated affiliates, and is a key measure of the Company’s profitability. The Companypresents 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 notbe considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, theCompany’s definitions of EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin may not be comparable to similarly titled measures ofother companies.

The Company believes that EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin provide useful information to investors about theCompany and its financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel AdjustedEBITDA margin are among the measures used by the Company’s management team to make day-to-day operating decisions and to evaluate its operating performancebetween 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 inisolation or as a substitute for net income (loss) or other methods of analyzing results as reported under U.S. GAAP.

38 |

Definitions (cont’d)

NAREIT FFO attributable to stockholders, Adjusted FFO attributable to stockholders, NAREIT FFO per share – Diluted and Adjusted FFO per share -Diluted

NAREIT FFO attributable to stockholders and NAREIT FFO per diluted share (defined as set forth below) are presented herein as non-GAAP measures of theCompany’s performance. The Company calculates funds from operations (“FFO”) attributable to stockholders for a given operating period in accordance withstandards established by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income (loss) attributable to stockholders (calculated inaccordance with U.S. GAAP), excluding depreciation and amortization, gains or losses on sales of assets, impairment, and the cumulative effect of changes inaccounting principles, plus adjustments for unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect the Company’s prorata share of the FFO of those entities on the same basis. As noted by NAREIT in its April 2002 “White Paper on Funds From Operations,” since real estate valueshistorically have risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that usehistorical cost accounting to be insufficient by themselves. For these reasons, NAREIT adopted the FFO metric in order to promote an industry-wide measure of REIToperating performance. The Company believes NAREIT FFO provides useful information to investors regarding its operating performance and can facilitatecomparisons of operating performance between periods and between REITS. The Company’s presentation may not be comparable to FFO reported by other REITSthat do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently. The Company calculatesNAREIT FFO per diluted share as NAREIT FFO divided by the number of fully diluted shares outstanding during a given operating period.

The Company also presents Adjusted FFO attributable to stockholders and Adjusted FFO per diluted share when evaluating its performance because managementbelieves that the exclusion of certain additional items described below provides useful supplemental information to investors regarding the Company’s ongoingoperating performance. Management historically has made the adjustments detailed below in evaluating its performance and in its annual budget process.Management believes that the presentation of Adjusted FFO provides useful supplemental information that is beneficial to an investor’s complete understanding ofoperating performance. The Company adjusts NAREIT FFO attributable to stockholders for the following items, which may occur in any period, and refers to thismeasure as Adjusted FFO attributable to stockholders:

• Gains or losses on foreign currency transactions; • Transition expense related to the Company’s establishment as an independent, publicly traded company;• Transaction expense associated with the potential disposition of hotels or acquisition of a business;• Severance expense;• Share-based compensation expense;• Casualty losses;• Litigation gains and losses outside the ordinary course of business; and• Other items that management believes are not representative of the Company’s current or future operating performance.

39 |


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 inaffiliate debt, excluding unamortized deferred financing costs; reduced by (a) cash and cash equivalents; and (b) restricted cash and cashequivalents.

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 debtpresented in accordance with U.S. GAAP. Net debt may not be comparable to a similarly titled measure of other companies.

Net Debt to Adjusted EBITDA Ratio

Net debt to Adjusted EBITDA ratio, presented herein, is a non-GAAP financial measure and is included as it is frequently used by securitiesanalysts, investors and other interested parties to compare the financial condition of companies. Net debt to Adjusted EBITDA ratio should not beconsidered as an alternative to measures of financial condition derived in accordance with U.S. GAAP and it may not be comparable to a similarlytitled 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. TheCompany defines its comparable hotels as those hotels that: (i) were active and operating in the Company’s portfolio since January 1st of theprevious year; and (ii) have not sustained substantial property damage, business interruption, undergone large-scale capital projects or for whichcomparable results are not available. The Company presents comparable hotel results to help the Company and its investors evaluate the ongoingoperating performance of its comparable hotels. Of the 46 hotels that are consolidated as of June 30, 2018, 44 hotels have been classified ascomparable hotels. Due to the conversion, or planned conversions, of a significant number of rooms at the Hilton Waikoloa Village in 2017 to HGVtimeshare units, and due to the effects of the hurricane at the Caribe Hilton in Puerto Rico and the expected continued effects from businessinterruption in 2018, the results from these properties were excluded from comparable hotels. The Company’s comparable hotels also exclude the12 consolidated hotels that were sold in January and February 2018. Refer to Slide 30: “Acquisitions and Dispositions” for additional information.

