Investor Presentaiton slide image

Investor Presentaiton

3 Capital Allocation: Target Larger Scale Acquisitions Market Backdrop for Deals of Scale • Less competition exists on larger transactions as only a limited number of investors have access to equity needed to pursue $250+ million single assets Consequently, the share of deals pre-empted and executed off-market increases in conjunction with deal size, thereby enhancing the price negotiation leverage for an eligible buyer • Park's balance sheet and operating platform are well positioned to execute these larger transactions Summary of Eastdil First Round Bids 2014 to 2016 YTD Cap Rates for Full Service Transactions in Major Markets 2014 to 2016 YTD # of Deals Deal Size ($ in millions) $25 - $100 $100 - $250 $250+ 66 44 17 6.2% 258 386 790 6.7% 6.3% 6.2% 6.1% Avg. # of Rooms 5.7% Avg. Pricing ($mn) $62 $146 $504 Avg. Price per Key $316K $458K $674K 5.8% 5.5% 5.3% 5.2% 5.0% Avg. # of Bids 6.8 7.2 3.8 # of Pre-Empts 6 9 / Off-Market Deals Pre-empt/Off-Market Deals as a % of Total Deals $25 - $100 $100 - $250 $250 - $400 > $400 9% 20% 35% All Deals Unencumbered Encumbered 20| Source: Eastdil Secured and Real Capital Analytics PARK HOTELS & RESORTS 6.5%
View entire presentation