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
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