40 |


Occupancy

Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels.Occupancy measures the utilization of the Company’s hotels’ available capacity. Management uses occupancy to gauge demand at a specific hotelor group of hotels in a given period. Occupancy levels also help management determine achievable Average Daily Rate (“ADR”) levels as demand forhotel rooms increases or decreases.

Average Daily Rate

ADR represents rooms revenue divided by total number of room nights sold in a given period. ADR measures average room price attained by a hoteland ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADRis a commonly used performance measure in the hotel industry, and management uses ADR to assess pricing levels that the Company is able togenerate by type of customer, as changes in rates have a more pronounced effect on overall revenues and incremental profitability than changes inoccupancy, as described above.

Revenue per Available Room

Revenue per Available Room (“RevPAR”) represents rooms revenue divided by total number of room nights available to guests for a given period.Management considers RevPAR to be a meaningful indicator of the Company’s performance as it provides a metric correlated to two primary andkey factors of operations at a hotel or group of hotels: occupancy and ADR. RevPAR is also a useful indicator in measuring performance overcomparable periods for comparable hotels.

References to RevPAR and ADR are presented on a comparable basis and references to RevPAR and ADR are presented on a currency neutralbasis (prior periods are reflected using the current period exchange rates), unless otherwise noted.

Pro-forma

Certain financial measures and other information have been adjusted to reflect the effects of hotels disposed of during the periods presented. Whenpresenting such information, the amounts are identified as “Pro-forma.”

41 |

Analyst Coverage

34 | Analyst Coverage Analyst Company Phone Email Shaun Kelley Bank of America (646) 855-1005 [email protected] Anthony Powell Barclays (212) 526-8768 [email protected] Floris Van Dijkum Boenning & Scattergood (212) 922-3572 [email protected] Smedes Rose Citi Research (212) 816-6243 [email protected] Chris Woronka Deutsche Bank (212) 250-9376 [email protected] Richard Hightower Evercore ISI (212) 752-0886 [email protected] Stephen Grambling Goldman Sachs (212) 902-7832 [email protected] Lukas Hartwich Green Street (949) 640-8780 [email protected] Brandt Montour JP Morgan (212) 622-1111 [email protected] Brian Dobson Nomura/Instinet (212) 310-5416 [email protected] Bill Crow Raymond James (727) 567-2594 [email protected] Patrick Scholes SunTrust (212) 319-3915 [email protected] Robin Farley UBS (212) 713-2060 [email protected] Rachael Rothman Susquehanna International Group (212) 514 4882 [email protected] Jeff Donnelly Wells Fargo (617) 603-4262 [email protected]

Analyst Company Phone EmailShaun Kelley Bank of America (646) 855-1005 [email protected] Powell Barclays (212) 526-8768 [email protected] Rose Citi Research (212) 816-6243 [email protected] Woronka Deutsche Bank (212) 250-9376 [email protected] Hightower Evercore ISI (212) 752-0886 [email protected] Grambling Goldman Sachs (212) 902-7832 [email protected] Hartwich Green Street (949) 640-8780 [email protected] Katz Jefferies (212) 323-3355 [email protected] Montour JP Morgan (212) 622-1111 [email protected] Dobson Nomura/Instinet (212) 310-5416 [email protected] Crow Raymond James (727) 567-2594 [email protected] Scholes SunTrust (212) 319-3915 [email protected] Farley UBS (212) 713-2060 [email protected] Rothman Susquehanna International Group (212) 514 4882 [email protected] Donnelly Wells Fargo (617) 603-4262 [email protected]

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