MCLEAN, Va.–Park Hotels & Resorts Inc. (“Park” or the “Company”) (NYSE: PK), which began publicly trading on the New York Stock Exchange as an independent company on January 4, 2017, today announced results for the fourth quarter and full year ended December 31, 2016. Highlights of the results include:

Fourth Quarter 2016 Results (as compared to Fourth Quarter 2015)

  • Pro-forma RevPAR was $155.20, a decrease of 0.8%
  • Net income was $17 million, a decrease of 75.4%, and net income attributable to Parent was $17 million, a decrease of 75.0%
  • Pro-forma Hotel Adjusted EBITDA margin was 26.5%, a decrease of 150 bps
  • Pro-forma Adjusted EBITDA was $184 million, a decrease of 2.6%
  • Pro-forma Adjusted FFO attributable to Parent was $143 million, a decrease of 7.7%

Full Year 2016 Results (as compared to Full Year 2015)

  • Pro-forma RevPAR was $161.15, an increase of 0.5%
  • Net income was $139 million, a decrease of 53.5%, and net income attributable to Parent was $133 million, a decrease of 54.5%
  • Pro-forma Hotel Adjusted EBITDA margin was 27.7%, a decrease of 110 bps
  • Pro-forma Adjusted EBITDA was $756 million, a decrease of 3.0%
  • Pro-forma Adjusted FFO attributable to Parent was $588 million, a decrease of 3.0%
  • Reduced debt by more than $1 billion

Thomas J. Baltimore, Jr., Chairman, President and Chief Executive Officer, stated, “We are excited to have completed the spin-off of Park Hotels & Resorts, which positioned us as the second largest lodging REIT, offering an attractive alternative to investors. The scale of our portfolio provides a strategic advantage for future growth through targeted single-asset and portfolio acquisitions. We have assembled a seasoned and experienced team of men and women to execute on our strategic priorities of aggressive asset management, prudent capital allocation and maintaining a strong and flexible balance sheet.” Mr. Baltimore continued, “We have a portfolio of irreplaceable, iconic assets that we are focused on maximizing and are well-positioned to grow and diversify our portfolio with upper-upscale and luxury hotels in our target markets.”

Selected Statistical and Financial Information

(unaudited, dollars in millions, except Pro-forma RevPAR and Pro-forma ADR)

Three Months Ended December 31, 2016 2015 2016 vs. 2015 Pro-forma RevPAR(1) $ 155.20 $ 156.52 (0.8)% Pro-forma Occupancy(1) 77.6 % 78.2 % (0.6)% pts Pro-forma ADR(1) $ 200.00 $ 200.09 (0.0)% Net income $ 17 $ 69 (75.4)% Net income attributable to Parent $ 17 $ 68 (75.0)% Pro-forma Adjusted EBITDA $ 184 $ 189 (2.6)% Pro-forma Hotel Adjusted EBITDA $ 177 $ 187 (5.3)% Pro-forma Hotel Adjusted EBITDA margin 26.5 % 28.0 % (150) bps Pro-forma Adjusted FFO attributable to Parent $ 143 $ 155 (7.7)%

(1) Excludes unconsolidated joint ventures.

Year Ended December 31, 2016 2015 2016 vs. 2015 Pro-forma RevPAR(1) $ 161.15 $ 160.28 0.5% Pro-forma Occupancy(1) 80.6 % 81.9 % (1.3)% pts Pro-forma ADR(1) $ 200.02 $ 195.82 2.1% Net income $ 139 $ 299 (53.5)% Net income attributable to Parent $ 133 $ 292 (54.5)% Pro-forma Adjusted EBITDA $ 756 $ 779 (3.0)% Pro-forma Hotel Adjusted EBITDA $ 750 $ 778 (3.6)% Pro-forma Hotel Adjusted EBITDA margin 27.7 % 28.8 % (110) bps Pro-forma Adjusted FFO attributable to Parent $ 588 $ 606 (3.0)%

(1) Excludes unconsolidated joint ventures.

2016 Operating Results: Top 10 Hotels

Pro-forma RevPAR for Park’s Top 10 Hotels, which accounts for approximately 65% of pro-forma Hotel Adjusted EBITDA, grew 0.6% for the year, driven by a 1.9% increase in rate, partially offset by a 1.0 percentage point decline in occupancy. For the fourth quarter, pro-forma RevPAR decreased 1.7%, resulting from a 1.5% decrease in rate and a 0.2 percentage point decrease in occupancy.

Hilton Waikoloa Village was the best performing hotel within the Top 10 Hotels in terms of RevPAR, experiencing growth of 14.3% due to strong in-house group demand. Parc 55 Hotel San Francisco and Hilton Hawaiian Village Beach Resort also experienced RevPAR growth with both having increases in RevPAR of 3.6% for the year. Hilton Chicago and Hilton New York Midtown were among the weakest performers during the year, with decreases in RevPAR of 7.3% in and 4.9%, respectively. Chicago was negatively impacted from a soft citywide calendar, while New York continues to face headwinds from increased supply growth.

2016 Operating Results: Total Consolidated Portfolio

Pro-forma RevPAR increased 0.5% for the year driven by a 2.1% increase in rate, mostly offset by a 1.3 percentage point decline in occupancy due to softer conditions in Chicago, New York, Orlando and Washington, D.C. For the fourth quarter, pro-forma RevPAR decreased 0.8% with a decline in occupancy accounting for most of the decrease. With rates essentially flat during the quarter, rooms revenue decreased 2.0%, although there continues to be healthy gains in food and beverage revenue with an increase of 2.2% driven by banquets and catering. Across major markets, Park’s hotels in Hawaii, which account for 24% of pro-forma Hotel Adjusted EBITDA, were the best performers in 2016 with pro-forma RevPAR growth of 5.9%, followed by Parc 55 Hotel San Francisco and Hilton San Francisco Union Square, which generated pro-forma RevPAR growth of 3.6% and 3.3%, respectively.

With respect to group, which accounts for approximately one-third of Park’s business, 2016 was challenging due to conditions in Chicago during the first half of the year, coupled with the impact of the Moscone Center renovation in San Francisco during the second half of the year.

Balance Sheet and Liquidity

Following a series of financing transactions in the fourth quarter of 2016, Park had the following debt outstanding as of December 31, 2016:

(unaudited, dollars in millions) As of Debt Collateral Interest Rate Maturity Date December 31, 2016 Fixed Rate Debt Unsecured notes Unsecured 7.50% December 2017 $ 55 Mortgage loan DoubleTree Spokane – City Center 3.55% October 2020 12

Commercial mortgage-backed securities loan

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

Commercial mortgage-backed securities loan

Hilton Hawaiian Village 4.20% November 2026 1,275 Mortgage loan Fess Parker’s DoubleTree Resort Santa Barbara 4.17% December 2026 165 Total Fixed Rate Debt(1)

$

2,232 Variable Rate Debt Revolving credit facility(2) Unsecured L + 1.50% December 2020 $ – Term loan Unsecured L + 1.45% December 2021 750 Mortgage loan DoubleTree Hotel Ontario Airport L + 2.25% May 2022 30 Total Variable Rate Debt

$

780

___________________

(1)

Excludes $14 million of capital lease obligations.

(2)

$1 billion revolving credit facility. Borrowings were not permitted until the consummation of the spin-off, effective January 2017.

Total cash and cash equivalents were $350 million as of December 31, 2016, including $57 million of restricted cash.

Park invested $227 million in 2016 on capital improvements, including $157 million on improvements made to guest rooms, lobbies and other guest-facing areas. Key projects include:

  • Hilton Chicago: $37 million primarily on rooms and meeting space renovations
  • Hilton New York: $33 million primarily on rooms and suite renovations
  • Hilton Hawaiian Village: $17 million primarily on retail renovations, meeting space and public area renovations
  • Hilton San Francisco: $12 million primarily on rooms and lobby renovations

To view full financial release and corresponding tables please visit: http://www.pkhotelsandresorts.com/news-and-events/press-releases/2017/03-01-2017-210110593